Looking Up

Before the Federal Reserve’s interest rate cut last month, commercial real estate activity was already picking up with nearly $60 billion in transaction volume in the second quarter – and it looks like increased activity may continue into the new year. The figure represents a 31% bump from the first three months of the year, according to CoStar Group Inc. Another third-quarter survey of industry participants by commercial real estate company Altus Group showed the percentage of those “deploying capital” as a primary focus over the next six months surged 11 percentage points from the previous quarter. Confidence is building because of the recent rate cut and more cuts are expected, said Art Jones of Principal Asset Management. Despite some overbuilding, apartments and industrial properties are high on investor’s radars, said Jones. Data centers, industrial outdoor storage and single-family rentals are also drawing investors.

Dublin city officials revealed plans and renderings for a reimagined 210-acre Metro Center office district. Officials said the suburban office park model did well for a long time but has had an increasingly challenging time competing with more walkable mixed-use vibrant areas. The city said Metro Center is composed of legacy office buildings separated by seas of parking lots and is largely devoid of restaurants. “So, we’re thinking about how we can bring those back to help support the existing workforce,” said Chris Will, a senior planner with the city. Key features of the new Metro Center would include multifamily development with a water feature running through the district that will rework and extend some of the ponds, which the city hopes will be the centerpiece of the new district. The district will also include new types of office spaces, said Will.?

The new John Glenn Columbus International Airport terminal is more of a need than a want. According to Columbus Regional Airport Authority President and CEO, Joe Nardone, the terminal’s repair costs are increasing, parts are harder to come by and the terminal lacks the modern features that passengers and airlines expect. The new terminal, though similar in size, will be configured differently, allowing for the ability to handle different-sized aircraft, including the largest, with an eye toward flights to Europe and other international destinations. It will also have 36 gates instead of the current 29 and can accommodate up to 13 million passengers - which the airport forecasts to hit 20 years after the new terminal opens. The biggest difference will be the new, single concourse that will replace the existing concourses, eliminating multiple security gates, concession and waiting areas. The new terminal is expected to be completed in 2029, just in time to celebrate the airport’s 100th anniversary.?

This week, $3 billion in data center investment was announced. Microsoft announced that it plans to expand its cloud infrastructure and will spend $1 billion developing three data center campuses in New Albany, Heath and Hebron. The project will receive an estimated $72.5 million in incentives starting in 2027 and was approved by the Ohio Tax Credit Authority this week. Denver-based Vantage Data Centers said that it would spend more than $2 billion on its OH1 campus , which will include three hyperscale data centers at Silicon Heartland Innovation Park in New Albany. The first building on the 1.5 million-square-foot data center campus is slated to open in late 2025 with additional phases planned through 2028. Vantage data centers will be built using its “sustainable by design” blueprint, part of the company’s commitment to achieving net zero operational carbon emissions by 2030 across its global portfolio.

Columbus State Community College is planning to optimize its campus by investing nearly $50 million in renovations which will facilitate the creation of modernized classrooms and specialized labs for semiconductor, biotechnology, healthcare, EV battery and automotive education. The majority of the funding will be spent on the renovation of Franklin Hall which currently houses a mix of administrative offices, classrooms and labs. The $35 million project will be the college’s largest classroom renovation to date, according to CSCC. Proceeds from voter-approved bond issuance and state capital dollars will fund the project – part of the college’s capital plan to renovate all its classrooms over 10 years. “It’s going to be a catalyst for much greater and rapid change in our ability to give our students the best possible learning environment,” said Martin Maliwesky of Columbus State. Franklin Hall’s renovation and other projects will help bring programs that have grown over time and been fragmented into different buildings back together, he said. Franklin Hall will close beginning the summer of 2025 and is expected to reopen by the 2027 spring semester.