Most Valuable Downtown Detroit Real Estate

[Detroit Stylin]

Ok so I know generally speaking real estate prices tend to radiate outward and down from the most expensive parcel of land or building in downtown. So my question is this. What is the most expensive parcel or land or property downtown from which other properties are appraised from?

[Bham1982]

You're asking for the most valuable piece of downtown RE in a single structure? Probably One Detroit Center, or whatever it's called these days [[Ally Centre or whatever).

That's the newest trophy office tower in the city. It's quite a nice building, and wouldn't be wildly out of place in Manhattan [[except for the parking, which is absurd).

It's also the tallest office tower in Michigan, and tallest tower in state excepting the Marriott. Built by Hines [[a world-class outfit) in the early 90's.

[3WC]

I agree that Detroit Town Center is a first class building. However, the thing about real estate values is that are constantly changing. Because of its size and location, and its tenant mix [[assuming all tenants were at market rates), the Ren Cen in my opinion is the most valuable property downtown.

Also, one has to differenciate between types of real estate, such as office, apartments, and vacant land. I am aware of a well located, very small, parcel of vacant land that sold at the rate of $23 million per acre.

Values are at their historical highs because of Dan Gilbert and Gilbert alone. They have risen significantly despite the low quality of Detroit's governance. Gilbert drives the market. Detroit's best investment would be to take out a $5 billion life insurance policy on Gilbert.

[Lowell]

Not just the city of Detroit should insure Gilbert but the whole real estate community, especially the Ilitches.

[SammyS]

In the making
Hudson maybe?

[Gistok]

I would have to agree with the RenCen. Granted it was sold to GM for only $75 million... but that was in the 1990s. Today downtown values have improved, and that goes for the RenCen. With 5.6 million sq. ft. of total space [[about half of that is office space, and then there's the hotel tower)... it would seem to be worth more than One Detroit/Comerica/Ally Center, which has just less than 1 million sq. ft. of office space.

[Jason]

There's this nice "Detroit Parcel Viewer" tool: https://cityofdetroit.github.io/parc...wer/01000001./

It looks like the Ren Cen is the most valuable.

[bust]

^^^ Current value is a much less interesting consideration than near- and medium-term future value.

[Bham1982]

I would have to agree with the RenCen. Granted it was sold to GM for only $75 million... but that was in the 1990s. Today downtown values have improved, and that goes for the RenCen. With 5.6 million sq. ft. of total space [[about half of that is office space, and then there's the hotel tower)... it would seem to be worth more than One Detroit/Comerica/Ally Center, which has just less than 1 million sq. ft. of office space.

I agree about the RenCen, but that's seven separate buildings. I thought OP was asking for most valuable building.

[Gistok]

I agree about the RenCen, but that's seven separate buildings. I thought OP was asking for most valuable building.

Single building wise.... I agree with the One Detroit Center/Ally Building.

[O3H]

$25 per square foot in Detroit, $32-$43 in Birmingham and $33 in downtown Ann Arbor
for comparable "Class A" office space, according to the latest market survey
by real estate firm Newmark Knight Frank.

The Bullock-Greene Hardware Company building sits on Michigan Avenue in Corktown, on the same block as the trendy Katoi, Xaviers Antique Store, and the New Life Rescue Mission. The building has recently been converted to rental units, and one in particular is different from the rest. It takes up three levels and 7,580 square feet. You can fit a car or two in here! And yes, it’s listing for $10,000 a month. Don't worry - utilities are included!

Local Initiatives Support Corp. recently left downtown's First National Building for cheaper office space in the city's New Center area because its rent was reportedly set to jump to $26 per square foot from $17 per square foot, and its parking costs to around $250 per month per space from $110 per space.

Detroit's city income tax, which is 2.4 percent for residents and
1.2 percent for nonresidents who work in Detroit. That HURTS business
Most suburbs have no income tax.

[NSortzi]

God forbid there be a meaningful thread on DetroitYes without O3H finding a way to bring negativity into it.

[O3H]

I merely presented facts - go ahead post some NSortzi

[Detroit Stylin]

Bascially what I am wondering is what building or property is it from which land values are based on in terms of proximity? Or as in real estate terms...location location location.

[Gistok]

$25 per square foot in Detroit, $32-$43 in Birmingham and $33 in downtown Ann Arbor
for comparable "Class A" office space, according to the latest market survey
by real estate firm Newmark Knight Frank.

The Bullock-Greene Hardware Company building sits on Michigan Avenue in Corktown, on the same block as the trendy Katoi, Xaviers Antique Store, and the New Life Rescue Mission. The building has recently been converted to rental units, and one in particular is different from the rest. It takes up three levels and 7,580 square feet. You can fit a car or two in here! And yes, it’s listing for $10,000 a month. Don't worry - utilities are included!

Local Initiatives Support Corp. recently left downtown's First National Building for cheaper office space in the city's New Center area because its rent was reportedly set to jump to $26 per square foot from $17 per square foot, and its parking costs to around $250 per month per space from $110 per space.

Detroit's city income tax, which is 2.4 percent for residents and
1.2 percent for nonresidents who work in Detroit. That HURTS business
Most suburbs have no income tax.

You did read the thread title?

[O3H]

Most Valuable Downtown Detroit Real Estate

Real Estate without fees per square foot -- becomes NON valuable

I think it fits nicely with the thread title

[Honky Tonk]

Keep posting what you've posting O3H. I appreciate the different viewpoint and reality check. I grow tired of artists renderings of happy shiny people holding hands and yaking on cell phones.

[ndavies]

Bascially what I am wondering is what building or property is it from which land values are based on in terms of proximity? Or as in real estate terms...location location location.

That's not how real estate pricing works. Appraisals come from averages of sales of similar properties. There isn't one property that all others are priced from. A property is priced based on the last 3 similar properties sales prices, those prices are known as comps.

So a properties price is based on the sale prices of similar properties near the property your trying to price. You don't compare houses to skyscapers. You compare houses to houses, tower to towers.

[JDKeepsmiling]

I would say it is less a building then a natural feature or location. If you moved the Rencen to Del Ray for example, would it retain its value? My thought was that for a long time, the Detroit river was the defining natural feature. Lately, I would say that Campus Martius is slowly becoming a geographic center for the city, and proximity to that will increase the inherent value of any building built.

[ndavies]

The most expensive properties aren't downtown. They are actually the industrial sites located throughout the region. FCAs jefferson plant is worth a great deal more than anything downtown.

[ndavies]

The stadiums are the most valuable properties downtown.

[iheartthed]

The most expensive properties aren't downtown. They are actually the industrial sites located throughout the region. FCAs jefferson plant is worth a great deal more than anything downtown.

No, it is not. The reason why downtowns have skyscrapers is because the cost of land at the center of cities is expensive. It is more economical to build up than out when the land is expensive.

[ndavies]

That's the price of the land, not the price of the property. Those are two vey different things.

[SammyS]

That's the price of the land, not the price of the property. Those are two vey different things.

You’re correct. Maybe the OP needs to be more clear

[Bham1982]

The stadiums are the most valuable properties downtown.

LOL. Stadia, without host teams, are basically worthless. The land is more valuable than the bldg.