Downtown Dayton on track for 40 new apartments in June As reported by Kaitlin Schroeder, Staff Reporter, Dayton Business Journal. Retail leasing is currently underway for 20,000 SF first floor space at Wheelhouse Lofts.
Wheelhouse Lofts is the adaptive reuse of the historic Weustoff and Getz building, once used as a machine shop, tool room and assembly room for automobiles. The four-story building is being converted into 40 loft-style apartments with restaurant and retail space on the first floor. Troll Pub Under the Bridge, a 6,500 square foot bar and restaurant with a courtyard will be among the tenants. Aaron Savino with Miller-Valentine Group Realty Services is the retail leasing agent for the project. “There has been a lot of interest in this location. I expect a good tenant mix that will complement current retailers in the Oregon Arts District,” says Savino. Miller-Valentine Construction is managing the project for Louisville-based developer City Properties Group. Construction will be wrapping up early this summer.
Results from our 2017 Apartment Market Survey illustrate that the Dayton apartment market remained hot throughout 2016. The overall vacancy rate for the apartment market was 4.66% for the Greater Dayton Area and 4.47% for the Dayton Region, which includes Upper Valley, Middletown, Franklin-Springboro, Springfield, and Xenia. The Dayton CBD market remains the area’s tightest market with a vacancy rate at 2.64%, followed by the Dayton North, East and West markets. The regional market was led by the Upper Valley market, which had a vacancy rate of 1.99%. Further, according to PwC’s 2017 Real Estate Survey for the 1st Quarter of 2017, investment criteria for the national apartment market this quarter sits in the contraction phase of the real estate cycle. The outlook for average rent growth slipped a bit to 2.80%, while the average overall cap rate held at 5.26%. Over the next six months, half of investors foresee overall cap rates rising as much as 50 basis points while the balance foresees them holding steady. On a national level, apartment sales reached a record high in 2016. Download 2017 Apartment Market Report →
As reported by Jane Applegate, Research Director Dayton Business Journal March 12, 2017 The annual Commercial Real Estate Firms list was published this week in the Dayton Business Journal. Miller-Valentine Group Realty Services ranks first among 26 companies with 19 commercial realtors. See Full List
The Dayton area office market continued to show signs of further recovery in 2016 based on results from Miller-Valentine Group’s 4th Quarter Office Survey. The vacancy rate for the overall Dayton area office market decreased to 24.46%, with notable positive absorption in most markets. The overall market saw a positive absorption of 37,066 sqft. The most notable improvement in absorption was found in the suburban markets, which had a combined absorption of 168,447 sqft. in 2016. The South market showed the greatest activity, with over 91,000 sqft. absorbed. The North/West market, for the third consecutive year, represented the area’s strongest office market with a current vacancy rate of 17.59%, almost back to its pre-recession rate. A majority of the newly vacant space was observed in the CBD market, primarily within the PNC Center which had departures of tenants including PNC Bank (who relocated to the Water Street development). The CBD market showed a negative absorption of (131,381) sqft. and remains the area’s softest market due to the high vacancy in its Class B/C sector. The overall CBD vacancy is 34.46%. Notable office transactions for the Miller-Valentine Group Realty Services office team include: Leases Wells Fargo, Kettering Tower, 5,071 sqft. Faruki (more)
Below is a brief summary of the leading commercial real estate news articles for the Dayton region from January 9 – January 17, 2017. Sign up here to have these informative summaries sent directly to your inbox on a biweekly basis. January 9, 2017 Submarine House opened newest location in Washington Township The franchise-owned bar and grill is planning to open its largest location yet in Normandy Square Shopping Center The 4,000-square-foot restaurant will seat 150 inside. Aaron Savino with Miller-Valentine Group Realty Services represented the landlord. Downtown Dayton building demolished for big development The former office building at 122-124 N. Jefferson St. is being demolished to pave the way for the future home of the seven-story CareSource Center City building. Construction for the seven-story, 250,000-square-foot tower is expected to begin this year and open in 2019. January 10, 2017 Historic Germantown restaurant for sale Florentine Restaurant at 21 W. Market St. is up for sale for $489,900. The restaurant currently has an active liquor license, multiple dining areas, an updated kitchen and private event areas. January 13, 2017 New casual restaurant coming to Cornerstone of Centerville CoreLife Eatery, a new-to-the-market fast casual restaurant, signed a lease for a 3,600-square-foot freestanding restaurant building. CoreLife plans to open their new location (more)
According to our 2016 Retail Market Survey, the Dayton Area and Dayton Regional markets remained relatively stable during 2016, showing some positive signs of growth. Most submarkets showed an increase in occupancy. This decrease vacancy in the Dayton Regional Market to 15.11% during 2016 was mainly due to strengthening in the Springfield and the East and South Dayton submarkets. Within the Dayton Regional Market, a positive absorption of 67,116 square feet of space occurred during the 2016 survey period. Of the outlying regional submarkets, Springfield, Xenia and Lebanon-Middletown were the most active in 2016, with positive absorption and increasing occupancy levels. The vacancy rate for the Dayton Area Market (which includes the Dayton North, South, East, West, and CBD markets) fell to 13.26% during 2016, down from 13.92% in 2015. The Dayton Area Market experienced an overall net positive absorption of 92,535 square feet. The East Dayton market showed positive trends with over 120,000 square feet of positive space absorption in 2016. However, the Dayton North Market showed some signs of softening with vacancy rates increasing to 21.78%. The Dayton Central Business District and surrounding neighborhoods (especially those near the University of Dayton) continue to attract many commercial and entertainment (more)
Below is a brief summary of the leading commercial real estate news articles for the Dayton region from December 16 – January 1, 2017. Sign up here to have these informative summaries sent directly to your inbox on a biweekly basis. December 16, 2016 Hotel Developer purchased land in Huber Heights Laxmi Hospitality LLC bought the land at 8425 Brandt Pike for $265,000. The site sits just north of the I-70 and Route 201 interchange, near the $100 million Shoppes at The Heights retail and office project. December 21, 2016 New Hilton brand hotel planned for Huber Heights Image Hotel Management, an affiliate of Laxmi Hospitality LLC, is planning to develop a Tru by Hilton, a new mid-scale Hilton brand hotel, between Rose Music Center and Meijer. Construction for the four-story 98 room hotel is expected to begin around April or May. December 22, 2016 Dayton salon and gift shop to both expand Agnes & Orson and Goods, a gift shop near the University of Dayton, is relocating from Brown Street to The Cannery, making room for its upstairs neighbor, Square One Salon and Spa, to also expand. The salon will expand into the 1,200 square foot downstairs and potentially (more)
In its Emerging Trends in Real Estate report for 2017, the Urban Land Institute points to a “de-emphasis on ownership reflected in a soaring demand for rental units,” with the Millennial and Boomer/Empty Nester cohorts leading the way. According to the study, “more than half of the 12.5 million net new households created in the next decade will rent, including those who have never owned and those making the switch from owning to renting as they age.” What is driving the Millennials and Boomer/Empty Nesters into the high-end luxury apartment rental market? With roughly 10,000 exiting the workforce each day between now and the end of the next decade, Baby Boomers are retiring at the highest rate in history. They are shedding their homes and renting by choice—“Altering the American Dream,” says the Chicago Tribune, explaining, “(Boomers) are aspiring to live like urban Millennials—in rental buildings full of amenities and free of lawn mowing, shoveling, mortgages and property taxes.” Newer to the housing market are Millennials, the 18- to 34-year-olds who have surpassed Baby Boomers as the nation’s largest living generation. While, in the 1980s and 90s, this segment considered rental a short-term option before purchasing a house, today’s Millennials (more)
Below is a brief summary of the leading commercial real estate news articles for the Dayton region from September 28 – October 7, 2016. Sign up here to have these informative summaries sent directly to your inbox on a biweekly basis. September 28, 2016 Airport Deluxe Indoor RV Storage coming to Dayton area Airport Deluxe Indoor RV Storage, a new storage facility with units for large space users like boats, RVs, and camper trailers, will be opening near the Dayton International Airport. Plans for the project include four buildings which will be about 11,000 square feet with bays between 14 to 20 feet wide and 54 feet deep. The first phase of the project, which includes the construction of two out of the four buildings, will include 30 units in total. September 30, 2016 Access Ohio purchases downtown Dayton property Access Ohio, an Ohio-based mental health service, purchased three downtown Dayton properties. The mental health service bought 34-36 E. First St. near the corner of First and Jefferson for $336,000. In August, Access Ohio also bought two neighboring buildings at 40 E. First St. and 131 N. Jefferson St. October 3, 2016 UDF purchases property in Washington Township United Dairy (more)
The Dayton industrial market continues to make significant gains. Over the past year, the vacancy rate dropped to 12.22% from a reported figure of 13.96% in 2015. The industrial market has not reached rates this low since the early 2000s. The Upper Valley continues to lead the Dayton submarkets with a 4.92% vacancy rate, followed by East Dayton at 7.45% and North Dayton at 10.18%. The South Dayton market showed the greatest % improvement in 2016, absorbing over 300,000 sqft. of space. Now that quality space is limited, the Dayton industrial market is getting much tighter. Sale prices are continuing to rise and landlords are requiring longer lease terms at higher rates. The continued increase in construction pricing is further fueling the competition among tenants/buyers to find quality space at a reasonable rate. This increasing demand against an insufficient supply of class “A” industrial space will spur more build-to-suit projects in the region.
Below is a brief summary of the leading commercial real estate news articles for the Dayton region from June 8 – June 20, 2016. Sign up here to have these informative summaries sent directly to your inbox on a biweekly basis. June 8, 2016 Former Bob Evans Restaurant to become DaVita dialysis center The 6,200-square-foot building at 5680 Salem Bend Dr. in Trotwood will be renovated to accommodate the 12-station dialysis center. DaVita hopes to open the new location in the fourth quarter of this year and plans to hire four to six people initially. June 10, 2016 Tuesday Morning expanding in Town & Country shopping center Tuesday Morning, a discount home goods retailer, will be adding 3,900 square feet for a total of 14,000 square feet. Town & Country, the 222,000-square-foot shopping center in Kettering, is still in the middle of a redevelopment that includes renovating its facade, adding T.J. Maxx and Petco, and expanding Trader Joe’s and Joseph A. Bank. Shops by Todd relocating headquarters to downtown Dayton The retail chain will be moving its headquarters to the Water Street District. Shops by Todd will occupy 2,700 square feet of office space on the second floor of 312 (more)
Results from our 2016 Apartment Market Survey illustrate that the Dayton apartment market remains hot. The market continued to grow throughout 2015 and into 2016. The overall vacancy rate for the apartment market dropped to 4.24% for the Greater Dayton Area and fell to 4.09% for the Dayton Region, which includes Upper Valley, Middletown, Franklin-Springboro, Springfield, and Xenia. Positive absorption trends were observed in both the Greater Dayton Area and Dayton Regional markets, with 290 new apartment units being absorbed in the Greater Dayton Area and 439 units in the Dayton Regional market. The Dayton CBD market remains the area’s tightest market with a vacancy rate at 2.74%, followed by the Dayton East, North and South markets. The regional market was led by the Upper Valley market, which had a vacancy rate of 1.75%. Download the 2016 Apartment Market Survey →
Below is a brief summary of the leading commercial real estate news articles for the Dayton region from May 26 – June 3, 2016. Sign up here to have these informative summaries sent directly to your inbox on a biweekly basis. May 26, 2016 US Aeroteam looking to move into former Moraine GM plant US Aeroteam, a major local defense contractor, is planning to relocate from Grange Hall Road in Beavercreek into a portion of the former GM facility in Moraine. The company would be moving into the north-easternmost part of the 400-acre complex located at 2601 W. Stroop Road. US Aeroteam pledged to create 37 full-time jobs and $1.6M in new annual payroll by the end of 2019 at the new Moraine location. May 27, 2016 Good Samaritan Homes LLC moves into vacant Dayton warehouse The company that provides health care and packaging services plans to move to a long-vacant Dayton warehouse at 1784 Stanley Ave. The company is leasing the 77,000-square-foot warehouse, twice the size of its current location, from a Lexington-based developer. The new location will help the company pursue larger contracts, encourage growth and possibly create more than 100 new jobs. Xenia plans sale of former (more)
The 2016 I70/I75 Summit was packed with information on local, state and national economic development programs, projects and trends. Jay Williams, Assistant Secretary of Commerce, Economic Development Administration delivered the keynote address and was pleased with the positive vibe that he felt while in Dayton. He directed participants to www.eda.gov for information on the IMCP or Investing in Manufacturing Communities Partnership designation and the SOAR or the Southwestern Ohio Aerospace Region Manufacturing Community designations, both which provide potential incentives for our region. I gave Miller-Valentine Group’s comprehensive overview on everything from the latest vacancy rates, absorption, rental rates & sales info to development trends and a forecast for the future. Chris Knueven, President of Commercial Construction, predicted slow and steady growth in Dayton, led by activity in manufacturing. He backed up that statement with local and national information on wages, housing, unemployment, population, GDP and a forecast on construction spending by segment. Dave Williams, Vice President of Urban Development, talked about the millennial and baby boomers’ preference the urban lifestyle. Dave said, to be successful, development conversations need to be less about space and more about creating “place” in the urban areas of our region. National and local trends already (more)
The I-70/75 Development Association will hold its Regional Economic Development Summit on May 26 at the David H. Ponitz Sinclair Center, Sinclair Community College, Dayton, OH 45402. The event promises to build on the success of previous summits – a day of professional development, education and information sharing, and networking. The keynote speaker for the event is Jay Williams, US Assistant Secretary of Commerce for Economic Development. Williams is a recipient of the 2007 John F. Kennedy New Frontier Award and most recently appointed to serve as the Assistant Secretary of Commerce for Economic Development in May 2014. The Closing Session Speaker will be Dean Barber, President/CEO of Barber Business Advisors. Barber’s Dallas-based economic development consulting firm provides Fortune 500 and international companies with site selection analysis, strategic planning, industry target analysis, and business development. A number of break-out sessions will be held throughout the day, covering topics including: Dayton Regional Real Estate Update and Analysis 21st Century Libraries and their Impact on the Community Innovative Workforce Development Strategies & Programs Economic Development Project Financing Technology and How Work is Changing Miller-Valentine Group is participating in this year’s Summit, providing a Dayton market overview, trends in construction, trends in industrial (more)
The Dayton office market continued to show signs of recovery in 2015, based on results from Miller-Valentine Group Realty Services’ 4th Quarter Office Survey. The vacancy rate for the overall Dayton office market decreased to 25.25%, with notable positive absorption in all markets. The overall market saw a positive absorption of 152,442 sqft., particularly in the suburban markets, which had a combined absorption of 131,964 sqft. in 2015. For the second consecutive year, the East market showed the greatest activity, with over 78,000 sqft. absorbed in 2015. The CBD market showed a positive absorption of 20,478 sqft. Its Class A sector recorded over 45,000 sqft. of new space leased, offsetting the negative absorption seen in its Class B/C sector. The North market continued to represent the area’s strongest office market with a current vacancy rate below 20%, almost back to its pre-recession rate. The CBD market remains the area’s softest market due to the high vacancy in its Class B/C sector, which is currently over 41% vacant. Notable office deals for the Miller-Valentine Group Realty Services office team of Steve Ireland and Aaron Savino include: LEASES MCS Mortgage, 2 Prestige Place, 4,200 sqft. Arrow Electronics, Washington Park, 4,000 sqft. Beacon (more)
Real estate taxes can be one of the largest operating expenses when owning and operating commercial real estate. This expense could also have a significant impact on the valuation of your property. The market value placed on the land and buildings by the local taxing authority, the County Auditor, and the taxing district’s millage rate determine real estate taxes. For Ohio, millage rates are determined by the district voters and applied to the assessed value of the real estate (35% x Market Value). The county auditor re-appraises properties within the county every six years and performs an update, called the Triennial Update, every three years. Depending on where your county is in its cycle, the value determined for your property could be in effect for three years. The 88 Ohio counties have sent out notices of assessments which could result in changes to tax bills for the next few years. The county mass appraisal process often uses comparable sales of properties that occurred up to 3 years prior to the effective date of value and rental rates that do not take into consideration the particulars of your property. This means that they could be using data to value your property (more)
Miller-Valentine Group will be renovating NuVasive’s new facility, in preparation for the medical manufacturer coming to West Carrollton. NuVasive accepted the real estate group’s bid to renovate the property last Thursday and Miller-Valentine is currently seeking demolition permits to immediately start the project. “We think it will be a good, long-term relationship,” said Denny Whitehead, Miller-Valentine Group vice president of commercial construction. The renovation project is expected to cost around $5 million — part of San Diego-based NuVasive’s (NASDAQ: NUVA) plans to invest a total $45 million in renovations, additional work and new equipment at the former Motoman site. The company plans to move about 100 workers from Fairborn to the new facility and add 200 more in the next few years. Whitehead said they first plan to start work on renovating office space for NuVasive to interview employees in. Work also includes 66,000 square feet of existing space demolition, 25,000 square feet of new office space, 26,000 square feet of amenities and common space like a fitness center and training center, 88,000 square feet of renovated manufacturing space, modifications and improvements to existing HVAC and electrical systems, a new exterior entrance and an outdoor social area and barbecue deck. The (more)
The entity behind Southpaw Enterprises Inc.— a Dayton-based manufacturer of sensory integration dysfunction and neurodevelopmental equipment — recently purchased 2350 Dryden Road in Moraine for $3.5 million, according to county records. Alex Moore, president of Southpaw, said his company will invest roughly $500,000 to get the new space ready and hopes to move by April. Southpaw is currently in 38,000 square feet on North Irwin Street but has outgrown the facility. The new building is about 160,000 square feet and Southpaw will take about a third of the space. One tenant already is in the remaining space and Moore expects to add another. Southpaw has 42 employees and will likely be in hiring mode when it gets into bigger space. The move will also position it for long-term growth, which is good news for the overall Dayton region economy. “We’ve got a lot of good things we’ve been working on over the last few years and it’s kinda nice to see things finally coming to a head,” Moore said. “We’re starting to reap some of the rewards for projects that have taken three, four, five years to develop.” Southpaw’s equipment is typically used to help children with autism or any sensory (more)
The Dayton industrial market continues to make significant gains. Over the past year, the vacancy rate dropped to 13.96%, a record 5.43% decrease from the previous year. The industrial market has not reached rates this low since the early 2000s. Some of the positive movement in the market can be attributed to Procter & Gamble’s new 1.8 million-square-foot distribution facility in Union, the largest development project we’ve seen in the last decade. However, it is the combinations of all the smaller transactions of around 50,000-square-feet or less that led to the majority of positive absorption in the region’s industrial sector. This increase in activity indicates that the overall health of the market has improved greatly. Now that quality space is limited, the Dayton industrial market is getting much tighter. Sale prices are continuing to rise and landlords are requiring longer lease terms at higher rates. The continued increase in construction pricing is further fueling the competition among tenants/buyers to find quality space at a reasonable rate. This increasing demand against an insufficient supply of class “A” industrial space will spur more build-to-suit projects in the region. Some of the more notable transactions include: • Konecranes – 41,000 SF • DMAX (more)
In 2015, there are several emerging hotspots and trends identified in the Dayton Region that are expected to draw attention in the coming year and beyond. Hot property types in commercial real estate include industrial, healthcare, retail, multifamily and mixed-use developments which are all expected to be the big players in 2015. Conversely, the office market will continue to recover during 2015 at a moderate pace as owners aggressively lease vacant spaces and properties are re-positioned. Some hot locations in the region include the North Market (along I-70 and I-75), which is expected to see expanding growth due to the specialized manufacturing and logistics markets. In South and Southeast Dayton, areas along I-75 and I-675 are expected to continue to prosper especially near the Wilmington Pike interchange, with Oberer’s “Cornerstone” Development and at Austin Boulevard with RG Properties “Austin Landing” development. Medical campuses like Miami Valley South Hospital along Wilmington Pike and the Good Samaritan campuses in the north and northwest markets are also expected to see growth as these campuses continued planned expansions. Finally, the urban area near downtown including the Water Street, Webster Street Station and Oregon Districts, as well as the new development around UD and UD’s Innovation (more)
In today’s economic climate the old adage of a penny saved is a penny earned, takes on even more significance. Real estate taxes can be one of the largest operating expenses when owning and operating commercial real estate. This expense could also have a significant impact on the value of your property. The county auditor is responsible for assigning a market value for all of the individual properties in the county. Every six years the county auditor appraises all of the properties to determine their market value. Every three years, the county auditor does an update known as the Triennial update. The 88 Ohio counties have sent out notices of assessments which could result in changes to your or your clients’ tax bills for the next few years. Review your assessment carefully to see if your taxes are consistent with market valuations. The county mass appraisal process often uses comparable sales of properties that occurred up to 3 years prior to the effective date of value. This means that they may be using historical sales to value your property, which may or may not be relevant. If you think your assessment is above the fair market value of your property, (more)
Miller-Valentine Group Realty Services has been awarded the marketing contract for the sale and leasing of the existing office and industrial space at the Mound Business Park (www.mound.com) in the City of Miamisburg. This assignment also includes the marketing of nearly 200 acres of shovel-ready sites available for new development within the park. The Mound Business Park is a 300-acre park, with 16 buildings on the site. Available space includes 218,000 SF of industrial and lab space and 104,000 SF of office space. A notable deal already completed this year by the Miller-Valentine Realty Services team includes the lease of 12,000 sqft. of office space to Barge, Waggoner, Sumner & Cannon Inc. The MVG Realty Services team of Gerry Smith and Aaron Savino, are in the final negotiations to sell one of the buildings and have offers out on a second building for sale. Available space includes a tool and die facility, a 10,000 SF lab , 121, 000 SF underground research facility with multiple bomb blast resistant entrance doors and an 84,000 SF office building. For more information, please contact Gerry Smith at [email protected], or by phone at 937-297-9368.
The Dayton office market continued to show signs of recovery in 2014, based on results from Miller-Valentine Group Realty Services’ 4th Quarter Office survey. The vacancy rate for the overall Dayton office market remained stable at 26.03%, with notable positive absorption trends in both the East Dayton and North markets. After several years of struggle from the shake out of defense cuts and consolidations in the defense industry, the East Dayton market showed the greatest activity with over 150,000 sqft. absorbed in 2014. The most notable deal in the East market during 2014, was the Berry Company relocating to the Miami Valley Research Park from its former Moraine headquarters. The North market, recently the weakest suburban market, now represents the area’s strongest office market, with a current vacancy rate of 20.99%, a nearly 10% decrease from 2010. The CBD market remains the area’s softest market, with a 32.74% vacancy rate, which was relatively unchanged from the previous year. Notable office deals for the Miller-Valentine Group Realty Services office team of Steve Ireland and Aaron Savino include: North Market • Infotel, 10,000 sqft. Lease • Access Independent Living, 9,000 sqft. Lease • LFL Insurance, 3,000 sqft. Lease South Market • Volunteers (more)