Detroit May 2021- Key Takeaways
- Dan Stys of Professional Engineering Associates reports that they have been very busy in the first quarter of 2021. There are some small new centers, but nothing very big.
- Tom Barrett of The State Bank shares that the new business demands are brisk for the second round of the PPP loans as they are running out of money already. There is a robust report of aggressive financing and a lot of deals. Many people are getting out of the stock market with real estate. Banks are looking for prime leases.
- Phil Seaver of ATA National has many of transactions that are in due diligence at this point. He also comments on how expensive many building materials still are.
- John Godwin of Marcus & Millichap notes that the warehouse distribution is robust, while the multi-family market is the strongest. He says that hospitality and senior living markets are still relatively flat.
- Brad Rosenberg of Mid-America Real Estate – Michigan reports that retail is surprisingly strong. He has been receiving many LOIs on some mall space, despite the lack of anchor stores in the malls.
- David Dismondy of District Capital reports that rates have settled and he is looking at multi-family opportunity in Georgia. Office deals are also happening for him.
- Matteo Passalacqua of Etkin Real Estate Solutions continues to focus on return-to-work options as the pandemic seems to be fading a bit. There has been a lot of focus on the HVAC systems of large buildings. His company has a years’ worth of data to look at to get the best footing for moving forward. Employers are the ones who will be pushing the return-to-work decisions, but that everyone is looking for the new policies, requirements and restrictions. Protocols will be inspected.
- Martin Lavelle of the Federal Reserve Bank of Chicago – Detroit Office reports that they are still looking at a return-to-office in September of this year. The economy grew at a fast pace this year so far in the first quarter. Supply chains still have their choke points and fall short of the needs. Many new vehicles are piling up with no microchips available. Inflation will go up, but what happens next year? We are already seeing 1.5% to 2.3% now, and 3% is possible very soon. Because of the enormous disruption in 2020, Martin and others are looking to compare 2021 with 2019 rather than 2020. Air travel, food and vehicle sales are just 3 markets that have been hugely impacted in 2020.
- Ryan Korth with Colliers International stated that his company has been very busy. They have seen a surprising resiliency in retail. The hospitality market has been busy. Properties that were stabilized pre-COVID are doing well. Tours are slowly resuming for senior living facilities. Again, the pre-COVID stabilized ones are doing better. Leisure demand should be strong the rest of 2021. Senior housing occupancy is still down, with a downward trend ranging 60% to 33%. They are looking at 3 to 5 years to stabilize that market. Asset appraisals will probably increase at the end of 2021.
Recent Comments