Although there are many cities in the US experiencing rebound after the recession, Detroit, Michigan seems to be leading the pack. As stated by Andrew Farbman, chief executive officer of Southfield’s Farbam Group, Detroit is unique, being just one of a handful of cities where commercial real estate developers are working together opposed to competing.
Detroit is unique for another reason as well. In 2013, it became the first US city to file Chapter 9 bankruptcy. While not a proud moment, today people are eager to meet growing demand for commercial real estate in the downtown area and therefore, many developers are working together.
Changes Coming to the Downtown Area
One change is that downtown will soon see streetcar service by the M1 line. With the M1 Rail Line, which will officially be known as the Woodward Avenue Streetcar under development, people will have easy access to the new arena. This line will run 3.3 miles along Woodward Avenue.
While the bankruptcy filing created a significant amount of negative press, ultimately it was necessary. With this, the struggling city of Detroit was given an opportunity for new beginnings. The result is entrepreneurs jumping in to invest.
Another big change to Detroit’s hub is the new NHL arena being built in midtown where the Red Wings will call home. As part of the construction project, the arena will connect to an entertainment center. Together, the $650 million project will cover space that stretches roughly 45 blocks in the Central Business District.
David Friedman, chief executive officer and president of Farmington Hills with Integrated Real Estate Solutions said that more and more people are attracted to the downtown area of Detroit because it has traction. With sporting venues, the riverfront, entertainment, riverwalk, bars, and more, this part of Detroit has a lot to offer.
Friedman went on to say that Detroit has always been a great city but after the auto industry took a nose dive, it kind of fell by the wayside. However, it is once again thriving and becoming dynamic as it was in the past.
For this city, things are beginning to shape up. With the bankruptcy, investors have been coming together to give the downtown area a fresh start. The ultimate goal is to transform the downtown area into an urban environment, one where millennials can live, startups can become established, and tech firms get grounded.
Also under construction is the Penske Tech Center in the New Center area. When complete, the $6.9 million, 19,000 square foot facility, will be the M1 Rail’s headquarters. Since becoming Mayor, Mike Duggan has made a huge difference for the city of Detroit. It seems as if everything just fell into place.
In addition to all the commercial real estate, residential realtors hope that people will want to move to the downtown Detroit area. Since the bankruptcy, downtown accommodates up to 40,000 residents who feel safe and excited about all the new amenities offered. However, as more people choose to call downtown Detroit home, an increasing number of retailers will show interest in setting up shops to accommodate their needs.