Ohio Retail Investment Report
Ohio Metro Area, Third Quarter 2017
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Income Growth in Ohio Metros Heats Investor Interest for Post-2000-Built Retail 

Pair of Ohio retail markets benefit from span of notable job gains while Cleveland plays catch up.  Consecutive years of robust hiring reduced Cincinnati’s and Columbus’ unemployment rate to around 4 percent as of midyear, supporting an increase in local retail spending. Home to a higher rate of unemployment, Cleveland will experience five-year-high job creation in 2017 fueled by an expanding education and health sector. Together the three metros will welcome a combined 9,200 apartments this year, with 5,000 units slated to come online in Columbus. This influx of multifamily stock will further benefit local shops by bolstering or creating areas of retail trade.

Grocers drive retail development; core-located construction slows.  Delivery volume in Cincinnati will increase this year, in part because of two new Kroger marketplaces, one adjacent to the University of Cincinnati and the other within a suburban master-planned community. The closer-in northeast suburb of South Euclid will drive construction activity in Cleveland during 2017, with Seasons Kosher Supermarket entering the submarket. Following a span of strong completions, delivery volume will moderate in Columbus during the second half of this year, although two Aldi stores will come online. Tight vacancy and minimal construction in each metro’s core will equate to higher-than-average rent growth, which will push overall asking rates.