The weather was fantastic today so I decided to take a long walk around downtown after leaving Winter Blast [[which, was fantastic BTW... did anyone know they had pony rides!?). I started walking north on lower Woodward, went around GCP by UA, then around the perimeter of Comerica Park, down past the DAC, around Music Hall, then through Harmonie Park and down Broadway, back down Gratiot to Monroe, went through Greektown, circled around the BCBS campus and then down Larned to the RenCen. The only rencent changes I noticed are that they are doing remodeling at 5&10 Bar in the Kresge Shops and that the restaurant at Gratiot and Broadway next to Henry the Hatter has closed.

If I had to estimate the number of vacant storefronts and/or buildings along my walk, the number would be at around 25. Typically, I only notice the storefronts that are occupied as opposed to the ones that aren't, but today the vacancies just stood out because Campus Martius was jam packed in contrast to the rest of downtown, which was somewhat deserted. Most of the empty buildings have for lease/sale signs up, others just sit vacant. My question, which is half based in outrage and half in confusion, is what is holding up the development/use of this space? I have some theories, but perhaps people can enlighten me further.

First, I will say what I do not believe to be causes:

  1. Crime- there is little to no crime downtown that would deter businesses/redevelopment
  2. Competition- there are many businesses that could have a monopoly on the entire area
  3. Desirability- many of the buildings are literally steps from job centers and magnificent entertainment and cultural institutions
  4. Parking and Access- there is ample parking for these buildings as well as access from the PM and bus stops.

Here's what I think are the major causes for vacant storefronts and buildings:

  1. Speculators and Absentee Landlords- many of these properties are owned by people who have no intention of ever developing them or leasing them to tenants. I can cite two examples involving prime buildings downtown that are totally vacant and run-down that have been generated interest by more than 12 businesses looking to lease but have been turned away by the investor. The investor has no interest in dealing with tenants and simply keeps the property on the market at a ridiculous asking price. I suppose they have so much money that they can sit on the property until "Detroit turns around" and then they'll flip it at a huge profit.
  2. Cost of Renovation- some of the buildings that are not in ready to rent condition will require some additional investment that would be prohibitive of development. At the same time, I think most of them would be profitable as residential space. Cost of renovation is only a problem for less than half of the vacancies.
  3. Lack of Downtown Residents- it's been said before, but downtown's primary foot traffic is generated by sports and other events, thus in the absence of those things, there may not be enough patrons to support certain types of businesses that require a steady volume of sales.
  4. Lack of Anchor Businesses- a diversity of other businesses would help other businesses get started much in the same way that neighboring businesses in a strip mall benefit one another with increased traffic.

Downtown Detroit is an anomoly in that a building flanked by the Opera House, Comerica Park, the DAC, Music Hall, and with frontage on a beautiful little park can sit totally vacant. In this case, it is the result of a speculator. I know that some of the buildings are owned by the city, and shame on them for letting them sit vacant. There are hundreds of retailers from artists to apparel shops to restaurants to a number of businesses that would be interested in leasing these spaces for the right price. It could really bring some life back to certain parts of downtown. As far as the speculators are concerned, they should either shit or get off the pot. Just because some of these buildings are tied up in some rich widow's portfolio that she doesn't even know exists shouldn't mean that they should rot away, vacant forever. The city should be dinging these speculators and absentee landlords with hefty fines for every cracked window, tattered awning, and crumbling brick. Either make the place look nice while you sit on it and do nothing, or sell it, rent it, or develop it. Otherwise, it could be a hundred years before these buildings are ever inhabited again. The other problems hindering renovation and use would be mitigated and improved by new developments. Hell, even investors will make out if property values go up.

Bing: It's time to put the pressure on.