A new study by CBRE Group says that secondary markets in the Midwest are seeing a boom of mixed-use urban development and population growth.
The CBRE study says that markets such as Cincinnati, Indianapolis, Kansas City, Minneapolis and Cleveland are seeing a surge in developments boasting a mix of retail and residential as more consumers — mostly young ones — move from the suburbs and to downtowns.
Cincinnati is a good example. CBRE’s report, “Resurgence in the Midwest Secondary Markets: Implications for Occupiers,” says that Cincinnati’s urban core has become reinvigorated during the past decade. During this time, the city’s population has jumped 100 percent. Cincinnati now boasts $840 million in development projects.
Major projects in Cincinnati today include General Electric’s 340,000-square-foot U.S. Global Operations Centers, which is being built at the mixed-use development the Banks on the riverfront of downtown Cincinnati.
Another important project directly north of the CBD is Over-the-rhine, where hundreds of buildings are being rehabilitated, with apartments on top of ground-level retail.
The CBRE report studied the downtowns of 11 Midwest markets. The population in 10 of these cities’ urban downtowns rose from 2005 to 2015.
In Cincinnati, the urban downtown population rose from 7,500 in 2005 to 15,000 now. Other cities in the study were Kansas City, Columbus, Cleveland, Minneapolis, Milwaukee, Detroit, Indianapolis, St. Louis, Pittsburgh and Louisville.
Cities such as Indianapolis, Cleveland, Detroit and Minneapolis each have more than $1 billion worth of new construction projects underway.
“As urbanization trends continue to take place across the country, these secondary markets in the Midwest are uniquely positioned to benefit from corporate and community reinvestment projects,” said Bob Fessler, managing director for CBRE’s Cincinnati office, in a written statement.
“These markets offer a highly-educated and skilled workforce, as well as excellent infrastructure for construction and adaptive reuse opportunities,” Fessler said. “We don’t predict any slowdown in this activity in the near future as these trends have steadily increased for the past decade. It looks like the future is bright for these growing urban cores.”