Michigan- Harper Woods - Wayne County

[Michael Arnold]

Commercial experience in Harper Woods - Wayne County - Michigan Do you have experience with Harper Woods and its commercial RE climate in regards to retail store fronts? Would love to hear your experience if any. I recognize this a economically depressed town. Thanks! Mike

[Robert Plumpe]

Mike:

I live in a city adjacent to Harper Woods!  I also own property nearby.  Harper Woods is indeed a depressed community.  YOU HAVE TO BE VERY CAREFUL!  With that being said, there are deals where there is turmoil/trouble.

I've actually been looking in Harper Woods for commercial property.  I am a bit turned off it by it though, as Harper Woods may have the highest commercial property taxes in the country.  The commercial tax rate is about 5.5% of the true market value.  Thus, a $100k commercial piece of property will have taxes of around $5,500  a year.  You will also face a DOUBLE WHAMMY of properties being "over appraised"....

You also have to be EXTREMELY careful with any property that shares a border with Detroit (i.e. Kelly Road).  This is a very ROUGH area.  There have been robberies and even killings in businesses in this area.  There are even burned out businesses in HARPER WOODS.  Across the street in Detroit, it is "Mad Max" time...

One real estate broker I discussed this with says that this area is basically "un-investible" UNLESS you've got an owner operated/occupied building OR you have to be in this area for some particular reason.

I am a little more optimistic as this makes it VERY difficult to invest, but not impossible.

Good luck!