Although many segments of the economy appear to be slowing, and experts are warning of a pending recession, construction and development in Central Ohio remains strong. In his Market Update earlier this year, McSteen CEO, Kevin Woeste stated, “… we are confident that it will remain so over the next few years. Consider that the United States needs about 2 million homes, and we are on track to build between 1.2 million and 1.5 million.”
Amidst a persistent shortage of homes in the resale market, an increasing number of home buyers are turning to new construction, resulting in a notable increase in new construction starts over the past several years. But it is not just in residential construction that we are seeing growth. The commercial construction projects, particularly in Central Ohio, are showing no signs of slowing, which bodes well for the entire region.
Corporate Investment in Central Ohio
Intel’s announcement of its $20 billion commitment to build at least two semiconductor plants on 1,000 acres in Central Ohio in 2022, made it the largest private-sector investment in Ohio’s history. And according to many industry experts, it also marked the start of a new surge of interest in the region.
Since that announcement, there have been several additional large investments in the region that include:
- Chicago-based solar panel company Invenergy announced a $600 million investment in what could become the country’s largest solar panel production facility.
- Amazon announced it will spend an estimated $7.8 billion over the next six years to build data center operations in the area, marking the second-largest private sector investment for the state.
- Microsoft bought a $57 million parcel in Licking County, although it has yet to announce its plans for the site.
- Google committed to building two more data centers in central Ohio, in addition to its existing data center in New Albany. These bring Google’s investment in Ohio to more than $2 billion and are turning the state into one of the tech company’s fastest-growing data center hubs.
Increased Property Value
As a result of this development, both residential and commercial properties are seeing unprecedented increases in value. According to Franklin County Auditor Michael Stinziano, the value of commercial properties in Delaware County is set to increase 18%, commercial properties in Franklin County will see an 18.8% increase on average, and while figures were not finalized at the time of his report, he estimated Licking County commercial properties could see a 30% increase.
As the fastest-growing metro in the Midwest from 2010 to 2020, Columbus is expected to keep growing through 2050, causing other states to stop and take notice. But it is not the individual projects that will have the most impact, but what each is expected to generate on its own and how the development magnifies what Central Ohio offers businesses.
It is not just commercial development that is surging in Central Ohio, however. According to a report commissioned by the Building Industry Association (BIA) of Central Ohio, housing permits will need to increase approximately two-fold to meet the projected need of more than 100,000 new housing units in the next decade. Not only will this keep pace to ensure a variety of attainable housing options are available to accommodate new residents, but also to meet the demand for more walkable neighborhoods.
For 50+ years, McSteen has provided land surveying and other land services. While we began in Cleveland, we are proud to serve the entire state of Ohio, as well as surrounding counties in Pennsylvania, Michigan, Indiana, and Kentucky. It is particularly exciting to see the growth happening in Central Ohio while we are expanding our service areas. McSteen President, Molly Woeste, is quick to point out, “We are expanding to meet the needs of our clients in a way that ensures we don’t lose the personal relationships that differentiate us from others in our industry. We have a growth mindset, but not to the detriment of our clients and our relationship with them.”
