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DETROIT-Ford Motor Co. spent much of the time during its Jan. 23 conference elaborating on its good-news, bad-news scenario. In short, while Ford showed a profit in its overseas division, it continued losing money in North America throughout 2005. Also discussed was the now famed "Way Forward" plan, featuring a streamlining of product lines, a decrease in staff and shuttering plants, most notably in St. Louis, Minnesota, Atlanta and Detroit.

Among local real estate professionals, concerns focused on how two local plant closings--the 4.7-million-sf, 49-year-old Wixom Assembly Plant on the western edge of metro Detroit, and another plant in Ontario, Canada--would impact the economy and local real estate.

While most told GlobeSt.com that the Windsor plant closing wouldn't have much of an impact, experts weren't quite as unanimous on the impact of Wixom's closing on the community. Wixom, slated to close in 2007, is located in the relatively stable Northwest Oakland County submarket. But whether Wixom's closing will be a blip on the scene or an overall catastrophe on the area depends on who is asked.

"That particular market has done relatively well over the past couple of years," comments Cameron McCausland, director of brokerage services with Colliers International's Southfield office. "It's been one of the newer growth areas on the western edge of town. It's done well, not necessarily because of the Wixom plant, but because of the natural migration from the metro center."

Steve Morris, president of GVA Strategis, a brokerage consulting firm in Southfield, agrees that Wixom is in a prime location, which would likely mean that it has a good future. "It's located at a major intersection in a growth area with outstanding expressway visibility," he says. "It's insulated in that it has location, and location in spades."

Does this mean that Wixom will enjoy life after closing? Yes, note most of the experts--but consensus dissolves when it comes to what Wixom could likely become. "There's only so many big automotive plants idled that can be turned into multi-tenant warehouses," McCausland comments. "There's been a little wonderment about what to do with that facility, as to try to retrofit it would be difficult. It's huge."

However, retrofitting can be done, says Scott Strohl, an investment associate with Marcus & Millichap's Real Estate Brokerage Services Co.'s Southfield office. "There have been some successes in our market retrofitting closed plants," he says, pointing to Pinnacle Logistics Park, an 833,068-sf industrial facility in Redford Township. The property, which began life as a Ford plant, was recently converted into a multi-tenant facility with small suppliers and storage. "That plant has been a huge success for the owners," he notes. "And it points to what could happen with others, like Wixom."

But Morris believes Wixom's best future is to forget about retrofitting and instead convert the property into another use. "The highest and best use for this is that the plant will be sold to a developer or two or three, the plant will be taken down, and in its place could be a regional community lifestyle center," he speculates. "This is a population that is well educated and diversely employed from Ann Arbor to greater parts of Oakland County."

Overall, those queried agreed that change was due for Ford. Jason Capitani of L. Mason Capitani in Troy believes the "Way Forward" is the key to helping Ford run more effectively. "If this decision can help Ford run more efficiently," he says, "it'll end up creating more business for the larger suppliers in town, which will create a demand for more space."

McCausland agrees with the assessment, noting that Ford needed to do something to get the company back into balance in terms of a financial position. "Ultimately, it should lead to a more stable company, and everything good that comes from a stable company," he says.

Adds Morris: "It's easy reporting to talk about the horrible, bad impact of this on the area, but I don't see it as devastating as all that."

Most note, however, that any improvements won't come immediately. "It's a step in the right direction," Capitani says. "But we won't see the benefits of any of this overnight."

Instant Insights /

GlobeSt.com EXCLUSIVE: Speculation Diverse on Ford Plant's Future

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