Lincoln Property Company’s Post

Detroit's renaissance offers lessons to other cities that are struggling with empty downtowns. Between 1950 and 2020, Detroit's population shank from 1.8 million to around 640,000. The city's office district became riddled with empty and abandoned buildings. In 2013, Detroit filed for bankruptcy; it is the largest municipal bankruptcy filing in U.S. history. In 2010, Dan Gilbert (the Detroit native co-founder of Rocket Mortgage and owner of the Cleveland Cavaliers) moved his mortgage's company's headquarters to downtown Detroit. Gilbert's companies also started buying other downtown buildings and converting them into mixed-use properties. For example, Gilbert's real-estate company, Bedrock Detroit, converted the 38-story Book Tower into apartments, a hotel, offices, retail, event space, bars, and restaurants; the $400 million project opened last year. Bedrock is also constructing a new skyscraper that will contain offices, apartments, and a hotel at the site of a previously closed department store. Gilbert's actions have spurred others to invest in Detroit. Ford is spending over $900 million to redevelop Michigan Central (a previously defunct train station) and surrounding properties. A portion of the project now hosts more than 90 startup companies. Stephen Ross (another Detroit native and chairman of Related Companies) is partnering with the local family that owns Little Caesars Pizza on a $1.5 billion development in downtown that will include apartments, a hotel, offices, and retail. These large developments have drawn residents and small businesses to downtown. The city's real estate market is now booming. Home prices in the area have increased 40% since 2020 and the number of apartments downtown has more than doubled. In 2022, Gucci opened its first downtown Detroit store. One key lesson from Detroit's rebound is that converting underused office districts to vibrant mixed-use communities takes a lot of money and will require local governments to buy in. The bankruptcy and accompanying headlines highlighting Detroit's decay spurred the city and state to take bold action and grant significant tax breaks to developers in an effort to turn things around. For example, the Michigan Central project is set to receive more than $200 million in incentives. These tax breaks can be controversial but without them projects would be financially infeasible and thus would never be undertaken. Detroit's comeback story also highlights how important it is for post-pandemic downtowns of the future to have a diverse mix of apartments, retail, and entertainment in addition to offices. The stadiums of Detroit's major professional teams -- the Lions (football), Tigers (baseball), Pistons (basketball), and Red Wings (hockey) -- are all located downtown. Developers in downtown Detroit also pivoted long ago to other types of development (including casinos and theater restorations) which made the area less dependent on offices.

Barely a decade after Detroit declared bankruptcy, the city is emerging as America’s most unlikely real-estate boomtown. And I love it. A development frenzy has gripped Detroit’s central business district. Big companies, including Ford and developer Related Cos., are spending billions of dollars on office buildings and other properties. Dan Gilbert, a Detroit native and the billionaire co-founder of home lender Rocket Mortgage, is leading the city’s revitalization. His new skyscraper, still under construction, recently topped out at 681 feet, making it the city’s second-tallest tower. It sits across the street from downtown Detroit’s first Gucci store. The city’s residential market is also taking off. Home prices in the area are up 40% since 2020, and last fall had the steepest rise among major U.S. metropolitan areas. The number of apartments downtown has more than doubled to 5,903 since 2010, according to the Downtown Detroit Partnership. Detroit’s business-district transformation offers lessons to other cities that are struggling to revive their empty downtowns and avoid being sucked into a debilitating doom loop. Cities across the country are racing to convert commercial buildings into apartments. They are also adding bars, restaurants and entertainment venues to make up for the missing foot traffic. In Detroit, not everything is going right. Office vacancy rates are still high and foot traffic hasn’t fully rebounded to prepandemic levels. General Motors made headlines last week when it said it is staying in downtown Detroit, moving its headquarters to the Gilbert development. But GM will be taking up significantly less space, a sign of the challenge of filling up offices as more employees work remotely. Even so, Detroit’s downtown recovery is already ahead of schedule. Its abundance of once-empty buildings offered opportunity. Many are nearly a century old, with small floors and beautiful architecture, said Eric Larson, CEO of the Downtown Detroit Partnership. These are exactly the types of buildings that work well as apartment conversions. In more robust markets, such as Midtown Manhattan, these buildings would have been torn down and replaced by characterless glass office towers with cavernous floors. But in Detroit, they remained as ruins, waiting for someone with money and local pride to come and convert them. That person turned out to be Gilbert. “We really had three options,” he said. “Extend the leases, go to some farmland and build a campus—which wasn’t really attractive to us—or come downtown and fill up some of these beautiful old buildings that we really loved.” Gilbert’s companies bought more than 130 properties downtown, spending billions. His real-estate venture, Bedrock Detroit, converted the Book Tower, a century-old, 38-story Italian Renaissance Style skyscraper, into apartments, a hotel, offices, retail, event space, bars and restaurants. The $400 million project opened last year.

Elevating your commercial property isn’t just about aesthetics—it’s a journey that demands time, effort, and attention to detail. 🔍 But the rewards? They're worth every minute. Discover in our recent guide the importance of investing time in your property and how it can lead to attracting the best tenants. Learn more here: https://lnkd.in/gKz9h62Z 📞 09 320 0982 or 📧 [email protected] #PropertyElevation #CommercialRealEstate #LandlordInvestment #AzureInsights #TenantAttraction

Here’s your weekend wrap-up of some of the most popular stories on EG from the past week.   Lazari Investments Limited’s plans to redevelop Fenwick’s former store on New Bond Street as an office-led scheme were given the go-ahead – our story on the impending approval was still drawing eyeballs at the start of this week. https://lnkd.in/e8zWg5Ke But while Lazari was cheering its news, The Pollen Estate had fewer reason for celebration: at the same Westminster City Council meeting, its own office redevelopment scheme on Savile Row was refused on sustainability grounds. https://lnkd.in/enwdSZYG That Savile Row refusal raised more questions about the poor state of the pipeline when it comes to new office developments in Westminster. One of our best-read stories this week has been our exclusive report on a new paper from the Westminster Property Association looking at the grave impact different planning policies are likely to have on the borough’s economy and workspace. https://lnkd.in/ejt_svTv https://lnkd.in/ebukVfjq More problems for WeWork. Receivers have been appointed on an office block in the City of London owned by a fund tied to the co-working company and leased to the business. Lender Deutsche Bank is understood to have appointed Interpath Advisory as receiver for 51 Eastcheap, EC3, which was owned by WeWork Capital Advisors. https://lnkd.in/eKQpRCNf In better news, the company now thinks it will exit Chapter 11 bankruptcy protection by the end of May. https://lnkd.in/dy8fsPES Morgan Stanley has re-signed a lease for its office in Canary Wharf, ending a four-year analysis of its real estate needs in a vote of confidence for the Docklands estate. The investment bank will now stay in 20 Bank Street, E14, until at least 2038. https://lnkd.in/eaan25pV And, in the wake of a government-commissioned report on workplace diversity and inclusion initiatives which found companies are adopting measures that have minimal impact, three industry experts shared their views about how to navigate such a complex area. https://lnkd.in/eXwh_eTQ Read all those stories and anything else you might have missed from Team EG to ensure you're set up for the week ahead, right here ⬇ ⬇ ⬇ https://lnkd.in/eV-XdNPe

3 spaces left!!! Calling All Budding Landlord Developers! Mark your calendars for 19th July 2024 – the day you unlock your property development potential with Property Portfolio Building Discovery Day! Secure your place here: https://bit.ly/3XFtTtV What's Happening: Guided Tours: Embark on a journey through three projects at various development stages. Witness the magic of turning ideas into realities as we unveil the evolution of these properties. Networking Lunch: Connect and converse with fellow budding landlord developers, seasoned professionals, and our team during a networking lunch. Your Network is your Net Worth. Expert Insights: Unveil the secrets behind property selection with our tried-and-true methodology: 1. SPACE, LIGHT & RIGHTs: Dive into the importance of intelligently designed spaces, natural light, and compliance with regulations. Discover how these factors shape a project's success. 2. LOCATION, LOCATION, LOCATION: Master the art of selecting prime property locations. Uncover the principles that underpin areas with immediate and enduring value Whether you're taking your first steps as a landlord developer or aiming to amplify your expertise, this Discovery Day caters to your ambitions. 19th July 2024 Time: 10:00 AM - 2:00 PM Limited spots are available! Seize this chance to elevate your property development journey. https://bit.ly/3XFtTtV

I am starting to see a number of founders begin to take advantage of of Downtown Portland commercial real estate essentially being "on sale" with landlords being creative, lease rates hovering near their lowest in a decade and an abundance of inventory. Some might call this a "renters" market but I think its "renters mistake" market. This is where some might be tempted to go for the space they want instead of the one they need. Handshake agreements and "we will figure the rest out" statements to get the keys to a space that might end up weighing down the best instead of lifting it up. Don't be the person or company kicking yourself in the future because you got yourself into a "good deal" instead of a deal good for your business. Here are a couple tips to make sure this doesn't happen to you; 1. Get a lawyer before you think you need one. I love working with Aaron Holloway Chris Rich & the rest of the team at Perkins Coie LLP. They can not only answer your questions but also help you know they right questions to ask as you start to think about getting a space in this market. 2. Learn about the "occupancy use(s)" of the space. Not all offices, warehouses, restaurants & retail spaces are the same. Talk to the folks at the Bureau of Development Services about the history of the space you are looking at and if what you intend on doing there is even allowed. 3. Don't rush, there's always another space that may fit the bill. Don't skip out on your due-diligence because the landlord or broker wants to close things quick. You are potentially signing up to work with the landlord for the next 10 years thats a relationship that you don't want to go into lightly. 4. MOST IMPORTANT.... Call a lawyer. I can't reiterate how important it is to have someone who knows the law AND is solely looking out for what's best for you. .... Happy to do a part II of this if want horror stories that I have seen play out over they years from folks who didn't follow these tips;(

3 spaces left!!! Calling All Budding Landlord Developers! Mark your calendars for 19th July 2024 – the day you unlock your property development potential with Property Portfolio Building Discovery Day! Secure your place here: https://bit.ly/3XFtTtV What's Happening: Guided Tours: Embark on a journey through three projects at various development stages. Witness the magic of turning ideas into realities as we unveil the evolution of these properties. Networking Lunch: Connect and converse with fellow budding landlord developers, seasoned professionals, and our team during a networking lunch. Your Network is your Net Worth. Expert Insights: Unveil the secrets behind property selection with our tried-and-true methodology: 1. SPACE, LIGHT & RIGHTs: Dive into the importance of intelligently designed spaces, natural light, and compliance with regulations. Discover how these factors shape a project's success. 2. LOCATION, LOCATION, LOCATION: Master the art of selecting prime property locations. Uncover the principles that underpin areas with immediate and enduring value Whether you're taking your first steps as a landlord developer or aiming to amplify your expertise, this Discovery Day caters to your ambitions. 19th July 2024 Time: 10:00 AM - 2:00 PM Limited spots are available! Seize this chance to elevate your property development journey. https://bit.ly/3XFtTtV

As a landlord, it is crucial to recognize the rights of your tenants to live in their rented space with a sense of autonomy ... Click this link for more details >> https://lnkd.in/ebBrxFJg

As a landlord, it is crucial to recognize the rights of your tenants to live in their rented space with a sense of autonomy ... Click this link for more details >> https://lnkd.in/ebBrxFJg

As a landlord, it is crucial to recognize the rights of your tenants to live in their rented space with a sense of autonomy ... Click this link for more details >> https://lnkd.in/ebBrxFJg