SALES ACTIVITY | 2020 YE Vacancy Report

Sales Activity: Low interest rates added some fuel to the demand for commercial real estate purchases. Swisher Commercial brokers experienced a marked increase in the sale of residential-zoned land for new housing. There was demand by purchasers for all sectors of commercial real estate, however, modest-sized industrial property sales saw the largest increase in volume as measured by Swisher Commercial’s tracking of its own transactions.

READ 2020 YE VACANCY DATA

“Pulse: Buyers Value Proximity to Public Land”

“Based on the results of last month’s question/survey, most buyers desire rural land that is next door or in close proximity to public land. Buying property adjacent to public land offers a landowner a plethora of benefits.”

LandThink dives into the pros and cons of owning land adjacent to Public Land. Buyers continue to find value in ownership of acreage near Public Land. READ MORE HERE

13228 Dexter-Chelsea – 400 Acres Bordering Four Mile Lake Chelsea State Game Area

THE WEST FLEX AREA

The West Flex Area (WFA) vacancy rate inched up slightly from 4.0% in 2019 to 4.5% this year. (+0.5%)

 

Of the eighteen WFA properties surveyed, two increased in vacancy and two decreased. Much like the SFA, the businesses that use WFA buildings remained in place in 2020, perhaps also having less flexibility to work from home. Brokers report that the demand for the WFA’s buildings remains strong, stating that, “If a flex suite is vacant and is in move-in condition it generally gets leased quickly.” The same brokers report that office-heavy WFA buildings are not as desirable as the WFA buildings with 90% shop/10% office combinations. There is ongoing demand for flex space, particularly by tenants who need 3,000 to 6,000 square feet. Prospective tenants include engineers, service contractors, auto-related businesses, fitness gyms and R&D companies.

West Vacancy Area Map Swisher Commercial

READ FULL 2020 YE VACANCY REPORT HERE

THE WEST OFFICE AREA

The West Office Area (WOA) vacancy rate increased from 6.0% to 9.4% in 2020. (+3.4%)

Five buildings increased in vacancy while two buildings decreased. Of the five increases, four properties are located in the West Stadium corridor and one is located along the Jackson Road corridor.

West Office Area Map Swisher Commercial

 

READ 2020 YE and Past Years’ Vacancy Reports HERE

 

Downtown Dexter’s New Social District

“The Downtown Dexter Social District was created to be an inviting and unique environment in which visitors can experience the offerings of our local businesses and to support them throughout the winter months.” -City of Dexter Website

Downtown Dexter Social District City of Dexter 2021

AVAILABLE DOWNTOWN DEXTER RETAIL COMMERCIAL LISTINGS:

3126 BROAD: 1,800 SF – 6,800 SF Retail Commercial

3203 BROAD: 725 SF Street Retail / Service

8007 MAIN: 1,250 SF Retail Commercial / Office

8170 BAKER: 1,000 SF Retail Commercial

READ MORE ABOUT THE DOWNTOWN SOCIAL DISTRICT 2021:

Visit the City of Dexter’s Website for More Information

Read the Sun Times News’ Article about the Social District

Read how Downtown Farmington has greatly benefited from their new Social District

THE SOUTH FLEX AREA

The South Flex Area (SFA) vacancy rate was flat, increasing from 2.9% vacancy in 2019 to 3.1% this year. (+0.2%)

Eight of the 50 SFA buildings had a change of status, with four of them increasing and four decreasing in vacancy. It is noteworthy to see that a large, 2 million square foot, sub-market remained stable in 2020. The businesses who use the SFA buildings had fewer options of working from home due to the nature of their operations. The SFA differs from the six office sub-markets in our report in that there was ongoing new demand for space throughout 2020.

South Flex Area Vacancy Report Map

READ FULL 2020 YE VACANCY REPORT HERE

How can Swisher Commercial help you?

Large group gatherings feel like ancient history after this past year of Covid restrictions! Even though we were not able to host an in-person Commercial Real Estate Symposium this month, Swisher Commercial is still here to support your commercial real estate knowledge and keep you up-to-date on current market information. Here are several resources to help you navigate CRE decisions:
 
 
 
 

THE SOUTH OFFICE AREA (SOA)

The South Office Area (SOA) vacancy rate increased from 6.3% to 11.4%, the largest increase in vacancy of the eight submarkets in our survey. (+5.1%)

Twenty-one SOA buildings increased in vacancy, including five buildings with 10,000 square feet higher vacancy than in 2019 and two buildings with 30,000 square feet higher vacancy than in 2019. There were fewer new prospects for the SOA market, with a notable decrease in demand for large blocks of office space. Swisher brokers suspect that the SOA experienced a typical amount of attrition in 2020, common in any year in any market, but that the SOA did not experience the typical back-fill by new office tenants, thus resulting in the sizable net loss of occupants in the SOA. What is yet to be seen in the SOA, as in all sub-markets, is whether the pandemic-driven move to have employees work from home will have long-term effects on office space consumption and consequently affect the vacancy rate.

South Office Area Map Vacancy Report Ann Arbor

Read full 2020 YE Vacancy Report here.

Year In Review: 2020

Swisher Commercial’s experienced brokers continue to guide Washtenaw County businesses, landlords and owners in making successful commercial real estate decisions. Our “Year in Review” is a glimpse of 2020 deals that move business forward and create a positive impact on our community.

LEASED: 153 Deals

SOLD: 42 Deals

 – FEATURE DEALS – 

  • 7025 E. Michigan Ave, Saline, Country Creek Shopping Center: 31,500 SF Retail SOLD, Tony Caprarese
  • 660 S. Mansfield, Ypsilanti: 72,500 SF Industrial SALE, Dave Hamilton & Jeff Evans
  • 423 E. Michigan, Saline, Saline Gallery Shopping Center: 14,375 SF Large Box Retail LEASED, Tony Caprarese
  • 516 St. Johns, Ypsilanti: 17,892 SF Multi-Family SALE, Charlie Koenn
  • 1145 Oak Valley, Ann Arbor: 17,728 SF Industrial Flex LEASED, Bart Wise
  • 301 E. Liberty, Ann Arbor: 5,705 SF Downtown Office LEASE, Randy Maas & Michael Giraud
  • 8093 – 8099 Main, Dexter: 7,098 SF Retail SOLD, Jeff Evans
  • Strieter, Ann Arbor: 142 Acres Res/AG Vacant Land SALE, Charlie Koenn

 

Download your 2020 YE Ann Arbor Area Office & Flex Vacancy Report Here

Congratulations to all on your real estate decisions!

THE CLARK-GOLFSIDE MEDICAL (CGMA) OFFICE AREA

The Clark-Golfside Medical (CGMA) Office Area vacancy rate increased from 6.5% to 9.9%. (+3.4%)

There was some demand for CGMA suites by medical/health-related tenants, even though the vacancy rate increased. Brokers reported that while demand persisted, prospective tenants proceeded at a cautious pace.

Clark Golfside Medical Area Ann Arbor Map

See where this area stands in comparison to other Ann Arbor sectors – READ FULL REPORT.