Work on The Livery restaurant at Eddy St Commons in South Bend has begun. The Livery will replace the previous restaurant, The Mark, near Notre Dame. As you can see, demo of the previous improvements is well underway.
If you are one of the many business operators in the local manufacturing or distribution industry that has experienced the business growth over the past couple years and are in need of additional space for your operations, you are not alone. The struggle now is find additional quality manufacturing or distribution properties for lease or for sale. With the local St Joseph County industrial vacancy near all time lows of 4.6% and Elkhart County vacancy below 1%, industrial space is nearly non-existent. The result is many companies are choosing to build new facilities either by adding on to existing or at a new location.
The shortage of industrial buildings has caused some developers to consider constructing speculative buildings in hopes that they will be able to quickly lease 80% of the construction. While it would seem this would be a natural reaction and happen out of pure supply and demand, the pace at which speculative building has happened has be relatively slow. The reason likely has to do with investors memories from 7-10 years ago and the great recession. Around 2010 industrial availabilities were plentiful as buildings sat vacant and on the market for months or even years. Today the overall national and local economy is still good, but there is much uncertainty in the economy due to a long sustained economic recovery, potential international trade tariffs, new tax structure and potential interest rate hikes. Another reason for the slow growth of spec building is construction costs. There has been tremendous construction activity in the past couple of years and costs of construction has increased significantly
If you are one of those business owners looking for expansion, there are still a few opportunities and lease rates for existing space have only crept up slightly while rates on new construction have risen more quickly.
The office of NAI Cressy Commercial Real Estate has the only complete database of all commercial properties in the region. Find out more by checking out our 2018 Annual Report or using our website to search properties.
Improvements for a new Starbucks have started within the west endcap suite of the former Doctor’s Express Suite at Heritage Square. The expectation is for the cafe to open within the next 90 days. The building faces the highly trafficked Cleveland Rd and the Starbucks suite will feature a drive-thru window. There is already a Starbucks within the Martin’s Side Door Deli at Heritage Square, and that will remain in place.
The One Michiana Square building, located at 100 E Wayne St in downtown South Bend, came under new ownership in 2016. The building was built in 1985 and had historic vacancy rates of 20-30%. Now with ownership partners from Newmark Grubb Cressy & Everett and new tenant partners including Ladue Curran and Kuehn, the building is now 95% occupied and a true class A office building. Renovations to the common areas and tenant spaces have given the interior a much needed updated modern feel. The finished lobby is gorgeous and the office space within LCK’s space features collaborative working space, glass office walls and an open break area. If you are in the area, step into the lobby and check out the work that has been done by Newmark Grubb Cressy & Everett.
The LaSalle Hotel renovation project is noticeably nearing its completion. The exterior ground and 2nd floor window trim is being scraped and painted, facade is being restored and on the inside, the apartments on the upper floors are now weeks away from completion. In just over two weeks, the building owners will be accepting a historical preservation award for the building and the project at an exclusive event at the building.
There is definite excitement for the project as inquiries and leasing activity on the apartments has been steady all year. The retail space on the ground floor still has opportunities for restaurant and bar. Contact me for details.
Check out some of the interior photos of South Bend’s Historic LaSalle Hotel main floor.
Floors 2-9 will feature first-class apartments with all the amenities. Main floor space is available for lease to a restaurant, cafe, bar or retail space. What a great building and opportunity!
The City of Mishawaka recently approved the Barak’s Group plan to develop a 30 unit residential condominium project on the vacant land along the St Joseph River near Beutter Park. Barak intends to begin construction in 2016 and sell the condos at prices $300,000 and up.
Renderings for the project look great and appear shows residents enjoying the benefits of riverfront living. The first question that arises, is there a market for condo’s in the downtown Mishawaka area? Urban style condos are a fairly new concept to the area as downtown services and entertainment is limited and competitive homes in the suburbs with yards and privacy are readily available at prices below $300k. As the millennials grow into the residential market, their choices of areas to live are much different than those of generation X. Millennials look for more urban homes, closer to work and with nearby amenities that they can walk or bike to. The issue that remains is that most millennials are still not making the income of the older generation and thus do not yet have the economic power to spur high-end developments that cater to this group.
Other Mishawaka condos on the river have struggled in recent years, but the economy is in a much better place than 7 years ago and we have seen other similar projects in South Bend be successful. A new 70+ unit apartment complex, the Barak River Rock, is currently under construction on the north side of the river and is already receiving residential and retail interest. High density homes along the river is a great use of riverfront property and something this community does need. If we currently do not have the population to fully support, perhaps we will attract those that will. The services, amenities and the jobs needed will follow and a quick look at how the area looks now compared to 10 years ago will show anyone that things are greatly improving.
Pictured here is a portion of the newly restored brick exterior of the Emporium Building in South Bend. Local developer Dave Matthews purchased the building back in 2013 and recently began removing the paint from the exterior. Matthews will continue to remove the paint from the Niles Avenue side of the building improving the look and further enhancing the feel of the local neighborhood. The brick on the river side of the building is too soft to withstand the paint removal process, says Matthews, so that side will remain as is.
The East Bank Village continues to see improvements and developments. Jefferson Blvd improvements were recently completed which includes sidewalks, bike lanes and curbside landscaping. New residential units are breaking ground and others planned near the river at the former Transpo site. I would expect that we will continue to see new developments announced for the area in the near future.