Keys To Placing Viable Tenants In Commercial Spaces Include Knowing The Market, Yes – But Also Knowing Its Need To Fit

Almost everyone in the community has a vested interest in filling the highest practical inventory of its commercial space.

Buildings not otherwise occupied in whole or in part by viable businesses represent not just missed opportunities for those who would otherwise shop, work, or otherwise enjoy beneifts of transacting within. They represent an important area of revenue shortfall in city budgeting. Commercial real estate values, appearance, and type affect =residential property values. [1,2,3,4,5,6]

As if all of the above weren’t impetus enough to persue filling vacancies, negative cashflows of associated landlords can help lower the bar on what constitutes “the ideal tenant” with the promise of stemming red ink-flow tide. [7]

Realtor Doug Ziesemer does not believe this approach ever works. As a long time real estate agent who is both personally invested in the Saline community and who sells for Re/Max, he is empathetic with all of the above. At the same time, he advises his clients that quick fix deals do the most damage by taking viable properties off the market for consideration by viable better- and best-fit prospects. [8]

“The housing market in Saline is exceptionally strong right now,” he offered as opening perspective during a recent extended conversation with Saline Journal at our office on East Michigan Avenue.

Take the space we’re in here: It used to be a chiropractor. Further back when Huron Camera was in the RydeOn! space next door, [this area] was their one-hour photo lab. Ryde On! was a perfect fit in the space next door. They wanted direct access for customers off a good-sized parking lot and the visibility allowed by city ordinances — really high so you can see it when you’re coming down Michigan Avenue to downtown Saline. [9,10,11,12,13]

There’s almost no demand for office space. There’s only demand if it’s small, or a two-person office. At that size, people would rather work from their homes if they can. If they get another [job] opportunity or things don’t work out, they just close up shop and leave. No lease or utility hookups or insurance to worry about.

With the sale earlier this year of RydeOn! to Delirium Fitness on Industrial Drive here in Saline, Mr Ziesemer is once again showing Suite 3 in the 450 East Michigan Avenue Building (opposite Huntington Bank). How quickly will it turn over? [14,15]

I don’t like to say. It’s a good-sized, wide-open space. That’s good if that’s what you need that, or if you want to build-out for some specific need. We have an active interest from a chiropractor right now — two different chiropractors, actually. Some people still remember when their was a chiropractor here and associate the building with that.

Or maybe they think it’s good luck.

Elsewhere in the city, he’s listed the 1500-square-foot building where Sams’ was located on North Ann Arbor Street, facing the Saline History Museum. Again, a well-matched tenant occupied the location for many years. And while there has been interest that started on the heals of its vacancy, zoning use restrictions have been an obstacle. [16]

Right next door is the example to which Doug Ziesemer points as illustration of what can be accomplished through patience and persistence in following a course of securing tenents who are set to benefit from building co-location, configuration, and governance. The lime green structure on the corner of North Ann Arbor and West Bennett Streets is fully leased, with businesses that include Yogacentric, Home Town Roots Saline, Active Chiropractic, and the medical offices of Terry David Howell MD and Patricia Gillay RN. [17,18,19,20]

The City of Saline has a varity of commercial space available for immediate occupancy in prime downtown, Eastgate, and other locations. Each has great things to offer properly matched tenants — and everyone in this community will benefit when their leases are signed.

References

1. “Online Tax and Assessment Data” Saline.
2. “Personal Property FAQ” Saline.
3. “Measuring Saline’s Performance” Saline.
4. The Fiscal Health of Michigan’s Local Governments: Update since the Great Recession (Fall 2018) Michigan Department of Treasury.
5. “The Impact of Commercial Development on Surrounding Residential Property Values” Jonathan A Wiley PhD (May 2015) Richard J Rosenthal Center for Real Estate Studies.
6. “How Commercial Real Estate Is Changing Residential Housing” Devon Thorsby (May 19, 2016) US News & World Report.
7. “This Is What Will Happen To All The Empty Stores You’re Seeing” Richard Kestenbaum (May 30, 2017) Forbes.
8. “Doug Ziesemer” Anchorage Group, Re/Max Commercial Brokers.
9. “RydeOn! Cycling Studio” Delirium Fitness.
10. “Washtenaw County Has Lost Its Last Camera Store with Closing of Huron Camera” Dell Deaton (January 12, 2014) Saline Journal.
11. “City of Saline Municipal Code” Saline.
12. “Saline, MI: Code of Ordinances City of Saline, Michigan” (June 25, 2018) municode.
13. “Building, Engineering, Planning, Zoning & Code Enforcement” Saline.
14. Delirium Fitness (home page).
15. Huntington Bank (home page).
16. “Saline History Museum” Saline Area Historical Society.
17. Yogacentric (home page).
18. Home Town Roots Saline (Facebook Page).
19. Active Chiropractic (home page).
20. “Terry David Howell MD” Saint Joseph Mercy Health System.