By George Martin from South Park, CO., USA (Grand Rapids. MI Uploaded by xnatedawgx) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

 

According to an article in MiBiz.com, the commercial real estate (CRE) market is west Michigan is up and looks to stay that way, following a brisk first and second quarter in 2015. They quote local CRE office Collier's International of West Michigan as calling the local commercial real estate market “healthy” currently. The article quotes Duke Suwyn, the chairman and CEO of Collier's International of West Michigan and relies heavily on his analysis of current market data.

 

The article intimates that there are some concerns about lack of inventory, especially in the industrial real estate market, but that high level of demand paired with decreasing available spaces is a great sign for professionals in the real estate business and also for the local economy. Any concerns about the lack of available industrial spaces for sale can easily be offset by the abundance of local vacant properties that are zoned for commercial or industrial use.

 

Suwyn makes a point of noting the fact that properties are more likely to sell when the prospective buyer is new to the market and seeing them for the first time. Additionally, unlike the last few years, buyers are no longer simply looking for the cheapest possible property. Instead, they are looking for proximity to commuter routes and other individual factors which comprise the best possible space for their business' goals. This is a good sign for local job seekers and the future of West Michigan as a whole. As more areas are developed, as new construction commences to create spaces for businesses unable to find something to suit their specific needs, more jobs will be created and more money will move through the local community.

 

Collier's analysis of internal data indicates that vacancy for industrial spaces is down by approximately 6 percent, which is a substantial drop. In the office sector, vacancy has been steadily dropping as well. Collier's quotes the current vacancy rate for available office spaces in the Grand Rapids/West Michigan market at 11.6 percent. For example, in the downtown Grand Rapids area, office real estate took over an additional 132,546 square feet of space in the second quarter of 2015. Vacancy for office space in the surrounding suburbs is somewhat higher, at 22.9 percent. The retail market has dropped in the last two quarters, but much of that is due to lack of inventory and lack of interest in poorly placed retail rentals. These days, Collier's is reporting fierce competition for prime retail locations, with plenty of traffic and high volume of potential visitors.

 

For those interested in commercial or retail properties, this hot market means aggressive, intelligent representation is the bets bet to obtain a space that fits your business' needs. For those in the market for homes or investment properties, this upswing in commercial property sales and the overall decrease in vacancies bodes well for increasing home values in the area, should the trend continue. If you are thinking of buying or selling a home in the next six to twelve months, you'll want to have the most knowledgeable, helpful realtor working for you. Get in touch with someone here at Pyxis Realty, and discover what a real change a successful realtor working for you can be!