REGIONAL ANALYSIS OF COLUMBUS OHIO
The real estate appraisal process is influenced in a general manner by the
economic, political, physical and social characteristics of the Columbus
Metropolitan Statistical Area (MSA). 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 Columbus Metropolitan
Statistical Area covers eight counties in the state of Ohio. The counties which
comprise the Columbus MSA include Franklin County, Delaware County, Pickaway
County, Fairfield County, Licking County, Morrow County, Union County, and
Madison County.
Columbus is located in the central portion of the State of Ohio. Columbus is
located 160 miles south of Detroit, Michigan, 125 miles southwest of Cleveland,
Ohio, 165 miles west of Pittsburgh, Pennsylvania, 105 miles northeast of Cincinnati,
Ohio, 170 miles east of Indianapolis, Indiana and 275 miles southeast of Chicago,
Illinois.
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.
STATE OF OHIO
COLUMBUS MSA
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. As shown, the MSA population figures represent 15% of the total
population of Ohio. The MSA, state, and US have shown consistent growth trends
over the past 20 years and are anticipated to continue to grow. In general,
population grown tends to effect real estate in a positive manner.
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.
There are many Colleges and universities located in the MSA. The largest in the
metro area is The Ohio State University. Other colleges located in the Columbus
MSA include Ohio Wesleyan University, Denison University, Kenyon College,
Otterbein College, OSU Newark, Central Ohio Technical College, OU Lancaster,
Capital University, Franklin University, Columbus State Community College, the
Methodist Theological School in Delaware, and Mount Vernon Nazarene University.
Columbus’s largest institution for higher education is The Ohio State University with
total enrollment over 50,000 students. The chart below details other institutions.
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 Ohio State Fair is one of the largest state fairs in the United States. The state
fair contributes as much as 280 million dollars to the state economy. It is held in
early August in Columbus.
Columbus is the home of many renowned performing arts institutions, including
Opera Columbus, BalletMet, the Columbus Symphony Orchestra, the
Contemporary American Theatre Company (CATCo), Shadowbox Cabaret and the
Columbus Jazz Orchestra.
There are numerous large concert venues in Columbus, including arenas such as
Nationwide Arena, Value City Arena, the Lifestyle Communities Pavilion (formerly
the PromoWest Pavilion), Veterans Memorial auditorium, and the Newport Music
Hall. Recently, funding has been allocated to renovate the Lincoln Theatre, which
was formerly a center for Black culture in Columbus. Not far from the Lincoln
Theatre is the King Arts Complex, which hosts various cultural events. The city also
has a number of theatres downtown, including the historic Palace Theatre, the
Ohio Theatre, the Southern Theatre, the Arena Grand Theater, and the Riffe
Center which houses The Capitol Theatre as well as two studio theatres.
The Little Brown Jug is a harness race for three-year-old pacing standardbreds
hosted by the Delaware County Agricultural Society since 1946 at the County
Fairgrounds in Delaware, Ohio.
The Columbus Metro Parks operate 14 large parks including Blackhand Gorge,
Clifton Gorge, Alum Creek, Hocking Hills State Park, and Rockbridge State Nature
Preserve. The Hocking Hills region also includes parts of the Wayne National
Forest.
The major sporting interest in Columbus is the Ohio State Buckeyes. The Ohio
State Football team play their home games in the legendary Ohio Stadium, better
known by it’s nickname, “The Horseshoe.” The basketball Buckeyes play their
home games at Value City Arena, a state of the art multi-purpose arena that
opened in 1998.
Central Ohio hosts two major league professional sports teams. The NHL's
Columbus Blue Jackets call downtown's Nationwide Arena home. The 2008 MLS
Cup Champion Columbus Crew play in Columbus Crew Stadium near the Ohio
State Fairgrounds. The stadium was the first stadium in the United States designed
specifically for Major League Soccer (including a FIFA regulation 115 yd (105 m) x
75yd pitch), and has been credited with inspiring the wave of construction of so
called soccer-specific stadia throughout the league. The Columbus Clippers, which
are the Cleveland Indians Triple-A minor league baseball team, play at Huntington
Park, which opened at the beginning of the 2009 season. Huntington Park was
named 2009’s Ballpark of the year by www.baseballparks.com
Since 1976, Dublin has been the site of the PGA Tour's Memorial Tournament at
the Muirfield Village golf course, designed by Jack Nicklaus. In 1987, the course
hosted the Ryder Cup and in 1998 it hosted the Solheim Cup.
There are approximately 300 golf courses within the Central Ohio area. There are
many on-road and off-road bike trails in the area, with the area being part of the
statewide-connected system known as the Ohio to Erie Trail. Skiing facilities exist at
Mad River Mountain in Bellefontaine, Ohio, about 40 miles northwest of Dublin, and
at Snow Trails near Mansfield, Ohio. Organized baseball and softball leagues are
regularly played at Berliner Park in South Columbus, as well as at local fields
throughout the area. The Columbus Marathon and Race for the Cure 5K events
are held annually in downtown Columbus as well.
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.
All the sectors are within several percentages of each other except for
manufacturing, where the state has a much higher percentage of employment then
the MSA. The MSA has a slightly higher percentage of employment in the
information, financial, services, and government sectors than the state. Overall,
both employment mixes are diversified and appear overall in balance and stable.
Industries:
The chart below shows the major employers in the Columbus MSA. The largest
employer is the State of Ohio with about 25,000 employees. The next major
employer is The Ohio State University. The major employers are consistent with
the sector employment shown previously.
Unemployment:
The following chart shows the historical unemployment rates for the MSA, state,
and US from 2000 to July 2009. As shown, the MSA, state, and US unemployment
rates have been historically in line with each other. In 2008 and 2009,
unemployment rates have increased significantly for the MSA, state, and US.
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.
Transportation:
The Columbus MSA is well served by various forms of transportation infrastructure
connecting the region on a micro and macro level. The forms of transportation
include highway and roads, air, and rail.
Columbus is bisected by two major Interstate Highways, Interstate 70 running east–
west, and Interstate 71 running north to roughly southwest. The Interstate 270
Outerbelt encircles the vast majority of the city, while the newly redesigned
Innerbelt consists of the Interstate 670 spur on the north side (which continues to
the east past the Airport and to the west where it merges with I-70), State Route
315 on the west side, the I-70/71 split on the south side, and I-71 on the east. Due
to its central location within Ohio and abundance of outbound roadways, nearly all
of the state's destinations are within a 2-hour drive of Columbus.
U.S. Highway 40, aka National Road, runs east–west through Columbus,
comprising Main Street to the east of downtown and Broad Street to the west. It is
also widely recognized as the nation's first highway. U.S. Highway 23 runs roughly
north–south, while U.S. Highway 33 runs northwest-to-southeast.
Other major, local roads in Columbus could include Main Street, Morse Road,
Dublin-Granville Road (SR-161), Cleveland Avenue/Westerville Road (SR-3),
Olentangy River Road, Riverside Drive, Sunbury Road, Fifth Avenue and
Livingston Avenue.
The area has several airports, most notably Port Columbus International Airport on
the east side of the city. Port Columbus provides service to a few foreign and
dozens of domestic destinations, including all the major hubs. Port Columbus was a
hub for discount carrier Skybus Airlines and is for NetJets, the world's largest
fractional ownership carrier. Rickenbacker International Airport, in southern
Franklin County, is a major cargo facility and is important to the Ohio Air National
Guard. OSU Don Scott Airport and Bolton Field are significant general-aviation
facilities in the Columbus area.
Columbus has a freight rail system called the Ohio Rail Development Commission,
whose stated mission is to “plan, promote, and implement the improved movement
of goods and people faster and safer on a rail transportation network connecting
Ohio to the nation and the world.”
Columbus maintains a widespread municipal bus service called the Central Ohio
Transit Authority (COTA).
GOVERNMENT 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. One aspect to
governmental force is police power and crime. Columbus has one of the highest
crime rates in America relative to other cities of its size.
Outlook
Our review of the above data indicates that the Columbus metropolitan area has
historically had a stable and growing economy and has been a growing area with a
good educational base. Lately, the nationwide economic recession has impacted
the area, although the Columbus MSA has not been as affected as other parts of
the country. On a short term horizon, the overall area is seeing increased
foreclosures, increased vacancy for commercial properties, and flat to stable rent
growth. On a long term horizon, the economic outlook for the Columbus MSA is
favorable for the overall success of the subject.
The real estate appraisal process is influenced in a general manner by the
economic, political, physical and social characteristics of the Columbus
Metropolitan Statistical Area (MSA). 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 Columbus Metropolitan
Statistical Area covers eight counties in the state of Ohio. The counties which
comprise the Columbus MSA include Franklin County, Delaware County, Pickaway
County, Fairfield County, Licking County, Morrow County, Union County, and
Madison County.
Columbus is located in the central portion of the State of Ohio. Columbus is
located 160 miles south of Detroit, Michigan, 125 miles southwest of Cleveland,
Ohio, 165 miles west of Pittsburgh, Pennsylvania, 105 miles northeast of Cincinnati,
Ohio, 170 miles east of Indianapolis, Indiana and 275 miles southeast of Chicago,
Illinois.
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.
STATE OF OHIO
COLUMBUS MSA
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. As shown, the MSA population figures represent 15% of the total
population of Ohio. The MSA, state, and US have shown consistent growth trends
over the past 20 years and are anticipated to continue to grow. In general,
population grown tends to effect real estate in a positive manner.
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.
There are many Colleges and universities located in the MSA. The largest in the
metro area is The Ohio State University. Other colleges located in the Columbus
MSA include Ohio Wesleyan University, Denison University, Kenyon College,
Otterbein College, OSU Newark, Central Ohio Technical College, OU Lancaster,
Capital University, Franklin University, Columbus State Community College, the
Methodist Theological School in Delaware, and Mount Vernon Nazarene University.
Columbus’s largest institution for higher education is The Ohio State University with
total enrollment over 50,000 students. The chart below details other institutions.
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 Ohio State Fair is one of the largest state fairs in the United States. The state
fair contributes as much as 280 million dollars to the state economy. It is held in
early August in Columbus.
Columbus is the home of many renowned performing arts institutions, including
Opera Columbus, BalletMet, the Columbus Symphony Orchestra, the
Contemporary American Theatre Company (CATCo), Shadowbox Cabaret and the
Columbus Jazz Orchestra.
There are numerous large concert venues in Columbus, including arenas such as
Nationwide Arena, Value City Arena, the Lifestyle Communities Pavilion (formerly
the PromoWest Pavilion), Veterans Memorial auditorium, and the Newport Music
Hall. Recently, funding has been allocated to renovate the Lincoln Theatre, which
was formerly a center for Black culture in Columbus. Not far from the Lincoln
Theatre is the King Arts Complex, which hosts various cultural events. The city also
has a number of theatres downtown, including the historic Palace Theatre, the
Ohio Theatre, the Southern Theatre, the Arena Grand Theater, and the Riffe
Center which houses The Capitol Theatre as well as two studio theatres.
The Little Brown Jug is a harness race for three-year-old pacing standardbreds
hosted by the Delaware County Agricultural Society since 1946 at the County
Fairgrounds in Delaware, Ohio.
The Columbus Metro Parks operate 14 large parks including Blackhand Gorge,
Clifton Gorge, Alum Creek, Hocking Hills State Park, and Rockbridge State Nature
Preserve. The Hocking Hills region also includes parts of the Wayne National
Forest.
The major sporting interest in Columbus is the Ohio State Buckeyes. The Ohio
State Football team play their home games in the legendary Ohio Stadium, better
known by it’s nickname, “The Horseshoe.” The basketball Buckeyes play their
home games at Value City Arena, a state of the art multi-purpose arena that
opened in 1998.
Central Ohio hosts two major league professional sports teams. The NHL's
Columbus Blue Jackets call downtown's Nationwide Arena home. The 2008 MLS
Cup Champion Columbus Crew play in Columbus Crew Stadium near the Ohio
State Fairgrounds. The stadium was the first stadium in the United States designed
specifically for Major League Soccer (including a FIFA regulation 115 yd (105 m) x
75yd pitch), and has been credited with inspiring the wave of construction of so
called soccer-specific stadia throughout the league. The Columbus Clippers, which
are the Cleveland Indians Triple-A minor league baseball team, play at Huntington
Park, which opened at the beginning of the 2009 season. Huntington Park was
named 2009’s Ballpark of the year by www.baseballparks.com
Since 1976, Dublin has been the site of the PGA Tour's Memorial Tournament at
the Muirfield Village golf course, designed by Jack Nicklaus. In 1987, the course
hosted the Ryder Cup and in 1998 it hosted the Solheim Cup.
There are approximately 300 golf courses within the Central Ohio area. There are
many on-road and off-road bike trails in the area, with the area being part of the
statewide-connected system known as the Ohio to Erie Trail. Skiing facilities exist at
Mad River Mountain in Bellefontaine, Ohio, about 40 miles northwest of Dublin, and
at Snow Trails near Mansfield, Ohio. Organized baseball and softball leagues are
regularly played at Berliner Park in South Columbus, as well as at local fields
throughout the area. The Columbus Marathon and Race for the Cure 5K events
are held annually in downtown Columbus as well.
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.
All the sectors are within several percentages of each other except for
manufacturing, where the state has a much higher percentage of employment then
the MSA. The MSA has a slightly higher percentage of employment in the
information, financial, services, and government sectors than the state. Overall,
both employment mixes are diversified and appear overall in balance and stable.
Industries:
The chart below shows the major employers in the Columbus MSA. The largest
employer is the State of Ohio with about 25,000 employees. The next major
employer is The Ohio State University. The major employers are consistent with
the sector employment shown previously.
Unemployment:
The following chart shows the historical unemployment rates for the MSA, state,
and US from 2000 to July 2009. As shown, the MSA, state, and US unemployment
rates have been historically in line with each other. In 2008 and 2009,
unemployment rates have increased significantly for the MSA, state, and US.
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.
Transportation:
The Columbus MSA is well served by various forms of transportation infrastructure
connecting the region on a micro and macro level. The forms of transportation
include highway and roads, air, and rail.
Columbus is bisected by two major Interstate Highways, Interstate 70 running east–
west, and Interstate 71 running north to roughly southwest. The Interstate 270
Outerbelt encircles the vast majority of the city, while the newly redesigned
Innerbelt consists of the Interstate 670 spur on the north side (which continues to
the east past the Airport and to the west where it merges with I-70), State Route
315 on the west side, the I-70/71 split on the south side, and I-71 on the east. Due
to its central location within Ohio and abundance of outbound roadways, nearly all
of the state's destinations are within a 2-hour drive of Columbus.
U.S. Highway 40, aka National Road, runs east–west through Columbus,
comprising Main Street to the east of downtown and Broad Street to the west. It is
also widely recognized as the nation's first highway. U.S. Highway 23 runs roughly
north–south, while U.S. Highway 33 runs northwest-to-southeast.
Other major, local roads in Columbus could include Main Street, Morse Road,
Dublin-Granville Road (SR-161), Cleveland Avenue/Westerville Road (SR-3),
Olentangy River Road, Riverside Drive, Sunbury Road, Fifth Avenue and
Livingston Avenue.
The area has several airports, most notably Port Columbus International Airport on
the east side of the city. Port Columbus provides service to a few foreign and
dozens of domestic destinations, including all the major hubs. Port Columbus was a
hub for discount carrier Skybus Airlines and is for NetJets, the world's largest
fractional ownership carrier. Rickenbacker International Airport, in southern
Franklin County, is a major cargo facility and is important to the Ohio Air National
Guard. OSU Don Scott Airport and Bolton Field are significant general-aviation
facilities in the Columbus area.
Columbus has a freight rail system called the Ohio Rail Development Commission,
whose stated mission is to “plan, promote, and implement the improved movement
of goods and people faster and safer on a rail transportation network connecting
Ohio to the nation and the world.”
Columbus maintains a widespread municipal bus service called the Central Ohio
Transit Authority (COTA).
GOVERNMENT 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. One aspect to
governmental force is police power and crime. Columbus has one of the highest
crime rates in America relative to other cities of its size.
Outlook
Our review of the above data indicates that the Columbus metropolitan area has
historically had a stable and growing economy and has been a growing area with a
good educational base. Lately, the nationwide economic recession has impacted
the area, although the Columbus MSA has not been as affected as other parts of
the country. On a short term horizon, the overall area is seeing increased
foreclosures, increased vacancy for commercial properties, and flat to stable rent
growth. On a long term horizon, the economic outlook for the Columbus MSA is
favorable for the overall success of the subject.
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(502) 267-6320 Office
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10507 Watterson Tr., 2nd Flr
Louisville, KY. 40299
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10507 Watterson Tr., 2nd Flr
Louisville, KY. 40299
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