There are a variety of factors which could affect the local real estate market. Some of these factors could include recent economic fluctuations, unemployment rates and even natural disasters affecting the local areas in Michigan. However, one factor which many have forgotten about is a city's investment on infrastructure. A recent study on commercial real estate highlighted this factor by concentrating on the effects of city government's investment in smart grid technologies.
A smart grid is a system designed to deliver power by leveraging the latest advancements in information technology. This system has been found to increase effectiveness and sustainability in producing and distributing energy. The U.S. Department of Energy began to proactively support implementation of smart grid technology in the beginning of 2007. This is when Title XIII of the Energy Independence and Security Act was signed into law, giving official support from the legislature for smart grid technology on a national scale.
Experts believe that investment in this type of high-tech infrastructure allows cities to remain competitive in attracting entrepreneurs and new start-up businesses. This is evidence of how important the link between the private and public sectors can be when attempting to maintain a healthy local economy. It is also evidence of the correlation between the economy and promoting the sciences and technological advancements.
Entrepreneurs who are searching for commercial real estate in Michigan may want to seek out the cities that do utilize smart grid technology. However, this is just one of many factors which entrepreneurs should consider before investing in property. One should carefully evaluate an intended business strategy in order to make sure a potential real estate investment would help to further define business goals. Additionally, it is important to be aware of and follow the proper legal procedures required for purchasing real estate.
Source: Mortgage Orb, " Study: Smart Grids Help Power Commercial Real Estate Markets ," Oct. 9, 2012