October 8, 2018 / By Dave Dickerson, President/Partner

Dayton Region Overview

Spotlight on Dayton, Ohio: Rising out of the Recession Stronger, Well-Positioned
By Dave Dickerson, President, Dayton Construction and Development

Struck with something of a “double whammy,” Dayton’s industrial and office real estate market has come through the recession and government-implemented budget sequestration stronger and well-positioned for continued growth.

Reality Check: As Greater Dayton’s dominant employer, the forced spending caps at Wright-Patterson Air Force Base effected not only WPAFB’s impact on our local economy but also had a trickle-down effect on its network of satellite businesses. When the recession led to the exit of General Motors and NCR from our market, jobs were lost and affiliated companies suffered too. Plus, market consolidation within the banking industry has led to a consolidation of the region’s banking sector—the closing of regional offices and consequent loss of employment. The region lost 34,800 jobs from 2007 to 2010. For the real estate community, the office and industrial markets were both hit hard.

The Good News: Dayton has now recovered all of those jobs—just not the same jobs—and is up 16,800 more. Driven by evolving industry needs and new technologies, the rising fortunes of logistics and healthcare-related enterprises, and a community rich with an eager, well-educated workforce, our region is on an upward trajectory. Companies are finding Dayton.

The industrial market is leading the resurgence. Industrial occupancy has been trending up to over 90%, from a low of 75% in 2011. Absorption trends for the region are showing a rapidly improving industrial market, with more than 3 million square feet of space leased since 2012 and nearly 3.5 million square feet of new construction since 2013.

Available Stock: New Users, New Uses

Dayton’s location at the crossroads of the I-70 and I-75 corridors continues to provide the region a marketable advantage. I-70 is the fifth longest system in the country and I-75 the second-longest north/south route. On the upswing, since 2012-2013, the region has seen some fairly dramatic backfill of available properties, fueled by several large “different use/new user” developments.

For example, the connectivity afforded by these interstates to a revived automotive industry in Detroit, Toledo, Northern Kentucky, and Honda plants in Ohio and Indiana, has attracted international attention. China-based Fuyao Glass Industry Group purchased and repurposed the vacated GM facility in Moraine. As the New York Times reported, Fuyao “decided the money was worth spending [in Dayton] to be close to its key customers, the big American-based automakers that buy millions of windshields each year. And it was not alone.”

The University of Dayton Research Institute acquired and now fully occupies the former NCR headquarters. Silfex Inc. has taken over an available Springfield manufacturing plant, bringing in hundreds of technical and production positions and a local investment of more than $200 million. And the fast-paced multifaceted development around the airport is another strong indicator of Dayton’s upturn.

Where is Dayton Trending?

Greater Dayton is achieving a level of growth not seen in a decade. From industrial and office space to this new focus on multifaceted multifamily housing developments, from the emergence of a thriving logistics industry to increased Defense spending, this region has come through some difficult years on the bright side by building on our strengths and embracing new opportunities.

For more information, contact Dave Dickerson, 937.293.0900.

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