Five Reasons Detroit is Poised for a Comeback
There is No Such Thing as Bad Publicity
Chances are you've heard all the bad news coming out of Detroit over the last decade. The spiraling debt, rocky politics, high crime rate and mayoral scandal have helped keep the city in national news. The recent bankruptcy just kept it there. Even so, the Motor City seems finally poised for a comeback and here's why:
The worst has happened
At first glance, the fact that the City of Detroit entered bankruptcy in 2013 could have been perceived as the city's final death knoll.
The reality is that the bankruptcy has helped give the the city a “clean slate” or at least a base upon which to build. Not only did the bankruptcy stabilize the city's finances, it stimulated political change. It also increased awareness among international investors, whether they just like a good comeback story or whether they just like to buy low and sell high.
Deals and Incentives
Property values are very low in Detroit, which means an entire building can be had for a “steal” – at least compared to other major cities. More importantly, the city, with its established infrastructure, tax incentives, entrepreneur programs, low cost of living and reasonable construction costs, makes a great place for small businesses and large development companies to call home.
Young Professionals, Small Businesses and Large Development Companies
If that's not enough, there are several incentives available to help entice people and business downtown. For example the Detroit Investment Fund provides funding opportunities for projects with “significant economic impact in the City of Detroit,” while the Detroit Live Downtown program offers perks to employees of several Detroit companies to move downtown: new homeowners can receive $20,000 toward a primary residence and new renters $2,500.
All the Cool Kids are Doing It
Savvy investors are laying claim to the once great Motor City by buying up buildings and houses, which is the real litmus test for whether things are starting to turn around. While Quicken Loans founder Dan Gilbert, a Detroit-based billionaire who bought over $1 billion worth of property in Detroit, might have a biased regard, several other big players are buying in to Detroit as well, including JPMorgan Chase and Chicago's Capri Investment Group.
Furthermore, HFZ Capital Group of Manhatten, along with three local partners, bought three buildings in the New Center area, including the Fisher Building and an Albert Kahn Buildling, while Dongdu International Group of Shanghai paid $13.6 million for three buildings in the city, including the Detroit Free Press Building.
Other interested parties are Warren Buffett, who promoted the city in 2014, and Chinese investors, who have been systematically snapping up commercial buildings and houses all over the city.
Sources
Why these 5 investors are interested in Detroit / CheatSheet.com (6/1/15)
Chinese investors snap up property in bankrupt Detroit / NBCNews.com (11/22/14)
The next hot Detroit neighborhood: New Center / Forbes.com (6/29/15)
New Detroit After Bankruptcy Ruling / Freep.com (11/9/14)
While the city is garnering a lot of new interest, investment and projects, the best reason to invest in Detroit is not by speculating on what the city could be but taking note of what it already is. The city has lots of existing perks, not the least of which is its location.
Border Crossing
Detroit is a key international gateway to Canada. In fact, the existing bridge and tunnel handles $200 million in trade daily and there is an agreement in place between the State of Michigan and Canada to build a new International Trade Crossing.
Detroit River
The Detroit River not only gives the city a waterway for shipping, it is a recreational attraction. Investment along the riverfront, otherwise known as the RiverWalk, gives reisdents and visitors alike an attractive place to attend a festival or concert, take a boat or segway tour, go for a bike ride and/or fish. It is also centrally located and only a short walk to RenCen, Hart Plaza, Joe Louis Arena and Compuware.
WEF-GAC Competitiveness of Cities Report 2014
Other perks to living and doing business in Detroit include:
Established and Burgeoning Industries
Not only is Detroit the birthplace of the American car industry, which continues to attract car suppliers, it is home to both historic and burgeoning industries and businesses. For instance, both GM and Quicken Loans are headquartered in the city. Other businesses located downtown include DTE Energy, Marketing Associates, and Staffing Solutions.
Historic Neighborhoods
The city also has several historic neighborhoods, including Corktown, Greektown, the Grosse Points, Boston-Edison Historic District and more. Whether dilapidated or painstakingly maintained, they are all filled with iconic buildings and houses.
Culture and Entertainment
The last 15 years have seen a lot of investment in the city, even as other parts of it failed. Not only have a football and baseball stadium been built – Ford Field and Comerica Park respectively – the city is now home to three casinos and a revamped theater district. Wayne State University, the Henry Ford Medical Center and several museums, including the Detroit Institute of Arts and the African American Museum, have helped keep the Midtown area alive as well, while the Fisher Theatre and College for Creative Studies have done the same for the city's New Center area .
Universities
In addition to Wayne State University, Detroit is close to two other renown research universities: the University of Michigan and Michigan State University.
Sports Teams
There is one area in which Detroit has been very successful: Professional Sports. Oh sure, each of the teams has had an off season or three, but for the most part, our teams have made us proud:
Transportation
It should come as no surprise that the Motor City has a freeway system that easily handles its population. It also has a street layout that rivals Washington D.C. While public transportation has never been as robust, Detroit does have the elevated People Mover that forms a circle throughout the downtown area and the M-1 Rail line, a 3.3 mile street car system currently under construction, that connects Downtown, Midtown and the New Center area along the Woodward Avenue corridor.
Chances are you've heard all the bad news coming out of Detroit over the last decade. The spiraling debt, rocky politics, high crime rate and mayoral scandal have helped keep the city in national news. The recent bankruptcy just kept it there. Even so, the Motor City seems finally poised for a comeback and here's why:
The worst has happened
At first glance, the fact that the City of Detroit entered bankruptcy in 2013 could have been perceived as the city's final death knoll.
The reality is that the bankruptcy has helped give the the city a “clean slate” or at least a base upon which to build. Not only did the bankruptcy stabilize the city's finances, it stimulated political change. It also increased awareness among international investors, whether they just like a good comeback story or whether they just like to buy low and sell high.
Deals and Incentives
Property values are very low in Detroit, which means an entire building can be had for a “steal” – at least compared to other major cities. More importantly, the city, with its established infrastructure, tax incentives, entrepreneur programs, low cost of living and reasonable construction costs, makes a great place for small businesses and large development companies to call home.
Young Professionals, Small Businesses and Large Development Companies
If that's not enough, there are several incentives available to help entice people and business downtown. For example the Detroit Investment Fund provides funding opportunities for projects with “significant economic impact in the City of Detroit,” while the Detroit Live Downtown program offers perks to employees of several Detroit companies to move downtown: new homeowners can receive $20,000 toward a primary residence and new renters $2,500.
All the Cool Kids are Doing It
Savvy investors are laying claim to the once great Motor City by buying up buildings and houses, which is the real litmus test for whether things are starting to turn around. While Quicken Loans founder Dan Gilbert, a Detroit-based billionaire who bought over $1 billion worth of property in Detroit, might have a biased regard, several other big players are buying in to Detroit as well, including JPMorgan Chase and Chicago's Capri Investment Group.
Furthermore, HFZ Capital Group of Manhatten, along with three local partners, bought three buildings in the New Center area, including the Fisher Building and an Albert Kahn Buildling, while Dongdu International Group of Shanghai paid $13.6 million for three buildings in the city, including the Detroit Free Press Building.
Other interested parties are Warren Buffett, who promoted the city in 2014, and Chinese investors, who have been systematically snapping up commercial buildings and houses all over the city.
Sources
Why these 5 investors are interested in Detroit / CheatSheet.com (6/1/15)
Chinese investors snap up property in bankrupt Detroit / NBCNews.com (11/22/14)
The next hot Detroit neighborhood: New Center / Forbes.com (6/29/15)
New Detroit After Bankruptcy Ruling / Freep.com (11/9/14)
While the city is garnering a lot of new interest, investment and projects, the best reason to invest in Detroit is not by speculating on what the city could be but taking note of what it already is. The city has lots of existing perks, not the least of which is its location.
Border Crossing
Detroit is a key international gateway to Canada. In fact, the existing bridge and tunnel handles $200 million in trade daily and there is an agreement in place between the State of Michigan and Canada to build a new International Trade Crossing.
Detroit River
The Detroit River not only gives the city a waterway for shipping, it is a recreational attraction. Investment along the riverfront, otherwise known as the RiverWalk, gives reisdents and visitors alike an attractive place to attend a festival or concert, take a boat or segway tour, go for a bike ride and/or fish. It is also centrally located and only a short walk to RenCen, Hart Plaza, Joe Louis Arena and Compuware.
WEF-GAC Competitiveness of Cities Report 2014
Other perks to living and doing business in Detroit include:
Established and Burgeoning Industries
Not only is Detroit the birthplace of the American car industry, which continues to attract car suppliers, it is home to both historic and burgeoning industries and businesses. For instance, both GM and Quicken Loans are headquartered in the city. Other businesses located downtown include DTE Energy, Marketing Associates, and Staffing Solutions.
Historic Neighborhoods
The city also has several historic neighborhoods, including Corktown, Greektown, the Grosse Points, Boston-Edison Historic District and more. Whether dilapidated or painstakingly maintained, they are all filled with iconic buildings and houses.
Culture and Entertainment
The last 15 years have seen a lot of investment in the city, even as other parts of it failed. Not only have a football and baseball stadium been built – Ford Field and Comerica Park respectively – the city is now home to three casinos and a revamped theater district. Wayne State University, the Henry Ford Medical Center and several museums, including the Detroit Institute of Arts and the African American Museum, have helped keep the Midtown area alive as well, while the Fisher Theatre and College for Creative Studies have done the same for the city's New Center area .
Universities
In addition to Wayne State University, Detroit is close to two other renown research universities: the University of Michigan and Michigan State University.
Sports Teams
There is one area in which Detroit has been very successful: Professional Sports. Oh sure, each of the teams has had an off season or three, but for the most part, our teams have made us proud:
- Baseball: Tigers
- Basketball: Pistons
- Football: Lions
- Hockey: Red Wings
Transportation
It should come as no surprise that the Motor City has a freeway system that easily handles its population. It also has a street layout that rivals Washington D.C. While public transportation has never been as robust, Detroit does have the elevated People Mover that forms a circle throughout the downtown area and the M-1 Rail line, a 3.3 mile street car system currently under construction, that connects Downtown, Midtown and the New Center area along the Woodward Avenue corridor.
