Commercial real estate in Dayton was great, can it be greater?
As managing broker for Coldwell Banker Commercial Heritage in Dayton, Ric Moody has his hand on the pulse of new and emerging businesses and industries in our area. Backed by Coldwell Banker and having more than 43 years of experience and a degree in real estate from The Ohio State University, Moody is not only a commercial broker, but also a developer and landlord, managing some 500,000 square feet of his own commercial/industrial space.
“That’s what really sets us apart from other commercial brokers,” says Moody of his firm. “We see the business from both sides. Where many commercial real estate brokers see it as a job, we see it as a profession.”
Or an avocation, if you will.
That gives Moody a very clear insight to the commercial real estate market in our area—which, of course, is also key to how the Dayton area economy will fare coming out of the COVID pandemic. And the news is not all bad.
“All everyone hears about is how bad restaurants and bars have had it, and how bad retail is—and there is no question that they have had their struggles,” says Moody. “But now that COVID is lifting a bit, there will be survivors. And there will be new opportunities to fill empty restaurant and retail spaces.
“People also have learned how to compete against big companies like Amazon. And many people have decided that they still want to go down the street to find what they need rather than wait two days for delivery.”
There’s also a strong movement to buy and support local retail. But that’s only part of the story.
“Currently, in the industrial/manufacturing/warehousing segment, we are at less than 4% vacant,” says Moody. “That market was building for most of 2020 and will continue to build into 2021.”
Which is a story that is under-reported because it is actually good news.
“Let’s face it, there’s nothing sexy about an industrial building with 50 people working inside,” Moody says. “It’s a square or rectangular building that is not exciting. A retail property may have fancy stores or a nice grocery or upscale restaurants. But an industrial, manufacturing or warehouse facility doesn’t have that kind of appeal. All it does is to create jobs and growth.”
Which is the backbone of our local economy. Believe it or not, there is simply not enough commercial real estate in the industrial/manufacturing/warehousing sector.
“We’re at the point where we are actually getting into bidding wars for this kind of space,” says Moody, “which is something that is already being seen in the housing market.”
As for the commercial office market in the Dayton area, it is slightly behind the national average, but is still following the national trend, says Moody.
“As much as working at home is popular, it is really not working out in a lot of situations,” he says. “People will come back to offices again.”
Pre-COVID, Dayton was about 20% vacant, which grew to 25% in the last year due to COVID.
“Nationally, we were about 14% vacant prior to the pandemic and are at about 19% vacant right now,” Moody says. “So we are following the national trend.”
With these positive markers, Moody is feeling confident about the future, despite the pandemic. “Ten years ago, there was a saying, ‘It’s Great in Dayton.’ Well I think we can be even greater,” he says.
