Written by: Collin Fitzgerald
Columbus Business First recently published an article on Columbus City Council approving legislation updating the city's zoning code. Collin Fitzgerald, Research Manager at Colliers | Columbus offers his perspective on the article.
Overview of the Legislation
Columbus City Council’s approval of the updated zoning code marks a significant milestone for the city. This overhaul, the first comprehensive update since the 1950s, reflects the city's strategic response to anticipated growth. Council President Shannon Hardin and Councilman Rob Dorans emphasized the importance of this legislative move to accommodate the projected need for 200,000 new housing units over the next 15 years.
Key Changes Introduced
Creation of Six New Mixed-Use Districts: These districts, positioned along busy corridors, will encourage the development of taller buildings, with some zones allowing structures up to 16 stories high.
Reduction in Variance Requirements: By permitting more types of developments within these districts, the need for variances is minimized, streamlining the approval process.
Focus on Historical and Design Review Boards: Additional clarifications have been added to ensure these boards' roles are well-defined.
Parking Impact Studies: Developments not proposing a one-to-one parking ratio will require a parking impact study.
Implications for Commercial Real Estate
Increased Development Opportunities: The introduction of mixed-use districts paves the way for a diverse range of developments. This flexibility is likely to attract both large and small developers, fostering a competitive and dynamic market.
Boost to Housing Stock: With the zoning code enabling up to 14 times more housing in certain areas, there will be a substantial increase in residential projects to help combat the Central Ohio housing crisis. This surge in housing will likely lead to a higher population density, which can boost demand for commercial real estate, particularly retail and office spaces.
Streamlined Approval Processes: By reducing the need for variances and introducing clearer guidelines, the new zoning code aims to expedite the development process. This efficiency can lower costs and reduce delays, making Columbus a more attractive destination for developers and investors.
Support for Small Developers: The equitable framework of the new zoning code ensures that small developers have ample opportunities to participate in the city’s growth. This inclusivity can lead to a more varied and vibrant real estate market, with diverse architectural styles and community-focused projects.
Impact on Property Values: As development becomes more streamlined and areas become more densely populated, property values in these newly zoned districts are expected to rise. This appreciation will benefit current property owners and could lead to increased investment in commercial real estate.
Commercial Demand Driven by Population Growth: As Columbus works to accommodate its growing population, the need for supporting infrastructure—such as retail, healthcare, and educational facilities—will increase. Commercial developers should prepare to meet this rising demand, particularly in the new mixed-use districts where higher population densities are expected.
Conclusion
The updated zoning code represents a forward-thinking approach to Columbus’ growth challenges. By creating a more flexible and inclusive development environment, the city is positioning itself to handle future demands effectively. For the Columbus commercial real estate market, this means new opportunities, a more efficient development process, and an overall boost in market activity. Stakeholders in the Columbus commercial real estate sector should closely monitor these changes and adapt their strategies to capitalize on the emerging trends.
Sources: Columbus Business First, Bonnie Meibers
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