Commercial Real Estate Rebounds “Across Board”, Brokers Report

Valley sees revival in older industrial properties.

By: Dan O’Brian

The commercial real estate market in the Mahoning and Shenango valleys is rebounding “across the board”, say developers and brokers, despite anxiety over the downsizing of major employers such as General Motors Corp.’s Lordstown complex and Delphi Packard Electric Systems in Warren.

“Last year was terrible,” reports Joseph Sylvester Jr., chief executive officer of Joseph Sylvester Construction Co., Boardman.  “Doctors were leaving the area and the economic slowdown led to a lot of caution in the market.”

This year is an entirely different story, Sylvester reports, saying, “It’s opened up, especially in the south Boardman and northern Columbiana County.”

Driving this growth is Humility of Mary Health Partners spending $75 million to build a seven-story hospital at the corner of McClurg Road and Market Street, Sylvester says.  “There’s a lot of spinoff businesses that go along with the medical field,” he says.  “We’re using that to entice new companies to move here, and marketing that the Mahoning Valley has a lot to offer.”

Sylvester owns commercial properties along Western Reserve Road in Boardman as well as a business park that links Western Reserve and Bev roads.  Over the past five years, the area has become a major location for physicians’ offices, restaurants, government offices and light industrial businesses.

“It’s clear that what is happening – especially with the new hospital – is that Western Reserve is going to be packed with people, “ Sylvester says.  The thoroughfare is connected by an interchange with Interstate 680, providing the only freeway access to southern Boardman.  “Traffic is already starting to increase, so they need to widen the road as soon as possible.”

Sylvester says his company is seeing the most growth in the medical and light industrial sectors.  “There are a lot of small companies, such as low-key fabricating and machine shops, starting up,” he observes.

One of Sylvester’s newest developments is the Shops at Southwestern Place, a small retail plaza available for lease along Western Reserve.  “We’ve had quite a bit of interest, “ he says, noting the company is in discussions with a restaurant, a beauty salon, and has received feelers from physicians.

Excerpt from The Business Journal