Michigan Real Estate News

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Duggan Predicts Office to Residential Shift

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According to Detroit mayor, Mike Duggan, downtown Detroit is in for a dramatic shift in the next 2-3 years. He predicts that Detroit’s office buildings will be repurposed from offices into housing. He believes that this shift will be a national trend. He points to a 16-story apartment building near Greektown as an example. With more construction going on than in the last 50 years, the majority of it is residential, manufacturing and distribution.

 

 

New York Company Steps Up for Dearborn Hotel

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An unidentified New York-based company is under contract to buy the former Dearborn Hyatt Regency hotel from the U.S. Marshals Service. Previously, the property was under a $27 million deal that envisioned top-floor condominiums and a hotel on the bottom floors. That deal fell through with the buyer backing out at the end of the inspection period. The current deal is for $17 million. A broker for the sale disputes that figure. The company intends to redevelop the hotel into a mix of 375 market-rate apartments and a small hotel.

Detroit Area Hotel Business Travel Takes a Hit

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Detroit area hotels’ business travel revenue is taking a hit. It’s expected to be 2/3 lower than pre-pandemic levels. According to the American Hotel & Lodging Association, the region’s hotels are expected to generate $187 million this year. That’s a 67.4% drop. Michigan hotels are expected to lose 59.8% of their business travel revenue this year. Nationally, hotels could be down by more than $59 billion by the end of the year in business travel. A rebound isn’t projected until 2024.