For the second year, ASTI is proud to sponsor and author the real estate trends report presented at the UM/ULI Real Estate Forum in Detroit on November 19, 2014. This report, provided for the Michigan Council of the Urban Land Institute, uses a combination of census data, market data, and survey results to highlight real estate opportunities in Michigan. For the first time this year, Costar provided market data and was a key sponsor for the report. The report indicates that real estate development in Michigan is stronger then most people realize, and that nationally, perception is lagging reality. It has been a slow climb out of the recession, but industrial is leading the way, with office and retail showing considerable improvements. It is no surprise that the bright spots include Ann Arbor, Grand Rapids, and Traverse City, but Detroit moved into the top four with a 20% improvement in ranking. As importantly, Holland, Kalamazoo, Lansing, Marquette, and Midland all scored above the state wide average for outlook for redevelopment. For the second year in a row, the most existing location for redevelopment to attract 21 to 35 year olds is Detroit.
A review of the 50 largest projects in the pipeline indicates an increase in the average size of these projects from 149,000 average RBA constructed, to 289,000 average RBA proposed, driven by increases in the number of industrial and office projects represented in the pipeline. The mix of pipeline projects suggests a shift in focus from multi-family and specialty, to industrial and office while general retail remains steady.