Industrial Perspective 

 11/2/2009 

Though it may seem that the safest idea is to stand still and wait for this to blow over, the reality is that inactivity can sometimes be more dangerous than taking a definitive step in any direction. That is why, in this kind of economic climate, smart companies, that have done their homework are taking advantage of very creative solutions when they thought they had little or no leverage.

These market conditions are not unique to tenants. Lenders and building owners are equally challenged by these market conditions. The uncertainty in the commercial real estate market creates both risk and opportunity on the leasing side. There is a great risk if a landlord defaults and creates a situation of foreclosure and distressed sales.

The state of Michigan has also clued into the need for reinvestment; in fact, there’s a huge push to support the industrial sector with tax credits, incentives programs, and more. While these opportunities can take many shapes, one thing to note is that, even though we’re in a down market, these funds are coming and going quickly to the companies that are the most tuned in to re-envisioning their businesses to prepare for the future.

Trends indicate that organizations in the defense, alternative energy, and advanced manufacturing markets stand to gain the most in terms of incentives; while companies concentrating on other manufacturing capacities are finding advantageous opportunities by working with our team as well.

One such company is IAV Automotive Engineering Inc., that just last month opened a state-of-the art engineering facility designed to test equipment for luxury automotive brands. Poised to capitalize on the latest in and future of automotive testing standards, IAV aligned its business strategies with incentives offered in the state and chose Michigan to house its North America trademark facilities. We at Plante Moran CRESA played a key role in this investment by handling IAV’s real estate management and preparing it to apply for and win the incentives that made this development possible, as well as providing project management.

While it is common to focus all of your energy and efforts into trying to get by month to month and quarter to quarter, we have never seen such large amounts of long-term strategic planning, repositioning, and investment in the future by industrial and manufacturing companies as we do in this market.

Regardless of where you think you are, you need to be thinking proactively about what you do to get ahead of the curve. To discuss the broad range of services we provide, including tenant representation, and commercial real estate strategy, contact Brandon Podolski J.D., vice president of transaction management, at (248)223.3245


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