Section 3(8) of PA 198 of 1974 defines a speculative building as follows:

(8) "Speculative building" means a new building that meets all of the following criteria and the machinery, equipment, furniture, and fixtures located in the new building: (a) The building is owned by, or approved as a speculative building by resolution of, a local governmental unit in which the building is located or the building is owned by a development organization and located in the district of the development organization. (b) The building is constructed for the purpose of providing a manufacturing facility before the identification of a specific user of that building. (c) The building does not qualify as a replacement facility.

Subsection 8(b) requires that a speculative building be constructed BEFORE a specific user is identified. This law does NOT require that a building be approved by the local governmental unit BEFORE identification of the specific user.

The following are additional requirements specific to speculative buildings:

1. that the speculative building was constructed less than 9 years before the filing of exemption certificate.
2. that the speculative building has not been occupied since completion of construction.