Michigan Markets Commercial Real Estate News Brief: June 2017

0 CommentsBy

In the latest edition of our monthly news brief, JLL’s regional team curates the top commercial real estate industry articles impacting Michigan markets to keep you in-the-know.

Keep up with Spaces’ monthly recaps—subscribe today.

District Detroit Welcomes Residential Development Boom

District Detroit, the city’s major upcoming entertainment development, has announced plans for the city’s largest residential development in more than 20 years. The upcoming project will include the renovation of historic buildings as well as new construction.

Among buildings being redeveloped for multifamily housing, are:

  • United Artists Theatre building
  • Hotel Eddystone
  • Hotel Fort Wayne
  • Alhambra Apartments

District Detroit also announced plans to construct two new buildings. One Eleven Henry will sit at 111 Henry Street with 80 units, and The Arena Lofts will include 153 units at 120 Henry Street. Construction for either unit is expected to begin later this year.

Rental rates for downtown residential developments continue to climb in Detroit, especially as more young professionals gravitate toward a downtown living style.

Related Read: 3 Ways Reurbanization Is Revitalizing Midwest Markets

Grand Rapids’ Industrial Market Sits at the Top of the Country’s High Rankings

The industrial job outlook in the manufacturing sector is bright in the Midwest—particularly in Grand Rapids, where industrial job growth has grown a staggering 22% since 2011. The city was recently ranked second, only behind Louisville, for manufacturing job growth.

Grand Rapids includes many industrial sectors (automotive, medical manufacturing, aerospace and more) in an economy where industrial growth is already on the rise. Industrial vacancy rates sit at a mere 5.4% as of the first quarter.

Technology Market Strengthens in Downtown Ann Arbor

Downtown Ann Arbor has been considered an ideal market particularly for technology firms and startups to reside—and that trend is continuing. A number of technology companies have recently announced plans to expand their teams.

Barracuda Networks and Llamasoft are both planning to hire in Ann Arbor in the coming months. Camel Energy, on the other hand, has announced its decision to move its North American Headquarters to a Pittsfield Township, creating 41 jobs in Ann Arbor. The company plans to hire engineers and other technical talent to work in its research and development center.

As Ann Arbor’s downtown vacancy remains low at 3.8%, which is ideal for investors. But, this creates a challenge for any larger tech firms or other companies to move into the downtown area.