If last years’ numbers are any indicator, new office and industrial construction is boosting the Detroit metro area’s commercial real estate market. According to CoStar Group Inc., a real estate information service, Oakland, Wayne, Livingston, Macomb and Washtenaw counties currently contain 8.5 million square feet of proposed industrial space construction and 8.4 million square feet of proposed office buildings.
One reason for these large numbers is the fact that many tenants are now looking to move into certain areas or into certain kinds of spaces. According to one expert, many of the existing empty spaces don’t fit the needs of the tenants, meaning new construction is needed to meet demand. Tenants are now requesting spaces with particular features and amenities.
The director of the Wayne County Economic Development Growth Engine said that the rebounding economy is also a contributing factor in the demand for new buildings. The director also said that there was almost $600 million in redevelopment projects and private investment construction last year in Wayne County. He says that it is possible that 2014 may be an even bigger year for the commercial real estate sector.
This is positive news for a state that has been struggling for several years now. Michigan was already in a recession when the rest of the country’s economy took a hit, but it appears things are coming back as companies are able to better predict their ability to continue to be successful. While some are hesitant to call the current trend a “boom,” it is clear that the growth is in a positive direction.
Source: Crain’s Detroit Business, “New office, industrial construction on the rise as tenants seek own space, particular location” Kirk Pinho, Mar. 02, 2014