Signs grow brighter for local construction

The Bottom Line Other Business Features Local Stories from ThisWeek By Steve Wartenberg The Columbus Dispatch Sunday March 23, 2014 10:34 AM

The number of construction jobs has increased in 38 states, including Ohio. Several new projects are underway locally. Lower vacancy rates in central Ohio offices and warehouses could lead to even more groundbreaking ceremonies this year.

These are a few of the recent encouraging signs for the construction industry, say local experts, who quickly caution that the growth here will be slow and steady.

Were seeing a gradual improvement in the market, after quite a roller-coaster ride the past five or six years, said Tom Manahan, a Turner Construction Co. senior vice president who manages its four Ohio offices and its national industrial group.

The CBRE 2014 Market Outlook also predicts continued growth.

The takeaway for me is office and warehouse markets continue to get healthier and healthier, said Rob Click, senior managing director of CBREs Columbus office. Were seeing vacancy rates at near-record lows, lease rates have stabilized, and the next stage is to see some more speculative development, especially for industrial use.

He also predicts slow, steady growth.

Its still very difficult to borrow for speculative projects, unless you have a tenant in tow and can show the economic justification, Click said.

Another positive sign for the industry was the two-year capital budget recently proposed by Gov. John Kasich. It calls for $2.4 billion for construction and renovation projects.

Columbus-based Daimler Group began work on Wednesday on a $15 million building in Dublin that will be the home of Ohio Universitys Physician Assistance Practice program.

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Signs grow brighter for local construction