Downtown Condos in Demand Across the Country

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Commercial Real Estate, Downtown Condos, Office Space

Downtown Ann Arbor condo developments are booming. Urban living is more desirable than ever all across the country. A recent NPR broadcast reports larger cities, that were once ghost towns on the weekends, are emerging as the new places that Millennials want to live and developers are altering their mindset from office developments to walkable residential community.

Some cities are turning vacant floors in office buildings or total office buildings into higher-end residential condos or apartments. Detroit, Michigan, Wilke-Barre, Pennsylvania, Cleveland, Ohio, and Milwaukee, Wisconsin have all had residential conversions and are experiencing an upturn in downtown living.

Detroit has numerous companies that have moved from the suburbs to downtown.

Office markets are improving, due in part to conversions pulling office space out of the market.

The largest age group living in cities is 25-34 followed by Baby Boomers who are finding it increasingly more attractive to live “downtown”.

Source: Crain’s Detroit

Source: Urban Milwaukee

Source: Cleveland.com

Source: Citizens Voice

 

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New Listing – General Office Space in Saline

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Commercial Real Estate, Office Space, Saline

1020 E Michigan Ave, Ste H-I, Saline, MI

• High traffic area on busy Michigan Ave, just east of downtown Saline
• Located in front of The Oaks Shopping Center
• 1478 SF Suite

Listed by Bela Sipos, CCIM – Call 734.669.5813

See Listing Here

Office to Residential Condo Conversions becoming increasingly prevalent

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Commercial Real Estate, Developers, Office Space, Residential Condos

U.S. developers have added 39 million square feet of new office space nationwide over the last year, the gains were muted because another 22 million square feet of office space was removed from the market,  according to a  recent CoStar Group report.

Which begs the question : “Where did it go? “

Developers have either demolished or converted the removed space into other uses, such as apartments or condos, according to an analysis of CoStar’s third-quarter Office Outlook and Forecast.

“Clearly, we see a shift in how real estate is being used and what developers are building,” says Walter Page, director of office research for CoStar. “So far, over half of the office recovery has been driven by removals of space. We’re still at a very low level of [net] completions, due mostly to demolitions.”

But more developers are re-thinking the demolition of these older office buildings and opting to convert the spaces into residential units in order to help meet growing demand for urban residential space. The trend is most evident in markets like New York City, San Francisco, Chicago, Philadelphia, Baltimore, northern New Jersey, and Washington, D.C.  Could Detroit be the next viable market for these endeavors?

Developers are finding that residential condos can fetch investment sales prices of up to $5,000 per square foot, much higher than what the office buildings attracted.

An interesting trend to follow.

Source: Realtor Magazine