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.
“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
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.
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.
“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
AVAILABLE DOWNTOWN DEXTER RETAIL COMMERCIAL LISTINGS:
READ MORE ABOUT THE DOWNTOWN SOCIAL DISTRICT 2021:
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.
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.
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
Congratulations to all on your real estate decisions!
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.
See where this area stands in comparison to other Ann Arbor sectors – READ FULL REPORT.
- Office & Medical
- Retail & Commercial
- Industrial & Flex
- Vacant Land & Development
- Multi-Family & Income
- Business for Sale
- Special Purpose