REGIONAL ANALYSIS OF CINCINNATI OHIO

The subject property is located within the influence of the Greater Cincinnati PMSA (Primary Metropolitan Statistical Area).  A MSA is a
geographic area with a significant population nucleus, along with any adjacent communities that have a high degree of economic and
social integration with that nucleus. The Cincinnati-Middletown PMSA includes 15 counties in three states (Ohio, Kentucky, and
Indiana).  These counties are Warren, Hamilton, Clermont, Butler, and Brown (Ohio); Boone, Bracken, Campbell, Kenton, Gallatin,
Grant, and Pendleton (Kentucky); and Dearborn, Franklin, and Ohio (Indiana).  

The value of real property is influenced by the interaction of four basic forces. These forces include social trends, economic
circumstances, environmental conditions, and governmental controls and regulations. The interaction of these four forces influences the
value of every parcel of real estate in the market.

Social Trends
Social forces are trends that are exerted primarily through population characteristics. Real property values are affected not only by
population changes and characteristics, but also by various forms of human activity.


Population and Area:         Population growth trends influence employment growth, income levels, and many other key demand
parameters analyzed in determining commercial real estate productivity.

The PMSA has an overall increasing trend which is generally seen as beneficial to an area with respect to overall real estate value.


Higher Education:                                 
Institutions of higher learning typically are not as vulnerable to economic downswings, and they help to provide an area with a more solid
employment base. Institutions of higher learning typically are not as vulnerable to economic downswings and help provide an area with a
more stable employment base.  The Cincinnati PMSA has many universities and colleges.  University of Cincinnati is the largest with and
enrollment of ±33,000, followed by Miami University of Ohio with ±20,500, and Northern Kentucky University with ±12,500 students.  
There are five other colleges and universities as well as twelve additional local colleges and technical schools that serve the area.  





Recreational and Regional Attractions:         
Recreational and regional attractions enhance an area’s quality of life. These activities may also have a significant economic impact on
an area by increasing the demand for services and retail trade created by visitors.

The Cincinnati PMSA is home to a large number of cultural and entertainment opportunities.  Cincinnati Art Museum is one of many
museums in the area.  It offers special temporary exhibitions along with their usual displays.  The art museum even has a Cincinnati wing
that celebrates accomplishments of Cincinnati artists.  Cincinnati Museum Center is another museum in the area and it features a History
museum that includes Natural History, Science History, a Children’s museum, and an Omnimax theater.

Cincinnati is home to a National Football League team, the Cincinnati Bengals, and a Major League Baseball team, the Cincinnati Reds.  
The Cincinnati Bengals’, Paul Brown Stadium, covers ±22 acres and is 157 feet high.  The stadium has seating for 65,535.  The
Cincinnati Reds just opened a new field called The Great American Ball Park, which has a seating capacity of 42,059.


Economic Forces
Economic forces are the fundamental relationships between current and anticipated supply and demand and the economic activities in
which the population participates in order to satisfy its wants, needs, and demands through its purchase power.  

The chart below indicates the employment by sector for both the state and the MSA per the US bureau of labor.  As shown the overall
employment composition for both the MSA and state are similar and diverse indicating a stable economic base.









Industries:                
The twenty-nine largest employers in the Cincinnati PMSA are detailed in the chart to the right. The largest employer is the U.S
Government with 15,642 employees.  Other large employers include the University of Cincinnati, Kroger, Proctor & Gamble, and the
Health and Alliance of Greater Cincinnati. The largest employers are shown in the chart below.




Unemployment:                                
The following chart shows the historical unemployment rates for the MSA, state, and US from 2000 to 2008.  As shown, the
unemployment rate for the MSA is in line with the rates of the state and nation.  There has been an increase in unemployment for all
three in 2008.  




Environmental Forces
Environmental forces are both natural and manmade forces that influence real property values. Some environmental forces include
climactic conditions, natural barriers to future development, primary transportation systems, and the nature and desirability of the
immediate areas surrounding a property.


Highway Transportation:         
Interstate 74 runs from Cincinnati through Indianapolis to the Quad City area.  I-71 runs from Cleveland through Cincinnati to Louisville.  
I-75 extends north past Detroit and south to Atlanta and Miami.  I-275 is Cincinnati's outerbelt (it was completed in the early 1980s); I-
471 is a short commuter highway, as is the Ronald Reagan Highway (SR 126).

Cincinnati lies on the north side of the Ohio River.  Much of its early development is owed to the Ohio River, as shipping was the most
economical mode of bulk transportation in the pre-automotive days.  The Port of Cincinnati is open to this day.  It is generally navigable
throughout the year, handling about 46 million tons of commerce annually.

There are a number of railroad systems through the PMSA.  CSX Transportation, Norfolk Southern Corporation, Conrail, and the Indiana
and Ohio RR/RY serve the area with 175 miles of mainline track.

Cincinnati is serviced by the Cincinnati/Northern Kentucky International Airport.  It is a major airport and one of the major HUBs for Delta.




Governmental Forces
Governmental, political and legal actions at all levels have an impact on property values. The legal climate of a particular time or in a
particular place may overshadow the natural market forces of supply and demand.  

Outlook
Overall, Cincinnati shows an increasing population with a diverse and stable economic base.  It is a major metropolitan base in Ohio and
is well connected via highways, airports, river, and rail.  There are numerous cultural activities in the city as well.  

Another feature of Cincinnati which affects the real estate of Cincinnati is that the city is somewhat hilly and the topography has always
been an impediment to new development.  Due to this, it has kept supply in relative check whereas many other Midwest markets are
over-built.  In other words, relative to other real estate markets in the Midwest, in terms of city size, Cincinnati has one of the strongest
real estate markets.  

Based on the data, the subject market is seen as an overall favorable one.


SUBJECT MARKET AREA AND ANALYSIS:          

Neighborhood is defined as follows: A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business
enterprises.

The subject property is located on the west side of SR 4/Dixie Highway on a side-service street, about a mile north of I-275, and 15 miles
north of the Cincinnati CBD.  This location is in Butler County.

Major highways in the area include I-275, I-75, and I-71.  I-275 is the Cincinnati outer-belt.  I-71 is a north south highway that runs
through the entire Midwest and provides access from Cincinnati to Dayton to Toledo and Detroit to the north and Lexington, Knoxville,
and Atlanta to the south.  I-71 is a northeast southwest highway that is about 5 miles to the east of the subject.  This highway runs from
Cleveland to Louisville and through Cincinnati.

Major thoroughfares in the area include Dixie Highway, Princeton-Glendale Road, Kemper Road, and Mulhauser Road.  Both Dixie
Highway and Princeton-Glendale Road are north south roads with interchanges to I-275.  These roads are commercially developed and
provide access to secondary roads in the market.  Kemper Road is just south of I-275 and runs east to west and connects Dixie Highway
and Princeton-Glendale Road.  This road developed with numerous retail properties including the Tri County Mall.  Mulhauser Road is
an east west road that connects Dixie Highway to Princeton-Glendale Road.  This road is developed with numerous industrial and office
properties.


The area around the subject is about 90% developed.  The area benefits from the excellent accessibility of I-275, I-75 and I-71.  
Because of the accessibility, this area has strong office and industrial development.  And to serve the workforce in the area is numerous
retail and residential development.  Most of the development has been built since 1975.  The development to the south is generally
older, while the development to the north is generally newer.  

Off the secondary roads from Dixie Highway and Princeton Glendale Road, north of I-275 are numerous office and industrial properties.  
The connector roads and secondary roads between these two thoroughfares in this area are developed with large (40,000 SF and
larger) office and industrial properties.  On Dixie Highway and Princeton Glendale Road in this area are numerous retail properties and
smaller offices.  Further to the north, the area is less developed and there is some newer single family development, multi-family
development, and neighborhood shopping centers to serve that area.

The subject is on a side service street on the west side of Dixie Highway.  To the immediate north of the subject are several single tenant
retail properties including: United Dairy Farmer’s (UDF), Reed Academy Marshall Arts, Splash and Dash Car Wash, Charlie’s Throttle
Stop Bar and Grill and Sabor Peruano, a Peruvian restaurant.  

To the south of the subject are more single tenant office and retail properties including: Olive Garden, a vacant building that used to be
the site of All Floors, and an office occupied by Mass Marketing Inc.  

On the east side of Dixie Highway is Furniture Fare, a 200,000 SF retail/warehouse and Broyhill retail building.  There is a three story
multi-tenant office building and to the south of that is a Yahmaha and Suzuki dealership.  Additionally there are numerous other
industrial properties.  

To the west of the subject, accessible via Mack Road are numerous multi-family properties and single family residential.  The multi-family
development includes Wedgewood South Apartments, Crosswinds Apartments, South Pointe Apartments, Linden Hill Apartments, and
Fairgreen Apartments.

Overall, the location of the subject is an excellent one for a single tenant office or retail property because it has excellent visibility,
access, and it is in a strong area for office and retail development.

A church use will also benefit from being located on a major corridor with a strong population base on the secondary roads and
development.
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