DETROIT—ATW Automation, Inc.has just relocated its Michigan manufacturing facility from an 85,000 square-foot facility in suburban Livonia to a significantly larger facility at 31077 Durr Dr. in Wixom, one of many industrial operations in the metro area to expand recently as the local economy ramps up.
Newmark Grubb Knight Frank's Anthony Avendt, senior managing director, in cooperation with NGKF's Rob Renaud, senior vice president and managing principal and Cam Graham, associate, both of Newmark Knight Frank Devencore, Toronto, represented ATW in the search for a new location. ATW, an Ontario-based affiliate of ATS Automation, Inc. which designs and builds factory automation solutions, says it needed to improve efficiencies and expand capacity with additional square footage.
The bailout and revival of the auto industry has certainly helped bring the metro region back, but although “the auto industry is a key component, it is not the sole driver,” Avendt tells GlobeSt.com. “Several industrial companies are expanding capacity in metro Detroit, this includes companies with an existing presence as well as those not currently operating in the area.”
Avendt, Renaud and Graham ultimately secured a long-term lease for ATW at 31077 Durr Dr., an 117,709 square-foot manufacturing facility on 12.84 acres that includes 27,800 square feet of office and administration space.
Industrial users in Detroit absorbed a total of 2,401,154 square feet of space in the fourth quarter of 2014, “one of the largest numbers on record,” according to Colliers International. “The market's vacancy declined by 40 bps to 7.2%, a number the market has not seen in over a decade.”
“The increased demand is resulting in the absorption of existing buildings as well as new construction,” Avendt adds. However, “building a new facility, which may result in a more efficient building, can require 18 to 24 months. Many of the companies we see looking for space are hoping to occupy it right away. Consequently they first seek out existing buildings, often find that no suitable options are available and turn to new construction.”
“The general feeling around town is that 2015 will be the year more build-to-suits come to market,” Colliers adds. “Without question, after experiencing a near collapse during the automotive and financial crisis, Detroit's industrial market is back in the driver's seat.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
