CINCINNATI – This 226-year-old Ohio River city came unglued in early April 2001, when three nights of riots and a plunge in the number of residents and businesses followed the death of an unarmed black man shot by the police.
Fourteen years later Cincinnati is climbing to the top of the heap of American midsize cities in real estate construction — a surge in investment and new buildings fostered not only by the hard work of social activists and human rights leaders, but also by scores of business starts, job growth, wage increases, public-private partnerships, and transit development that folowed. The city’s population, 297,517 in 2013 according to the US Census Bureau, grew over 600 residents, the first increase since 1950, when Cincinnati’s population peaked at 504,000 residents.
Cincinnati’s resurgence, based in large part on the development of a new big data industry and marketing analytics, is evidence of two powerful and promising trends reshaping the United States in the 21st century. The first is the pace of job growth in American cities, which now is faster than in the suburbs. (See my articles here in the New York Times.) The second is the recovery of the Rust Belt, and especially the strength of cities in the Ohio River Valley. In today’s New York Times I report on Cincinnati’s rise as a center of what city leaders call “consumer science.”
One measure of Cincinnati’s new relevance is the $85 million, 338,000-square-foot, 12-story office building that Atlanta-based Carter is building to house General Electric’s new Global Operations Center. Construction is due to be completed in 2016 in The Banks, an 18-acre Ohio riverfront development located between the city’s baseball and football stadiums. The building and the district will be served by a station stop on the 3.6 mile, $148 million Cincinnati streetcar line, scheduled to open the same year.
GE’s Operations Center, one of five the company is developing globally, contains first floor retail, parking on the second floor, 10 stories of conference and office space, and houses up to 2,000 GE professionals, 1,400 of them new to Cincinnati. The installation serves big development and manufacturing centers that GE operates in the U.S., including lighting and aviation manufacturing sites in two Ohio cities.
The center is being built with the help of $101 million in city, county, and state tax and investment incentives. In exchange GE committed to employ at least 1,800 people in Cincinnati over the next 18 years, earning a total payroll of $142 million annually to start, or an average of $79,000 a year.
“Cincinnati was chosen due to GE’s long-standing presence in the state and southwest Ohio,” said Dominic McMullan, a GE spokesman, “as well as a pool of local talent and skills required for the roles in the Global Operations Center. In addition, the state, county and city provided a competitive incentive package to GE.”
Big Data Urban Economics
Another big project that is competing with GE for attention, and illustrates the Queen City’s powerful embrace of new market opportunities, is the dunnhumby Centre just a few blocks away. The $140 million, nine-story, 285,000-square-foot office building opens in the spring and will make the corner of Fifth and Race one of downtown’s most prominent addresses again.
Rising from a parcel that for more than a decade was a city-owned surface parking lot, the new building sits atop 29,000 square feet of ground floor retail space and a six-level, 527,000-square-foot parking deck. It is a joint project of dunnhumbyUSA and the Cincinnati Center City Development Corporation, the city’s non-profit real estate development organization, known here as 3CDC. It houses the fast growing staff of a market analytics firm jointly owned by a small British-owned big data analysis company and The Kroger Company, the grocery store chain, which is based here.
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