Anyone else notice the increase in commerical "For Sale or Lease" signs?

The last 6 months or so I have noticed a dramatic increase in the number of "For sale or lease" signs here in the far Western suburbs. In some places around the Wixom and Novi area it appears as if every other building has one. It's even more noticeable than during the housing crash! The only difference now is that there are still tons of new buildings going up in the empty lots in between.

I don't claim to be very knowledgeable about commercial real estate or real estate in general, but I have to question the future of these projects given the already high vacancy rates.

Does anyone have a clue as to what is going on? Developers trying to beat the possible rise in interest rates? Too much money out there looking for returns? Some kind of demand I'm just not aware of? It just doesn't make a whole lot of sense to me why all these developments are still rolling forward given the obviously high vacancy rates in the area.

I can only comment on the company I work for. We are building a new building in Novi near the M5/I96/I275 interchange.

We supply engineering tools to the auto industry. I started here in 2010, I was one of the first new hires after the company had laid people off during the collapse of the auto industry.

Since I've started, Our sales have steadily increased each year. We have been on a hiring binge over the last 3 years. We have open reqs for software/electronic engineers and support staff. We have outgrown our building. We have many new products in development, just not enough staff or room to complete then.

The new building is 4 times the larger than our current building. This will give us extra space to grow into. The land also has the ability to double the size of the building.

We're going from a building we rent to a building we own.

I'm sure other firms are seeing the growth too.

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Originally Posted by ndavies

I can only comment on the company I work for. We are building a new building in Novi near the M5/I96/I275 interchange.

We supply engineering tools to the auto industry. I started here in 2010, I was one of the first new hires after the company had laid people off during the collapse of the auto industry.

Since I've started, Our sales have steadily increased each year. We have been on a hiring binge over the last 3 years. We have open reqs for software/electronic engineers and support staff. We have outgrown our building. We have many new products in development, just not enough staff or room to complete then.

The new building is 4 times the larger than our current building. This will give us extra space to grow into. The land also has the ability to double the size of the building.

We're going from a building we rent to a building we own.

I'm sure other firms are seeing the growth too.

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I find your post interesting. Why did your company pick the area they did, and why didn't they decide to build their building in Detroit? No poop flinging, just curious about the reasons.

There is no way my answer won't cause a shitstorm.

Way lower taxes, much lower crime. All of the employees live in the suburbs. Many of our engineers would leave. All of our local customers are in the suburbs.

The Company has been in Wixom for over 20 years. Owner wouldn't even think of moving us to the mess that is Detroit.

Quote:

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Originally Posted by ndavies

There is no way my answer won't cause a shitstorm.

Way lower taxes, much lower crime. All of the employees live in the suburbs. Many of our engineers would leave. All of our local customers are in the suburbs.

The Company has been in Wixom for over 20 years. Owner wouldn't even think of moving us to the mess that is Detroit.

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Fair enough. Everytime I read about a real business expanding or settling in another area, I always wonder why. Congratulations, sounds like the owner is doing something right.

i would debate companies are trading up leases for newer space...owner of older properties will have to renovate to woo new customers...i posted an article earlier that seems to support this

http://www.globest.com/sites/globest...historic-high/