May | 2014
NORTHERN MICHIGAN'S COMMERCIAL REAL ESTATE SOURCE

Welcome to Spring! We are all hoping for some more sun and warmer temperatures to jump start the selling season.  In this edition you will read in the Market Report that we are behind where we were last year and information on a new Veteran Loan Incentive Program.
2014 Market Report Through April
2014 Starts Off Stuck In The Snow 

The Commercial Real Estate Market began the year in keeping with the weather, stuck in the snow
.  It seems as if the rush of business at the end of the year came to a halt and froze in place with the bitter temperatures.  For an example, there were a total of eleven (11) properties closed in the 1st Quarter of 2013 compared to only five (5) in the 1st Quarter of this year.  Leasing seemed to follow suite during this same time frame. We believe that the slow down was amplified by the weather, but driven too by the lack of quality inventory.  Inquiries during this time period seemed to be historically consistent with the time of year, but finding properties to meet the specific needs of users has become increasingly more difficult.

In the snapshot below, you will notice the average sales prices have dropped from the previous year which would be counter intuitive to the standard supply-demand formula. In reviewing these properties this is merely due to the fact that the properties that were sold were those in the bottom class of the market and again shows the lack of quality options available to those business looking to make a purchase. With the warmer temperatures and some peeks of the sun, we are seeing an uptick in business. Time will tell if the pent up demand will be able to be met this summer by the available inventory.
   
MARKET ANALYSIS 2013 1st Q VS. 2014 1st Q
PROPERTY
TYPE 
TOTAL BLDG
SF SOLD
2013    
TOTAL BLDG
SF SOLD
2014
AVG. SALES
PRICE/SF
2013
AVG. SALES
PRICE/SF
2014  
OFFICE /
MEDICAL
19,484
11,670
$108
$102
INDUSTRIAL /
WAREHOUSE
15,050
31,004
$39
$23
RETAIL /  
RESTAURANT
3,300
0
$72
$0
TOTAL
37,834
42,674


*Market data has been pulled from the NGLRMLS for Grand Traverse County

 TO VIEW THE FULL MARKET REPORT - CLICK HERE

 

Hot Retail Opportunities Available
We are coming into the peak retail selling season in the Traverse City Area and here are a few opportunities for you to take advantage for starting a business or expanding with a new location.

  • Three Available units 
    • Unit 7, 904 SF,  $1,655/Month, MLS#1780610
    • Unit 8, 1,170 SF, $1,755/Month, MLS# 1779393
    • Unit 11, 1,211 SF, $2,320/Month, MLS# 1780609 
  • 17,000 Cars/Day at slow speeds  
  •  Drive up Window available with Unit 8, Plumbing and Gas available in Unit 7 for Restaurant/Pizza business.
  • Download Information Here

  

  • Four Available units 
    • 5754, 1,480 SF,  $1,252/Month, MLS# 1747121
    • 5756, 1,336 SF,  $1,130/Month, MLS# 1782159
    • 5774, 1,118 SF,     $945/Month, MLS# 1747122
    • 5782, 1,900 SF,  $1,607/Month, MLS# 1747123 
  • High Traffic Volume, Views of the East Grand Traverse Bay
  • Near new Meijer Development 
  • Download Information Here 

  • One Available unit  
    • Unit 2, 1,500 SF +/-,  $17.75/SF NNN, MLS# 1746791
  • High Traffic Volume on highway and within the complex
  • Two Units already pre-leased 
  • Download Information Here 
New VetLoan Advantage Program
New Program aimed to help Entrepreneurial Veterans

 

The Economic Development Foundation (EDF), a non-profit Certified Development Company (CDC), has partnered with the National Association of Development Companies (NADCO) and the Small Business Administration (SBA) to develop a business lending program for veterans.  VetLoan Advantage was developed by NADCO, the trade association for CDCs that administer the SBA 504 Loans.  VetLoan Advantage is targeted at entrepreneurial veterans and will offer veterans increased access to business capital through reduced-cost financing.

 

EDF's President, Sandy Bloem says, " Not only will getting these veterans the access to capital they need help them start businesses and transition back to civilian life, but this will also help create jobs and economic growth in our community.  We're proud to be a part of VetLoan Advantage, and to be the first to offer this in the State of Michigan."

 

VetLoan Advantage through EDF works by offering an incentive for veteran-owned small businesses utilizing the SBA 504 loan program.  EDF will pay the cost of the Third-Party Lender Fee of % of the Lender loan amount, which in essence waives the fee for the veteran-owned borrowers.  This will reduce the cost of financing up to a maximum of $5,000 per business.  The 504 loan program is a self-funded long -term financing tool providing small businesses with long-term, fixed-rate loans with down payments as low as 10%.  EDF works with the SBA and private sector lenders to provide financing to small businesses under the 504 loan program.

 

In addition, EDF will waive 20% of the packaging fee on an SBA 7(a) Loan for veteran-owned small businesses, up to a maximum of $500.00.The Economic Development Foundation (EDF), a local non-profit Certified Development Company (CDC), has partnered with the National Association of Development Companies (NADCO) and the Small Business Administration (SBA) to develop a business lending program for veterans.  VetLoan Advantage was developed by NADCO, the trade association for CDCs that administer the SBA 504 Loans.  VetLoan Advantage is targeted at entrepreneurial veterans and will offer veterans increased access to business capital through reduced-cost financing.

 

- Article and Information Provided by EDF 

 
IN THIS ISSUE
2014 Market Report YTD
Hot Retail Center Opportunities
New VetLoan Program
QUICK LINKS

VIEW OUR LISTINGS

SEARCH PROPERTIES - STATE & NATIONAL

SEARCH PROPERTIES - FOR SALE

SEARCH PROPERTIES - FOR LEASE

ABOUT US

OUR SERVICES

CONTACT US

KEVIN ENDRES, PE

RICK DENEWETH, JD

DAVID FROST

STAN TORNGA, CPM

STEPHANIE ENDRES

ASHLEY ROKOS
 
CONNECT WITH US

Another great way to stay in touch with the latest news from Three West is to follow us on Facebook, Twitter & now YouTube!

Like us on Facebook

View our videos on YouTube

Follow us on Twitter



 
Join Our Mailing List
THREE WEST, LLC
COMMERCIAL REAL ESTATE | CONSULTING
231-929-2955