Fiat-Chrysler CEO Sergio Marchionne is headed downtown?

[Detroitnerd]

When I tell people I'm from Detroit and they seem as though they don't know what to say, I usually break the ice by peppering them with imaginary machine-gun fire. That usually gets some laughs ...

[iheartthed]

Hahaha. I must say, the idea that "southeastern Michigan residents are embarrassed by" Detroit is hilarious to me. It's a very polite way to put it. Hahahaha.

AT THE CONVENTION...

CHICAGOAN: Hi, I'm from Chicago. Where are you from?

DETROITER: I'm from SOUTHEASTERN MICHIGAN.

CHICAGOAN: Oh, you mean Detroit, right?

DETROITER: No, that's the city. I'm from SOUTHEASTERN MICHIGAN.

CHICAGOAN: But the big city there is Detroit, right? So you're from around Detroit?

DETROITER: No, I don't live in Detroit. I live in SOUTHEASTERN MICHIGAN.

CHICAGOAN: Well, technically, I don't live in Chicago either. I'm from just outside, in Evanston. But we spend so much time in the city, you know, just hop on the train, it's just easier to say we're from Chicago. Our kids live in the city proper.

DETROITER: Yeah, we live, like, miles and miles from the downtown of that city in SOUTHEASTERN MICHIGAN.

CHICAGOAN: How many miles?

DETROITER: Like, 10 miles. We're from a place in SOUTHEASTERN MICHIGAN called Royal Oak.

CHICAGOAN: Well! You're closer to the city than I am! How nice it must be to live so close to downtown!

DETROITER: Yeah, we don't really go to that city in SOUTHEASTERN MICHIGAN. There's already so much to do in SOUTHEASTERN MICHIGAN, we don't really have to do anything, um, urban.

CHICAGOAN: Well, maybe you don't go into the city, but that's OK. The city is a younger person's place. Do your kids live in Detroit?

DETROITER: Um, no. They left SOUTHEASTERN MICHIGAN. Our daughter lives in Los Angeles and our son lives in Chicago.

CHICAGOAN: Really? Why wouldn't they live in Detroit if they like cities?

DETROITER: Because DETROIT IS A SHITHOLE, OK? THERE! I SAID IT!

CHICAGOAN: Oh, my! [quietly backs off, mingles elsewhere]

This is spot on! Everyone I know who is from within a 50 mile radius of Chicago will say they are from "Chicago". I can't ever remember meeting someone from the Chicago area who just said they were from "Illinois". It seems like their civic identities are tied to Chicago even more than people who live in the New York area feel tied to NYC. L.A. is like that too. And Detroit is just the opposite [[unless the person is trying to get some street cred).

[Det_ard]

Chrysler is moving the regional field staff offices downtown. That's the 60 people mentioned in the paper. Marchionne has very little interaction with field staff at that level. His "office" is convenient window dressing, a PR opportunity. His recently acquired compound in Commerce Twp is 35 miles from downtown and a good hour in rush hour traffic. Not where he'd choose to live if he was heading downtown every day.

[Hypestyles]

hopefully there will be a continued presence of Chrysler white collar workers downtown, to whatever degree that the "main" HQ is at capacity [[or not)..

[Detroitnerd]

What a fustercluck this region is. It's pretty clear the announcement of the office was designed to generate goodwill and show other downtown business partners a willingness to meet them on their own turf. He seems a savvy, well-to-do, cultured person who understands this region he's visiting, and wants an estate in the sticks for his family, modern production facilities and labs out where there's space for that, and a pied-à-terre downtown to rub elbows with other power brokers down there.

And then, on this board, there are so many posters who appear to see our region as we often do here: an either-or proposition. This poor guy. All these voices crying "He's living in the exurbs! He's pro-exurb!" or "His facilities are in the suburbs! He's pro-suburb!" or "He's getting office space downtown! Is he anti-suburb?"

You all fail to see that, unlike many of us, he sees Detroit as a region. Just as many other visitors do.

And just as we should.

[MikeyinBrooklyn]

I see Detroit as a region. Now, to be sure, that region has Detroit at the center, but I am never angry when a business opens in the burbs, or someone feels the need to move their family out of the city. Some of the city's problems make me angry, but I don't blame outsiders for them. And I fully support creating a mindset that you can live, work, and recreate all over the area. It will make for both a better economy and better lives for everyone. My post regarding Mr. Marchionne was not negative at all, I think. I just pointed out that his downtown office was unlikely to be his main base of operations. I am proud to be from Detroit the city, Detroit the area, and the State of Michigan. When I have succeded at becoming a 1%er I want condo downtown, a weekend home in the exurbs, and summer home in Traverse City. No bile from me towards where anyone else chooses to live or work. I just want to help make Detroit a good option for living and working. If you find somewhere else that suits your fancy, that's your business.

What a fustercluck this region is. It's pretty clear the announcement of the office was designed to generate goodwill and show other downtown business partners a willingness to meet them on their own turf. He seems a savvy, well-to-do, cultured person who understands this region he's visiting, and wants an estate in the sticks for his family, modern production facilities and labs out where there's space for that, and a pied-à-terre downtown to rub elbows with other power brokers down there.

And then, on this board, there are so many posters who appear to see our region as we often do here: an either-or proposition. This poor guy. All these voices crying "He's living in the exurbs! He's pro-exurb!" or "His facilities are in the suburbs! He's pro-suburb!" or "He's getting office space downtown! Is he anti-suburb?"

You all fail to see that, unlike many of us, he sees Detroit as a region. Just as many other visitors do.

And just as we should.

[Detroitnerd]

My post regarding Mr. Marchionne was not negative at all, I think. I just pointed out that his downtown office was unlikely to be his main base of operations.

Oh, yeah. Please don't think I objected to your post. It's true that it's likely a landing pad in Detroit there for when he needs it, and I'm glad he sees downtown as part of the picture. Mostly agree with you ...

[Scottathew]

It's great that more businesses are moving in, but why does Chrysler need an office downtown? It's not like they are hurting for space at the Chryslerplex.

My sources say they are. They've been consolidating as much as possible at their campus and it's full. They've been using nearby offices as much as possible.

This has nothing to do with office space and everything to do with having a presence and being a part of an up and coming Downtown Detroit. 70 employees isn't much, but it's more than zero. Perhaps this will open the doors for more.

[DLife]

His drive to Aurburn Hills is not much better..maybe he'll take a helicopter to work everyday.

[stromberg2]

Hahaha. I must say, the idea that "southeastern Michigan residents are embarrassed by" Detroit is hilarious to me. It's a very polite way to put it. Hahahaha.

AT THE CONVENTION...

CHICAGOAN: Hi, I'm from Chicago. Where are you from?

DETROITER: I'm from SOUTHEASTERN MICHIGAN.

CHICAGOAN: Oh, you mean Detroit, right?

DETROITER: No, that's the city. I'm from SOUTHEASTERN MICHIGAN.

CHICAGOAN: But the big city there is Detroit, right? So you're from around Detroit?

DETROITER: No, I don't live in Detroit. I live in SOUTHEASTERN MICHIGAN.

CHICAGOAN: Well, technically, I don't live in Chicago either. I'm from just outside, in Evanston. But we spend so much time in the city, you know, just hop on the train, it's just easier to say we're from Chicago. Our kids live in the city proper.

DETROITER: Yeah, we live, like, miles and miles from the downtown of that city in SOUTHEASTERN MICHIGAN.

CHICAGOAN: How many miles?

DETROITER: Like, 10 miles. We're from a place in SOUTHEASTERN MICHIGAN called Royal Oak.

CHICAGOAN: Well! You're closer to the city than I am! How nice it must be to live so close to downtown!

DETROITER: Yeah, we don't really go to that city in SOUTHEASTERN MICHIGAN. There's already so much to do in SOUTHEASTERN MICHIGAN, we don't really have to do anything, um, urban.

CHICAGOAN: Well, maybe you don't go into the city, but that's OK. The city is a younger person's place. Do your kids live in Detroit?

DETROITER: Um, no. They left SOUTHEASTERN MICHIGAN. Our daughter lives in Los Angeles and our son lives in Chicago.

CHICAGOAN: Really? Why wouldn't they live in Detroit if they like cities?

DETROITER: Because DETROIT IS A SHITHOLE, OK? THERE! I SAID IT!

CHICAGOAN: Oh, my! [quietly backs off, mingles elsewhere]

Classic, Nerd!!

Stromberg2

[Detroitej72]

What those people like Hermod fail to notice was this little tidbit: But Grubb & Ellis said in its 2012 forecast that "The real challenge for suburban landlords in 2012 will be to quell the tide of companies migrating to the [[downtown Detroit) market.

From The Detroit News: http://www.detroitnews.com/article/20120425/AUTO0101/204250385#ixzz1tCqfNt

Maybe, as hard as it is for the old guard to accept, the tide is a changing.

[Detroitej72]

Totally untrue. They are actually well under capacity at Chrysler Tech.

Overall HQ headcount is down a few thousand, and they have entirely vacant wings.

Chrysler would probably need a few decades of sustained growth to fill that complex out. It has more floorspace than GM HQ, for a company a tiny fraction of the size.

I want to see you so-called sources, as a buddy of mine, who personally has meetings with Sergio weekly has told me otherwise.

[canuck]

I want to see you so-called sources, as a buddy of mine, who personally has meetings with Sergio weekly has told me otherwise.

Bham! Zowie! Zloop! Pow!

[Don K]

His drive to Aurburn Hills is not much better..maybe he'll take a helicopter to work everyday.

Seriously, that would be my guess.

[Hermod]

Seriously, that would be my guess.

If he is picked up each morning by a chauffeur-driven company car, he can read the newspaper or get some solo work done at leisure during the drive. It is just like taking public transit without the annoyances of the unwashed public.

[Hermod]

What those people like Hermod fail to notice was this little tidbit: But Grubb & Ellis said in its 2012 forecast that "The real challenge for suburban landlords in 2012 will be to quell the tide of companies migrating to the [[downtown Detroit) market.

But the downtown vacancy rate surged to 33.4 percent in the first quarter of this year, according to Grubb & Ellis, when more than 290,000 square feet of empty space was added to the market — "much of it in the 500 Woodward [[Avenue) building as Comerica continued to relocated into owner-occupied space throughout the city.

But Grubb & Ellis said in its 2012 forecast that "The real challenge for suburban landlords in 2012 will be to quell the tide of companies migrating to the [[downtown Detroit) market.

Grubb and Ellis forecast in the last paragraph does not logically follow the data presented in the previous tow paragraphs and sounds more like a "puff piece" to jazz up what otherwise would be a dismal forecast.

I have worked in a high rise office building in downtown Detroit as well as in a couple of them in the Washington suburbs. I have also worked in low-rise "campus" type environments.

I always found that working in a tower was stressful and not conducive to engineering creativity. You always had so many "building rules" and difficult parking situations.

Whenever I wanted to accomplish something creative in a meeting, I would schedule it at one of our facilities located in the middle of nowhere. I wanted to get the Washington types out where they could do more than examine their navels.

[401don]

Marchionne completed his Bach. of Commerce and MBA at Univ. of Windsor. It's funny, here in Ontario, back when he went there in the late 70's, Windsor was the school you went to if you didn't have the grades to get into anywhere else.
Maybe he just wants to see his alma mater out his office window.

[detroitmale]

WONDERFUL NEWS FOR DOWNTOWN DETROIT!

[Detroitnerd]

WONDERFUL NEWS FOR DOWNTOWN DETROIT!

Well, that too. It's good news for the region, frankly. The sooner we have a vibrant city center, the sooner the whole region can share in the boost it gives us. It's happening, bit by bit. This is another welcome piece of the puzzle.

[MSUguy]

Grubb and Ellis forecast in the last paragraph does not logically follow the data presented in the previous tow paragraphs and sounds more like a "puff piece" to jazz up what otherwise would be a dismal forecast.
.

The increase in vacancy didn't come from moving out to the burbs, but moving into space that isn't on the rental market. Comerica consolidated their downtown operations at 411 W Lafayette. Last year companies moving downtown emptied about 871,000 square feet of office space in the burbs

http://www.detroityes.com/mb/showthr...urbs-feel-pain

[casscorridor]

Grubb & Ellis said in its 2012 forecast that "The real challenge for suburban landlords in 2012 will be to quell the tide of companies migrating to the [[downtown Detroit) market."

For this to be true in the long-run, there will have to be new-builds Downtown along with increased amenities and living options for professionals. Woodward rail can facilitate some of this growth, but I would like to see a more robust system [[than what is proposed) with at least two lines -- one west to Dearborn and Metro Airport and one north into Oakland County. This will offer an larger pool of employees to feed into Downtown, along with offering potential for interaction between disparate job-centers, not to mention opening doors to more international businesses, tourism and conferences via ease of access from the Airport. Hey maybe Detroit would be bustling again!

[DTWflyer]

That is interesting to think about the Grubb & Ellis forecast.

It is true though that there are a number of suburban properties that have become functionally obsolete or where they are going to continue to have difficulty filling vacant space.

Off the top of my head there are a ton of properties in Troy, Southfield, Farmington, Livonia, and Dearborn that were built in the 70's & 80s that today are mostly vacant. They really have limited appeal in todays market and most companies today looking for real estate are not looking to acquire an entire building.