Michigan Markets Commercial Real Estate News Brief: May 2017

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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.

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Major Detroit Developments Put City Among Top 10 for Construction Jobs

Despite a widespread labor shortage among construction workers, the city of Detroit ranked number seven out of the top 10 markets with the highest growth rate. Major downtown and metro developments, like the Little Caesars Arena, sparked most of the growth.

Roughly 21,700 construction workers now work in the Detroit area, which is more than a 15% increase from last year. Large developments, like the Little Caesars Arena, have nearly 1,400 workers onsite per day.

The development momentum isn’t expected to slow down anytime soon. A new $77 million Midtown development is expected to begin construction in fall of 2018. The property will include more than 335 residential units, as well as nearly 8,000 square feet for retail space. Among the jobs that will be created from the site include 200 from the construction industry.

New Ann Arbor and Grand Rapids Developments Near Completion, Others Proposed

Grand Rapids—the fastest growing metropolitan area in Michigan—and Ann Arbor continue to expand with new commercial and multifamily developments. As a handful of projects reach completion, plenty more are proposed or receive approval to break ground.

Toyota recently opened its new R&D center near Ann Arbor, which marks the completion of the project that started in 2014. The project was part of the company’s expansion in the Southeast Michigan area. Similarly, Grand Rapids’ Fulton Square is also nearing completion this spring.

A number of new projects are already in the pipeline for both cities. Among those include a 12-story student high-rise apartment in Ann Arbor’s South U and a 15-story mixed-used development, called The Exchange, in Grand Rapids. A $19.3 million West Side project in Grand Rapids also received approval. The project will include a downtown Meijer grocery store.