Commercial real estate sales rise nicely
The commercial real estate industry had a very good year in 2011, especially when compared to a not-so-impressive 2010.
According to the Commercial Alliance of REALTORS of West Michigan, total sales transactions rose by 29 percent last year from the previous year, while total sales volume went up by 23 percent over the same period.
“After experiencing the drastic downturn of 2009 and 2010, the 2011 sales report from Commercial Alliance of REALTORS’ members is certainly positive,” said Mary Anne Wisinski-Rosely, president of CAR, which represents nearly 400 commercial firms across a five-county region.
Sales in the industrial property class fueled the dramatic growth, as transactions jumped by 49 percent on a year-to-year basis, and sales volume from those transactions went up by 48 percent. Of the total 271 transactions that closed last year, 101, or 37 percent, were sales of manufacturing sites. Of the $91.3 million in total sales volume in 2011, $45.5 million, or almost half, came from industrial deals. Gains were also recorded in the retail and office sectors. (See related charts.)
“While the area is still working to recover, it is promising to see such an increase in activity. Many members have reported a rise in inquiries from out-of-state investors interested in investing in West Michigan, which could spur growth in many of the sectors,” said Wisinski-Rosely, a partner at NAI Wisinski of West Michigan where she is an office specialist.
The CAR report reflects overall sales in West Michigan, a market that includes Kent, Ottawa, Muskegon, Allegan and Kalamazoo counties.