MSU Biomedical Research Facility Impacting Area Real Estate

The Northeast side of Grand Rapids and the downtown area are primed to receive a major bump in property values over the next few years, thanks to investments in the “Medical Mile” on Michigan Avenue. First, Butterworth Hospital was acquired, remodeled, and overhauled by Spectrum Health. This prompted the development of several additional medical facilities on Michigan Avenue, including MSU's Secchia Center. Now, Michigan State University is looking to invest $88.1 million in the construction of a medical research faciliy which will sit on the corner lot at Monroe and Michigan, where The Grand Rapids Press long had its offices.

As The Grand Rapids Business Journal reports, MSU will be submitting plans to the city for approval later this year which, if approved, will allow them to develop the currently vacant lot that measures 4.1 acres, a massive amount of open space for a location so close to the heart of downtown. If all goes according to plan, the facilities will be open for research by 2017. In time, when the facilities are open, the MSU research facility will bring 409 jobs to Grand Rapids, with a whopping estimated annual payroll of $28 million.

As far as specific plans for the site, not much is concretely known at this time, other than MSU's plan to build a 600 space vertical parking structure on part of the land. Other than that, specific information about MSU's Innovation Park have been kept under wraps, possibly because they are still be finalized by the university.

So what does this have to do with local real estate? It's really pretty simple: the residential neighborhoods near the Medical Mile will very likely experience an increase in value with little investment on the part of the owners, due to an increase in demand for both ownership near work by those employed at the MSU facility (and others nearby) and rental properties for employees and students. The increased population and foot traffic brought on by local commuters and students will in turn inspire more businesses to invest in the area as well, as restaurants and similar businesses will have substantially increased demand when the facilities open.

City planners are optimistic that this investment and the resultant increase in traffic and business will spill over into the West Side neighborhoods as well. Many local developers, such as 616 Development LLC have ongoing mixed-use projects in the area, banking on the influx of money and residents. Similarly, CWD Real Estate Investment has been renovating the Rowe Building, which sits just across the intersection from the planned MSU biomedical research facility.

For those looking to purchase properties on the Northwest side, the North end of downtown, or the West Side (especially properties easily accessible to or located on Bridge Street), now is a great time to invest. For those currently living in these areas or holding investment properties, it is likely that the next two years will see a substantial boost in property value.

As always, the professional, dedicated professionals of Pyxis Realty are available to advise on the acquisition of investment properties and the sale of homes and investment properties. If you're looking to get in on the ground floor for what looks to be a major wave of investment and improvements in the downtown Grand Rapids area, now is the time to call!