Fate Follows Footsteps

Downtown Columbus can avoid the “urban doom loop” by supporting dense, mixed-use development and easily executable infill projects, according to one expert. Columbus’ “fundamentals are strong,” said Tracy Hadden Loh, who will be the keynote speaker for the Capital Crossroads and Discovery District Special Improvement Districts annual meeting. “The key for cities to recover right now is to be flexible” and to take steps that will reduce costs and incentivize development. Loh noted a strong demand for residential options in downtown Columbus and that the conversion of some downtown office buildings into apartments is a good way to meet that demand but added that new offices should continue to be built. “The reason why it’s important that downtowns still remain job centers is because office employment is typically four or five times as dense as residential in terms of square feet per person, and downtowns thrive on density,” she said. “That’s what supports transit. That’s what makes them fun. That’s what makes them vibrant. It’s not a good idea for cities to essentially permanently down-zone their downtowns by tilting them to residential,” Loh noted.

A new report issued by Prologis says that companies seeking logistics space should act soon. Despite a significant amount of space being added in Q3 2023 and the national vacancy rate rising, Prologis predicts that new space won’t last long, and rents will rise significantly as construction declines. Higher interest rates have forced customers to take a second look at their capital expenditures and inventory carry, taking longer to make decisions which has slowed the pace of leasing and brought net absorption to 42 million square feet in the third quarter from 49 million square feet in the second quarter, even as the volume of requirements remained elevated compared to historical trends, noted Prologis. Prologis expects vacancies to reach a historically low level in mid-2024. “We expect the window to act on the increased availabilities will be short, as speculative construction starts declined to the lowest level since Q2 2020,” the report stated adding that starts have turned into stops, or at least delays as replacement costs have been driven upward by rising material and labor expenses, increased capital costs, and tight lending conditions, creating scarcity in many markets.

Microsoft purchased 289 acres on Refugee Road in Pataskala, making it the company’s third purchase in Central Ohio this year. The tech giant paid $30.65 million for three parcels on the north side of Refugee Road between Mink Street and Etna Pkwy. in the Pataskala Corporate Park. Earlier this year, Microsoft purchased 183 acres on Beech Road for $57 million and 16 acres on Ganton Road for $4.7 million. Microsoft did not share its plans but suggested the Pataskala site would also be for data centers. According to data center tracking firm Baxtel, Columbus is the nation’s 14th largest data center hub with 40 data centers operated by 25 companies. Another report, issued last year by 42 Floors, ranked Columbus as the nation’s ninth-biggest data center hub.

Thrive Cos. is building housing for the Intel workforce with its first suburban development project which is being planned near New Albany. “There is a massive need for housing out that way. We need units near jobs, units near infrastructure,” said Charles Campisano, partner and senior vice president of legal and general counsel for Thrive Cos. Thrive purchased a 10-acre parcel at 7745 Walton Pkwy. from the New Albany Co. where it will develop a 408-unit residential project. The Moore’s Edge project will set aside some units as affordable, however, Thrive is working with the city to come to an agreement on exactly how many. Thrive hopes this will be the first phase of several for the project, with the first phase opening in 2025.?

Rapid 5, the nonprofit group with a mission of connecting Franklin County’s parks, trails and waterways, is establishing a land trust . “We’ve been really, over the last six months, involved in studying Central Ohio and where the opportunities may be to create an open-space system of some significance,” said Rapid 5 Board Chair, Keith Myers. That includes talking to landowners about conservation easements along rivers and streams, said Myers. “It would be to work with property owners. It wouldn’t always be to buy,” he explained. Myers said Rapid 5 hopes to partner with other municipalities, townships and park districts, not a competitor. ?