starbucks & chipotle new 2017 construction · 2018-01-08 · current occupancy 100.0% year...
TRANSCRIPT
STARBUCKS & CHIPOTLE NEW 2017 CONSTRUCTION
Grove City (Columbus MSA), OH
Offering Memorandum
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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to
be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other
person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to
provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of
interest in the subject property. The information contained herein is not a substitute for a thorough due diligence
investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with
respect to the income or expenses for the subject property, the future projected financial performance of the
property, the size and square footage of the property and improvements, the presence or absence of contaminating
substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the
improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or
intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure
has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not
verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding
these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the
information provided. All potential buyers must take appropriate measures to verify all of the information set forth
herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017
Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in
this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply
affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or
subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for
the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
STARBUCKS & CHIPOTLE NEW 2017 CONSTRUCTION
Grove City, OH
ACT ID Y0320280
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TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Regional Map
Aerials
Site Plan
FINANCIAL ANALYSIS 02Tenant Summary
Operating Statement
Pricing Detail
MARKET OVERVIEW 03
Demographic Analysis
Market Analysis
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INVESTMENT
OVERVIEW
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EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Walmart 1,300
Ohio Department of Health 900
Correctional Reception Center 544
Decisionone 502
Fedex 500
Ohio Auto Auction 450
Pickaway Correctional Instn 450
Nationwide 352
Tigerpoly Manufacturing Inc 350
Tosoh America Inc 350
Meijer Inc 327
South- Western City School Dst 325
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2016 Estimate Pop 1,386 26,147 66,038
2010 Census Pop 1,231 23,410 59,776
2016 Estimate HH 637 9,717 23,569
2010 Census HH 570 8,727 21,394
Median HH Income $81,410 $71,175 $66,783
Per Capita Income $45,236 $31,725 $28,648
Average HH Income $98,139 $85,136 $79,111
VITAL DATA
YEAR 1 YEAR 6
Price $3,077,000 CAP Rate 5.30% 5.83%
Down Payment 100% / $3,077,000Net Operating Income
$163,080 $179,388
Loan Type All CashNet Cash Flow After Debt Service
5.30% / $163,080 5.83% / $179,388
Gross Leasable Area (GLA) 4,528 SF Total Return 5.30% / $163,080 5.83% / $179,388
Price/SF $679.55
Current Occupancy 100.0%
Year Built / Renovated 2017
Lot Size 1.21 acre(s)
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MAJOR TENANTS
TENANT GLA LEASE EXPIRATION LEASE TYPE
Chipotle 2,240 7/31/2027 NNN
Starbucks 2,288 11/30/2027 NNN
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OFFERING SUMMARY
Brand New 2017 Construction Chipotle & Starbucks with Drive-Thru
10-Year NNN Leases Featuring 10% Increases Every 5 Years
Under Construction $355 Million Hospital in Vicinity - Opening 2018
Located Directly off I-71 & S.R. 665 off Signalized Corner
62,680 Daily Cars at I-71 Interchange / Over 17,900 Daily Cars Past Site
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to exclusively present for sale Grove City Gateway Retail, a new construction, 4,528 square foot two-tenant shopping center located approx. 11
miles south of the city center of Columbus, OH and only approx. 13 miles (15 minute driving time) to the Ohio State University. Grove City Gateway Retail is 100% triple net
leased to two tenants; Starbucks with a drive-thru and Chipotle are under 10-year base term leases with ten percent rent escalations every five years. The newly developed
parcel is also under a 15-year tax abatement on the site’s improvements. The shopping center is currently under construction and the tenants will be open in Summer 2017.
Grove City Gateway is situated directly off of I-71 and S.R. 665 (London-Groveport Road) Interchange at the signalized intersection off S.R. 665 and North Meadows Drive in
the heart of the Grove City submarket. I-71 is a north-south interstate highway running the entire length of the state of Ohio servicing the Columbus metropolitan area with
over 80,000 vehicles per day at the I-71 Interchange and S.R. 665. I-71 is currently undergoing a widening by an extra lane in each direction by the Ohio Department of
Transportation as part of a $37 million project expected to be complete summer of this year.
Situated on a 1.209+/- acre site, the subject property is located in a diverse business, residential, and retail trade area with superior visibility, frontage and access with ample
59 parking spaces. The immediate area features a Kroger & Meijer grocery stores, Mount Carmel Urgent Care, CVS, Goddard School, Huntington Bank, WesBanco Bank, Key
Bank, McDonalds, Subway, Arby’s, Tim Hortons, Wendy’s, Tire Discounters, Taco Bell, Jimmy John’s, Sunny Street Cafe, AT&T, and Petland & Adoption Center.
Mount Carmel Health Systems has a $355 million major hospital under construction with 210 beds and 1,500 new jobs. Mount Carmel Grove City, set to open next year, will
consist of a 24-hour 37,000-square-foot emergency department, including a women’s health center, in addition to a separate 54,000-square-foot medical office tower, home
to primary care and specialty physicians, along with outpatient services like physical therapy and cardiac rehabilitation.
INVESTMENT OVERVIEW
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OFFERING SUMMARY
Within just a 1-mile radius, there is a plethora of companies including, FedEx Ground (500 employees), Tigerpoly Manufacturing (350 employees), Meijer (327 employees),
Buckeye Ranch (250 employees), Gap (200 employees), along with T. Marzetti (122 employees). The population is over 66,000 within a five mile radius and the average household
income is over $79,000.
Columbus is the capital of and the largest city in Ohio. It is the 15th largest city in the United States with a population of 822,553 (2013 estimate). In addition, it is also the fourth
most populous state capital in the United States and the third largest city in the Midwestern United States.
The city has a diverse economy based on education, government, insurance, banking, fashion, defense, aviation, food, clothes, logistics, steel, energy, medical research, health
care, hospitality, retail, and technology. Columbus is home to the Battelle Memorial Institute, the world's largest private research and development foundation, Chemical
Abstracts Service, the world's largest clearinghouse of chemical information, NetJets, the world's largest fractional ownership jet aircraft fleet, and The Ohio State University, one
of the largest universities in the United States. As of 2013, the city has the headquarters of five corporations in the U.S. Fortune 500: Nationwide Mutual Insurance
Company, American Electric Power, L Brands, Big Lots and Cardinal Health. The fast-food corporations Wendy's, and White Castle are also based in Columbus as fast food
companies love Columbus as a test market.
In 2012, Columbus was ranked in BusinessWeek's 50 best cities in America. In 2013, Forbes gave Columbus an A rating as one of the top cities for business in the U.S., and later
that year included the city on its list of Best Places for Business and Careers. Columbus was also ranked as the no. 1 up-and-coming tech city in the nation by Forbes in 2008, and
the city was ranked a top ten city by Relocate America in 2010. In 2007, FDi Magazine ranked the city no. 3 in the U.S. for cities of the future, and the Columbus Zoo and
Aquarium was rated no. 1 in 2009 by USA Travel Guide. Columbus was also ranked 9th fastest growing city in America in 2012 and 6th American city with the most activities
dedicated to culture and recreation by Business Insider.
INVESTMENT OVERVIEW
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PROPERTY SUMMARY
OFFERING SUMMARY
THE OFFERING
Property Starbucks & Chipotle New 2017 Construction
Price $3,077,000
Property Address 3015 Meadow Pond Ct,Grove City,OH
Assessors Parcel Number 040-013250-00
Zoning Commercial
SITE DESCRIPTION
Number of Stories 1
Year Built/Renovated 2017
Gross Leasable Area 4,528 Square Feet
Ownership Fee Simple
Lot Size 1.21 Acres
Parking 59 Spots
Parking Ratio 13:1,000 Square Feet
Topography Flat
Access Points Multiple
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NEW MOUNT CARMEL HOSPITAL RENDERING
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NEW MOUNT CARMEL HOSPITAL CONSTRUCTION
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REGIONAL MAP
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PROPERTY PHOTOS
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PROPERTY PHOTOS
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PROPERTY PHOTOS
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PROPERTY PHOTOS
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PROPERTY PHOTOS
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UNDER CONSTRUCTION AERIAL
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UNDER CONSTRUCTION AERIAL
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SITE PLAN
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FINANCIAL
ANALYSIS
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FINANCIAL ANALYSIS
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TENANT SUMMARY
Term PSF Monthly
Current 1-5 $37.50 $7,150.00
Bump 6-10 $41.25 $7,865.00
Option 1 11-15 $45.37 $8,650.55
Option 2 16-20 $49.90 $9,514.27
Option 3 21-25 $54.89 $10,465.69
Option 4 26-30 $60.37 $11,510.55
Term PSF Monthly
Current 1-5 $34.50 $6,440.00
Bump 6-10 $37.95 $7,084.00
Option 1 11-15 $41.75 $7,793.33
Option 2 16-20 $45.92 $8,571.33
Option 3 21-25 $50.51 $9,428.53
Option 4 26-30 $55.56 $10,371.20
STARBUCKS CHIPOTLE
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FINANCIAL ANALYSIS
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OPERATING STATEMENT
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FINANCIAL ANALYSIS
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PRICING DETAIL
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TENANT SUMMARY
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Chipotle Mexican Grill, Inc.
CREDIT RATING: B1
Overview for the first quarter of 2017 as compared to the first quarter of 2016
• Revenue increased 28.1% to $1.07 billion • Comparable restaurant sales increased 17.8%• Restaurant level operating margin increased to 17.7% from 6.8% • Net income was $46.1 million, improved from a net loss of $26.4 million • Diluted earnings per share was $1.60, improved from net loss per share of $0.88 • Opened 57 new restaurants
PRICING AND VALUATION MATRIX
PROPERTY NAMESTARBUCKS & CHIPOTLE NEW 2017 CONSTRUCTION
PRICING AND VALUATION MATRIX
PROPERTY NAMESTARBUCKS & CHIPOTLE NEW 2017 CONSTRUCTION
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TENANT SUMMARY
Chipotle Mexican Grill is a popular quick-service restaurant chain. The company owns and operates more than 2,000 quick-casual eateries popular for
their burritos and other Mexican food items. Chipotle customers can build a 1-1/4 pound burrito from a lineup that includes chicken, steak, barbecue
or free-range pork, as well as beans, rice, guacamole, and various other veggies and salsas. The company claims that with extras, its menu offers
more than 65,000 choices. Chipotle restaurants also serve soft tacos, crispy tacos, chips and salsa, beer, and margaritas.
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TENANT SUMMARY
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Starbucks Corporation
CREDIT RATING: A2
Overview for the second quarter of 2017
• Global comparable store sales increased 3%• Americas comp store sales increased 3%• Consolidated net revenues grew 6% to a Q2 record $5.3 billion• Consolidated operating income increased 8% to a Q2 record $935 million• Consolidated operating margin expanded 40 basis points to a Q2 record 17.7%• Total stores reached 26,161 in 75 countries globally• Opening of 427 net new stores in the quarter
PRICING AND VALUATION MATRIX
PROPERTY NAMESTARBUCKS & CHIPOTLE NEW 2017 CONSTRUCTION
PRICING AND VALUATION MATRIX
PROPERTY NAMESTARBUCKS & CHIPOTLE NEW 2017 CONSTRUCTION
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TENANT SUMMARY
Wake up and smell the coffee -- Starbucks is everywhere. The world's #1 specialty coffee retailer, Starbucks has more than 25,000 coffee shops in 75
countries. The outlets offer coffee drinks and food items, as well as roasted beans, coffee accessories, and teas. Starbucks operates more than 12,700
of its own shops, which are located mostly in the US, while licensees and franchisees operate roughly 12,375 units worldwide (including many
locations in shopping centers and airports). In addition, Starbucks markets its coffee through grocery stores, food service customers, and licenses its
brand for other food and beverage products.
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MARKET
OVERVIEW
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PROPERTY NAME
MARKETING TEAM
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DEMOGRAPHICS
Source: © 2016 Experian
Created on December 2017
POPULATION 1 Miles 3 Miles 5 Miles
2021 Projection
Total Population 1,551 28,558 71,259
2016 Estimate
Total Population 1,386 26,147 66,038
2010 Census
Total Population 1,231 23,410 59,776
2000 Census
Total Population 814 17,160 47,659
Current Daytime Population
2016 Estimate 1,374 26,819 58,494
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
2021 Projection
Total Households 721 10,694 25,802
2016 Estimate
Total Households 637 9,717 23,569
Average (Mean) Household Size 2.73 2.59 2.59
2010 Census
Total Households 570 8,727 21,394
2000 Census
Total Households 366 6,354 15,949
Occupied Units
2021 Projection 721 10,694 25,802
2016 Estimate 644 9,921 24,156
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
2016 Estimate
$150,000 or More 9.07% 7.35% 6.18%
$100,000 - $149,000 23.86% 20.73% 18.50%
$75,000 - $99,999 20.75% 17.57% 17.00%
$50,000 - $74,999 20.02% 19.30% 21.60%
$35,000 - $49,999 12.96% 12.27% 13.00%
Under $35,000 11.47% 21.41% 22.68%
Average Household Income $98,139 $85,136 $79,111
Median Household Income $81,410 $71,175 $66,783
Per Capita Income $45,236 $31,725 $28,648
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles
Total Average Household Retail Expenditure
$75,837 $70,824 $68,851
Consumer Expenditure Top 10 Categories
Housing $18,377 $17,253 $16,867
Transportation $13,118 $12,147 $11,837
Shelter $9,823 $9,348 $9,184
Food $8,975 $8,336 $8,170
Personal Insurance and Pensions $7,181 $6,469 $6,290
Health Care $5,518 $5,042 $4,790
Utilities $4,366 $4,099 $4,013
Entertainment $3,622 $3,314 $3,229
Apparel $3,575 $3,158 $3,023
Cash Contributions $2,432 $2,114 $1,912
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Population By Age
2016 Estimate Total Population 1,386 26,147 66,038
Under 20 28.71% 27.42% 26.09%
20 to 34 Years 13.47% 16.59% 20.51%
35 to 39 Years 5.84% 6.19% 7.02%
40 to 49 Years 15.75% 14.95% 14.67%
50 to 64 Years 21.37% 20.65% 19.27%
Age 65+ 14.87% 14.21% 12.45%
Median Age 41.37 39.85 37.43
Population 25+ by Education Level
2016 Estimate Population Age 25+ 929 17,745 45,061
Elementary (0-8) 0.68% 1.22% 1.66%
Some High School (9-11) 2.85% 5.57% 8.83%
High School Graduate (12) 32.84% 33.31% 35.08%
Some College (13-15) 25.61% 25.41% 23.38%
Associate Degree Only 11.29% 8.82% 8.61%
Bachelors Degree Only 18.10% 17.21% 14.97%
Graduate Degree 8.42% 8.05% 6.86%
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MARKET OVERVIEW
Columbus is a national transportation and distribution hub, with nearly 60 percent of the U.S. population within
an eight-hour driving radius. Interstates 70 and 71 intersect in Columbus, while I-270 forms a beltway around
the metro and I-670 bisects the city.
Port Columbus International Airport, located east of downtown, is the primary passenger facility. General
aviation airports Bolton Field and OSU Don Scott also provide air service. Rickenbacker International is one of
the world’s few international airports primarily dedicated to cargo transport. Freight rail service to the airport
and throughout the region is offered by CSX and Norfolk Southern railways.
Central Ohio Transit Authority provides bus service throughout Franklin County and portions of Delaware,
Fairfield, Licking and Union counties.
Infrastructure
The Columbus Metro is:
190 miles from Detroit
360 miles from Chicago
405 miles from Washington, D.C.
570 miles from Atlanta
Airports
Port Columbus International Airport
Rickenbacker International
OSU Don Scott and Bolton Field general
aviation airports
Major Roadways
Interstates 70, 71, 270 and 670
Highways 23, 33 and 62
Rail
Freight – CSX and Norfolk Southern
The Columbus metro contains a population of nearly 2 million people and comprises eight counties: Delaware,
Licking, Fairfield, Pickaway, Union, Morrow, Madison, Perry, Hocking and Franklin. The metro’s population will
increase 5.0 percent over the next five years, slightly above the national rate. Columbus, the capital city, also
has the largest population with 829,200 residents.
Metro
Largest Cities in Metro by Population
Columbus 829,200
Newark 48,100
Dublin 44,800
Lancaster 39,500
Grove City 38,900
Westerville 38,800
* Forecast
Sources: Marcus & Millichap Research Services; U.S. Census
Bureau; Experian
COLUMBUS
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MARKET OVERVIEW
Relatively diverse employment opportunities, Columbus’ designation as the state
capital and the presence of Ohio State University provide a strong foundation for
healthy local economic activity.
Major corporations are drawn to Columbus’ lower business costs, stellar
education system and strategic location. The metro is home to four Fortune 500
companies, L Brands, Cardinal Health, American Electric Power and Nationwide,
as well as many regional and subsidiary operations.
Columbus has a strong tradition of nurturing local enterprises into national and
global powerhouses. Wendy’s and L Brands, both headquartered in Columbus,
support thousands of jobs in the metro and are involved in community
development.
Information technology is a growing sector in Columbus with the recent addition
of IBM’s Client Center for Advanced Analytics. A collaborative partnership with
Ohio State University will draw and train workers in a business and technology
curriculum, preparing workers for data analytics jobs.
The housing sector in Columbus is improving. More than 7,300 residential
building permits were issued in 2015, and home sales are trending higher.
Economy
* Forecast
Sources: Marcus & Millichap Research Services; Bureau of Economic
Analysis; Moody's Analytics; U.S. Census Bureau; Fortune
COLUMBUS
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MARKET OVERVIEW
Columbus’ standing as the state capital and Ohio State University’s impact on the local economy have helped the region remain popular with relocating and expanding
companies. The metro houses a number of nationally and globally recognized corporations in a wide array of industries.
Honda of America Mfg. has been in the metro since 1979, when it started producing motorcycles in Marysville. The company has moved its North American headquarters
from Los Angeles to Marysville. Additional Honda facilities are located in the nearby communities of Anna and East Liberty. Honda employs a significant portion of local
residents.
Nationwide Insurance, already one of the largest private employers in Columbus, is expected to grow in the years ahead as the vast group of aging baby boomers utilizes its
financial and insurance products and services for retirement and investment planning.
L Brands, (formerly Limited Brands), one of Columbus’ most recognized local firms, is an integral corporate entity to the metro economy. The company employs thousands
at its corporate offices and retail outlets. Successful subsidiary organizations of L Brands, including Victoria’s Secret and Abercrombie & Fitch, also maintain corporate
headquarters in the metro.
Employers
Major Employers
JPMorgan Chase
Nationwide Insurance
Honda of America
L Brands
Nationwide Children’s Hospital
PNC Financial Services Group
Huntington Bancshares Inc.
Cardinal Health
American Electric Power
Express Script Holdings Co.
Alliance Data Retail Systems * Forecast
Sources: Marcus & Millichap Research Services; BLS; Moody’s
Analytics; Experian
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MARKET OVERVIEW
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COLUMBUS METRO AREA
2017 Market Forecast
Steady job creation and a decline in deliveries kept Columbus in 30th place
of this year’s NRI.
Employers add 21,000 workers in 2017, building on the 18,600 positions
created last year, when professional and business services dominated
growth.
Annual completions reach a five-year low, as less than half of last year’s 1.1
million square feet is scheduled to come online in 2017.
Stable net absorption and minimal deliveries drop vacancy to 4.4 percent
this year. The rate of compression slightly outpaces 2016, when the metro’s
vacancy rate contracted 40 basis points.
Limited leasable space translates to a second straight year of rent growth,
with average asking rent escalating to $12.33 per square foot. Rents
jumped 4.6 percent last year.
Buyer demand for existing properties near new residential development,
where new retail construction has yet to follow, escalates transaction
activity in downtown, the University District and the cities of Dublin
and Hilliard.* Forecast
Sources: Marcus & Millichap Research Services; CoStar Group, Inc.;
Real Capital Analytics
NRI Rank
30, no change
Employment
up 2.0%
Construction
456,000 sq. ft.
Vacancy
down 60 bps
Rent
up 2.5%
Investment
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