NORTHERN MICHIGAN'S COMMERCIAL REAL ESTATE SOURCE
Happy New Year! It was a busy end to 2013 and we look forward to same in 2014. In this edition you will find the Year End Market report as well as a call for new listings followed by some new properties to hit the market in the last month or so. Here's to a prosperous and successful 2014!
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2013 Year End Market Report
Year Finishes Strong to Keep Pace with 2012
The Commercial Real Estate Market in 2013 ended with a bang as we saw the busy fall continue through November and December with above average activity. This past year just eclipsed the totals in 2012 for both Total Building Square-footage Sold and in Total Sales Volume.
The market also saw a slight decrease in the Average Sales Price/Square-foot for the Office/Medical and Industrial/Warehouse markets but a substantial increase in the Retail/Restaurant sector. Perhaps the reduction in the Price/SF of the Office/Medical and Industrial/Warehouse is due to the lack of available quality inventory of these property types and the properties sold this past year were of a lower class of building. The increase in the Price/SF in the Retail/Restaurant could be due to the spike in the amount of restaurants and micro-breweries that we have seen due to the publicity as a top-notch Foodie Town. We also believe that Investors picked up some of the Retail Strip Centers that showed strong tenants and cash flows at fair market values.
So what's ahead for 2014? We are anticipating a lack of quality inventory across all market sectors, which should help bring the prices back up and begin to balance the field between buyer and seller. And, maybe, just maybe, we will start to see some vacant land sold as businesses are pushed to have to build again to get what they want, a market that has been almost non-existent for four to five years.
MARKET ANALYSIS 2012 YEAR END VS. 2013 YEAR END
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TOTAL BLDG SF SOLD 2013
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AVG. SALES PRICE/SF 2012
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AVG. SALES PRICE/SF 2013
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OFFICE /
MEDICAL
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78,377
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86,578
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$100
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$95
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INDUSTRIAL /
WAREHOUSE
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219,415
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227,537
| $44
| $31
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93,122
| 82,073
| $65
| $93
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TOTAL
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390,914
| 396,188
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We Need Inventory! Success in 2012 and 2013 leaves hole in Market
With a total of almost 800,000 square feet of commercial real estate sold in 2012 and 2013, the back log of users and investors looking for just the right property and solid investments is growing. We think this will be a great year for those selling their properties. Some of the hot property types that we think will top the market in 2014 are: - Small standalone office buildings (2,000 - 4,000 SF)
- Downtown Retail Spaces (800 - 1,400 SF)
- Mid sized Industrial Buildings (5,000 - 10,000 SF)
- Multi-Tenant Retail and Office properties with strong tenant history and cash flow (10% CAP)
If you own a property that fits into one of these categories, or are interested in selling your property this year, please contact us. We look forward to the opportunity to provide you with a Market Analysis. You can contact us by:
- E-mailing one of our agents (located in the column to the right)
- Call our office at 231-929-2955
- Visit our website at www.threewest.net
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New To The Market Here are just a few Properties that have come onto the market since our last Newsletter.
PROPERTIES FOR SALE 305 W Front Street - 1.75 Acres - $3,450,000 - Large Development Property on Traverse City's west end with Boardman River frontage - MLS# 1779397 10281 Old 27 - 36,000 SF on 5.9 Acres - $495,000 - Warehouse | Distribution Center - Property also for Lease @ $7,500/Month - MLS# 1778645
- 3,000 SF Medical Office - $420,000 - Property also for Lease @ $3,500/Month - MLS# 1779267 - 4,575 SF on 1.92 Acres - $359,900 - Office/Warehouse building with pit area for large vehicle service, in-floor radiant heat - MLS# 1778929 3344 Cass Road
- 4,000 SF Car Wash on 0.91 Acres - $288,000 - Existing Car wash with great redevelopment potential - MLS# 1779334 |
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CONTACT US
KEVIN ENDRES, PE
RICK DENEWETH, JD
DAVID FROST
STAN TORNGA, CPM
STEPHANIE ENDRES
ASHLEY ROKOS
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CONNECT WITH US
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