Harnessing Regional Wealth: Companies That Could Move to Detroit

[Mackinaw]

Planner, the regional glut of office space is not related to the notions that JD hits on, which is that higher concentration downtown is better for the region, in addition to Detroit itself. One can agree or disagree with the premise that it helps the region, but the fact that the region has too much space is not an argument against the premise, nor an argument against encouraging companies to move downtown. It is just a fact, and it calls for us to take measures that encourage 1) migration to the region from other states and 2) vigorous endogenous growth [[I think we're starting to see this; we are much more entrepreneurial than we were in 2008), while leaving it in the hands of building owners to deal with their glut of space or try to improve their space to command higher rents, regardless of where they are located. These are important concerns, but don't directly relate to the pros and cons of the proposal being discussed.

But the proposal being discussed may in fact relate to the glut of space [[i.e. lack of regional employers). As JD argues, and again, we can agree or disagree, our ability to accomplish #1 above is probably enhanced if we have more urban concentration. I agree, And I would argue that #2 might have enhanced potential, too. Ironically enough, even though so much is done virtually, physical concentration of ideas-makers and implementers still matters. See Silicon Valley, Boston, and most recently, Detroit. Business and innovation communities are still a real thing, so I think consolidating/concentrating/collapsing people across this particularly sprawling region into smaller spaces or corridors, be it entirely downtown Detroit, or perhaps the whole Woodward corridor into southern Oakland County, is quite possibly in everyone's best interests.

[DetroitPlanner]

Mackinaw, economically when one makes a decision to move somewhere it is not always altruistic. This is particularly true for a corporation or small company. It is based on the lowest cost to operate as well as the best place to make a return on your investment.

The glut of space [[you seem to think that only office space matters, but industrial and retail are still very large sectors, particularly here) in the region does come into play. The more of it there is, the less it is valued. I can see how low rent and no local income tax for most employees would be a very attractive feature to locating a business. Another would be in the cost of doing business. Detroit has taxes on utilities, it also has a higher premium for transportation, be it parking or the cost of operating public transit. It also has smaller footprints in many places that makes it hard to get product in or out of the plant. This is reality. This is why smaller is better in terms of locating businesses in the City.

Am I saying I would boo a fortune 500 company coming to Detroit? No way! I am saying that it makes better sense to concentrate on getting smaller companies in the City than large HQ or a new Factory that will wipe our another neighborhood.

[ABetterDetroit]

Am I saying I would boo a fortune 500 company coming to Detroit? No way! I am saying that it makes better sense to concentrate on getting smaller companies in the City than large HQ or a new Factory that will wipe our another neighborhood.

100% agree We want to catch lightning in a bottle. Fast growing businesses. The more small companies and start ups the better the chances of that happening.

[Mackinaw]

Am I saying I would boo a fortune 500 company coming to Detroit? No way! I am saying that it makes better sense to concentrate on getting smaller companies in the City than large HQ or a new Factory that will wipe our another neighborhood.

I would never be okay with that, either. Poletown was a travesty. To clarify, this is not something we should encourage under the view promoted here. To the extent industrial expansion from a land-use perspective somehow occurs organically, that's fine [[we're seeing that in Corktown, but, the sites were actually already industrial, at least in the last generation), but we should never seek out the scenario you mention. I was mostly talking about corporate HQs and employment centers, and indeed smaller employers.

Altruism, though a real thing for economic actors, obviously cannot be counted on. I agree. This is why tax incentives/abatements are a proper measure to take when they can make a deal happen. And to the extent that across the board reforms can occur to make the City more appealing for employers [[and to administer benefits fairly and not only to desired new entrants), those should be vigorously pursued.

[Mind field]

According to Crains, Comerica's Asset Management Group is moving from Birmingham to downtown Detroit, 411 W. Lafayette specifically. They are moving 21 employees downtown.

[Bham1982]

Big Beaver Rd? Why would anyone who isn't from Troy/Sterling Heights want to work there?

Why wouldn't they? It's a lot more convenient to where decisionmakers live than most places in the metro area. This means more time for family, leisure, and whatever you actually enjoy in life.

I go to work to work. I'm not there for anything else. And it isn't like there are good alternatives in the area anyways. Downtown Detroit isn't exactly a pleasant pedestrian experience.

[Inkadinkado]

Anyone else hear that some good office space is about to become available? A little consortium known as Rogue got the boot today. Smart money also says that a local lux auto brand is lining up for a move east a few states. You read it here, first.

[Wings]

Why wouldn't they? It's a lot more convenient to where decisionmakers live than most places in the metro area. This means more time for family, leisure, and whatever you actually enjoy in life.

I go to work to work. I'm not there for anything else. And it isn't like there are good alternatives in the area anyways. Downtown Detroit isn't exactly a pleasant pedestrian experience.

That's not true. There are plenty of "decisionmakers" looking to live in Northville/Novi/Plymouth, Ann Arbor, even Grosse Pointe that would hate a longer commute to Troy than Detroit.


That is personal preference, a lot of people aren't looking to go to work to sit at their desk for 8 hours and never leave the office. And you clearly haven't been downtown during lunch time on a business today. Absolutely thriving around Campus Martius, CBD, Greektown, etc.

[Bham1982]

That's not true. There are plenty of "decisionmakers" looking to live in Northville/Novi/Plymouth, Ann Arbor, even Grosse Pointe that would hate a longer commute to Troy than Detroit.

Ok, and how does that contradict what I wrote?

I said that most decisionmakers are close to Troy. The fact that some are in other locales is quite obvious.

That is personal preference, a lot of people aren't looking to go to work to sit at their desk for 8 hours and never leave the office. And you clearly haven't been downtown during lunch time on a business today. Absolutely thriving around Campus Martius, CBD, Greektown, etc.

You clearly haven't traveled outside Michigan if you consider downtown Detroit "absolutely thriving".

It's among the deadest downtowns of any major city on the planet, and I don't even know why this matters, as if people are picking jobs based on the possibility of skipping out on work to take pleasant strolls through the January tundra.

[iheartthed]

Why wouldn't they? It's a lot more convenient to where decisionmakers live than most places in the metro area. This means more time for family, leisure, and whatever you actually enjoy in life.

I go to work to work. I'm not there for anything else. And it isn't like there are good alternatives in the area anyways. Downtown Detroit isn't exactly a pleasant pedestrian experience.

Downtown Detroit is obviously a much more pleasant pedestrian experience than Big Beaver Rd [[or anywhere else in Troy).

Proximity to "decision makers" is such a flimsy argument for why a company would choose to locate a business in Troy. It's much more likely that "decision makers" would chose to locate themselves near the business, if that's a major concern.

[Mind field]

Benzinga, a Southfield based financial news tech company is moving to Detroit in early 2015. Great news keep them coming into the city!
http://www.freep.com/story/money/bus...roit/19642347/

[Mind field]

Yet unfortunately Covisint is doing the opposite, packing up and leaving downtown Detroit for Southfield...and taking 250 jobs with them. Why couldn't Covisint be convinced to stay downtown?

[SpartanDawg]

Yet unfortunately Covisint is doing the opposite, packing up and leaving downtown Detroit for Southfield...and taking 250 jobs with them. Why couldn't Covisint be convinced to stay downtown?

pretty sure they were bleeding money and got priced out of downtown

[gameguy56]

http://www.crainsdetroit.com/article...ndustrial-park

Penske and Lear?

[313WX]

http://www.crainsdetroit.com/article...ndustrial-park

Penske and Lear?

I suppose we'll then have to hear more whining from L. Brooks Patterson about companies being poached...

[Mind field]

http://www.crainsdetroit.com/article...ndustrial-park

Penske and Lear?

That would be HUGE if they uprooted from Oakland County. Aren't they both fortune 500 companies? Or I'm guessing this wouldn't be a headquarters move, just an expansion into the city.

[tkelly1986]

Has there been any update on this story. I assume we're only talking about an operational facility and not a corporate presence.