TheOHIOAND ERIE CANAL MARKET NICHEisthe name given to a specialty market related to the real estate, business and recreational opportunities of theOHIO & ERIE CANAL NATIONAL HERITAGE AREAthatextends a distance of 110 miles along the nationally designated America’s Byway from downtown Cleveland to New Philadelphia.This marketinvolves sections of the Ohio & Erie Canal National Heritage Area running through parts of Cuyahoga, Summit, Stark and Tuscarawas Counties. The OHIO & ERIE CANAL MARKET NICHEarea includes 58 communities, four counties, four regional park districts, and the Cuyahoga Valley National Park. Note: The 25 mile long section running through Western Stark County is known as the Stark County Canal Corridor that you can click here for more information: Stark County Canal Corridor
What is this new market and why it is needed?
Under the current methodology of comparing the value of properties, that methodology tries to bring together “Like Type” properties based upon numbers that are similar for basically two categories: The price and the size of the property in total sq. ft. then resulting in a cost per sq. ft. Although quality of life type amenities are desired and sought after, they yet to be assigned any specific monetary value, resulting then to bring together "Non - Like Type" properties for comparison where the degree of discrepancies separating out the two can be substantial.
As we can see, trying to match up like type properties has never been an exact science as there are standardized parameters and templates to follow and be checked off. This methodology is a status quo type of approach that is decades old and is in conflict with the businessclimate of today where an emphasis on the neighborhoods and quality of life amenities have become an indicator of value that needs to be factored in as part of the basis of comparing “Like Type” properties that could take place within the new Ohio & Erie Canal Market Niche.
What makes this market different
What makes this market different from a traditional market place setting is that the Ohio & Erie Canal Market Nicheis site specificthat will haveit’s owndefining criteria of value. Under the existing method, quality of life amenities of a community can become diluted and blended together when being compared to a larger market area. This market has an asset that is irreplaceable in the historic Ohio & Erie Canal.This specialty market is identified as being related to the real estate, business and recreationalopportunities of theOhio & Erie Canal National Heritage Area that specializesin Outdoor Recreation, Health and Wellness, Nature Watching, Bird Watching, Tourism, Eco and Wildlife Tourism, Nature Conservation, Education and Preservation, Entertainmentto Canal Cultural/Heritage Tourism where each canal community, each county and each park districtis further highlighted within their own areas of specialty related tothe services, programs,businessesand products they offer.
Power and Influence of the Ohio & Erie Canal
The Ohio & Erie Canal is an irreplaceable asset that is completely unique distinguishing itself as a powerful magnet that attracts2.5 Million Visitors annually generating$408 Million in visitor spending and the Outdoor Recreation Industry that is associated withthe Towpath usage is an $887 Billion economic development engine and where it is a player in the State of Ohio Tourism industry estimated at $38 Billion and growing. The Ohio & Erie Canal Market Nicheis more than a market gauging property values, it is a powerfuleconomic development catalyst whose far reaching tentacles becomes an influencing factor extending too and impacting the other real estate markets on a broader scale.
Perception of Value
By designating the Ohio & Erie Canal Corridor as a market unto itself, the Canal Corridor then becomes the neighborhood and within that neighborhood is where we can establish the criteria that relates to and defines it's value factoring in quality of life type services and amenities that are part of a specifically identified geographic area. Because it is a market unto itself, "Like Type" properties can then be compared too others to hold that perception of value that could prove to be sustainable through real estate market downturns and upswings.
It is a common fallacy that most people buy something based solely on price or the stated value, but rather on their perceptionof value. Perceived value is the worth that a product or service has in the mind of the consumer where they simply have an internal feeling for how much certain products or services are worth to them as a consumer that affects the price they are willing to pay. While actual value is a reflection of the true costs of production coupled with the costs associated with the product’s sale, perceived value is based on customer opinionand thoughts. It reflects the value of a product as assigned by a consumer, which may have little to do with the actual monetary value of the product itself. Consumer utility refers to the amount of satisfaction a particular brand, product, or item provides and how it relates to demand. Products with higher utility within their sector can achieve higher prices than competitors perceived to have less utility.
The Ohio & Erie Canal Market Niche will be defined as having a higher perception of value and a higher utility resulting in a higher feeling of consumer satisfaction.
Canal Waterfront Property
Although establishing waterfront values is one of the biggest indicators of value to a property or community, the Ohio & Erie Canal with 110 miles of the canal waters has never been looked upon as identifying waterfront properties? Real estate abutting a body of water like a lake, river, canal or ocean is considered being waterfront. According toZillow with adatabase of more than 100 million homesnationwide, theyhave analyzed the single-family waterfront home market in the United States from 1996 to the present and they have developed a unique home value index for waterfront homes nationally and at the city-level. Their index only used properties located abuttingan ocean or lake where on a national average waterfront homes were found to be worth more than double of the value of homes overall where that difference has grown to 116%. Whether 10% or 50% or double the value will only be determined over time as to the value buyers put to having canal waterfront property, but in any case, the value of property and the value of a canal community is an untapped market potential that both buyers and sellers need to be aware of.
Commercial Property: When it comes to an analysis for the impact of a waterfront location for commercial property, there are no currently full scale analysis to make reference too. Subsequently, the premier and leading provider of commercial real estate data in the country, CoStar who is also the owner of LoopNet the most heavily trafficked commercial real estate marketplace online is in the process of trying to extrapolate that value out on a national scale and will post their results when available.
Demographics of Today and the Future Connecting with the demographics for the next 50 years
The hottest demographic market that everyone is going after is the Millennials, ages 20-35 as they are projected to impact the future just as the Baby Boomers did.According to a March 1, 2018 study by the Pew Research Center, Millennials are on the cusp of surpassing Baby Boomers as the nation’s largest living adult generation, according to population projections from the U.S. Census Bureau. Millennials are expected to overtake Boomers in population in 2019 as their numbers swell to 73 million and Boomers decline to 72 million. Generation X (ages 36 to 51 in 2016) is projected to pass the Boomers in population by 2028.
The one area that Boomers and Millennials share a common thread is in Eco-Tourism. Eco-Tourism is the fastest-growing segment in the tourism industry according to The International Ecotourism Society of Washington, D.C as they share a passion for recycling older buildings, green space, outdoor recreation and protecting the environment, where its practices are influencing hotel chains and even beach resorts to implement more sustainable practices.
The Ohio & Erie Canal Market Niche connects directly to this demographic group offering opportunities from commercial real estate to home ownership to business opportunities for today and into the future.
The Ripple Affect
We all know know what happens when you toss a stone into a quite pool of water where the ripples exponentially keep spreading out further and further touching on a much greater area. The key and the most difficult part is to identify what that stone is or will be to cause the ripple affect to occur. According to astudy of The Economic Impact of the National Heritage Areas, “The Ohio & Erie Canal National Heritage Areahas directed most of its federal funding into grants that develop sites and amenities that add value to the region. The Ohio & Erie Canalway has been able to leverage $350 million in Federal, State, Local, and Private investments throughout the region creating more connector trails between the Towpath and various towns and communities and as visitors to the Towpath Trail continually grows, these communities along the trail will continue to benefit greatly from the growing business and tourism that will continue to follow to the connected sites, history, and offerings of the heritage area”.
When it comes to the stone that starts the ripple affect, the Ohio & Erie Canal is a boulderthat will cause largerand far more reaching ripples.
The United States is globally recognized as the leader in the $887 Billion Outdoor Recreation Industry. As a multi-dimensional economic sector, outdoor recreation is more than guiding, outfitting services, lodging, fishing, hunting, boating, walking, jogging, biking, park services and more as it fuels and inspires employment in other sectors, such as manufacturing, finance, transportation, food service, tourism, travel, product developers and design, small and large retailers and other professionals, technology, global commerce, to creating a demand for advanced outdoor technical apparel, footwear and equipment that drives innovation and entrepreneurism, conservation, preservation, education, to Eco-tourism, bird watching, Wildlife tourism, sporting and competitive events and more.
The largest city in a region will have its own market identity such as the Cleveland market. Smaller mid-size cities such as Akron can have their own market, but by some can also still considered as part of the larger city’s influence by being referred to as being part of the greater Cleveland market. Smaller communities around Akron are then considered part of the greater Akron market and every city or community in Stark County is considered as part of the greater Canton market and by some Canton can be referred too as being part of the greater Akron market as a point of reference. When trying to find other "Like Type" properties to compare with to get market values, as you can see, it can involve the bleeding over to other market areas that then takes into account areas of greater discrepancies matching up properties in a low crime area with those in a high crime area, etc.
Ohio & Erie Canal Market Niche - This market will be different in that it is site specific and will have it's own defined criteria of value where the properties located within this market could then at one time be considered as being "Like Type" for comparison purposes.
Buyers and Sellers of Real Estate
If you are looking to buy or sell a home or commercial property, contact a real estate brokerage house and/or contact the City Manager or the City Economic Development Manager in the community that you would like to be a part of.
If you are a real estate professional and you deal with buying or selling of real estate to financing or appraisal and in any and all other capacities, this new Ohio & Erie Canal Market Niche maybe something that you should take note as it might open up substantial opportunities for you.
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