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BY THE NUMBERS
12 PERCENT: The vacancy rate for industrial properties in Dayton for 2016
300,000: The amount of square feet of space absorbed in southern Dayton in 2016
14: Businesses that have leased property at the Austin Business Park
BY THE NUMBERS
12 PERCENT: The vacancy rate for industrial properties in Dayton for 2016
300,000: The amount of square feet of space absorbed in southern Dayton in 2016
14: Businesses that have leased property at the Austin Business Park
BY THE NUMBERS
12 PERCENT: The vacancy rate for industrial properties in Dayton for 2016
300,000: The amount of square feet of space absorbed in southern Dayton in 2016
14: Businesses that have leased property at the Austin Business Park
Industrial construction projects are booming along the Interstate 75 corridor south of Dayton, in what industry leaders are calling a “critical economic push” for Montgomery County and local communities.
The Dayton region has seen the lowest vacancy rates for industrial properties since the early 2000s — causing a burst of building development that’s expected to continually increase. Chris Fine, development director for Miamisburg, said he’s seen heightened interest from businesses looking to expand to locations in Miami Twp. and Miamisburg along the interstate.
“We’ve seen certainly an increased interest in probably the last year or so for the southern Byers Road area,” Fine said. “There’s been a lot of development along the corridor extending beyond Miamisburg.”
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The data on vacancy rates reflect a resurgence in the industrial and manufacturing sectors, according to a report from the Miller-Valentine Group. The vacancy rate for industrial properties has dropped to about 12 percent in Dayton this year. In 2015, a vacancy rate of about 14 percent was reported for the area.
Businesses like Electripack, American Testing Services and Nautilus Hyosung America have inhabited the previously underdeveloped land on the west side of the I-75 corridor. Firms with their continental headquarters on or near Byers include Dayton Superior, Evenflo, O’Neil & Associates and Yaskawa Motoman Robotics.
In Miamisburg and Miami Twp., buildings are being erected on plots of land near the Austin Boulevard exit, and extends both north and south from there. Though builders started to regain some confidence years ago after the recession, many said the past 18 months have been the tipping point.
“I think it’s an attractive place for people to be right now,” Fine said. “You’re starting to see that if people need more space that they currently have, then they have the option to either buy something and put a lot of money into it to renovate it or build something new.”
A convergence of several factors is pushing well-known companies to invest in the area. FedEx Ground has invested $18.5 million into its 248,000-square-foot distribution center at 8650 Byers Road, the company announced in March. And United Grinding North America, a grinding machine business, will break ground Tuesday on the future site of its North American headquarters right off Byers Road.
Map of businesses sprouting along I-75 corridor
Spinal implant manufacturer NuVasive Inc. is one of the companies that expanded along the corridor. Its 180,000-square-foot facility is located on Liberty Lane in West Carrollton. Ruben Perez, senior director of manufacturing, said the company has been grateful for the ongoing partnership with state and local officials. He said the decision went beyond because the community is “committed to our success.”
“People are very loyal to their employers here,” he said.
Mark Fornes of Mark Fornes Realty sells commercial real estate and property throughout the Miami Valley and has seen success with several projects along the corridor. Fornes said his company has worked with land and developers who build speculative properties, meaning there are no tenants signed before construction.
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In the past five years, Fornes’ team and partners have built about 300,000 square feet. One project is the Austin Business Park on Byers Road, where the fifth building is set to open in September. In that business park alone, about 14 companies have leased space.
“As we’ve come out of the recession, this it’s really just become a prominent service area between Dayton and Cincinnati,” he said. “Businesses wanting to come to this area, invest in this area, certainly reflects an improved economy and a demand for new development.”
Developers said there is still enough land to continue developing for the next seven to 10 years, depending on a healthy market climate. Fine estimated Miamisburg has about 180 acres left to develop in the industrial quadrant.
“The demand caught up to the supply,” Fornes said.
A main driver is the land’s adjacent position to the Austin interchange and its ability to connect two metropolitan areas together — Dayton and Cincinnati.
“All the way to Mason or West Chester, we benefit from Cincinnati and the southern suburbs of Dayton,” Fornes said.
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Developers said the lines are becoming blurred between northern Cincinnati and Dayton as more businesses pop up in the middle ground. Fornes said the labor pool of skilled workers gets even larger when companies can pull from both cities. Perez said the opportunity to be in the Dayton community, but close to northern Cincinnati was a selling factor for the San Diego-based company.
“Really, our focus is world-class manufacturing,” Perez said. “The ability to focus on finding and retaining talent here will help us deliver world-class projects. That’s a benefit of being between two metropolitan areas. We want to be known and recognized in the Dayton community, and ultimately become the employer of choice.”
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