Starting in the 1950s, downtown Detroit saw approximately 60 years of continuous population. Since 2010, the population has increased by 15%. Millennials make up nearly a third of Detroit’s population as of 2018. Office jobs in the metro area have grown even faster, increasing by 23% since 2010. Artists and entrepreneurs have moved in droves, attracted by the inexpensive cost of living and the growing pool of creative talent.
The population increases are only the beginning. Construction and renovation investment commitments total $6.6 billion for the downtown core. This activity has been led by Dan Gilbert, the founder of Quicken Loans, and his real estate company Bedrock Properties. They have invested over $2.2 billion in more than 100 downtown properties, and announced an additional $2.1 billion of investment in four new development projects in the summer of 2018. Bedrock is the largest real estate partner in downtown Detroit.
Detroit needs more investment in neighborhoods away from downtown.
Extensive meetings with stakeholders, research and data prove there is a lack of home ownership financing. This stems from a lack of available housing stock, and a lack of developers with adequate funds to renovate the housing units. Housing Joint Venture is creating a investment fund to loan money to local developers who buy property, renovate them, and resell them to home buyers who need affordable options.
Detroit, Michigan is an ideal housing impact investing market. Many people want to participate in home ownership. A new, private impact investment fund set to launch late this summer could bring more than $10 million in new investment to the Detroit neighborhood where the ’67 uprising began.
According to a news release from the city, the Strategic Neighborhood Fund 2.0 will raise $130 million to build “ten vibrant, inclusive areas throughout the city,” with help from Invest Detroit. The overall plan is to touch more than 60 individual Detroit neighborhoods over the next five years.
New Employers on the Block
It’s LinkedIn’s first new U.S. office in 10 years. The company’s staff in Detroit grew from 13 to nearly 40 since launching a local office. LaRon Johnson, lead for the Detroit office, told Crain’s in October that he expected the new office to house 120 employees. Terms of the lease were not disclosed.
Ford plans to revive long-vacant Michigan Central station as hub for its self-driving cars
Ford’s ownership of the Michigan Central station means more to the city than just the redevelopment of another eyesore. It is expected to bring thousands of tech-related workers into the downtown area and to spur the grown of Corktown, which is among the city’s neighborhoods that have become trendy in recent years.
Detroit is building a $1 billion ‘city within a city’ on the site of a dead department store
The new tower will sit at the site of the iconic Hudson’s department store, an eight-story building completed in 1891. The project’s real estate firm, Bedrock, is behind many recent re-developments in Detroit. The development will feature 425,000 square feet of residential space, 240,000 square feet of office space, 120,000 square feet of event space, and 100,000 square feet of retail space.