Darrick G. Klamut, Rolls Realty

I can’t say enough about the immense value the CCIM designation has brought to my career. It’s not just about the knowledge gained but also the exceptional network of commercial real estate brokers we have right here in Central Ohio. These professionals continually elevate the industry and inspire growth.

If you’re a commercial real estate broker looking to enhance your skills, don’t miss the opportunity to enroll in CI-101 this November 11-14 in Columbus. The Shad J. Phipps, CCIM Named Education Scholarship is available to cover $1,000 of your course costs, and I highly encourage you to apply. Shad has been a tremendous leader and mentor in our field, and this scholarship is a testament to his dedication.

For those who want to understand the path to this prestigious designation, I recommend checking out the curriculum here: CCIM Designation Curriculum. The comprehensive courses provide the foundation to truly stand out in the commercial real estate world, from financial analysis to market strategies.

Applications are due by October 18, 2024—reach out to Shad for more information. Take this step to advance your career!

https://www.ccim.com/education/pursue-ccim-designation/designation-curriculum

🍁 As we dive into the vibrant colors of fall here in Central Ohio, the commercial real estate market is just as dynamic as the autumn foliage around us. The crisp air and amazing weather make it a perfect time to get outdoors and explore the opportunities this market has to offer.

With a steady demand across both office and industrial sectors, Central Ohio remains a prime location for business expansion and investment. The combination of competitive pricing, strategic location, and supportive local government continues to attract new businesses and drive growth. As we head into the final quarter of the year, we’re seeing particular interest in properties that offer flexibility and adaptability—whether that's through modern office spaces that cater to hybrid work models or versatile industrial properties suited for logistics and manufacturing.

Now is a fantastic time to capitalize on these trends, especially as the year comes to a close and businesses finalize their strategic planning for the next fiscal year. Let’s connect and discuss how you can leverage this vibrant market to your advantage.

Enjoy the beautiful weather, and let's talk commercial real estate! 🍂

🚀 The Future of Property Management: How AI is Revolutionizing the Industry 🤖

While my primary focus remains on commercial real estate brokerage, I’ve been increasingly intrigued by the innovative applications of artificial intelligence (AI) in the realm of property management. The rapid advancements in AI technology are not only reshaping how buildings are managed but also redefining tenant experiences in ways that were unimaginable just a few years ago.

AI-Driven Building Operations & Sustainability
One of the most fascinating aspects of AI in property management is its ability to optimize building operations. Imagine systems that can monitor and control HVAC, lighting, and other essential functions in real-time, learning from usage patterns and external factors like weather to reduce energy consumption. This kind of efficiency not only lowers operational costs but also aligns with the growing emphasis on sustainability and ESG (Environmental, Social, and Governance) practices—a topic that’s becoming increasingly critical in today’s market.

Predictive Maintenance: Proactive Problem Solving
Another game-changer is predictive maintenance. Traditional maintenance models often rely on scheduled checks or reactive repairs, which can be both costly and disruptive. AI, on the other hand, uses data from sensors and historical performance to predict when equipment might fail or need servicing. This proactive approach not only minimizes downtime but also extends the lifespan of critical building assets, leading to more stable operating budgets and fewer unexpected surprises for property managers.

Enhancing Tenant Experience Through AI
But AI isn’t just about operations; it’s also transforming tenant experiences. From AI-powered chatbots that handle maintenance requests and inquiries around the clock to personalized services based on tenant behavior, the potential to improve tenant satisfaction is enormous. Imagine a property that adjusts shared spaces based on real-time usage or offers amenities that are tailored to the specific needs of its tenants. These kinds of innovations are setting a new standard for what tenants expect in commercial spaces.

A Glimpse into the Future
As someone who’s passionate about the future of commercial real estate, I’m excited to see how these AI-driven innovations will continue to shape the property management landscape. While I’m not directly involved in property management, I believe these trends are worth watching closely. The integration of AI in this space offers not just operational efficiency and cost savings but also a more sustainable and tenant-centric approach to managing properties.

Whether you’re in property management, commercial real estate, or simply interested in the future of technology in our industry, this is a trend that’s too important to ignore. I’m looking forward to seeing how AI will continue to evolve and influence the way we think about and manage our properties.

🌆 Columbus Office Market: Innovation & Growth in Action 🌱

Columbus’s office market is experiencing dynamic growth, driven by several key trends that are shaping opportunities for businesses:

💼 Key Trends:

Hybrid Work Flexibility: The demand for tech-enabled, adaptable spaces is growing, particularly in downtown areas where businesses seek to balance remote and in-office work.
Class A Properties: Prime locations like Short North and the Arena District are in high demand, attracting businesses focused on modern amenities and strategic advantages.
Class B & C Properties: Offering great value, these spaces are perfect for growing businesses and startups. Strategic renovations can transform these properties into cost-effective, modern workspaces.
Medical Office Spaces: With the healthcare sector expanding rapidly, medical office buildings near key centers like OSU’s Wexner Medical Center are seeing significant demand.
Suburban Shift: Areas like Dublin and New Albany are becoming hotspots for businesses seeking more affordable, accessible locations that offer a better balance between growth and quality of life.

🔍 Growth Opportunities:

Class A Properties: Ideal for companies looking to enhance their brand presence.
Class B & C Properties: Perfect for cost-efficient expansion with high ROI potential.
Medical Offices: A smart investment as healthcare continues to grow.
Suburban Markets: Offering competitive advantages with affordability and space.
Columbus is more than just a place to live—it’s a thriving hub for business innovation and growth. Let’s connect and explore how you can leverage these trends to achieve your real estate goals! 🚀

🌅 Monday Motivation & Market Insights 🌆

Good morning, colleagues and friends!

As we kick off this new week, I’m reminded of the incredible opportunities and challenges that the commercial real estate market presents us daily. Central Ohio continues to be a hub of growth and innovation, with industrial space demand remaining strong, retail space showing signs of revitalization, and the office market evolving to meet new business needs. It’s an exciting time to be part of this dynamic industry!

Whether you're navigating new deals, finalizing leases, or exploring the latest trends in office, industrial, or retail spaces, remember that every challenge is an opportunity in disguise. Let’s harness the energy of the week ahead and make impactful strides toward our goals.

Here’s to a productive and successful week ahead—let’s make it one to remember! 💼🚀

Wishing you all a fantastic start to your Monday!

Excited to attend Massimocon 2024 in Dallas, TX this November!

The event is shaping up to be an incredible opportunity to learn from some of the top minds in commercial real estate. With industry leaders like Bob Knakal, Stephen Siegel, and many others, this is a can’t-miss chance to elevate our skills and dominate our markets. Looking forward to connecting with fellow CRE professionals and gaining insights that will propel us all forward. Let’s make the most of this opportunity!

🚨 Exciting News! 🚨 The Book Bash at The Bridge is just under two weeks away, and we couldn't be more excited! Today, I had the pleasure of meeting with the dedicated committee for a walkthrough at Bridge Park to ensure we are fully prepared for all the incredible activities and setups we have planned.

A special thank you to Crawford Hoying for their unwavering support and the time they spend with us to ensure that this event will be a resounding success. Your commitment to making a positive impact in our community is truly appreciated.

📅 Mark your calendars for August 24th from 5-10 PM at Bridge Park, Dublin. It's going to be a fantastic evening with the Byers' Speeding to Read Car Show, a live concert by Diamond Hill featuring the Naked Karate Girls, and fun for the whole family! 🎉

Proceeds from this event support 2nd & 7's mission to provide free books and positive role models to kids in need while encouraging young athletes in our community to pay it forward.

If you're interested in being part of this amazing cause, there's still time to get involved! For tickets and sponsorship opportunities, visit secondandseven.com/book-bash/.

Join us in making a difference while enjoying an evening filled with fun and community spirit! 🙌

Navigating Heated Markets: The Power of Due Diligence and Collaboration

In the fast-paced world of commercial real estate, especially during the busiest times, the importance of due diligence in heated markets cannot be overstated. With over a decade of experience in the Central Ohio market, I've seen firsthand how the collaborative efforts of our professional community can make all the difference.

The Central Ohio pool of professionals has been a beacon of support and positivity. During my busiest times, the willingness of colleagues and clients to engage in open communication and tackle difficult conversations has been invaluable. Together, we've ensured alignment, transparency, and trust, which are crucial for successful transactions.

One of the most important lessons I've learned is that I don't have to like every situation I navigate. By accepting circumstances for what they are, I put myself in the best headspace to focus on what's in the best interest of the transaction. It's not about me—it's about providing the highest level of service to my clients and representing the culture of my fellow professionals locally.

Providing the highest level of service means prioritizing our clients' interests, maintaining meticulous attention to detail, and leveraging our collective expertise. It's about being proactive, responsive, and always striving to exceed expectations.

Together, we can navigate the complexities of the market, making due diligence not just a step in the process but a cornerstone of our professional practice. Let's continue to support each other, stay informed, and uphold the highest standards of service in the commercial real estate industry.



Darrick G. Klamut, CCIM
Commercial Real Estate Specialist
Rolls Realty, Powell, Ohio
22 N High Street. Dublin, Ohio
[email protected]
+614-769-4085

🚀 Excited to share about the upcoming C5 + CCIM Global Summit! 🌟

📅 September 17-19, 2024
📍 Hollywood, FL

Join the National Association of REALTORS® and The CCIM Institute for three days of unparalleled commercial real estate networking, learning, and investing. This summit is the premier event of 2024, bringing together practitioners from all sectors of commercial and industrial real estate.

CCIM Shoutout!!

🗣️ Don’t miss the opportunity to hear from industry leaders, including:

Clifford Bogart, CCIM - Designated Broker, Texas Head of Commercial Education, eXp Commercial
Jared Booth, CCIM - Senior Vice President, Colliers
Michael Bull, CCIM - CEO, Bull Realty
Stephanie Coleman, CCIM - East Region Lead Transaction Management - UHG account, CBRE
Mark Cypert, CCIM - Principal, Comark Realty Investors
Patricia Lynn, CCIM - Principal/Founder, Lynnk
Jay Olshonsky, CCIM, FRICS, SIOR - President and CEO, NAI GLOBAL
Scott Overby, CCIM - Principal, Overby Commercial
Adam Palmer, CCIM, SIOR - 2026 Global President, The CCIM Institute

This is an event you don't want to miss if you’re involved in development, disposition, or any area of commercial real estate.

📈 New Office Leasing Beats Pre-Pandemic Numbers in Two Columbus Suburbs! 📈

According to a recent CoStar report, Westerville and Worthington are defying market trends with significant growth in office leasing. These suburbs saw leasing volumes increase in the first half of the year, surpassing 2015-2019 averages.

Why?

Affordable Rents: 20-30% lower than neighboring areas.
Strategic Locations: Prime spots along I-71 and I-270.
Growth Potential: Fast-growing areas set to benefit from Intel’s new facilities in New Albany.
Addressing Deficits:
While these suburbs grow, areas like Dublin, Downtown, and North Central lag behind. Strategies to strengthen these areas include:

Enhanced Incentives: More tax breaks and financial incentives.
Improved Infrastructure: Better transportation and digital networks.
Mixed-Use Developments: Creating vibrant communities.
Targeted Marketing: Highlighting unique benefits.
Local Partnerships: Collaborations with universities and research institutions.
Understanding these dynamics is key to staying ahead in the commercial real estate market. Let's discuss how to find the perfect spot in Central Ohio!

For tailored advice, reach out. Together, we can achieve your real estate goals with strategic planning and expert guidance.

🌟 Mondays are a breath of fresh air when they kick off with a flurry of productive calls, new connections, and promising opportunities! I'm grateful for the vibrant network and market value that Central Ohio brings. This region's economic vitality and market dynamics are truly second to none, setting a strong foundation for growth and success.

Busy mornings like these remind me why I love what I do. Engaging with positive, driven individuals and helping them navigate the commercial real estate landscape is incredibly rewarding. The synergy between our local market's potential and our collaborative efforts makes every day exciting and full of promise.

Here's to more productive mornings and the ongoing prosperity of Central Ohio's real estate market! 🚀✨

There's Always an Opportunity for Growth

The other day, I listened to a presenter discuss the use of ground leases by his company at a nearby seasoned development. It sparked my interest in better understanding what they are and how they work, especially both the opportunities and challenges associated with them.

Understanding Ground Leases

A ground lease, or land lease, is a long-term lease (50-99 years) where a tenant leases land from a landowner. The tenant can develop the land for commercial, industrial, or residential purposes, but the land remains the property of the landowner. At the end of the lease, any improvements usually revert to the landowner.

Common Uses of Ground Leases

Retail Developments: Shopping centers, malls, big box stores
Office Buildings: Skyscrapers, business parks
Hospitality Projects: Hotels, resorts, mixed-use developments
Residential Projects: Multi-unit housing, student housing
Industrial Uses: Warehouses, distribution centers, manufacturing plants
Infrastructure Projects: Airports, ports, transportation hubs
Specialized Projects: Healthcare facilities, educational institutions

Advantages

Capital Preservation: Lower upfront costs, potential tax benefits
Flexibility: Access to prime locations, reduced financial risk
Cash Flow Management: Predictable expenses, improved cash flow
Asset Light Model: Better financial ratios

Disadvantages

Limited Ownership Rights: No land ownership, potential restrictions
Long-term Cost: Cumulative lease payments, renewal uncertainty
Control and Maintenance: Requires landlord approval, ongoing obligations
End-of-Term Considerations: Reversion of improvements, residual value risk

Conclusion

Ground leases offer a strategic option for developers to minimize initial capital outlay and access prime locations. However, they come with long-term costs and considerations. For detailed advice on ground leases and other real estate strategies, feel free to reach out. I'm here to provide expert guidance tailored to your needs and goals.

Darrick Klamut, CCIM
Commercial Real Estate Specialist
Rolls Realty, Powell, Ohio

Unlocking Hidden Opportunities: The Power of Adaptive Reuse in Commercial Real Estate

Happy Thursday, everyone!

Let's dive into a fascinating aspect of commercial real estate that doesn't often get the spotlight it deserves: adaptive reuse. This strategy involves repurposing old buildings for new uses, breathing new life into structures that might otherwise be overlooked.

Adaptive reuse isn't just about preserving history; it's about sustainability, innovation, and economic revitalization. Imagine turning an old factory into modern office spaces, a historic warehouse into a vibrant marketplace, or a defunct mall into a mixed-use community hub. These projects not only reduce environmental impact by minimizing new construction but also create unique, character-rich spaces that attract businesses and customers alike.

In the Columbus, Ohio market, adaptive reuse is making a significant impact. A standout example is the East Market project. This historic trolley barn has been transformed into a vibrant community marketplace, featuring local vendors, eateries, and event spaces. It's a brilliant example of how old structures can be reimagined to serve contemporary needs while preserving the city's heritage.

Another notable project is the Gravity development in Franklinton. Originally an industrial site, it has been redeveloped into a mixed-use community with residential, office, and retail spaces, fostering a sense of community and driving economic growth in the area.

Adaptive reuse projects often face unique challenges, from zoning issues to structural constraints, but the rewards can be substantial. They offer a creative solution to urban development and an opportunity to preserve a city's architectural heritage while meeting modern needs.

As we continue to evolve in the commercial real estate sector, it's exciting to see how adaptive reuse projects can reshape our landscapes and communities for the better.

Have you been involved in or come across any adaptive reuse projects that inspired you? I'd love to hear your experiences and thoughts!

Planes, Trains, and Automobiles: Columbus's Next Big Leap in Transportation

As Columbus continues to grow, the need for adaptable transportation infrastructure is critical. With over 4,300 acres, Rickenbacker International Airport (LCK) presents a unique opportunity to transform into a high-capacity airport to meet our city’s demands.

In our recent article, we explored how Columbus’s strategic positioning is setting the stage for growth. Imagine if Rickenbacker served both as a major cargo hub and a high-capacity passenger airport, seamlessly blending planes, trains, and automobiles.

Did You Know?
Rickenbacker (LCK): 4,342 acres, runways up to 12,102 ft.
John Glenn (CMH): 2,265 acres, runways up to 10,113 ft.

Current Projects:
CMH: Terminal expansions and modernization.
LCK: Enhancing cargo facilities.
Columbus: Integrative transit developments improving connectivity between air, rail, and road transport.

While I'm not sure if this transformation is possible or where to start, I enjoy speculating about Central Ohio's growth. As a commercial real estate professional, I see immense potential in these developments. Let’s shape a vibrant, connected, and prosperous Columbus together.

🏅 Excitement is building for the 2024 Paris Olympics, and we're cheering on our Ohioans! Notable participants include:

Morelle McCane: Cleveland boxer, first woman from the city to qualify.
Hunter Armstrong: Dover swimmer in the 4x100m freestyle relay.
LeBron James: Akron legend returns to play basketball for Team USA.
Katie Moon: Olmsted Falls native defending her pole vaulting gold.
Ohio State also shines with 24 athletes competing in various sports!

Meanwhile, Columbus is buzzing this weekend! Catch the Columbus Crew vs. Aston Villa and Bret Goldstein (Roy Kent from Ted Lasso) performing tonight. Enjoy the action and have a wonderful weekend!

Stay tuned for more updates on Columbus and Central Ohio's real estate market.

Columbus, Ohio: A Hub of Growth and Opportunity

Columbus is thriving in many areas, making it an attractive place for businesses, residents, and investors.

Economy:
A diverse economy stabilizes Columbus, with significant operations from JPMorgan Chase, Nationwide, and Abercrombie & Fitch. Ranked No. 2 in the Global Groundwork Index for commerce, Columbus is a powerhouse for business growth.

Population Growth:
With the highest population growth among major U.S. cities in 2023, Columbus attracts people with its lower cost of living and economic opportunities.

Real Estate Ventures:
Ranked No. 3 by Zillow for 2024, Columbus's housing market boasts strong demand and stable home values, making it a prime spot for real estate investments.

Commercial Real Estate:
Columbus is a commercial real estate hub with high demand for office and industrial spaces. The city's strategic location and economic diversity support continuous growth in this sector.

These factors make Columbus a top destination for growth and opportunity in the coming years.

Good morning, Central Ohio!

Another Wednesday, another day filled with meetings and the grind of commercial real estate. The energy is high, and the drive to grow is stronger than ever. 🌟

I'm proud to be part of a thriving market where every day presents new opportunities and challenges. Our team is composed of some of the best brokers in the business, and together, we’re pushing boundaries and setting new standards.

Market Report:
Warehouse/Industrial: The demand for warehouse and industrial spaces continues to rise, driven by the e-commerce boom and supply chain optimization efforts. Vacancy rates are low, and rental rates are climbing, making it a landlord's market.

Office: The office sector is evolving with hybrid work models. While some companies downsize, others are redesigning spaces to accommodate flexible working environments. This transition presents unique opportunities for creative leasing and sales strategies.

Multiunit Housing: Multiunit housing remains robust with a strong rental market. Demand for quality housing in central locations is pushing development and investment in this sector. Multifamily properties are a key asset class for investors seeking stable returns.

Land: Land acquisition for development is highly competitive. With the ongoing growth in warehouse, office, and multiunit sectors, prime land parcels are in high demand. Strategic land purchases are crucial for future development projects.

Let's make today productive and impactful!

I had the pleasure of presenting to Bill Bishop and his team at Associated Insurance this morning. We delved into key topics such as the Sales Wallet Concept, understanding and leveraging hourly value, and addressing the Three Levels of Pain—Surface Pain, Business Pain, and Personal Pain. It was an enriching experience to discuss strategies for implementation and best practices for strengthening our referral partnership.

I am grateful for the opportunity to be a part of their growth journey and to forge a stronger, mutually beneficial relationship between Rolls Realty and Associated Insurance. Thank you, Bill, for your hospitality and for the thoughtful gift cards.

Looking forward to future interactions and opportunities to get better together!

Columbus Market Update - Residential and Commercial Real Estate

As we dive into the latest market trends in Columbus, it's essential to understand the interconnectedness of our residential and commercial real estate sectors. Both sectors play a critical role in shaping our city's economic landscape. Here's a brief overview of what's happening in both markets:

Residential Real Estate:

Robust Demand: The Columbus residential market continues to experience strong demand, despite an increase in the days homes spend on the market. Inventory remains low, which keeps the competition moderate and prices steadily increasing.

Affordability Challenges: As home prices rise and mortgage rates increase, many buyers find it challenging to afford a new home without first selling their current property. This financial pressure makes it more likely that buyers will include a sale contingency in their offers to ensure they have the necessary funds from their existing home to finance the new purchase. This trend has also made it more challenging for first-time buyers to enter the market.

New Developments: Several new residential projects are underway, aiming to meet the demand and provide more housing options across various price points.

Commercial Real Estate:

Office and Industrial Growth: The commercial sector, particularly office and industrial spaces, is thriving. Companies are expanding and relocating to Columbus, attracted by the city's business-friendly environment and strategic location.

Investment Activity: There is a significant uptick in investment activities, with developers and investors showing confidence in the Columbus market. This is evident in the numerous commercial projects currently in development.

Mixed-Use Developments: We are seeing a rise in mixed-use developments that combine residential, commercial, and retail spaces. These projects are designed to create vibrant communities that cater to the needs of residents and businesses alike.

Economic Interconnection:

Symbiotic Relationship: The health of the residential market directly impacts the commercial sector and vice versa. As more people move to Columbus for its thriving job market, the demand for housing increases. Similarly, as businesses expand and relocate, they create jobs that attract more residents. Community Development: Mixed-use developments are a prime example of how residential and commercial real estate can coexist and thrive together, fostering a sense of community and driving economic growth.

In summary, the Columbus real estate market is on a strong upward trajectory, with both residential and commercial sectors experiencing significant growth. This interdependence is key to our city's continued prosperity.

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Feel free to share your thoughts or ask questions in the comments below!

Columbus Thrives: A Bright Spot in the Apartment Market

Friends, exciting news from our vibrant city! Columbus, Ohio is defying expectations and showing remarkable resilience in the face of economic headwinds. Let me share some fantastic insights:
2.9% rent growth over the past year - placing us in the top 10 major markets nationwide!

Smart, measured development: 5,800 new units completed, just 25% above pre-pandemic levels. We're growing responsibly!
Demand is booming: 19% more units occupied compared to pre-pandemic averages.

Hotspots like Northeast Columbus (4.1% growth) and Bexley-Whitehall (3.8% growth) are leading the charge!

Sure, Downtown faces some challenges, but the overall picture is incredibly positive. With our construction pipeline set to slow, we're poised for even healthier rent gains and sustained growth.

This data paints a clear picture: Columbus is a rock star in the national apartment market. Our city continues to attract talent, foster innovation, and provide fantastic opportunities for residents and investors alike.

What are your thoughts on Columbus' remarkable performance?

How do you see our city evolving in the coming years? Let's discuss in the comments!