There's something exciting brewing southeast of Grand Rapids proper: a 700,000 square foot development that will be comprised of three buildings located in close proximity to the Grand Rapids airport, also known as the Gerald R. Ford International Airport. Robert Grooters Development Company has publicly announced its intentions to create the development on Kraft and 52nd Street, aptly named “Area 52” in a shout-out to the famous “Area 51” and the 52nd Street location. They are hoping to begin construction on this massive project this fall, though a projected completion date for the full facility has not been announced at this time.
The planned buildings at Area 52 will incorporate an aviation theme throughout. According to information provided by the president of Robert Grooters Development Company, Robert Grooters, the exterior of the buildings themselves will be covered with art, depicting various stages in aviation history, from the Wright Brothers' fist airplane to modern jet planes. Robert Grooters Development Company holds 50 acres near the airport, which will very likely soon host a number of businesses and commercial spaces for rent.
This decision to invest in such an expansive facility makes it clear that even the most savvy of investors are able to see the potential in the West Michigan market right now. In addition to a very fast-moving, hot residential real estate market, commercial and industrial properties are renting and selling at a much faster pace than they were several years ago, even as recently as last spring. The need for new, cutting-edge facilities within a short commute to the airport and the many hotels and extended-stay facilities on eastern 28th Street and the area surrounding the airport has not gone unnoticed.
Robert Grooters Development Company, like many in the real estate and development industries, was treading water in the West Michigan market for some time. Prior to the recession, they maintained and managed roughly 500 acres of properties in the area; they are only just now beginning to expand and develop the much smaller local holdings they currently manage. Robert Grooters Development Company is seeking, through economy of scale, to keep building and development costs for their facilities as low as is feasible; they currently shoot for a target of $3 triple net in costs to commercial renters and tenants. This allows their large industrial spaces to be competitive in the current market, often coming in at much lower rents than other facilities, and allows their tenants room to grow as their market expands along with the local economy.
There has been no specific word on what, if any, tenants will occupy the Area 52 space, but it stands to reason that the development's available spaces will be in relatively high demand. This, in turn, should have a positive impact on the communities near the airport, including Grand Rapids and Kentwood, by providing new jobs and infrastructure growth and development. For homeowners in the region, the construction of Area 52 may represent a brighter future, with new job opportunities, new businesses to patronize, and hopefully, an increase in property values, both commercial and residential.