Area production removing squeezed for space

December 21, 2014 - photo frame

Area production removing squeezed for space

Area production removing squeezed for space

Record-Eagle photo/Jan-Michael Stump Lance Green works on a lathe during TranTek, that combined combined 8,000 block feet of space to a Traverse City facility.

Area production removing squeezed for space

Area production removing squeezed for space

Record-Eagle photo/Jan-Michael Stump TranTek combined combined 8,000 block feet of apparatus and phony space to a Traverse City facility.

Area production removing squeezed for space

Area production removing squeezed for space

Record-Eagle photo/Jan-Michael Stump TranTek Automation Corporation President Jeff Pattison.



Posted: Saturday, Dec 20, 2014 11:45 pm

Area production removing squeezed for space

BY CAROL THOMPSON cthompson@record-eagle.com

Record-Eagle.com

TRAVERSE CITY — TranTek Automation Corporation can’t do business in usually any warehouse.

The appurtenance building company needs power, atmosphere compressor lines and a lot of open building space. That’s what TranTek President Jeff Pattison looked for when he scoured a Traverse area genuine estate marketplace for a trickery to franchise when a association indispensable some-more space early this year.

He searched for roughly 3 months and found usually one accessible facility.

“It’s flattering tough in Traverse City to find a plcae that would fit a sold business needs,” Pattison said. “There are a lot of places accessible for lease, though not that would fit a appurtenance building requirements.”

It’s a good problem to have — production is sepulchral — though a region’s brief supply of industrial genuine estate is perplexing for flourishing area companies.

“Not being means to find space in a discerning time support is rather of a separator and troublesome for that business owner,” pronounced Laura Galbraith, clamp boss of financial and administration for a Traverse City Area Chamber of Commerce. “They’re looking for proxy places to reason shop, or are carrying to wait 6 months to a year for a building to be built on their behalf.”

TranTek had those required flourishing pains. The association purchased skill adjacent to a trickery on Aero Park Court so it could supplement 8,000 block feet to a building in May. TranTek now has a 28,000-square-foot trickery and leases dual circuitously comforts that supplement scarcely 12,000 block feet to a footprint.

Leasing space is safer for companies so closely connected to a production industry.

“You have to be discreet about what we enhance for,” Pattison said. “We try to enhance conservatively.”

Tino Breithaupt, informal executive of influence and expansion for a Michigan Economic Development Corporation, pronounced register of production comforts is so low companies competence have to build new. He pronounced space is parsimonious opposite a state, though markets such as Grand Rapids and Holland see some-more building projects.

“What Traverse City does have is accessible space to build on for new growth activities, and that’s good,” pronounced Breithaupt, who worked during a TC cover from 2006 to 2011. “I would be really endangered … if all a industrial parks in Traverse City had no accessible space.”

Building new is severe when land prices and construction costs are high.

“It’s too most for them to build a building and buy a genuine estate,” Galbraith said. “As shortly as those costs come down we consider that it won’t be as most of an issue.”

Or as shortly as income from renting space comes up.

Mark Eckhoff, a comparison associate during Three West genuine estate agency, pronounced let rates for room and industrial space don’t compare a building costs.

“If there’s adequate direct afterwards franchise rates are going to start going up,” he said. “People are going to start to contest for space, and when those prices go adult people will contend ‘there’s a approach to make income doing this.’”

Eckhoff sees business looking for tiny room space with feverishness and using H2O where they can launch “cottage industry” businesses, mostly creation value-added food products.

Those smaller entrepreneurs aren’t in a genuine estate market, Eckhoff said. They already risk a lot by opening a business. They don’t wish to chuck genuine estate growth into a mix, too.

Developers aren’t prepared to take that risk either. Galbraith pronounced few are investing in “speculative” buildings.

“What we’ve listened from some of a developers is there’s still a small bit of doubt in a market,” she said. “There’s still a viewpoint that we’re in a frail economy.”

The Traverse City Area Chamber of Commerce used to have a suppositional production building program, though cut it in 2009 when a final building assembled sat on a marketplace for some-more than dual years.

“It did not make clarity to spin around right divided after offered that trickery and build another spec building since we believed there was a good possibility it would lay on a marketplace for a length of time,” Breithaupt said. “Potentially it competence be time to revisit that.”


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