Gilbert May be Moving Some Workers Back to the Burbs

**detroitpride313** · November-19-16, 06:59 PM

http://www.freep.com/story/money/bus...urbs/94088944/

**EGrant** · November-19-16, 10:28 PM

Love all the commenters complaining about him not using office space in the neighborhoods. He's clearly looking for class A space, not some abandoned strip mall in the middle of nowhere.

**Gistok** · November-20-16, 02:43 AM

Here's an image I saved from former forumer "Quinn" from 8 years ago.

Maybe 6 story stick built residential isn't the most optimal way to go for the Statler block....

I already know the answer... this would cost a fortune.... I just wanted to repost this image....

**TTime** · November-20-16, 06:30 AM

Originally Posted by EGrant

Love all the commenters complaining about him not using office space in the neighborhoods. He's clearly looking for class A space, not some abandoned strip mall in the middle of nowhere.

Downtown Detroit doesn't have very much true class A Office space but my guess is if he shuffled around some of the groups he forced down there and maybe was willing to lease from people who don't kiss his ass he'll be just fine. Also, I know there are plenty of his employees that would love to work closer to home in the burbs so hey good for them!

**southen** · November-20-16, 11:20 AM

It's pretty clear that this is temporary until he can build new class A space. That is the major takeaway from the article, not where employees might be for a few years until more space comes online.

**DetroiterOnTheWestCoast** · November-20-16, 11:59 AM

I'd much rather be in central city Class B space than suburban Class A. I actually think Class B can have its own type of charm.

**Bham1982** · November-20-16, 02:15 PM

So I could give a crap where a private employer decides to put employees, but the premise is wrong. Lots of empty space downtown.

The second tallest office building in Michigan, the Penobscot Building, is half empty and has huge chunks of contiguous space available. And pretty damn cheap. No, the Penobscot isn't a top-tier building, but it's better than most Quicken buildings and has great bones. I even know the broker leasing the space, so any Quicken worker bees can PM me. Also plenty of space available in the Buhl Building and other nice-ish prewar buildings downtown.

It really would be nice if our local [[and national) media were a bit more into fact-checking. Would be nice to have a slightly more informed public. Maybe we would have avoided catastrophes like President-elect Drumpf.

**JBMcB** · November-20-16, 02:30 PM

Originally Posted by Bham1982

The second tallest office building in Michigan, the Penobscot Building, is half empty and has huge chunks of contiguous space available.

There might be a reason it's cheap. I knew someone who rented office space in the Penobscot around ten years ago. They got out as soon as they had the money to do so. Elevators would break constantly, there was only one ISP available who charged monopoly rates for lousy connectivity, there were power problems, water problems... maintenance and management problems in general.

They may have fixed everything and it's all running smooth now, but if they are the cheapest around there might be a good reason for it.

**tonydetroit2001** · November-20-16, 10:39 PM

It wouldn't surprise me if DG is working out a deal with the slumlord who owns the Penobscot... getting that building up to code [[even as Class B space) would raise the rental price downtown a few ticks more - which gets us closer to the day when ground up new construction is economically feasible.

**archfan** · November-21-16, 02:11 AM

Originally Posted by tonydetroit2001

It wouldn't surprise me if DG is working out a deal with the slumlord who owns the Penobscot... getting that building up to code [[even as Class B space) would raise the rental price downtown a few ticks more - which gets us closer to the day when ground up new construction is economically feasible.

I hope Gilbert hurries before the Penobscot Building gets silverdomed.

**mikeg19** · November-21-16, 08:17 AM

This is a bit misleading. Gilbert is not "reverting" back to the suburbs or moving people out of Detroit to the suburbs. It sounds like they are at capacity and any new hires or business ventures he wants to bring in would be placed in the burbs.

**Scottathew** · November-21-16, 08:23 AM

Originally Posted by mikeg19

This is a bit misleading. Gilbert is not "reverting" back to the suburbs or moving people out of Detroit to the suburbs. It sounds like they are at capacity and any new hires or business ventures he wants to bring in would be placed in the burbs.

I doubt that. They can't hire someone new and not place them with the company or department where all the existing workers are.

More than likely some departments or companies will be wholly moved out to the suburbs, temporarily, until he can buy a big building or build a new one.

**Bham1982** · November-21-16, 09:14 AM

Originally Posted by archfan

I hope Gilbert hurries before the Penobscot Building gets silverdomed.

That will never happen, and I'm the downtown skeptic here.

Penobscot has good bones, and appears to be reasonably well cared for. I'm no building engineer, and don't know anything about management, but it appears to be a decent building that just needs a bit more investment. I've been on some of the empty floors and they appear to be in reasonably good shape.

**Mind field** · November-21-16, 11:04 AM

Gilbert should put the workers in the ren cen. But I wonder if the vacancy left by Ally is too expensive or not feasible for a short term lease. This bodes well for a tall tower on the Hudson's site.

**Detroitdave** · November-21-16, 12:05 PM

What about the two HUGE buildings he's working on now? those should be able to accommodate thousands of employees . The Book and the David Stott. ?
https://en.wikipedia.org/wiki/David_Stott_Building
It seems the David Stott is class A already ? LOL
But seriously, once these two beauties are done, NOTHING in the burbs can touch these beatuies.

**Mind field** · November-21-16, 12:36 PM

Originally Posted by Detroitdave

What about the two HUGE buildings he's working on now? those should be able to accommodate thousands of employees . The Book and the David Stott. ?
https://en.wikipedia.org/wiki/David_Stott_Building
It seems the David Stott is class A already ? LOL
But seriously, once these two beauties are done, NOTHING in the burbs can touch these beatuies.

Those two are probably a couple of years from being ready for occupancy. And i think that Wiki article is wrong. I'd be shocked if the Stott was considered class A space currently. Isn't one of the criteria for class A space large, open floor plans? Maybe after its renovation, it could be class A space.

**eliboyer** · November-21-16, 03:41 PM

Originally Posted by Detroitdave

What about the two HUGE buildings he's working on now? those should be able to accommodate thousands of employees . The Book and the David Stott. ?
https://en.wikipedia.org/wiki/David_Stott_Building
It seems the David Stott is class A already ? LOL
But seriously, once these two beauties are done, NOTHING in the burbs can touch these beatuies.

I'm pretty sure both the Stott and Book are being redeveloped as residential. Definitely the Stott given its narrow floorplates.

**jmarie** · November-21-16, 11:11 PM

My friend's husband, who works for QL, has been working from home for over 2 years due to lack of space. This problem isn't new for QL, but it does sound as if it has gotten worse.

Is the entire Book Building supposed to be residential, or just the tower section? That could be a solution, but that is still many months away.
If he did purchase the Free Press Building, he would have that space after it has been rehabbed. Is it in good enough shape to move people in during the reno? Or not? [[I'm guessing not by the exterior alone.)
Or, regarding the Buhl, isn't it still for sale? The pending sale fell through if I'm not mistaken. That is a functioning building he could just buy and renovate slowly to bring it up to his standards....

**dtowncitylover** · November-22-16, 07:58 AM

Is anyone else out there thinking, who cares?! Downtown and the suburban office centers both have their perks but frankly, I wouldn't care if Quicken had suburban offices. Tons of companies have both downtown offices and suburban offices, heck even Wayne State does! It's not that big a deal. Dan Gilbert has proven his time and investment genuinely in downtown, moving some people out to the suburbs doesn't mean much. In closing, it's going to be ok, people.

**Scottathew** · November-22-16, 08:19 AM

Originally Posted by dtowncitylover

Is anyone else out there thinking, who cares?! Downtown and the suburban office centers both have their perks but frankly, I wouldn't care if Quicken had suburban offices. Tons of companies have both downtown offices and suburban offices, heck even Wayne State does! It's not that big a deal. Dan Gilbert has proven his time and investment genuinely in downtown, moving some people out to the suburbs doesn't mean much. In closing, it's going to be ok, people.

I don't see the news as an indictment of Gilbert, but rather great news. Things are going so well in Downtown Detroit that there is no more available Class A office space.

People don't build big, tall, shiny buildings if they're not needed.

**swingline** · November-22-16, 01:58 PM

It's true enough that the Penobscot Building probably has more than 100,000 sq ft of vacant space. None of it is set up for a large employer workplace though. Lots of renovation would be needed and with 1920s floorplates, it would be expensive. Couple these issues with the awful track record of the building's current ownership and it's understandable that QL would not be looking to expand there. That's too bad.