Commercial Real Estate activity in Utica and Western Marcellus Shale areas continued to flourish in 2014 as drilling, pipeline construction and processing facilities continue to expand and create avenues for getting Oil & Gas product to market.
“As the Shale play expands south in the Utica, we have seen commercial activity slow, but we continue to see demand for commercial properties located on State Routes,” according to Bryce Custer, SIOR, Real Estate Advisor/Energy Services with NAI Spring Commercial Realty in Canton and Carrollton, OH. “The demand for commercial real estate in the Utica and Marcellus Shale play continues as the drilling expands to Southern Ohio. Warehouse with yard is scarce along Interstate 77 from Canton, OH to Cambridge, OH and Along I70 from Cambridge to St. Clairsville OH.”
In 2014 many new hotels opened their doors; Microtel Inns opened mid-2014. The Candlewood Suites located on the northern edge of Carrollton is open and vacancy rates are above projection. The addition of hotels in Carroll is also spurring additional interest in restaurants, retail strip centers and large box stores in the vicinity of these hotels. “We are also beginning to see interest in filling retail sites along heavily trafficked roads,” Custer said.
Carroll County Energy, the proposed $800 million electrical generation facility located of Route 9 on the northern edge of Carrollton, OH has worked out many obstacles and may begin construction as early as June 2015.
Companies that Custer of NAI Spring has assisted in locating to Carroll County Ohio over the past few years include:
|Razor Rentals (Div of Leppo Rents)||Fairmont Tool|
|Blow Out Tools (BTI)||Carroll County Energy|
Projection for 2015 and beyond…
“The Carroll County commercial real estate market will remain active, albeit not as frantic in years past,” said Custer. “Based upon our activity at NAI Spring, I would anticipate 2015 will bring additional retail and restaurants (with smaller footprints due to the small area demographics). I am also seeing interest in the development of single and multifamily housing.”
“Following retail and housing, I would then foresee companies expressing an interest in locating manufacturing facilities in the Eastern Ohio area,” Custer said. “The area will have an abundant supply of natural gas, electricity and potentially housing, shopping and entertainment which will attract companies and additional employees. As the Oil & Gas plays continue to expand and shift, the area will have a local, highly trained and motivated workforce to take advantage of opportunities which may come to the area.”
An additional game changer for Utica and Marcellus Shale production is the announcement of four proposed Cracker Facilities in the region. The facility takes ethane, a component of natural gas and processes, or ‘cracks’ it into ethylene. This product is then used in the production of plastics for manufacturing. “With the abundance of ethane from natural gas, this makes for a tremendous competitive advantage for manufactures in the US vs. overseas,” said Custer.
Custer remains cautiously optimistic that Commercial Real Estate will remain strong throughout the region. With the price of Oil and Natural gas falling, there is uncertainty as to the impact that Oil & Gas companies will have on commercial real estate in the future.
For additional information on Commercial Real Estate in Eastern Ohio, or if you have an interest in buying/leasing, selling/leasing or investing:
Reach Bryce Custer, SIOR at firstname.lastname@example.org, (330) 418-9287 or follow @ShaleRealEstate on Twitter
This story was sponsored in part by NAI Spring Commercial Realty.