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2016-2017 | Market Report
Commercial Real Estate Insider
Commercial Real Estate Services, Worldwide.
4607 Cleveland Ave NW | Canton, Ohio 44709
330.966.8800 | naispring.com
Market Overview
We are pleased to provide our annual market report containing highlights of 2016 year as well as projections
for 2017. NAI Spring and the commercial real estate markets that we serve experienced another exciting
year in 2016. With continued low interest rates and a stable economy, all sectors of commercial real estate
remained fairly strong.
Supply continues to be limited for class A office space. This is also true for small to medium sized warehouse
and industrial buildings. The Retail market rebounded this past year with several new retail builds emerging
throughout Stark County. This segment of the commercial market was further boosted by overall absorption
of vacant space.
Drilling has slowed in the Utica Shale; however, NAI Spring continues to see strong activity for pipeline
companies locally. Manufacturers and downstream users of natural gas are actively looking at several
projects, especially in southern Ohio, along the Ohio River Corridor.
Hall of Fame Village continues to take shape with the completion of the north stands and demolition of the
south stands in the Tom Benson stadium. This work is expected to be completed in time for the August
2017 Enshrinement. The HOF village plan also includes ground breaking in 2017 for a 4-star 250 room hotel.
We hope the Insider Report is informative and enjoyable. NAI Spring continues to focus our expertise on
commercial real estate, sales and leasing, management, and development throughout Ohio. We look forward
to another great year.
2
Industrial
2016 Activity
INDUSTRIAL TRENDS
The industrial market remained strong throughout 2016 and it is expected
to continue into 2017. The availability of large distribution spaces has
increased, but there is still a limited supply of small and medium sized
industrial and warehouse properties.
ACTIVITY
TTI (formerly The Hoover Company) vacated three different buildings
placing over 400,000 sq. ft. of space on the market. There were several
small to medium sized industrial and warehouse buildings that sold
during 2016.
Notable sales include a modern 35,000 sq. ft. crane building in Massillon
that sold for $2.5 million. The former Diebold building at 818 4th Street
SE in Canton, housing two large tenants, and boasting over 450,000
sq. ft., sold for only $100,000. A significant lease transaction was the
former Genie Plant in Alliance at 22790 Lake Park Blvd. The entire
210,000 sq. ft. facility was leased to Tru Cut by NAI Spring.
VACANCY RATE
2017 Forecast
Limited changes are expected in the industrial market for 2017. Most
if not all the large distribution space that was on the market at the end
of 2016 has been absorbed, including approximately 192,000 sq. ft. in
the Hoover complex that leased to Fleetmaster. Prices could rise slightly
with limited inventory in the small to medium sized facilities. Otherwise,
all is expected to remain stable.
22790 Lake Park Blvd, Alliance
Locally Owned, Globally Connected.
INVENTORY
AVG LEASE RATES
(NNN)
4135 Commerce Drive, Massillon
3
Office
Notable Sales Activity for 2016
Address
Sq Ft
Sale Price
Sq Ft Price
4680 Douglas Circle NW
16,080
$1,050,000.00
$65.00
4770 Higbee Ave NW
8,976
$360,000.00
$52.00
4143 Fulton Dr NW
10,612
$1,100,000.00
$104.00
4500 Munson St NW
150,000
$16,500,000.00
$110.00
7026 Sunset Strip Ave NW
6,592
$550,000.00
$83.00
3801 Whipple Ave
8,000
$510,000.00
$63.75
4065 Fulton Drive NW
5,380
$409,000.00
$76.00
4884 Dressler Rd NW
3,596
$325,000.00
$90.38
Market conditions fluctuated in 2016 beginning slowly with a 2nd quarter spurt.
This was followed by a slow 3rd quarter over a hot summer. Activity did increase
again in the early fall.
The end of 2016 saw limited Class A office space with only 24,111 sq. ft. listed
in the Belden Village area across 6 buildings. Downtown Canton had listed Class
A space of 16,630 sq. ft. in 3 buildings. There is an abundance of class B & C
space both in Belden Village and Downtown Canton, especially below 5,000 sq.
ft.
OFFICE TRENDS
ACTIVITY
INVENTORY
VACANCY RATE
2017 Market Outlook (For Lease)
NAI Spring sees potential “build to suit” office space being constructed due to
the limited blocks of quality office space in the market area of Jackson and North
Canton. The larger space (for our market) is in 3-4 buildings ranging from 5,00015,000 sq. ft.
For smaller tenants under 5,000 sq. ft., a larger pool of office alternatives exist in
both Downtown and Jackson/North Canton. This is particularly true in Class B
office space with many offerings under 3,500 sq. ft.
2017 Market Outlook (For Sale)
As of year-end 2016 there were approximately 9 office properties For Sale ranging
from 3,300-15,000 sq. ft. Most offerings are of Class B quality with some as income
investment and 2-3 offering owner/user opportunities. 2017 started off with the
sale of a 30,984 sq. ft. Class “A” office building located at 4244 Mt. Pleasant for
$3,714,000.00. Additional offerings will appear on the market in 2017 in a range
of free standing buildings as well as office condo units.
4
AVERAGE LEASE
RATES (NNN)
Downtown Canton
Activity for 2016
Recent real estate activity in the Downtown Canton area has resulted
in new business locations for several organizations and an increase in
downtown living space.
CommQuest Services was the successful bidder for the Stark Metropolitan
Housing building located at 601 Cleveland Avenue NW. The winning
bid for this 62,430 square foot building with adjacent parking lot was
$1,750,000 resulting in a price of $28 sq. ft. CommQuest is planning to
consolidate a portion of their operations into this campus environment. 601 Cleveland Ave NW
NAI Spring represented CommQuest in the search and bidding process.
The Downtown Canton Land Bank acquired the building located at 425
Market Avenue NW at a price of $87,500. This 14,751 sq. ft. building has
three stories and is the location of the Dollar Respect retail store.
Fronimo’s, a new fine-dining eatery, opened at 315 Cleveland Avenue NW
under a lease arrangement with the owners of that property. The Chop
House and Market opened in late 2016 as well at 218 Court Ave NW.
Stark County government personnel have recently moved into the
completely built out Cornerstone I building located at 402 – 2nd Street
SE. The county purchased the building in 2015. This shift has created
vacant space in the Renkert Building located at 306 Market Avenue NE.
Nationwide Insurance has planned to vacate its 71,250 sq. ft. building at 425 Market Ave NW
1020 Market Avenue NE sometime during 2017. The resulting availability
of the Nationwide and Renkert buildings may create a softening of lease
rates in the area.
The increase in downtown living space has resulted in more street traffic
in the entire area. The refurbished historic Onesto Hotel is fully leased.
The planned addition of the Bliss Tower apartment/condo to the market
should attract more downtown residents. Phase One of the Hercules
plant project on Market Avenue South is under way and will add an
additional 90+ units sometime during the coming year.
The adoption of the city’s Comprehensive Plan has created a refreshed
focus on strategic areas throughout Canton. One of these areas is Market
Square, also known as “the green space”, between Third and Fourth
Street north. The plan suggests that this space be developed into an
attractive public area to be used for various public events drawing more
people to the city core. Plans are being prepared that propose various
possible development concepts for the space. Implementation dates
have not been set, but the site should see some changes during 2017.
Locally Owned, Globally Connected.
Cornerstone Building
5
Retail
Retail 2016
One of the most anticipated openings to the Jackson/Belden area, “The Venue,” saw the addition of
Kirklands, Earth Fair, SteinMart, HH Gregg, Skechers and Home Goods. Other retailers will fill the smaller
inline spaces within the plaza. The next few months will see more restaurants joining Fazoli’s in the out lot
areas of “The Venue,” The Lolli’s building on Belpar has been demolished and a new structure erected.
Panera Bread and Marc’s grocery are slated to be two of the larger anchors. Renovations have recently
been completed on Springbrook Plaza, the new home of Goodwill and SkyZone, giving the facade a more
updated, contemporary look. There is new construction at Washington Square in North Canton. The small
strip plaza will house Pet Value. A few additional spaces are available.
Coffee retailers Dunkin Donut, Starbucks Jumping Bean and others, have established a significant presence
in the area. 2016 saw the addition of multiple Dunkin Donut locations in the Canton/Massillon area. Starbucks
has also added additional locations to their existing ones in Stark County.
Lazy Boy moved from its long-time location on Everhard to Dressler Rd. The Everhard Rd address is now
home to The Ohio Gold and Pawn Shop.
Additionally, the Mount Union University area and the State Street corridor in Alliance have seen a significant
increase in restaurant and retail interests over the last year.
The Venue
Springbrook Plaza
6
Restaurant/Hotel
Restaurant
The restaurant sector saw an extremely active 2016. Demand for fast food
outlets, drive thru access, and new food formats continue to drive this market.
New venues that have opened or repositioned in our market are included in the
table.
Name
Mission BBQ
Panera
Starbucks
Blaze Pizza
Bubba’s 33
Burntwood Tavern
Panda Express
Melt
Chipolte
Smoke Burgers
Jimmy John’s Brix 35
Human Bean
American Oven
Vincent’s Pasteria
Baker’s Restaurant
Irie Island Jamican
Lobster Louie’s
Location Status
Belden Village
New
Belden Village
Relocation to Belpar
Belden Village
Relocation to Dressler
Belden Village
New
Belden Village
New (old Macaroni Grill)
Belden Village
New (old Max & Irma’s)
Belden Village
New out lot Dressler
Belden Village
New
Massillon
New
Massillon
New
Massillon
New
Green
New - Acme Plaza
Whipple New - Out lot at Springbrook Plaza
Venue
Reposition (old TGD)
West Tusc
New (old Angelo’s location)
Canton
Rebuilding after fire
Canton
New
North Canton
New (old Hazel and Rye Artisan location)
In addition to this activity, several other former restaurant locations are currently
available for lease. NAI Spring believes that ongoing demand for fast food outlets
will result in new announcements in the first two quarters of 2017.
Hotel
Stark County offered a wide range of Hotel/Motel accommodations for both short and long term stays at
the end of 2016. In Alliance, the 86 room Hampton Inn & Suites is slated to open in early 2017. In addition,
the Comfort Inn & Suites, with 82 rooms, in Hartville is now fully operational. Renovations have now been
completed at the 184 room Holiday Inn in Belden Village with a new impressive entrance on Everhard Road.
Ground breaking is scheduled for the first part of 2017 on the Hall of Fame Village 4 star 250 room hotel by
Crestline Hotels. This upscale hotel will provide a full service restaurant and bar as well as meeting function
facilities. Currently, Stark County provides 32 recommended hotels/motels with 2,754 rooms (out of a total of
40 facilities with 3,024 rooms). Occupancy for 2015/2016 was relatively flat at 62% occupancy.
Locally Owned, Globally Connected.
7
Energy Services
Activity for 2016
While drilling in the Utica Shale region has slowed in 2016, we saw signs of activity
benefiting from Oil & Gas in the Stark, Carroll and surrounding counties. Campbell Oil
opened a new Bell Stores at the former Dorsey Grocery at the intersection on SR43
and 183 in Carroll County. Work continues the Carroll County Energy Power plant just
north of Carrollton. This facility expects to start producing electricity December of this
year. We are also anticipating that Southfield Energy in Columbiana County will begin
construction this fall. The Marathon Cornerstone Pipeline began moving product in
2016.
2017 Market Outlook
2017 and beyond appear very promising for Oil & Gas and Energy Services companies.
NAI Spring has been very active finding short term areas for MN Limited constructing
the Kinder Morgan, Rover Pipeline, a 710 mile pipeline from West Virginia to Michigan.
The additional pipelines in the area are the key to additional drilling activity in the Utica
Shale area. We are beginning to see midstream companies looking for larger space
and some new companies coming to the area.
The Biggest news for 2017 is the construction of the Shell Cracker facility in Monaco
PA (~$6B investment). This facility will have a ripple effect throughout the Ohio River
Corridor including Stark and Carroll County. We also anticipate the announcement
of the second Cracker facility in Belmont County later this year. These Crackers are
driving a “Appalachian Ethane Storage Basin” along the Ohio River Corridor. This will
be a potential $10B investment in the OH, PA and WV area to serve the two Crackers.
The two Crackers and the Ethane Storage Basin will mark the turning point for the
Appalachian Basin and the Ohio River Corridor from the “Rust Belt” to the “Plastic
Belt”. We are seeing old steel facilities along the Ohio River being re purposed for the
potential of the Petrochemical and Derivatives Industries that will locate in the area to
take advantage of the low price of raw materials for their manufacturing processes.
Hannibal, Ohio
Mingo Junction, Ohio
8
Senior Living
New product continues to enter the market in the area of assisted and independent living for the growing
senior population. Danbury Senior Living has led the charge with the opening of its Massillon facility in June
2016. The Sanctuary Grande senior living building on Applegrove in North Canton will open in March 2017
with 137 units of independent and assisted living as well as memory care.
Locally Owned, Globally Connected.
9
Realizing Potential,
Delivering Results.
Dan Spring, SIOR
4607 Cleveland Ave NW
Canton, Ohio 44709
naispring.com
Brian Spring, CCIM, CPA
PresidentCFO
Fritz Spring
Commercial Agent
Don Bester
Jon Caiazza
Bryce Custer, SIOR, CCIM
Real Estate Advisor
Petrochemical & Energy Services
Lindsay Foster
Office Manager
Greg Luntz
Bill Rearick
Laurie Stanbro
Broker
Vice President, Commercial Agent
Commercial Agent
Commercial Specialist
NAI Spring is a part of NAI Global’s network,
with over 400 offices and more than 7,000
local market experts, NAI is the single largest,
most powerful network of owner operated
commercial real estate brokerage firms. This
allows NAI Spring to not only help clients with
their commercial real estate needs in Ohio
but also throughout the world. Over the past
year NAI Spring has completed deals within
the network in multiple states throughout the
country. Call us for all your real estate needs.
Erin Tolin
Marketing/Graphic Design
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Affiliates
1111 South Main Street
North Canton, Ohio 44720
P 330.497.6565
brookwoodmanagementco.com
1201 South Main Street
North Canton, Ohio 44720
P 330.497.6565
danburyseniorliving.com
1201 South Main Street
North Canton, Ohio 44720
P 330.497.8686