Weekly Brief – June 28, 2021

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As the summer residential sales season starts to wind down, we are finally starting to see some signs that the inventory logjam is starting to break. Home sales volumes are dipping, which is an indication that we may start to see a correction between the imbalance of buyers and sellers.

Also, as the COVID-19 pandemic starts to slowly recede, the hesitancy of sellers is starting to likewise recede.

Finally, we are starting to see the rapid rise in residential prices begin to slow down.

All of these are signs that the number of homes listed may start to rise. Couple that with the (now) 2022 lifting of the foreclosure moratorium, and I firmly believe that 2022 will be more “normal” than 2020 and 2021. This may be bad news for those who were able to sell without worrying about buying a replacement home. But it will be good news for the majority of the residential real estate marketplace.

Cannabis Company Opens in Saugatuck Township

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The New Standard cannabis company has moved into a newly built retail store in Saugatuck Township. The new site is the company’s 6th dispensary in West Michigan and seventh store across the state.  Located at 6406 Blue Star Highway, it carries more than 275 products for retail and curbside service. The company opened its first location in Hazel Park in April 2020. New Standard recently acquired Agri-Med LLC which was operating three dispensaries in Muskegon, Edmore and Nunica.

Detroit’s Eastern Market Area Gains Office Space

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Detroit’s Eastern Market and its food-centric footprint is the target of a $24 million office redevelopment plan. Developer Christos Moisides has big plans for a former cold storage building at 2529 Orleans St. The 63,400 square-foot building would included 55,000 square feet of office space. The remainder would be commercial space that would included a brewery and restaurant. Moisides paid $4.1 million for the building and will spend over $17.4 million on construction and other costs. He is seeking a 12-year tax abatement from the city.

Harper Woods Shopping Mall Proposed for Industrial Development

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Harper Woods’ city planning commission is considering a proposal that would turn the struggling Eastland Center shopping mall into a new industrial/warehouse development. NorthPoint Development LLC is asking for a planned unit development that would raze the enclosed mall and build about 1.03 million square feet of industrial/warehouse space across three buildings on the site.  A 514,000 square-foot building would be built on 36 acres of the site. Another 310,000 square feet would be built on 24.1 acres, and 207,000 square feet would be built on 18.8 acres. 15 acres would remain undeveloped.

Investors Add to Competitive Housing Market

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With limited housing inventory, homebuyers are already over a barrel when shopping for a new home. But add investors into the mix and the market becomes even tougher. Nationally, Metro Detroit has experienced the second-highest increase in the number of investor-purchased homes year over year. Investors are cash buyers who can close more quickly which makes it even harder for buyers getting a mortgage. But for the seller, cash is king and a cash sale allows a seller to move on with their future.

U of D to Redevelop City of Detroit Rec Center

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The University of Detroit Jesuit High School and Academy has purchased the former city of Detroit recreation center and park in northwest Detroit. The 12.5-acre property was purchased in February 2020 for $625,000. As part of the sale agreement, the school will open the renovated center for community meetings and classes, as well as kids’ camps. The all-boys Catholic high school has raised $6.2 million toward the $7.5 million needed for redevelopment. The project will more than double the size of the school’s campus. Renovations on the rec center are expected to be completed by this fall

 

Michigan Real Estate News Headlines – June 28, 2021

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National

Investors compete with homebuyers in tight market

Detroit

U of D Jesuit High School expects to complete campus expansion by fall

Real Estate Insider: Words you don’t hear together often: New Eastern Market office space planned

Stephen Ross, The Platform plan new housing in District Detroit area

Former Woodward Academy heads to auction with $5 million starting bid

Grand Rapids

Wheeler Development plans 39 apartment units, ground floor retail in Eastown

Southeast Michigan

Eastland Center targeted for demolition, redevelopment as industrial, warehouse complex

Western Michigan

New Standard continues West Michigan expansion with Saugatuck Township dispensary

Weekly Brief – June 21, 2021

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While fathers around the United States celebrated Father’s Day yesterday, I celebrated as well with my family. My weekly brief will return next week!

Detroit Coworking Locations Adapt Post-Pandemic

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Prior to the COVID-19 pandemic, numerous coworking spaces were opening or planned in Detroit. While the growth appears to have slowed post-pandemic, and several locations have permanently closed, there are still new coworking locations planned in Detroit.  There are currently about a dozen coworking sites open in the city, with a few more planned in the near future. Some of the new sites are planned for areas outside of the core downtown area.

Detroit Midtown Development Gets a Boost

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Petit Bateau, a $31 million Midtown mixed-use development, received a tax break from the Michigan Strategic Fund. The fund approved a more than $247,000 state tax break to fund environmental decontamination. The 92-unit project also received $2.6 million from the city in tax abatements for decontamination work. Twenty percent of the development’s residential units are set aside for individuals at 80 percent of the area median income or below.