Appraising Detroit 2015

Detroit's economy has seen extreme highs and extreme lows over the past several years, and there are segments of the economy that are still struggling.  Parts of the fragmented residential real estate market still have a lot of healing to do.

Commercial real estate in Detroit has seen a significant strengthening and 2015 looks like it could provide more positive movement.  Detroit offers its commercial appraisers a wide range of appraisal challenges.  Downtown, the riverfront and the suburbs are particularly strong, but a near 20% vacancy rate persists in the office sector.

Commercial real estate in Detroit ranges from old, single user, single story, metal constructed buildings to new high-rise, multiple use, multiple user, steel framed masonry buildings with hundreds of thousands of square feet of rentable area.  Locations within the large market area that includes Detroit are also dissimilar.  So just about every real estate appraisal problem imaginable is possible in the market.

Retail and industrial vacancy rates in Detroit in 2015 are within the acceptable range, less than 10%, and the rates reflect the absorption of excess space that has occurred over the last few years in those market segments.

Commercial appraisers in Detroit recognize the strength of the suburbs with their average home price near $ 160,000 versus the Downtown Detroit average home sales price near $ 13,000.  Clearly Detroit has a broader range of residential prices than almost any other city in the country.  Commercial building also run the gamut with sales prices falling between $ 15,000 and millions.

Thus an appraiser who does business in Detroit must be able to recognize the factors that affect real property value and of course location is an important consideration. 

As a Detroit and outlying areas appraiser I have appraised a broad range of real property including; land, automotive, multiple-family / apartment buildings, offices, retail buildings / shopping centers, industrial buildings, hotel / motel, healthcare, senior housing, convenience stores and special use properties like churches, fast food restaurants and bowling alleys.  I have specialized in market value appraisals, taxation appraisals, insurance value and market studies for individual, corporate, government and attorney clients.

Garrett J Steele, ASA, MRICS, BAE at gsteele07@gmail.com is an experienced Michigan Certified General Appraiser specializing in commercial real estate appraisals in Charlevoix, Crawford, Genesee, Lapeer, Livingston, Macomb, Oakland, Roscommon, Washtenaw and Wayne County.  His Internet website is http://www.horizonappraisals.com

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