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.
Residential and commercial real estate are two completely different markets, even in Michigan. And the economic downturn has affected each of them differently. While residential homes continue to be foreclosed on by banks, commercial real estate hasn't necessarily had the same outcome from the slump that the economy has been in, although it most definitely suffered. In fact, the economy in many cities and states is actually improving, resulting in a comeback for the commercial real estate market.
By Kenneth F. Silver