detroit Development

Three trends driving new development: job growth, limited availability of desirable product, and dedicated new investment by private and public entities;

Vacancy rate for Detroit office space estimated at 7% compared to 30% 10 years ago

Detroit’s unemployment rate is down to 8.7% in 2018 from 19% in 2014

Estimated 72 projects in downtown and midtown Detroit either recently completed, currently under construction, or proposed

$5.4 billion in projected capital to be invested in these projects between 2017-2020 

Key players driving development are Dan Gilbert, owner of Quicken Loans, and the Illitch Family, owners of Little Caesar’s Pizza, the Detroit Red Wings and Detroit Tigers

Dan Gilbert’s entities own more than 80 properties - total investment estimated to be more than $2.2 billion to date

The Illitch family has developed a new arena and the 55 surrounding blocks in an area known as “the District”, an investment estimated to be over $2 billion to date

Development of new streetcar called “Qline” is expected to spur over $7 billion in economic development within the next 10 years

Considerable job growth driven by technology firms and large tech incubators are growing start-up activity in once dormant sections of the city

Automotive manufacturers and suppliers returning to the city with almost $2.7 billion in investment and job creation

Downtown Detroit is now home to 4 high-profile professional sports teams, the Lions, Pistons, Tigers and Red Wings

JP Morgan Chase invested $150 million in Detroit’s revitalization

Detroit is experiencing a rising restaurant and boutique hotel scene

$125 million in improvements to commercial corridors in 23 city neighbourhoods set to begin in 2018

market drivers

Second highest rent-to-value ratio in the U.S. at just over 8.5% 

Low entrance requirement  - single family homes for $65,000 USD and duplex for $95,000 USD

Low housing supply and low vacancy rates - multi-family vacancy are below 5%

As of 2016, renters outnumber homeowners in Detroit at 52%

For 2017, Detroit identified as having the 3rd highest appreciation in the US at 20.6% year-over-year 

For April 2018, prices continue to rise, with average sales price for single family homes up 8.7% from March 2017

City of Detroit actively involved in demolishing thousands of blighted or deteriorated homes 

Demolition in target areas is estimated to have increased surrounding home values by an approximate 4.2%

Home equity impact of all demolition activity has been calculated at $209 million