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The RenCen Comprises Over Half of Downtown’s Vacant Office Space

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Downtown Detroit is home to some of the biggest empty office spaces in the state. Over half the of the vacancy across Detroit’s best office buildings is inside the Renaissance Center. Six RenCen office towers, four of which are owned by General Motors Company and two that are owned by a publicly-traded utility from New Jersey, comprise 26.1% of the total office space surveyed by JLL’s Skyline report. The office towers make up nearly 53% of the vacancy across the 22 buildings surveyed. The towers took a hit during the COVID-19 pandemic when GM allowed its employees to work remotely, and tenants like Deloitte LLP and Blue Cross Blue Shield of Michigan opted for space in other buildings. The health of the office market in Detroit and elsewhere continues to be a concern in commercial real estate.

 

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.

 

Gilbert Trades Out Brokerage Firms On Hudson’s Project

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Billionaire Dan Gilbert has hired the local office of New York City-based brokerage house Newmark to attract tenants to the new office space he’s building at Woodward and East Grand River avenues. The move marks a switch from the brokerage he had retained previously. The $1.4 billion Hudson’s site project is probably the highest and largest profile in the city, as of late. The market for office space has taken a beating because of the COVID-19 pandemic, pummeling sites like the Renaissance Center, Meridian Health and Compuware Corporation. The leasing of Gilbert’s 400,000 square feet of new build office space faces a challenging market.

 

Emagine Is Moving To Walsh College Troy Site

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.Emagine Entertainment Inc. is moving its headquarters to the Walsh College campus in Troy. The company has leased the second floor of the college’s facility for three years. The building includes an on-site gym, showers, and conference space. Emagine’s Chariman Paul Glantz hopes the amenities will entice workers to come back tot he office. Emagine has hired several Walsh interns and graduates and hopes the new environment will lead to finding and hiring more talent. The company will make the move in January.

 

New District Detroit Development Includes Hotels, Housing, Retail and Offices

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Olympia Development and Related Companies have released details about a $1.5 billion development that create housing, retail and hotel properties in the District Detroit.  The plans include 695 mixed-income residential unites, 1.2 million square feet of commercial office space, 100,000 square feet of retail and 467 hotel rooms across 10 downtown Detroit properties. The project will involve constructing six buildings and renovating four buildings. Upon completion, the project is expected to create more than 6,000 jobs and generate more than $500 million in wages annually.

 

Sterling Heights City Council Approves Lakeside Mall Redevelopment Plan

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Following two hours of discussion, the Sterling Heights City Council approved a redevelopment plan that will raze Lakeside Mall.  The proposed Lakeside Town Center project will include 150,000 new square feet of retail and dining space. Miami-based Out of the Box Ventures will tear down the shopping center and replace it with more than 2,800 residential units, and new retail, office and hotel space over the course of 12 years. The project has a $1 billion price tag. A $45 million public bond will be issued to pay for public infrastructure improvements at the site located at Hall and Schoenherr roads.

 

Developer Plans Lakeside Mall Transformation

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It is expected that Sterling Heights City Council will vote on Tuesday on Lionheart Capital’s “Lakeside City Center” proposal for the Lakeside Mall. The mixed-used development plan includes residences, parks, a hotel and office space, and retail and dining space. The Miami developer says the project could provide an estimated $1 billion to the region over a ten-year span. The property on Hall and Schoenherr roads will host more than 2,800 multi-family apartments (including some senior housing, and 150,000 square feet of retail and dining space, 60,000 square feet of office space, as well as a 120-room hotel. About 30 acres will be donated to the city for park, streetscape and infrastructure.

 

 

Detroit Developer Revamps Plans For Grand Rapids’ Furniture Company Property

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Detroit developer, Sturgeon Bay Partners is revamping its plan for a huge apartment complex southwest of downtown Grand Rapids. The previously announced plan was to convert the historic Sligh Furniture property into a mixed-use development with residential, retail and commercial spaces. The project’s current price tag is at $100 million due to rising construction costs and interest rates. The developer is revising its plans for the concept design and mix of incentives. The original plan was to create a mixed-use devlopment with 753 apartmes, a five-story parking garage and ground-floor retail space.

 

WeWork Closing Cass Avenue Location

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NYSE:WE, the New York City-based coworking space provider has announced that it’s closing its space at 6001 Cass Avenue, effective November 10. According to a WeWork spokesperson, they have two other coworking space locations in the immediate area. Three years ago, the company more than doubled its space at the time, adding the 91,000-square-foot location. The location is one of three in Detroit. The company communicated with tenants that they may be relocated to the Detroit locations downtown.

 

Grand Rapids Office Market Continues to Sputter

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The Grand Rapids third quarter office market vacancy rate hit 13.1 percent. The vacancy rate has been increasing since the pandemic as employees move between work-from-home and in-office situations. According to the real estate firm JLL, the market will continue its stops and starts for a while to come. Detroit’s General Motors is an example of the trend. The employer requested employees to come in three days a week only to rescind the request when employees pushed back. Grand Rapids suburban and central business district vacancy rates are one of the lowest in the U.S.