Detroit Office Spaces

Local News For Detroit Office Space:

Detroit’s problems continue, caused in large part by the automotive industry’s decline. All areas have been hard hit, reflecting high vacancy rates and falling rents. In the Central Business District, the current vacancy rates are in excess of 29%, with an average cost per square foot of $22.34. The Motor City’s economic woes are indicated by a declining population (approximately 912,000, down 8% from 2000 and representing a loss of 1 million people since 1950) and a high unemployment rate of 22.8%. Job growth for the last year has been a negative 7.2%. Other cities in the region have done much better when it comes to commercial real estate, like Chicago, Baltimore, Cincinnati, and Minneapolis.

Detroit Economy and Data:

Detroit has also been plagued by high crime rates for many years, despite the city’s active programs to reduce the rate. A report released in November, 2009, by a private firm analyzing the Federal Bureau of Investigation’s statistics, lists Detroit as the most dangerous place in America. Assigning a national average of 0, the study then scores each city. The report lists the safest city as Mission Viejo, with a negative 82. Detroit was assigned a 407. While the study has been criticized by the city, statistics show that in 2007, Detroit was reported to have the sixth highest crime rate on a list of the 25 largest cities. Crime, however, is much lower in the downtown area, which has a rate much lower than the national average. Al of these factors help to reduce the pricing of Detroit Office Space.

Detroit Commercial Real Estate Developments:

Current new commercial construction is practically non-existent, and is primarily small, tenant owned buildings. The city of Detroit is trying to revitalize the area, and a 2008 major bond issue has been earmarked to pay for the demolition of derelict properties (many homes and buildings have simply been abandoned) and the help offered by the automotive industries through the Chapter 11 filings of General Motors and Chrysler, as well as General Motors stock offering planned for 2010, may help reverse the downward turn in the area’s economy. Also, in August, 2009, the U.S. Department of Energy announced grants totaling $1.36 billion to the auto industry to be used primarily for the research and manufacture of lithium-ion batteries. Despite its woes, Detroit continues to offer much in the way of entertainment, including the second largest theater district in the country, and the city boasts three world-class casinos: MGM Grand Hotel, Greektown, and MotorCity Casino Hotel. The casinos anchor a surrounding district of entertainment and dining attractions, and are a major draw for not only American tourists but Canadians as well.

Review for Detroit Culture and Local Economics:

Detroit’s musical past is also evident. The city hosts the Detroit International Jazz Festival as well as the Summer Jamz Festival. The Motown Historical Museum showcases the history of the record label that had such a major impact on American music. Other museums include the Detroit Historical Museum, a 78,000 square foot building featuring the Streets of Old Detroit, which allows visitors to take a walk through the past along the recreated streets of Detroit, and the National Museum of the Tuskegee Airmen, recognizing the achievements of the African-American flyers during World War II.