The vacancy rate in the Dayton market continues to remain low at 11.4%. The result has been less flexibility from property owners, meaning higher lease rates and longer lease terms. Industrial users have found it increasingly difficult to find viable properties with favorable terms. Much of the remaining inventory lacks required features, is located in challenging areas or requires extensive tenant improvements. As predicted in the last year’s survey, the decline in industrial vacancy has finally generated some speculative building, and multiple projects are in the planning stage. The projects include bulk warehouse buildings ranging in size from 250,000 SF to over 500,000 SF primarily in the North market near the airport where Procter & Gamble and Spectrum Brand are located. This location, with its access to I-70 and I-75, readily available land and in some cases tax abatement, continues to draw attention from developers new to our market. We see no reason why at least one of these projects won’t get started within the next 6-12 months. Additionally, we believe owners of existing facilities will be making improvements to their inventory and buyers of older product will be providing necessary upgrades to make their facilities more appealing to users. (more)
What to know before you sign: Understanding leasing options for commercial spaces Looking to lease commercial space? There are several lease options available on the commercial market—and none of them are created equal. Before you sign on the dotted line, make sure you understand what you are signing. “The building you lease should help you run your business more efficiently or profitably,” says Miller- Valentine broker Steve Ireland. “To ensure those goals are met, tenants need to understand different leasing options and how to determine the best fit for their business.” Three primary leasing options Most commercial lease structures fall into three categories: triple net (also known as NNN), full service, and modified gross. Triple-net leases tend to be more prevalent with retail and industrial businesses. With a triple-net lease, the tenant is responsible for paying property taxes, insurance, and operating expenses (the three “nets” in triple net). Single-net and double-net leases are also common, in which tenants pay for only one or two of the nets. In multi-tenant buildings, tenants typically pay a portion of these expenses based on the amount of square footage they occupy. With a triple-net agreement, expenses may fluctuate throughout the year, which can make (more)
Welcome CT Consultants to downtown Dayton — Miller-Valentine Group Associates welcome you to the Barclay Building. We’re glad Steve Ireland from our Realty Services team created an opportunity for you to grow your business within the Barclay Building. Best wishes for your continued success. Consulting firm moving to downtown Dayton
Welcome Eric Ditmer and Anthony Wartinger, Owners of Jetpack to Downtown Dayton! They recently worked with Steve Ireland from our Realty Services team and quickly identified the perfect location to grow their business. Miller-Valentine Group appreciates the quality service and expertise you have provided on the many projects you have completed for us, and we look forward to collaborating on the redesign of our website. Best wishes for your continued success. https://www.bizjournals.com/dayton/news/2017/07/26/downtown-dayton-building-getting-2-new-tenants.html
Considering a new location for your industrial space? There are many things to consider before making a decision that will have a major impact on your business, your customers, and your bottom line. Below are five of the most important considerations to take into account when relocating your industrial space. 1. TIMING & PLANNING Allow yourself enough time to negotiate before your current lease expires. Depending on the size of your facility, we recommend that you start the process 18 months to 1 year prior to the end of your lease or your expected move-in date. Once you have identified a new facility it will take a minimum of 6 months to negotiate and relocate. Before starting the site selection process review your corporate strategic plan and vision. Sometimes companies lose sight of their strategic plan during the site selection process. They get diverted by enticing incentives, quality of life considerations, or some other element. While these factors are important, they are secondary. Remember, no matter how attractive they may seem, they will not turn a weak site into a suitable site. Companies should be asking themselves the following questions: Where does your leadership team see the company in the next 5 to 10 years? Do you (more)
Planning an office move? There are many things to consider before making a decision that will have a major impact on your business, your customers, and your bottom line. Below are five of the most important considerations to take into account when relocating your office: TIMING The amount of time it will take to find and move to a new office location is proportional to the amount of space and amenities that you need. The key is to allow yourself enough time to negotiate and move before your current lease expires. In general, tenants looking for less than 10,000 square feet of space in the Dayton region should begin their search 7 to 9 months ahead of time. If over 10,000 square feet of space is required businesses should begin their search anywhere from 9 to 18 months before their current lease expires. SQUARE FOOTAGE Will the space that works for you now work for you in the future, or do you anticipate growth? Future employees should be factored into the equation. A good rule of thumb is to allow approximately 200 rentable square feet per person, which is about the size of a 14’ x 14’ room. While this (more)
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)
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)
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)
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.
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 →
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.