Economy of Metropolitan Detroit - Real Estate and Corporate Location

Real Estate and Corporate Location

See also: Architecture of metropolitan Detroit

From the metro area economy, Michigan was second in the U.S. in 2004 for in new corporate facilities and expansions. From 1997 to 2004, Michigan was the only state to top the 10,000 mark for the number of major new developments. Among metro areas with more than one million people, Metro Detroit was fourth in the U.S. from 2007 to 2009 for new corporate facilities and expansions. Metro Detroit has one of the nation's largest office markets with 147,880,000 square feet (13,739,000 m2). Major inter-connected office complexes include the 5,500,000 sq ft (510,000 m2) Renaissance Center, the 2,200,000 sq ft (200,000 m2) Southfield Town Center, and the 1,395,000 sq ft (129,600 m2) Cadillac Place joined with the 487,000 sq ft (45,240 m2) Fisher Building in the historic New Center area.

The metro area's resilience has kept the state's economy growing in spite of difficulties. From the third quarter of 2006 to the fourth quarter of 2009, Metro Detroit's residential resale housing market struggled, along with the residential real estate trend across the United States creating opportunities for buyers. The Case–Shiller index projects Metro Detroit as the nation's third strongest housing market by 2014, attracting interest from international investors. Among the top fifty metropolitan areas, Detroit ranked as the third most affordable in the United States in a Forbes 2011 report. Detroit was among the top five cities in the U.S. for job growth from 2010 to 2012. A 2011 economic study showed Metro Detroit with the highest share of employment (13.7%) in the technology sectors in the U.S. The state repealed its business tax in 2011 and replaced it with a 6% corporate income tax which substantially reduced taxes on business. Michigan became the 24th Right to Work state in the U.S. in 2012.

Metro Detroit is home to highly successful real estate developers. Area suburbs are among the more affluent in the U.S. Some of the newer multi-million dollar estates in the metro area include those of the Turtle Lake development in Bloomfield Hills by Victor International. The region is the headquarters for Pulte Homes, one of the USA's largest home builders, and Taubman Centers, one of the USA's largest shopping mall developers. There are a full range of retail shopping centers from upscale stores to discount chains. In 2007, Bank of America with regional offices in Troy announced that it would commit $25 billion to community development in Michigan.

The Cool Cities Initiative is an innovative reinvestment strategy for America's northern cities begun by Michigan leaders to rebuild inner cities and downtowns. Immigration continues to play a role in the region's projected growth with the population of Detroit-Ann Arbor-Flint (CMSA) estimated to be 6,191,000 by 2025. Cities with existing infrastructure like Detroit are equipped to accommodate future increases in projected U.S. population growth. A 2007 report showed the city of Detroit's average household income at $47,962. Redevelopment of historic buildings is priority for the city.

OnStar, Ally Financial, Compuware, Quicken Loans, and Blue Cross Blue Shield Association have brought an increased employment base to downtown Detroit. In decade leading up to 2006, downtown Detroit gained more than $15 B in new investment from private and public sectors. The Detroit Riverfront conservancy has been able to acquire the $500 M investment for Detroit International Riverfront development through a series of public and private grants to complete the first phase of the 5½-mile (8.8 km) parkway along the riverfront east from the Hart Plaza and the Renaissance Center to the Belle Isle Bridge with phase II west of Hart Plaza to the Ambassador Bridge. In 2010, Henry Ford Health System and Vanguard Health Systems announced substantial renovations and expansions in New Center and Midtown Detroit.

Lifestyles for rising professionals in Detroit reflect those of other major cities. A 2007 study found that Detroit's new downtown residents are predominantly young professionals (57 percent are ages 25–34, 45 percent have bachelor's degrees, 34 percent have a master's or professional degree). This dynamic is luring many younger residents to the downtown area. Some are choosing to live in the grandiose mansions of Grosse Pointe in order to be closer to the urban scene. The 365-acre (1.48 km2) river east development is a plan investing billions of dollars in a new mixed use residential, commercial, and retail space for downtown Detroit to serve the people where they work and live. To spearhead the development, Michigan created the William G. Milliken State Park and Harbor downtown along the Detroit International Riverfront. In 2007, downtown Detroit was named among the best big city neighborhoods in which to retire by CNN Money Magazine editors. In 2008, Troy, Michigan ranked as the fourth most affordable U.S. city with a median household income of 78,800. Oakland County is the fourth wealthiest county in the United States among counties with more than one million people.

Redevelopment of the Fort Shelby Hotel and the Westin Book-Cadillac Hotel has spurred economic growth downtown. Cobo Hall convention and exhibit facility which hosts the North American International Auto Show has begun a nearly $300 million renovation to be completed in 2014. Development of Detroit's west river area and its Michigan Central Station are the next important challenges for the city.