Downtown/Midtown Rents "Downtown Detroit rents go through roof"

[313WX]

I know of at least one downtown that hasn't hit news yet. Not the Book Tower, sadly.

Spill the tea?

[wolverine]

This. But substitute Chicago for DC in my case.

As it approaches $2/ft^2 though, I wonder if it's no longer such a bargain. I paid $1132 for about 700 ft^2 in Streeterville [[80's building) and $1700 for 800 ft^2 in the Gold Coast/River North [[2000's building) area when I didn't live in the neighborhoods. I find it hard to believe that we, here, can pull $2+, but I'm hopeful.

It's a bit surprising to me too. But keep in mind, Chicago is a huge bargain for renting, not buying. Downtown rents pretty much hang around $2 per square foot and drop dramatically as you reach the neighborhoods....$1.50-1.75 / sqft

If you want to rent in midtown or downtown Detroit and also own a car, you'll face a high cost of living. Since I work between both cities, I've considered trying and have ran the numbers. Midtown and downtown Detroit was too expensive. The cost of living in Chicago was at least $200 cheaper per month within 2 miles of the loop. Plus you had all the amenities for a very convenient lifestyle.

Whether you see Detroit's rental prices inflated or not, this is really good in terms of getting more buildings rehabbed or constructed. Clearly the demand is there. It's just a matter of when developers will deliver something other than a 4-story building. I seriously think Detroit is ready to start constructing some residential towers as the demand for modern apartments is there.

[gthomas]

Whether you see Detroit's rental prices inflated or not, this is really good in terms of getting more buildings rehabbed or constructed. Clearly the demand is there. It's just a matter of when developers will deliver something other than a 4-story building. I seriously think Detroit is ready to start constructing some residential towers as the demand for modern apartments is there.

I agree totally, the demand is well overdue. We need new modern residential skyscrapers well over "4" story, how about 30-floors and up. That's about what the demand really is, we can use atleast 10-15 towers total in Downtown, Riverfront, Midtown and Corktown. I guaranteed all the buildings will 100% occupied....boy I wish I was a developer/investor...etc. I will be throwing them up so fast, similar to Chicago's North Shore residential towers district along the Chicago River.

[mwilbert]

I agree totally, the demand is well overdue. We need new modern residential skyscrapers well over "4" story, how about 30-floors and up. That's about what the demand really is, we can use atleast 10-15 towers total in Downtown, Riverfront, Midtown and Corktown. I guaranteed all the buildings will 100% occupied....boy I wish I was a developer/investor...etc. I will be throwing them up so fast, similar to Chicago's North Shore residential towers district along the Chicago River.

Demand in this [[and pretty much any) market is price-dependent. If you could build 10 towers to rent at the current market rates, that would be a lot of units, but I might believe you could rent them in some reasonable amount of time. However, it is unlikely you could build them and charge that little, and we really don't have a clue what demand is like at the prices that would probably be required.

[Hermod]

I agree totally, the demand is well overdue. We need new modern residential skyscrapers well over "4" story, how about 30-floors and up. That's about what the demand really is, we can use atleast 10-15 towers total in Downtown, Riverfront, Midtown and Corktown. I guaranteed all the buildings will 100% occupied....boy I wish I was a developer/investor...etc. I will be throwing them up so fast, similar to Chicago's North Shore residential towers district along the Chicago River.

DetroitYes plays SimCity!

[WaCoTS]

The move to gentrify swaths of the city also is pushing out several hundred low-income residents who’ve been told to move after their buildings were sold, by new owners who’ll be raising the rent. It happened this year to residents of three small apartment complexes on Henry Street in the Cass Corridor. In downtown’s Capitol Park, senior citizens who relied on federal aid to pay their rent have been given a year to find a new home.

Tenants soon will start moving into the restored Beaux Arts building designed by Albert Kahn with relief stone carvings by Corrado Parducci. The seven-story building at 735 Griswold is a block from Campus Martius. Rent starts at $1,275 for a 850-square feet unit and tops out at $2,500 for a 1,440-square-foot unit. Based on the square footage, that’s about $500 a month more than almost anyone in the area would have charged two years ago.

how is that "good"?
sounds like the rich kicking out the poor, over a view of the skyline.
seems like there should at least be a little more thought given at least, to kicking out elderly, who have even less means or ability to deal with being displaced.

[TexasT]

how is that "good"?
sounds like the rich kicking out the poor, over a view of the skyline.
seems like there should at least be a little more thought given at least, to kicking out elderly, who have even less means or ability to deal with being displaced.

Because there are still plenty of places in Detroit, even near downtown, for the poor to live. They aren't being kicked to the streets. However, this opens up more expensive property [[or what would be expensive in any other city) so that we can actually have a tax base to provide services for the poor people.

I'd rather have a different house and police/fire/schools than have a rundown highrise downtown without basic city services. People can't have their cake and eat it too. Which one do you want?

And who said there isn't thought given? Are you familiar with the volunteers giving the tenants legal advice? The protestations leading to them getting an extension on the time they have to vacate? Are you showing up to help them move?

[Honky Tonk]

Because there are still plenty of places in Detroit, even near downtown, for the poor to live. They aren't being kicked to the streets. However, this opens up more expensive property [[or what would be expensive in any other city) so that we can actually have a tax base to provide services for the poor people.

I'd rather have a different house and police/fire/schools than have a rundown highrise downtown without basic city services. People can't have their cake and eat it too. Which one do you want?

And who said there isn't thought given? Are you familiar with the volunteers giving the tenants legal advice? The protestations leading to them getting an extension on the time they have to vacate? Are you showing up to help them move?

Classic. As long as they're NOT living around us.

[WaCoTS]

Are you showing up to help them move?

well, since you bring it up, are YOU?

but if thats the case that these services are being provided in all cases, thats a good step in the right direction, and news to me. forgive me for being skeptical, but i am rarely given reason not to be.

Classic. As long as they're NOT living around us.

lol, exactly. god forbid poor people be allowed to occupy prime real estate.

[Honky Tonk]

well, since you bring it up, are YOU?

but if thats the case that these services are being provided in all cases, thats a good step in the right direction, and news to me. forgive me for being skeptical, but i am rarely given reason not to be.

lol, exactly

While I have you online, will Fort Wayne be open for this years fireworks?

[aj3647]

[TexasT]

Classic. As long as they're NOT living around us.

No, I don't care where they live; I wouldn't live in Detroit if I were worried that "they" live near me. I do care whether there are properties to attract people of all income levels. We have plenty for middle class and lower. I am happy to see us create places for upper income too. We desperately need a tax base in this city.

And I 100% support some sort of policy that protects a certain percentage of properties for low income. But I'm not going to cry over shifting dynamics.

[TexasT]

well, since you bring it up, are YOU?

Actually, I did contact someone who works with the individuals out on Cass who got pushed out recently and pointed her in the right direction as far as getting them free legal representation [[I don't do that kind of law, I can't help).

I also contacted moving businesses to see if they'd donate trucks so we could organize an effort to help them move.

So, yes.

[Eber Brock Ward]

Actually, I did contact someone who works with the individuals out on Cass who got pushed out recently and pointed her in the right direction as far as getting them free legal representation [[I don't do that kind of law, I can't help).

I also contacted moving businesses to see if they'd donate trucks so we could organize an effort to help them move.

So, yes.

But why would you do that when you could just bitch about people being displaced on a message board?

[Honky Tonk]

Actually, I did contact someone who works with the individuals out on Cass who got pushed out recently and pointed her in the right direction as far as getting them free legal representation [[I don't do that kind of law, I can't help).

I also contacted moving businesses to see if they'd donate trucks so we could organize an effort to help them move.

So, yes.

Hey, not bad for a Texan.... Thanx T!

[Honky Tonk]

But why would you do that when you could just bitch about people being displaced on a message board?

Or bitch @ the bitchers?

[Eber Brock Ward]

Or bitch @ the bitchers?

A tried and true approach, indeed.

[JDKeepsmiling]

I am pretty sure that the Hudson block development will be the frist new construction in quite a while that will be primarily aimed at filling residentail demand. If that sells out quickly, I would expect something else to drop fairly fast. Someone will see opportunity, and Detroit will get at least 1 30 story or higher condo tower.

Totally random guess at loaction is parking lot at the corner of Randolph and Lafayette.

[WaCoTS]

But why would you do that when you could just bitch about people being displaced on a message board?

well you know, when in Rome...

[jt1]

well you know, when in Rome...

Go on.......

[Khorasaurus]

If that sells out quickly, I would expect something else to drop fairly fast. Someone will see opportunity, and Detroit will get at least 1 30 story or higher condo tower.

Totally random guess at loaction is parking lot at the corner of Randolph and Lafayette.

River House in Grand Rapids is the tallest residential tower in the state, at approximately 400 feet [[about 50 feet taller than the Broderick). I suspect Detroit will pass that at some point [[if the Book becomes residential, it would be the tallest - 475 feet), but the question is when.

[gthomas]

I am pretty sure that the Hudson block development will be the frist new construction in quite a while that will be primarily aimed at filling residentail demand. If that sells out quickly, I would expect something else to drop fairly fast. Someone will see opportunity, and Detroit will get at least 1 30 story or higher condo tower.

Totally random guess at loaction is parking lot at the corner of Randolph and Lafayette.

Yes that parking lot is READY for a 30-story condo tower, I hope the Hudson site, partial Monroe site and the Statler site is nothing but residential. Those areas are dead zones after 5p. Adding thousands of units will create a density after dark downtown, without the Tigers/Redwings/Lions playing.

[wolverine]

Yes that parking lot is READY for a 30-story condo tower, I hope the Hudson site, partial Monroe site and the Statler site is nothing but residential. Those areas are dead zones after 5p. Adding thousands of units will create a density after dark downtown, without the Tigers/Redwings/Lions playing.

Actually it won't create pedestrian density. Businesses do. Even one city block with 2000 residents can be silent. I think downtown can feel vibrant long before highrises go up. This is why I've never understood NIMBY complaints about tall towers and traffic when residential buildings only contribute to a marginal increase in traffic.

[mwilbert]

Actually it won't create pedestrian density. Businesses do. Even one city block with 2000 residents can be silent. I think downtown can feel vibrant long before highrises go up. .

I don't think you are looking at this properly. What the residents will do a provide a better customer base for whatever businesses might want to open. A major retail area can draw customers from a wider area, as regional malls generally do, and they don't need a lot of nearby residents. But downtown Detroit is no longer a major retail area, it is never going to be able to compete with malls in terms of parking, and most businesses are going to need a critical mass of local customers to be successful. That implies a need for a lot more housing downtown.

The hope is that eventually downtown can get into a virtuous cycle, and you reach a sufficient density of businesses that it becomes a draw [[in conjunction with the other downtown entertainment attractions) that can pull people from outside downtown to shop, but I believe that density cannot be achieved without more local residents.

[wolverine]

Yes, we are saying the same thing. The business districts that serve resident population alone aren't always vibrant. They are 9-6. Destination districts....be it downtown or neighborhood streets have bars, restaurants, and retail and need a huge critical mass to sustain itself.

But midtown and downtown benefit from some tourism interest, so they can attract those type of places and also get the accessory benefits of a growing residential population in the area.

To put this in perspective I think on average you need 5000 residents within walking distance to support 1 Starbucks store in a non hotel-non-corporate area. That's alot of residential towers and that is why it's not good to anticipate population density alone as a meter for opening businesses. Best to consider vibrant districts as places that attract people from all over.

This is the whole reason why Gilbert is stepping in to improve the retail scene downtown. I don't think it could grow this fast on its own.