Michigan Real Estate News

Timely  |  Relevant  |  Informative

Detroit’s Hotel Boom Is Just The Beginning

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Detroit’s hotel market is showing signs of revitalization. Operators and developers are investing millions in new and renovated properties. Hotel occupancy is coming back to pre-pandemic levels after a lean-to-starvation year in 2020. Cambria Hotel Detroit Downtown is expected to open in February. Corktown’s Godfrey Hotel, west of downtown, is slated to open in the spring. The Westin Book Cadillac’s $20 million renovations begin next month. In addition, Olympia Development and Related Companies have plans to build two hotels as part of a $1.5 billion investment in the District Detroit. Operators of Huntington Place are pushing for the construction of hotels at the former Joe Louis Arena site. The tourism industry hopes to attract more large-scale events, like the 2027 NCAA Men’s Basketball Final Four that was awarded to the city last month.

 

Michigan’s Residential Real Estate Market Is Stabilizing

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The 2023 real estate market is finally starting to look like it might normalize. Seasonality is back in the resale market, and rent increases and high supply costs have mostly stabilized. However, interest rates will remain high, pricing some buyers out of home ownership. Some materials costs continue to be issues. While materials costs have rebounded for the most part, builders are now more conditioned to check on lead times and suggest alternatives if long waits are indicated. Building materials that once took eight months to arrive are now arriving after 4-6 weeks. Lumber is at pre-pandemic prices, while materials like concrete continue to be expensive. Rents are stabilizing. Fewer people are leaving apartments to buy homes, and people are doubling up. Home sale prices are dropping in some areas, like Wyandotte, Southgate and Riverview. Experts are expecting the industry market to contract, with realtors who are inexperienced in a tight market leaving the business.

 

 

Metro Detroit’s 2022 Commercial Real Estate Update Impresses

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In the past year, the Ilitch family and billionaire development mogul Stephen Ross announced their partnership to build the Detroit Center for Innovation. Since then, no construction has started. Whether or not the plans come to fruition is up in the air. There are currently 10 projects in the works outside of the DCI. They include business incubator space, new office and residential towers, and hotel space. Altogether, $1.5 billion in projects are waiting in the wings. That figure doesn’t include the DCI which would cost $250 million, funded in part with a $100 million earmarked in the state budget.