Detroit Office Market Balances History, Opportunity

Big projects, leadership shifts could reshape Detroit

One of the big changes to watch closely in the region as it pertains to the office market is the election of Detroit’s new mayor. Mike Duggan and Detroit’s City Council have done an amazing job bringing critical people together to revitalize Detroit during his 11 years as mayor. Detroiters are looking for that same stability and growth under the next elected official.

There is some concern about whether the next leader can replicate or build upon what Duggan has accomplished. Depending on who is elected, it could significantly impact the city’s office momentum. That said, Detroiters are cautiously optimistic with the candidates that have thrown their hat in the ring.

Additionally, there are a handful of noteworthy redevelopment projects on the horizon. The Renaissance Center, for example, which was once the symbol of Detroit’s post-industrial hope, is now in a state of flux. Long associated with General Motors, the building has become a focal point of speculation and redevelopment potential in Detroit’s office landscape. There are talks of demolishing parts of the structure with the possibility of transforming the prime riverfront location into a mix of multifamily housing, hotels, entertainment uses and some office and public spaces. Tremendous hope prevails that this area can be the attraction that the riverfront has always had the potential of becoming.

As downtown Detroit reimagines its office market, another area for growth is Midtown. The Detroit neighborhood has held strong in many ways including residential and retail. Initially under the careful guidance of Sue Mosey, the former executive director of Midtown Detroit Inc., and now under Maureen Stapleton, there is strong momentum for continued commercial growth in that district.

New development in Midtown has been driven by significant investment from the Henry Ford Health System, Michigan State University and the Detroit Pistons, to name a few. These projects, which include a new 1.2-million-square-foot hospital and a $90 million high-tech practice facility, both transformed the area into a desirable destination. The neighborhood’s success, which has seen billions of dollars invested, shows that the region has mass appeal for businesses who are looking for office space with nearby amenities.

The opening of Ford’s research and innovation center in Detroit’s Central Station is another testament to the city’s growing reputation as an incubator for tech startups and research-driven companies. The influx of smaller startups and growing presence of automotive and other sectors signal a shift toward an innovation-driven economy. Detroit has also seen the installation of the country’s first mile of electric vehicle recharging road, which shows Detroit’s commitment to being a leader in the transportation sector.