Jennifer Norton

The Detroit Metro industrial vacancy rate remained at 3.9% during the second quarter of 2024. Nearly 70% of 963,866 SF in net absorption during the quarter was attributed to completed build-to-suit construction. The construction pipeline continued to fall with no new starts during the second quarter of 2024. Currently, 1.8 million SF is under construction compared with a high of 7.9 million SF one year ago. Newmark Detroit

5

Colliers Industrial | U.S. Intel: Tenant demand over the past five quarters has been the strongest in the South and Midwest regions. In the South, net absorption totaled 135M SF since the start of 2023 through Q1, representing 2.66% of the region's total industrial inventory. The Midwest saw 82.4M SF of net absorption, representing 1.61% of that region's product. While demand has fallen off overall, it hasn't been an even drop nationwide.

21

Traverse City’s short-term rental market is thriving, with revenue up 38.8% in two years! 🌟 From cherry orchards to Lake Michigan views, it’s a prime spot for investors. Full analysis coming tomorrow, detailing regulations, amenities, and strategic property choices that can help boost revenue. 🍒 #ShortTermRentals #TraverseCity #RealEstate

4

2 Comments

CSP Building Excellence - Commercial Construction Tips – The Future of Office Design…. VIEW TIPS... https://lnkd.in/gmuis3TF #officespace #construction #remodeling #propertymangement #commercialconstruction #renovations #commercialremodeling #cincinnati #nky #northernkentucky #businesstips

1

Join me on October 17th for the Twin Cities Construction & Development Event, where you'll gain insights from industry leaders shaping the future of the Twin Cities real estate market. Network with a wide range of professionals—owners, developers, investors, architects, engineers, and government officials—and tap into exclusive discussions and panels designed to help you navigate a dynamic market. Connor McCarthy

77

🤔 Is the Midwest the Next Southeast? Cushman & Wakefield released a bullish article on the Midwest’s growth potential and economic resilience. Takeaways: 1️⃣ Strong Economic Fundamentals ➝ Midwest GDP growth is strong, with Ohio and Michigan up 4.2% and 3.7%, vs. the U.S. average of 2.9%. Manufacturing, tech, healthcare, and logistics are driving diversification. 2️⃣ Attractive Cap Rates ➝ Cap rates in Midwest markets average 6.2%, higher than coastal cities' 4-5%. Secondary markets like Cincinnati and Milwaukee lead with some of the highest rates. 3️⃣ Population Growth & Urban Revival ➝ Cities like Columbus and Indianapolis are drawing new residents and businesses with affordability and quality of life. Urban renewal and infrastructure investments are key drivers. 4️⃣ Affordability Edge ➝ Midwest housing costs are 20-30% lower than Southeast markets like Atlanta or Dallas. Multifamily rents average $1,350 vs. $1,800 in the Southeast. 5️⃣ Steady Multifamily Demand ➝ Low vacancy rates in Cleveland and Detroit (6.5%) show strong demand, with rent growth above national averages. Inventory constraints keep demand and rents rising. 6️⃣ Infrastructure Boom ➝ Billions in infrastructure spending are making the Midwest a logistics hub, especially in Chicago and Kansas City, driving long-term growth. 7️⃣ High Yield Potential ➝ Midwest cap rates, averaging 6.0%, offer some of the highest yields in the country. 😎 Our Take ➝ The Southeast attracted significant growth due to its lower cost of living, but as cities like Austin and Miami become increasingly unaffordable, we anticipate a migration shift towards the Midwest, where affordability remains a key advantage. ➝ The resurgence in manufacturing is set to bring more high-paying jobs to the Midwest, further boosting the region’s economic strength and making it an attractive destination for both residents and investors. ➝ The Midwest’s long-term climate resilience, combined with reliable access to energy, positions it as a stable and increasingly attractive investment choice, especially as these factors become more critical in decision-making. ➝ Growth in the Midwest is happening now, and yields remain high. With investors wary of negative leverage, the Midwest offers a compelling opportunity where strong returns are still within reach. #RealEstate #Midwest #Investment #CRE #Multifamily #CapRates #GrowthMarkets

38

6 Comments

Chicago Build is 3 weeks away! Join my session on Oct 22, 10:00 AM - 'Growing the AEC Industry in the Midwest: Opportunities and Innovations' on the Future of Construction Track (Stage 5)

9

Newmark Detroit 1Q24 Office Market Report: The Detroit Metro office vacancy rate climbed 30 basis points to 22.3% during the first quarter of 2024 as 267,953 SF in net vacant space were added to the market. Negative absorption increased as available space with remaining lease term expired. The office market is producing fewer vacancies compared with the first quarter of 2023 which saw 963,165 SF added to the market. Direct available space declined by 1.78% during the first quarter of 2024. This was the first decline since the first quarter of 2021. Available sublease continued to subside for the second consecutive quarter. During the first quarter of 2024, total levels fell by just over 66,000 SF to 2,010,870 SF. Over the past two quarters, sublease space has fallen by just over 244,000 SF. Full Report: https://lnkd.in/ec2ENpnm

5

In the past several weeks, the Food & Beverage sector in southeastern Wisconsin has exploded with announcements of new investment into our region. Six companies have announced plans for new facilities or expansions. Palermo's Pizza announced they will build a 200,000 square foot production facility in West Milwaukee. Milwaukee Pretzel Company will expand their facility by 22,000 square feet on Milwaukee's northwest side. Kikkoman Foods, Inc. announced a new facility in Jefferson for 250,000 square feet. Nestlé Purina North America announced a 195 million dollar expansion of their Jefferson facility...pet food, but still F&B! Pleasant Prairie based Olds Products Co, a manufacturer of mustards and vinegars purchased 43 acres in Oconomowoc, no specific plans yet. Winnesota Multi-Temp Delivery and Storage is building a 100,000 square foot freezer facility in Oconomowoc. These are exciting times in our area! This further proves southeastern Wisconsin is an excellent region for companies in the Food & Beverage sector to locate and operate their businesses. #Food&Beverage #IndustrialRealEstate #ColliersFood&BeveragePracticeGroup

102

4 Comments

ICYMI: Multiple options for Cabrini-Green redevelopment have been aired by architect-master planner SCB and the Chicago Housing Authority. Up to 4,000 housing units are proposed, mixing market-rate with subsidized units and replacement public housing across 43 vacant acres. There are modest differences in site massing and density between the three alternate strategies, and some do more to preserve the 1940s Francis Cabrini Rowhomes (the only buildings spared the wrecking ball). They all preserve Strangers Home Missionary Baptist Church. For the most part, each plan concentrates larger buildings along avenues and blends old and new in terms of both buildings and streetscape. After a period of community feedback, the refined concepts will undergo a feasibility analysis. Final reports will be submitted this fall. It's encouraging to finally see real momentum for redevelopment! #CabriniGreen #development #preservation #AffordableHousing https://lnkd.in/ghgthS5e

30

📊 Exciting Insights from CBRE's Q1 2024 Chicago Suburban Figures Report 📈 Key takeaways from CBRE's Q1 2024 Chicago Suburban Figures Report: 1️⃣ Tenant urbanization trends: Companies are migrating to urban/amenitized areas within the suburbs like Oak Brook, Schaumburg, and O'Hare. 2️⃣ Occupier sentiment: Occupiers are focused on rightsizing their footprint and committing to an additional 3-5 years in the market. Renewals account for over half of leasing velocity. 3️⃣ Landlord sentiment: Capital freezes among large institutional landlords impact deal-making. Those able to fund lease transactions have an advantage. Stay informed on the dynamic real estate landscape in the Chicago suburbs. For more insights or to discuss how these findings may impact your business, reach out to me. Let's drive success together! #RealEstateInsights #ChicagoSuburbs #CBRE #MarketTrends

20

Our Q1 2024 observations on the Twin Cities Industrial Market (MCRE market report below) - New construction almost non-existent - Differing Thoughts on Market - Will relative slowdown continue and put pressure on rates? - Will pause in construction and continued demand eat up vacancy and push rates higher(2025/2026)? - Certain areas within submarkets struggling relative to strength of others

11

Reposting this cool article!

11

1 Comment

Since 2014, 47.5 MSF of industrial space have been constructed in Metro Detroit. A surge in demand from E-commerce and Logistics/Distribution/3PL sectors created new warehouse requirements that exceeded existing market inventory. Warehouse developments have accounted for 33.6 MSF or 70% of overall new construction, significantly outpacing all other industrial subtypes. Despite substantial growth in demand for manufacturing space during this period, the ample existing inventory of available manufacturing space has led to fewer new manufacturing developments. Newmark Detroit

2

So proud of this team. CRE transaction velocity is picking up across all assets and our partners are humming. This was one deal from a batch of others but relevant since the value add buyer, a repeat customer, has been cautiously exploring opportunities for a long time and evidence is there, tides are changing. Mark Halloran #cre #mortgage #commerciallending #studenthousing #creinvestment #underwriting #interestrates #cmbs #mortgagebrokers #investmentsales #agencylenders #lifecos #constructionfinancing

1

MSHDA’s $100M investment in affordable housing is set to make a significant impact on Michigan communities, providing gap funding to bring housing projects to reality. Municipal leaders and housing developers — here’s what you need to know about the three key programs driving this initiative. #MSHDA #affordablehousing #communitydevelopment

3

1 Comment

The DeVos and Van Andel families are planning a massive mixed-use project spanning three new towers with offices, a hotel and 671 residential units near Acrisure Amphitheater in downtown Grand Rapids. Officials with Progressive Companies and Michigan Growth Advisors shared plans for the $738.5 million project on a 6.9-acre site that previously included the Charley’s Crab restaurant and is now mostly surface parking. Dubbed Fulton & Market, the project calls for more than 1 million square feet of real estate and would feature the tallest building in Grand Rapids: A 43-story residential tower with 595 units and six floors of parking. A 27-story hotel and condo tower, which would share the parking deck with the residential tower, would include a 130-room “upscale” hotel and 76 condos above it. The third building, a 21-story office tower, could house 1,600 employees and would be one of the largest office buildings in the city's downtown. Leaders say the tower would be built to suit a single tenant, but did not identify one specifically. The team plans to seek about $543.5 million in state Transformational Brownfield Plan incentives for the project. Brad Thomas, president and CEO of architecture and engineering firm Progressive Companies, has been working on the concept design on behalf of the two families for about five years. He called the project part of a “grand vision” for 31 acres of riverfront property that emerged from a study commissioned in 2020 by Grand Action 2.0. “It’s one of the largest active riverfront revitalization projects in the country," Thomas said. Joe Agostinelli, CEcD, the lead consultant working on the incentives package, said the Fulton & Market development is especially expensive because the land, which used to be part of the river and was later filled in, needs to be “geotechnically” reinforced to support large buildings. The more than $738.5 million price tag would be impossible to meet without state incentives, he said. “The ($543.5 million in) incentives really make this project financially feasible," Agostinelli said. "(It) allows us to take a really underutilized 7-acre surface parking lot and build 1.2 million square feet of very dense, urban, mixed-use, vibrant development in the core of our downtown.” Read more from Rachel E. Watson: https://lnkd.in/g5-HmGJb

407

12 Comments

Love to see this kind of housing decarbonization at scale happening in my home City of Saint Paul. The Inflation Reduction Act, the creation of Minnesota’s green bank (MNCIFA) and state & local elected/nonprofit leaders committed to carbon-smart, climate-resilient housing abundance made this happen. Just one more example of how Minnesota is uniquely positioned and building a thriving, equitable, climate resilient future…and part of why I’ve focused Footprint Development’s build & hold climate-resilient housing developments right here in my back yard. Market rate housing developers have catching up to do on decarbonization. That’s why I created Footprint Development…which develops Phius certified, ultra low carbon footprint, healthy housing that delivers superior climate risk adjusted returns for investors and better quality of life for occupants. It’s not rocket science, it’s repeatable, it’s scalable, and Footprint Development is doing it without additional subsidy. Carbon-curious? Reach out!

18

1 Comment