Occupancy in Macomb County's industrial buildings increased in 2004 from 87.71% at the end of 2003 to 89.30%, Friedman reports. The report only considers buildings of at least 5,000 sf.
The local industrial market could see a big start to 2005. Comerica Bank, which owns the 264,000-sf former Citation Tool building on 14 Mile Road, near Groesbeck, in Fraser, has a contract to sell or lease that building. Canadian automotive supplier Magna International has applied for industrial tax credits to move some operations into the building, but has made no formal announcement on exactly what operations will take place there. In paperwork filed with the city, however, Magna forecasts some 200 jobs will be located at the site within the next five years.
Friedman says while vacancy rates in Macomb County's industrial buildings declined, so did the average rental rate of the properties, from $5.02 per sf to $4.83 per sf. Overall for the Detroit region, occupancy of industrial buildings increased from 84.70% to 86.19% during 2004. Average rental rates fell from $6.15 per sf to $5.26 per sf in that time period.
The biggest industrial real estate transaction in 2004 in the county, Friedman says, was the 115,000-sf lease by A&B Wholesale on Hoover, near Toepfer, in Warren. Other large deals include SMW Automotive's renewal of its 82,304-sf lease on Stephens, near Schoenherr, in Warren, and the purchase of a 76,211-sf building by Mercury Fulfillment Systems on Mound, near 15 Mile, in Sterling Heights. Mercury purchased the building from Bank One for $3.8 million, or about $50.52 per sf.
Grubb & Ellis says lease deals by Noble Wholesale and Prefix Corp. in Macomb Township helped contribute to that growing community, adding some 122,000 sf of industrial property operations in 2004. "While improvement in the industrial market is steady, it has not reached the point where it is booming," Grubb & Ellis says.
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