Quicken Loans to move 1,100-plus jobs to downtown Phoenix (Gilbert: low income, real estate)

[DetroitN8V]

http://www.bizjournals.com/phoenix/n...2BOjT7pw%3D%3D

This should be interesting. When Quicken Loans closed their suburban Detroit offices to consolidate in downtown Detroit, it had a huge impact on the area. Demand for urban living increased, downtown rents went up, restaurants, bars and entertainment centers opened, and eventually additional companies followed suit. The argument could easily be made that Quicken Loans was the catalyst for downtown Detroit's revitalization. I think this is a good thing for Phoenix. Thoughts?

[exit2lef]

Originally Posted by DetroitN8V

http://www.bizjournals.com/phoenix/n...2BOjT7pw%3D%3D

This should be interesting. When Quicken Loans closed their suburban Detroit offices to consolidate in downtown Detroit, it had a huge impact on the area. Demand for urban living increased, downtown rents went up, restaurants, bars and entertainment centers opened, and eventually additional companies followed suit. The argument could easily be made that Quicken Loans was the catalyst for downtown Detroit's revitalization. I think this is a good thing for Phoenix. Thoughts?

Completely agree. Even better, for their employee commuting needs, they've made some good accommodations. Employees will have the option of subsidized transit passes, which makes sense since both light rail and numerous bus routes run right outside the building. For those who choose to drive, Quicken has agreed to lease parking spaces several blocks away in the "Garage Mahal," the gargantuan garage opposite Chase Field that is chronically underutilized.

[take57]

Originally Posted by DetroitN8V

http://www.bizjournals.com/phoenix/n...2BOjT7pw%3D%3D

This should be interesting. When Quicken Loans closed their suburban Detroit offices to consolidate in downtown Detroit, it had a huge impact on the area. Demand for urban living increased, downtown rents went up, restaurants, bars and entertainment centers opened, and eventually additional companies followed suit. The argument could easily be made that Quicken Loans was the catalyst for downtown Detroit's revitalization. I think this is a good thing for Phoenix. Thoughts?

Former Michigander here, be careful what you wish for. Dan Gilbert, founder of Quicken Loans did make some fundamental changes to downtown Detroit but not without some questionable tactics and unintended consequences.

There's some evidence that Quicken Loans played a part in the housing debacle of 2006-07 by bending loan qualification rules. There are good accounts of this available online. There have also been a number of allegations that the corporate environment, while appearing to be somewhat progressive in worker accommodation, can sometimes resemble (and I'm hesitant to use this term but it's one that is often mentioned) boiler-room like. High pressured, high expectations, long hours with capricious rewards. Again, there are accounts online.

As for the real estate component, Gilbert took advantage of distressed properties (some more than others) and cornered wide swaths of commercial and low income housing space while claiming significant tax breaks and advantages often greater than what benefited the community at large. Rents increased for both small businesses and low-income and/or elderly citizens to the point where many have been priced out.

While I'm not prepared to classify his empire building as "Behind every great fortune lies a great crime" there have been enough questions raised over a long enough period of time following a somewhat predictable methodology that makes me not a big fan of he or his business.

This is just my humble opinion. If it appears I'm being careful how I frame this, I am. You're just as likely to find people who consider QL & Gilbert a godsent to a very troubled metro Detroit. YMMV, but I'll reiterate, be careful what you wish for.

[DetroitN8V]

I don't doubt that just about every mortgage lender contributed to the recession and I'm sure that they did some no or low documentation loans. So what though? What does that have to do with them moving their offices to downtown Phoenix? Another 'so what' to their employees working long, hard hours. What does that have to do with anything? No one is forced to work there and that isn't changing because their office is moving. It seems like you may have an ax to grind agains the company as nothing you've said is all that relevant to their office relocation.

They'll bring some much needed young energy to the downtown core. I'm not sure how Dan Gilbert's business practices have any impact on that. I could be missing something though.

[take57]

Originally Posted by DetroitN8V

I don't doubt that just about every mortgage lender contributed to the recession and I'm sure that they did some no or low documentation loans. So what though? What does that have to do with them moving their offices to downtown Phoenix? Another 'so what' to their employees working long, hard hours. What does that have to do with anything? No one is forced to work there and that isn't changing because their office is moving. It seems like you may have an ax to grind agains the company as nothing you've said is all that relevant to their office relocation.

They'll bring some much needed young energy to the downtown core. I'm not sure how Dan Gilbert's business practices have any impact on that. I could be missing something though.

I attempted to be very measured in my appraisal of QL & Gilbert. I'm sorry you didn't see it that way. I also invited readers to do their own research on his business practices to draw their own conclusions and still do. I also stated that it was my own opinion and that (as it turned out within 30 minutes) there would be others that held a different view of what I said, which is your right.

This is really all I care to add.

[DetroitN8V]

Originally Posted by take57

I attempted to be very measured in my appraisal of QL & Gilbert. I'm sorry you didn't see it that way. I also invited readers to do their own research on his business practices to draw their own conclusions and still do. I also stated that it was my own opinion and that (as it turned out within 30 minutes) there would be others that held a different view of what I said, which is your right.

This is really all I care to add.

I'm not saying that you're wrong at all. I agree with your assessment for the most part. My point is, what relevance does any of that have regarding their move to downtown Phoenix and the impact that may have here locally?