10 to 15 new skyscrappers in downtown Detroit (Wayne: rent, credit, loans)

[Republic of Michigan]

Dan Gilbert predicts new Detroit skyscrapers within 5-7 years

[zthatzmanz28]

Sometimes wishing makes it happen.

[DTWflyer]

Bold statement, however I'm guessing the number is more like 1-2.

[Coldjensens]

Why do we need any new ones? There are still many sitting empty waiting to be restored.

[MS313]

I kind of think he meant 10-15 new HIGH RISES which is different from actual skyscrapers. That goal right there isn't hard at all. You could build that many residential high rises right now and the average rent downtown will still probably be almost $1,000 a month due to the high demand. This is probably the first time in my life where most 20 year olds in Michigan (and NW Ohio) would actually CONSIDER moving to downtown Detroit even though it's gotten expensive.

Why do we need any new ones? There are still many sitting empty waiting to be restored.

Which skyscrapers are left that don't have plans on being restored already? I think even the Book Tower has plans just because it's owned by Gilbert now.

[Retroit]

I can't blame the guy for talking things up. He has a lot invested in the city, so a lot to lose. A "slum landlord" some (not me) would say.

[BayAreaHillbilly]

If it really happens, Detroit's downtown will finally be distinguishable from Sacramento!

[Coldjensens]

[quote=MS313;46779721]I kind of think he meant 10-15 new HIGH RISES which is different from actual skyscrapers. That goal right there isn't hard at all. You could build that many residential high rises right now and the average rent downtown will still probably be almost $1,000 a month due to the high demand. This is probably the first time in my life where most 20 year olds in Michigan (and NW Ohio) would actually CONSIDER moving to downtown Detroit even though it's gotten expensive.

Which skyscrapers are left that don't have plans on being restored already? I think even the Book Tower has plans just because it's owned by Gilbert now.[/QUOTE

Yes, many have plans. However actual availability is 1.5-5 years away. Book Tower, Stott, Leland, and possibly Guardian to name a few that are in various stages from dreaming to planning to the beginning of construction work. Supposedly Millender will be re-done soon as well (not sure whether that is still in the works or not. I have not heard anything about the Millender re-do for a long time). I have heard there are 40 large towers in various stages of planning/construction, I do not know where they all are.

It takes a long long time to put together a financing stack (investment, loans, grants tax credits, etc), draft initial designs and present them, get approvals, get bids, tweak the design to make it affordable and get started. Then rehabilitation will typically take a year.

Meanwhile, it appears there are a huge number of 4-10 story buildings that are being re-done that will come on the market in the next year to two years. There are also still a ton more waiting to be re-done.

Someday, someone will do something with the old Wayne County building too.

[Indentured Servant]

Originally Posted by MS313

I kind of think he meant 10-15 new HIGH RISES which is different from actual skyscrapers. That goal right there isn't hard at all. You could build that many residential high rises right now and the average rent downtown will still probably be almost $1,000 a month due to the high demand. This is probably the first time in my life where most 20 year olds in Michigan (and NW Ohio) would actually CONSIDER moving to downtown Detroit even though it's gotten expensive.

Which skyscrapers are left that don't have plans on being restored already? I think even the Book Tower has plans just because it's owned by Gilbert now.

I agree with you. There is a LOT of pent up demand for urban living in SE Michigan and the downtown to Midtown area (along the light rail line) is going to explode in development and population. Also, given that it has a limited footprint, once all the vacant land is built on the only direction to go is up (vertical as Gilbert says) or out further into the neighborhoods.

That being said....this is NOT just a Detroit thing. The urban core is now in big demand in most urban areas....and Detroit cannot afford to miss out on that trend or it will have consequences on the ability of local companies to recruit and keep young talent.

Lets just hope that the national economy holds up.

[MS313]

[quote=Coldjensens;46789465]

Originally Posted by MS313

I kind of think he meant 10-15 new HIGH RISES which is different from actual skyscrapers. That goal right there isn't hard at all. You could build that many residential high rises right now and the average rent downtown will still probably be almost $1,000 a month due to the high demand. This is probably the first time in my life where most 20 year olds in Michigan (and NW Ohio) would actually CONSIDER moving to downtown Detroit even though it's gotten expensive.

Which skyscrapers are left that don't have plans on being restored already? I think even the Book Tower has plans just because it's owned by Gilbert now.[/QUOTE

Yes, many have plans. However actual availability is 1.5-5 years away. Book Tower, Stott, Leland, and possibly Guardian to name a few that are in various stages from dreaming to planning to the beginning of construction work. Supposedly Millender will be re-done soon as well (not sure whether that is still in the works or not. I have not heard anything about the Millender re-do for a long time). I have heard there are 40 large towers in various stages of planning/construction, I do not know where they all are.

It takes a long long time to put together a financing stack (investment, loans, grants tax credits, etc), draft initial designs and present them, get approvals, get bids, tweak the design to make it affordable and get started. Then rehabilitation will typically take a year.

Meanwhile, it appears there are a huge number of 4-10 story buildings that are being re-done that will come on the market in the next year to two years. There are also still a ton more waiting to be re-done.

Someday, someone will do something with the old Wayne County building too.

The Millender already has units available though. It's not vacant. The Leland I don't think is vacant from looking at recent Google reviews about the place. In fact I think all the ones you mentioned already has plans in the works if it is completely vacant. So Gilbert assuming these plans come to fruition... there probably will be 10-15 new high rises in various stages in the next 5 years. 5 out of that 15 will probably end up getting cancelled for whatever reason.

I agree with you. There is a LOT of pent up demand for urban living in SE Michigan and the downtown to Midtown area (along the light rail line) is going to explode in development and population. Also, given that it has a limited footprint, once all the vacant land is built on the only direction to go is up (vertical as Gilbert says) or out further into the neighborhoods.

That being said....this is NOT just a Detroit thing. The urban core is now in big demand in most urban areas....and Detroit cannot afford to miss out on that trend or it will have consequences on the ability of local companies to recruit and keep young talent.

Lets just hope that the national economy holds up.

Detroit might not be the only city doing it... but it IS the only city with great bones and alot of space in the core that is the center of a fairly wealthy large region of 5+ million people with a big economy and still pretty cheap. Downtown Detroit almost has it's own "sim city" right now just waiting to be taken to the next level. At the end of the day I think those facts are going to separate Detroit from the smaller cities with a booming downtown.