More Interest in Region’s Industrial Properties
STRUTHERS, Ohio -- Castlo Industrial Park is in an enviable position, one Michael Hoza, executive director of Castlo Community Improvement Corp., reports it probably hasn’t been in since the 1990s.
By mid-spring, all of its leasable space could be occupied. Already only 14,000 square feet in one building is all that remains available, he says.
“I’ve been seeing a significant increase in inquiries since [last] mid-spring,” he says.
That being the case, Castlo -- fortunately for interested parties and the park itself -- is using a $3.5 million Ohio Job Ready Sites grant to prepare about 60 acres for future development at the 120-acre Struthers industrial park.
“We’re probably about 85% done with that,” Hoza says. The roadway extension and installation of utilities are going on now, he reports, and grading work is to be completed in the spring.
After that, Castlo will need to complete environmental certifications and secure necessary covenants to certify that the site is ready for use.
“We’re pretty much on or [ahead of] schedule, but we’ve been having a lot of interest in that area,” he reports. The newly prepared area will have utilities as well as rail access, which “seems to be one of the motivating factors for the inquiries that we’ve been getting.”
The “vast majority” of inquiries for the new site are related to the oil and gas industry
“We really could use additional [spec industrial] space” in Trumbull and Mahoning counties, says Gris Hurlbert, president of Routh-Hurlbert Real Estate, Howland.
“If somebody put up a 25,000-square-foot building, preferably at a rail site, that would be very attractive. There is room for development of new buildings,” he says.
Routh-Hurlbert has seen more activity this year than in the previous three or four, Hurlbert says. The real estate firm sold two buildings this year, “which is quite good, actually” and Hurlbert reports there is “active interest” in others.
Available properties the company represents include sites in Kinsman and Warren as well as Ohio Commerce Center in Lordstown, “which has lots of space and lots of land,” he says.
Earlier this year, Ohio Commerce Center, owned by George and Spiro Bakeris, received a $2 million Job Ready sites grant in partnership with the Youngstown/Warren Regional Chamber for rail upgrades at the site. “We just got final approval to go ahead and upgrade the rail connection,” Hurlbert reports.
Much of the interest and activity, Hurlbert acknowledges, is related to oil and gas development in the region, “at least that’s the folks we’re seeing,” he says. In many cases, companies are scouting properties but don’t have plans to come to the area for a year or two.
“Then there are those coming in right now,” he continues. His company recently lined up a contract with Savage, a national transloading company, for space in Ohio Commerce Center.
Prices remain a bargain for available space, Hurlbert reports. Some properties have been available for some time or need substantial upgrades, so sellers are being realistic on pricing to make deals happen.
“Financially there are going to be some very attractive deals for users who can use the buildings,” he says. The building in Hubbard his company sold needed extensive electrical work and went for $6 per square foot, while a North Lima building in good condition went for $48 per square foot.
Michael Conway, executive director of Mahoning Valley Economic Development Corp., Liberty, reports interest is steady in industrial space, and the development agency gets one to two inquiries per month on properties.
MVEDC operates Youngstown Commerce Park in North Jackson and Warren Commerce Park at the northern edge of that city.
In addition to the existing onsite buildings, the two parks also have open space available for development, 25 acres at Warren and 16 at Youngstown, he says.
“At the present rate, we’re four or five years away from full occupancy,” Conway says. Once all its space is used, MVEDC would move to develop land it owns at a separate parcel.
While many of the inquiries are related to the shale industry, there is interest from the food processing and metals fabricating sectors. “Logistics-distribution is a sector that is always interested because of our unique location,” Conway adds.
Rail access is important for companies that depend on moving commodities or residuals via rail, while prime highway access is more important for others.
EDITOR'S NOTE: This story was first published in the Mid-November edition of The Business Journal. CLICK HERE to subscribe.
Copyright 2012 The Business Journal, Youngstown, Ohio.