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Commercial real estate in Michigan is at a current stand-still. Inventory throughout the state is high, with many locations offering outstanding prices. Michigan saw an explosion of growth throughout the last decades, due in part to the large industrial sector here. In cities like Detroit, people flocked to the city for job opportunities. Yet, as these businesses closed their doors, the jobs left and so did many of the residents of the larger cities. Moving to the suburbs or even out-of-state in search for jobs and a safer environment to raise families, individuals changed the landscape of commercial property use in the cities. But the situation of commercial real estate in Michigan has changed and with that the state's outlook for the future. Some industries are moving in thanks in part to the state's drive to offer cleaner, more efficient factories and industrial locations. Commercial property has grown in inventory due to a rough economy throughout the state, lowering prices for investors. The landscape of Michigan's commercial real estate market is opportunistic in nature. The investor ready to expand or start up has a variety of options available to them throughout the state. Inventory on some types of property is especially high; this includes industrial locations. But most property types have some inventory available. These include: The residential real estate market also offers opportunities for commercial investors to acquire rental property. The future of the commercial real estate market in Michigan is outstanding. Interest rates on loans for this real estate are very low—at some of the lowest rates in years. Additionally, businesses can count on lower costs to buy property. Property values have significantly fallen over the last 18 months allowing for more affordable property investing. The large number of foreclosures on these properties has helped to drop the value of properties. As property owners, investment firms, and banks try to unload the properties, they are forced to drop their prices. So for the buyer right now, there has been no better opportunity to get into the market. The current "buyer's market" in commercial real estate in Michigan has opened doors for new investors and those looking to expand their organizations. The downward trend in real estate values has now leveled off and many experts expect the market to pick back up within the next 12 months.
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