The sweet spot in Detroit’s commercial real estate industry? Manufacturing. As the real estate pros working this market will tell you, the manufacturing business in the Detroit area remains strong, a fact that was cited several times by the commercial real estate experts speaking at Michigan Real Estate Journal’s second annual Detroit Industrial Summit held Aug. 1.
The event, held at The Community House in Birmingham, Michigan, attracted a full house of more than 200 attendees. These attendees gathered to hear the thoughts of the area’s top industrial real estate specialists.
And the message that these speakers delivered? Yes, these are challenging times. But Detroit’s industrial sector remains a strong one.
As one speaker said, there has been no softening in Detroit’s manufacturing space, with non-obsolete buildings being bought or leased before shovels are even in the ground. Another speaker referred to Detroit’s industrial market as one of the tightest in the country, with lower vacancy rates than many of its Midwest neighbors.
The event began with the Detroit Industrial Real Estate Market Overview, a panel during which speakers emphasized that the local industrial market is meeting its challenges head-on and working through today’s challenging economic times. Particiating in this panel were Jeffrey Lemanski, Vice President, Signature Associates; Emily D’Agostini, Principal, D’Agostini Companies; moderator Elizabeth Rogers, Partner, Taft; Ryan Brittain, Vice President, Colliers; Sean Cavanaugh, Executive Vice President, JLL; and Jared Friedman, Executive Vice President, Friedman Real Estate.
The Industrial Development, Design and Construction panel followed, with speakers focusing on the challenges of developing new industrial spaces today and the amenities that occupants want today in their industrial spaces. Speaking on this panel were Mitch Hudepohl, Business Development, ARCO National Construction; Jack Oliver, Vice President, Oliver/Hatcher Construction; Kyle Morton, Vice President, Ashley Capital; Danny Samson, Chief Development Officer, Sterling Group; Marc Werner, Regional Vice President, NorthPoint Development; and moderator Christopher Martella, Member, Dawda Mann.
Speakers participating on the Industrial Investment Climate and Capital Markets Update panel said that these are challenging times for industrial sales activity. The participants agreed that the Federal Reserve Board could provide a boost to investment activity by cutting its benchmark interest rate. Speaking during this panel were Luke Timmis, Principal, Investment Division, Signature Associates; Steven Chaben, Senior Vice President, Marcus & Millichap; Jeffrey Schostak, President, Schostak Brothers & Company; Anne Galbraith Kohn, Senior Vice President, CBRE; moderator Steven Sallen, President and CEO, Maddin Hauser; and Dave Dismondy, Managing Director, District Capital.
The Regional Economic Development Opportunities for Developers and Investors panel closed the event with a focus on the opportunities that exist in Detroit and its surrounding areas for both investors and developers. Speakers were Tyler Rossmaessler, Executive Director, Flint & Genesee Economic Alliance; Kurt Brauer, Partner, Warner Norcross + Judd; Shannon Selby, Vice President of Real Estate, Detroit Regional Partnership; Paul O’Connell, Vice President of Real Estate Development, Michigan Economic Development Corporation; and John D’Addona, Brownfield Program Manager, Downriver Community Conference.
