Harry Hawkins made Ann Arbor his lifelong home, and decades after he launched his real estate career here - as a teenager - he’s still here. He's still holding his property, still working at his business and still evaluating the opportunity in our midst.

The real estate market is changing as it responds to the global financial crisis.

The investment world is changing, as leverage falls out of favor.

But Hawkins, who’s made a lifetime out of finding value in the city’s real estate, remains a constant.

Many in town consider him a guiding force as they launched their real estate careers.

And that, along with his experience in both boom and bust markets over the years, made me wonder what he thinks about local real estate during a time when deals have become rare and financing is more so.

I learned he’s still encouraged by the market here. And he also sees opportunity, though he still won’t bend on his investment criteria: It has to make a certain level of return.

That’s something that you can still accomplish here because Ann Arbor still has advantages other towns in Michigan lack, Hawkins said.

Yet among the changes Hawkins can track are the spending habits on South University. He estimates some sales have dropped 30 percent.

“It’s such a different market now,” Hawkins said. “Students don’t have the money that they used to. … I think all businesses up there are having a little struggle.”

That changes investment dynamics for campus-area residential rentals, too, he said.

“It’s different in Ann Arbor today,’ he said.

One of his apartments on Wall Street has been vacant for about six months, and “it was never vacant.”

Still, he said, even today’s uncertainty hasn’t completely turned him off from the market.

“There are wonderful opportunities out there,” he said. “Still.”

Hawkins, born in Ann Arbor and a graduate of the University of Michigan, bought his first property when he was about 15. His father had the same name, and he said people would think the elder Hawkins was the buyer.

“I never showed up at closing,” he said.

He bought on land contract. And he preferred commercial buildings, getting into residential properties when they accompanied them.

His properties include the building on South University that houses Middle Earth; the buildings that house Village Corner and the Student Bike Shop at the South U/Forest corner; property on Brooks street; a building on Packard near Burns Park; and the buildings on South State where he still bases his West Hawk Industries, which sells promotional products.

He’s also branched out, including some property in Addison, Mich., and three different churches in Milan.

Along with the opportunity today, “there’s an awful lot of risk right now,” he said.

That, he said, is why people getting into real estate need guts.

While there are some buyers out there, there’s “a shortage of small businesses that want to rent.”

He looks back on his years in real estate and offers advice for today’s investors.

“If you’re young and ambitious, look for properties that need some tender, loving care,” he said. “There’s always some property that needs help.

"You have to be really, really careful that you don’t spend a fortune, but if you’re willing to put labor into it…”

He also notes the cost to hire people to do the work has dropped, due to many people in the skilled trades seeking jobs. And he suggests that buyers and sellers consider land contracts.

He watched the recent years of ever-rising prices in Ann Arbor with some concern - and humor.

“I thought it was ridiculous,” he said. “If you can’t return at least 30 percent on a building …. Then just walk on.”

He seldom sells his real estate.

But he’s open to new opportunities. His property at the corner of South University and South Forest was part of the assemblage that went through planning as the 601 Forest student high-rise, which since has stalled due to legal wrangling between the development partners.

“I don’t think you can stop progress,” Hawkins said. “Some people would like to. We’re not the little village we were … Ann Arbor is too dynamic a town.”

He also comes back to timeless real estate advice, even as he acknowledges values have fallen 20 percent overall.

“The same old thing applies,” he said. “Location, location, location. If you have the location, the world will make a (path) to your door.”

And Ann Arbor has that quality?

“Definitely,” Hawkins answered. “People love to visit Ann Arbor.”

Paula Gardner is Business Director of Ann Arbor Business Review on AnnArbor.com, where she covers real estate and development. She writes the monthly Square Footage section for the weekly business newsletter. Sign up for the newsletter here.