ABOUT MIDLAND. Key Demographic Information MICHIGAN

Transcription

1 ABOUT MIDLAND Midland is located 130 miles northwest of Detroit. Together with Saginaw, Bay City and Mount Pleasant, Midland is part of the Great Lakes Bay region of Northeast Michigan. As the home of corporate headquarters for The Dow Chemical Company, Dow Corning Corp., MidMichigan Health and Chemical Bank, Midland has attracted a highly educated and affluent population. Dow Chemical, a Fortune 50 company and the City s largest employer, is currently investing in a new 50,000-square-foot headquarters building. Approximately 45% of the labor force is employed in management, business, science and arts occupations, with an additional 23% employed in sales and office occupations. MARQUETTE ESCANABA SAULT STE. MARIE In 2014, CNNMoney named Midland County among eight places across the county where the middle class thrives. Midlanders experience a high quality of life thanks in Part to the significant corporate presence and active foundation and philanthropic organizations. Cultural attractions include: the Alden B. Dow Museum of Art and Science, Dow Gardens, the Great Lakes Loons minor league baseball team, and the Midland Center for the Arts. Midland is also home to Northwood University and the Michigan State University STEM Center. Recreational amenities include: the Tittabawassee and Chippewa Rivers, the Chippewa Nature Center, numerous golf courses, and an extensive park and trail system. In 2010, Forbes Magazine named Midland the 4th Best Small City to Raise a Family. Nationally-recognized architect Alden B. Dow, known for his contributions to mid-twentieth century modern architecture, hailed from Midland. His designs are prevalent in residences, churches, schools, civic and commercial buildings throughout Midland. The Alden B. Dow Home and Studios is a National Historic Landmark and open to the public. TRAVERSE CITY MICHIGAN MT PLEASANT GRAND RAPIDS LANSING MIDLAND Key Demographic Information BAY CITY SAGINAW DETROIT ANN ARBOR City of Midland Population (2010): 41,863 Midland County Population (2010): 83,629 Great Lakes Bay Region Population (2010): 391,569 Mean City Household Income (2013): $74,505 Mean City Family Income (2013): $95,873 City Educational Attainment (2010) (with a Bachelor s Degree or Higher): 42.9% FLINT Midland is located approximately 10 miles west of Interstate 75. Major thoroughfares in the City include U.S. Route 10 and Michigan Route 20. MBS International Airport, located in nearby Freeland, provides air service to Detroit, Chicago, Minneapolis-Saint Paul, and Atlanta. PAGE 4

2 Downtown Midland Downtown Midland, home to approximately 113 businesses and organizations, has experienced substantial new commercial and institutional investment in recent years. Developments include: Dow Diamond, The H Hotel, The H Residence, and three office buildings, which have added approximately 260,000 square feet of office space to the market. Major downtown attractions include: Major downtown employers include: Historic Downtown Main Street Tittabawassee and Chippewa Rivers Midland Area Farmers Market The Tridge and Pere Marquette Rail Trail Historic Midland County Courthouse Santa House & Charles W. Howard Santa Claus School Dow Diamond, Home of the Great Lakes Loons Northwood Gallery The Dow Chemical Company Chemical Bank Trinseo The City of Midland Midland County City Forest County Fairgrounds Midland Mall Chippewa Nature Center W Saginaw Road Northwood University Mid Michigan Health Dow Gardens DOWNTOWN MIDLAND Poseyville Road Eastman Avenue Discovery Square Wheeler Street Center City District Dow Diamond Dow Chemical Headquarters Salzburg Road Bay City Road MBS Airport 10 miles Gordonville Road PAGE 5

3 KEY DOWNTOWN ASSETS Historic Main Street Main Street has been a vital part of the Midland community and an active area for shopping, socializing and community gatherings for over a century. Numerous unique stores and restaurants are located along Main Street, many in historic buildings. Main Street also hosts over 20 community events each year. Tittabawassee and Chippewa Riverfronts The Tittabawassee and Chippewa Rivers meet just west of Main Street and serve as a vital recreational amenity. Numerous parks, trails and natural areas line the riverfronts, including the Chippewa Nature Center which is located just upstream from Downtown. The rivers are popular for fishing, kayaking and canoeing. Midland Area Farmers Market During the growing season, the Midland Area Farmers Market draws visitors from throughout the region to Downtown Midland for its wide selection of produce and other locally-sourced items. The biweekly, seasonal market is located along the downtown riverfront in an Alden B. Dow-designed pavilion. The Tridge and Pere Marquette Rail Trail The Tridge is a three-way pedestrian bridge connecting numerous municipal parks and the Chippewa Nature Center to Downtown Midland. The trailhead of the Pere Marquette Rail Trail is located just east of the Tridge. This recreation trail connects Downtown Midland with the City of Clare, 30 miles to the northwest. Historic Midland County Courthouse The west end of Main Street is anchored by the Historic Midland County Courthouse, a Tudor Revival building constructed in The building is an important community gathering place, especially during the annual holiday lights festival. Midland County Courthouse is on the National Register of Historic Places. Santa House & Charles W. Howard Santa Claus School Adjacent to the Midland County Courthouse, the Santa House is the local home for Santa Claus during the holiday season. Each year, the Santa House draws thousands of visitors to Downtown Midland. Prior to the holiday season each year, the building serves as a school for those training to be Santa and Mrs. Claus. PAGE 6

4 RECENT DOWNTOWN DEVELOPMENT Dow Diamond Baseball stadium; Home of the Great Lakes Loons Opened in 2007 Capacity of 5,500 for baseball, 9,000 for stage events Contains 12 luxury suites & a party deck The H Hotel 130-room upper-upscale hotel Renovated & expanded in ,000 square feet of meeting space 3 restaurants: Table, Cafe Zinc, Bar Oxygen 414 Townsend Street 16,000 square feet of professional office Opened in 2012 Tenants include: Ieuter Insurance Group, SYM Financial Advisors, Brown Law PLC, Smith & Co. Financial Services 409 Ashman Street 30,000 square feet of professional office Opened in 2014 Tenants include: Trinseo, Century 21 Signature Realty Wells Fargo Advisors The East End 212,000 square feet of corporate office Opened in 2014 Tenants include: Dow Chemical, Chemical Bank, Warner Norcross & Judd, MidMichigan Health, Michigan State University, State Street, Maru Sushi & Grill The H Residence 20 condominium units Currently under construction; Expected to open in 2016 First-floor retail along Main Street for 3 tenants: Convention and Visitors Bureau, Northwood Gallery & an anticipated fullservice restaurant PAGE 7

5 DOWNTOWN MARKET POTENTIAL Recent market analyses suggest near-term market potential in Downtown Midland for hundreds of additional new residences, a new 80- to 100-room limited-service hotel, additional professional service office development, and new retail offerings and restaurants. RESIDENTIAL. An analysis of existing supply and expected demand indicates a need for additional residential development in Midland. In Downtown Midland, residential housing units are extremely limited. Fewer than 10 second floor residential units exist and the only recent development that has occurred is tailored to the very high end of the market. Based on current preferences, it is estimated that demand exists for approximately 250 new residential units in Midland, of which 63 units are projected to be multifamily. However, this estimate may not be representative of true demand due to a shift in demographics and a lack of modern multifamily units in the downtown area. Interviews with local real estate brokers and the results of a community survey indicated that housing choices are being driven at least in part by available product, not solely by preferences. Based on this analysis and interviews with local real estate professionals, approximately 100 to 150 new residential units may be feasible in the near term in Downtown Midland. This potential may grow as new development comes online and the downtown market has been proven through occupancy and absorption rates. OFFICE. Projected growth of 670 office-related employees by 2025 is likely to provide demand for additional office space in Midland, where office development has been largely driven by existing anchor tenants searching for newer, more modern space. Many existing tenants are sensitive to rent levels, which may challenge achievable new construction rents for smaller tenants. Recent new construction office space in Downtown Midland and Bay City has typically rented for $18-26/sf (NNN). New multitenant office development structured around an anchor tenant that occupies 80-90% of the development, with limited speculative space, may be more successful in the near term. Based on recent trends, the downtown office market can likely absorb 10,000 to 15,000 square feet of professional office space annually. If a large anchor tenant (over 100,000 square feet) can be secured, there may be potential for 15,000 to 30,000+ square feet of speculative space over the next 3 to 5 years. PAGE 8 For more detailed market information, see Appendix D RETAIL, RESTAURANT & ENTERTAINMENT. Downtown Midland draws thousands of locals and tourists year-round for existing retail/restaurant/entertainment options, Great Lakes Loons games, overnight stays or events at The H Hotel, and community events. The Midland Area Farmers Market alone draws several thousand shoppers to the downtown riverfront twice a week from May through October and the trailhead for the Pere Marquette Rail Trail draws additional visitors. These visitors and the relatively wealthy, educated population and employees of Midland offer opportunities for additional retail, restaurants and entertainment options. As the number of downtown residents and employees grows with additional development, retail and restaurant demand will increase. Reaching a critical mass of complementary retailers, restaurants and entertainment options will only enhance the marketability of Downtown Midland. Potential retail uses could include: Small, unique restaurants, drawing patrons from larger market area Bars/brewpubs catering to young professionals Bowling alley, billiards or other entertainment options Boutique clothing/accessories stores Co-op gallery space Convenience-oriented retail serving downtown residents, employees and visitors Small-format grocery or organic store, perhaps in indoor farmers market Other unique retailers HOTEL. Continued growth in demand will create opportunity for a new 80- to 100- room hotel within the next five years. Assuming continued 2.1% annual growth in demand, a new 75- to 80-room hotel could be supported. An increase to 5% annual growth in demand could support a new 100-room hotel. Assuming a new hotel is brought online in 2017 and there is continued growth in demand, overall occupancy is expected to return to stabilized levels within one to four years. Current generators of demand for hotel nights and the existing supply of hotels suggest that a limited, select service, or potentially extended stay hotel may be appropriate for Downtown Midland. A new hotel should complement and not directly compete with The H Hotel.