Downtown Rent Nears Magic $2 Per Square Foot Number

[stinkytofu]

http://www.detroitnews.com/article/2...er-square-foot

[stinkytofu]

Very encouraging article. While it is frustrating rent is going up [[I would love to live downtown, but costs too much for me), this is quickly getting to a point where developers can get traditional loans and not a bazillion different funds for every project.

[stinkytofu]

[[Completely separate note - can anybody else not push enter and start a new paragraph on this forum? It's really frustrating. If I post an article I have to then enter a new post to say anything as I can't separate my paragraph from the article link. Also if I have two different thoughts in one post I need to post two separate times as I can't create different paragraphs in one post.)

[Spartan]

Time to drop downtown from the Quicken/Compuware/BCBS incentive program.

[DetroitPlanner]

Time to drop downtown from the Quicken/Compuware/BCBS incentive program.

I agree, replace em with some other neighborhoods along no-transfer transit corridors.

[401don]

Here in the Toronto market which I assume is similar to most U.S. cities, no rental housing is built, only condos, which are much more attractive to developers. The condos are often purchased by investors, who in turn rent them out. Also, many parents provide the down payment for their kids and co-sign. Because the market is considered stable, this is a sound investment. Hopefully Detroit reaches this point in the near future and condo construction can occur.

[313rd]

The next development you will hear, will be just east of 375.......

[mwilbert]

Here in the Toronto market which I assume is similar to most U.S. cities, no rental housing is built, only condos, which are much more attractive to developers. The condos are often purchased by investors, who in turn rent them out. Also, many parents provide the down payment for their kids and co-sign. Because the market is considered stable, this is a sound investment. Hopefully Detroit reaches this point in the near future and condo construction can occur.

I see lots of rentals being built, but they often get converted to condos eventually. I would guess that is generally preferable from a tax standpoint.

[Spartan]

I agree, replace em with some other neighborhoods along no-transfer transit corridors.

I think they should add New Center and B-E. Maybe North Corktown, Rivertown, and SW Detroit.

[jt1]

http://www.detroitnews.com/article/2...er-square-foot

Interesting graphic that shows Grand Rapids is only $1.48/sq ft. Some people on here praise grand rapids like it is booming and is the greatest thing in the world.

[DetroitPlanner]

Interesting graphic that shows Grand Rapids is only $1.48/sq ft. Some people on here praise grand rapids like it is booming and is the greatest thing in the world.

Grand Rapids is much better at self promotion than Detroit. Large old cities in Michigan in general have very serious problems due to paying for infrastructure and being built for much more people than they currently serve [[there are exceptions of course). You will find their downtown to have much fewer services and retail than Detroit.

[emu steve]

Here in the Toronto market which I assume is similar to most U.S. cities, no rental housing is built, only condos, which are much more attractive to developers. The condos are often purchased by investors, who in turn rent them out. Also, many parents provide the down payment for their kids and co-sign. Because the market is considered stable, this is a sound investment. Hopefully Detroit reaches this point in the near future and condo construction can occur.

For whatever reason, most of what is being built in D.C. are apartments [[rentals).

Don't see much in the condominium ownership apartments.

[[Do remember that 'condominium' refers to a type of ownership not a type of structure like an 'apartment building'.)

[animatedmartian]

Interesting graphic that shows Grand Rapids is only $1.48/sq ft. Some people on here praise grand rapids like it is booming and is the greatest thing in the world.

Basic supply and demand. It can go up simply because there's high demand and low inventory.

There's been thousands of business workers/yuppies moving to Downtown Detroit from the suburbs in the last several years, but there's been hardly any housing for them to move into. Rents go up.

Grand Rapids is booming [[4% y-o-y employment growth from 2013 to 2014), but housing is still pretty abundant. Rents are lower.

[emu steve]

[[Completely separate note - can anybody else not push enter and start a new paragraph on this forum? It's really frustrating. If I post an article I have to then enter a new post to say anything as I can't separate my paragraph from the article link. Also if I have two different thoughts in one post I need to post two separate times as I can't create different paragraphs in one post.)

I have no problem.

I just hit the 'enter' key to start a new paragraph.

Are you having the problem with IE 11? Some other problem?

http://www.detroitnews.com/article/2...er-square-foot

I just hit enter to get to this line...

[rjlj]

DuCharme Place?

The next development you will hear, will be just east of 375.......

[Danny]

Two dollars per square foot. Is Gilberttown Detroit is becoming like Park Ave?

[emu steve]

Two dollars per square foot. Is Gilberttown Detroit is becoming like Park Ave?

I know that comment is tongue-in-cheek but I "thought" that no one wanted to live in Detroit? Park Ave? Detroit? Same sentence?

I'm waiting if Gilbert gets the jail site if he dares to build a big expensive housing project [[say both rental apartments and condominium apartments)?

Maybe it doesn't sound like financial suicide.

[wolverine]

I see lots of rentals being built, but they often get converted to condos eventually. I would guess that is generally preferable from a tax standpoint.

It's not common at all with new construction. If a new building is going up rental, it's pretty much always going to stay that way unless the design appeals to buyers with more open floorplans, larger bedrooms and closets and higher ceilings. Otherwise you won't get much value out of selling units that were previously rental in what I call an "econobox design".

The opposite is true for vintage buildings where apartments are merged and gutted to build larger spaces.

[BankruptcyGuy]

Here in the Toronto market which I assume is similar to most U.S. cities, no rental housing is built, only condos, which are much more attractive to developers. The condos are often purchased by investors, who in turn rent them out. Also, many parents provide the down payment for their kids and co-sign. Because the market is considered stable, this is a sound investment. Hopefully Detroit reaches this point in the near future and condo construction can occur.

In the US, many rental projects are ultimately financed with either Fannie Mae or Freddie Mac's multifamily housing loan facilities.

Building the projects from the start as condos is more expensive [[separate utility metering, for example), and was only popular in the 2002-2008 time frame, when condo purchase financing was very, very, loose. It is now much tighter, with requirements that a project be "warrantable" before the first loan can be had. It's much more difficult to convert a rental to condos today.

By the way, the article is an understatement. The downtown Detroit housing market is very, very tight, and that [[in my opinion) is both a sign of relative health and a good thing. Over time, that health can spread outward and outward, as well as support in-fill redevelopment projects that were unthinkable 5 or 10 years ago.

[Detroit500]

It is exciting to see our city begin to have significant redevelopment with momentum behind it. With momentary spurts over the past twenty years, we seem to be getting closer to a cohesive revitalization of Downtown Detroit. Granted, this is the easy part, the neighborhoods and schools will be the heavy lifting, but we are reaching a true turning point where perhaps we will even begin to see new construction emerge. Fingers crossed. I truly believe. Mayor Duggan has become our cigs mayor at a very special moment.

[e.p.3]

Interesting graphic that shows Grand Rapids is only $1.48/sq ft. Some people on here praise grand rapids like it is booming and is the greatest thing in the world.

Truth be told, Grand Rapids is booming and doesn't have one mortgage kingpin manipulating inventory or the local press in his back pocket spreading phony hype.

[Gistok]

[[Completely separate note - can anybody else not push enter and start a new paragraph on this forum? It's really frustrating. If I post an article I have to then enter a new post to say anything as I can't separate my paragraph from the article link. Also if I have two different thoughts in one post I need to post two separate times as I can't create different paragraphs in one post.)

Yes... there is no problem when I use my computer at home. But if say I'm on the library computers... I have the exact same problem... no carriage return works. Not sure why...

[DetroiterOnTheWestCoast]

Truth be told, Grand Rapids is booming and doesn't have one mortgage kingpin manipulating inventory or the local press in his back pocket spreading phony hype.

But Grand Rapids has pyramid scammer billionaires with the local press in their back pockets.

[Cliffy]

Truth be told, Grand Rapids is booming and doesn't have one mortgage kingpin manipulating inventory or the local press in his back pocket spreading phony hype.

Yeah but Grand Rapids has those right wing wackos.

[FlyOnTheWall]

Truth be told, Grand Rapids is booming and doesn't have one mortgage kingpin manipulating inventory or the local press in his back pocket spreading phony hype.

Yeah but Grand Rapids has those right wing wackos.

Hmmm...
Right wing wackos in Grand Rapids are doing well...
The fine upstanding liberals of Detroit are not doing well.....

Should I read something into this information? Naw, nothing to see here, I'll just move along now.