Midwest Real Estate News May 2017 : Page 1

MINNESOTA | MISSOURI | NEBRASKA | OHIO | TENNESSEE | WISCONSIN MAY 2017 WWW.REJOURNALS.COM VOLUME 30 ISSUE 14 Directories begin on page 34: ASSET/PROPERTY MANAGEMENT BROKERAGE FIRMS HEALTHCARE/MEDICAL OFFICE BUILDINGS THE DAKOTAS | ILLINOIS | INDIANA | IOWA | KANSAS | KENTUCKY | MICHIGAN Downtown surge doesn’t miss Detroit: Rejuvenation continues in city’s center By Dan Rafter, Editor FEATURE: INDUSTRIAL A Midwest industrial market that shows no signs of slowing By Dan Rafter, Editor T he 432,600-square-foot distribution center is quiet as David Hinchman walks across its floors. But Hinchman, senior vice president with the Kansas City office of CBRE, doesn’t expect this quiet to last. Hinchman said that two proposals have al-ready been made for the LogisticsCentre IV Distribution Center, the latest building added to the KCI Intermodal BusinessCentre in Kan-sas City, Missouri, a sprawling business park located on the edges of Kansas City Interna-tional Airport. Hinchman says that the interest doesn’t surprise him. The new building, he says, represents what he calls a state-of-the-art warehouse facility. “We always knew what we had here, what we could offer here,” Hinchman said. “And now the rest of the market has caught up with us.” Kansas City and Hinchman, of course, aren’t unusual. The industrial market across the country is firmly in boom mode today. It’s difficult to find a Midwest market that isn’t enjoying a surge in industrial construction – both build-to-suit and spec – leases and sales. The reason? Industrial experts point to a solid national economy, the Midwest’s ideal distri-bution location in the middle of the country and, of course, the rise in e-commerce. All those companies selling products online have to open distribution centers in the mid-dle of the country, something that’s provided a solid boost for Midwest industrial markets. The best news of all? The industrial boom across the Midwest isn’t showing any signs of a slowdown. E Comerica Park, home of the Detroit Tigers, is a key stop in the city’s District Detroit sports and entertainment district. ric Banks says that Dan Gilbert, the busi-nessman who founded Quicken Loans and Rock Ventures and owns the NBA’s Cleveland Cavaliers, is the rock behind the recent revital-ization of downtown Detroit. Gilbert’s plans include 250 apartments, offices, the-ater space and retail. It would also include a public market. For Banks, efforts like this – and projects spearheaded by other civic-minded entrepreneurs – are the keys to the continued rebirth of downtown Detroit, a rebirth that Banks says is showing no signs of slowing. “It really starts with Dan Gilbert,” Banks said. “You have a billionaire developer who has taken an im-mense interest in the city of Detroit, his home town. His efforts can’t be underestimated or underappreci-ated.” It’s hard to argue with Banks, executive principal and partner in the Bingham Farms, Michigan, office of CORE Partners. Since Detroit in 2013 filed for Chapter 9 bankruptcy, Gilbert has spent nearly $2 billion of his own money to buy up buildings throughout downtown Detroit and fill them with new tenants, many of them tech start-ups. Today, Gilbert has plans to build what would be Detroit’s tallest building on the former site of a Hud-son’s department store. DETROIT (continued on page 14) INDUSTRIAL (continued on page 8)

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