Business

Despite Comeback, Detroit Remains A 'Weak Market' for Development


October 10, 2019, 10:46 AM

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Hudson's project site in July. (Photo: Michael Lucido)

In a story titled "Can anything be built in Detroit without subsidies?," Curbed Detroit raises some interesting questions about the state of development in Detroit.

Author Dennis Archambault writes:

Development is booming in Detroit. Every month there’s new announcements for transformational projects, multi-million dollar mixed-use buildings, and countless other smaller developments.

But behind nearly all these developments are subsidies, adding up to billions of dollars in tax incentives, grants, low-interest loans, and cheap land provided by various government entities at the city, state, and federal level.

Despite its identity as a comeback city, Detroit still remains a “weak market” in development terms. Most projects are unable to secure sufficient financing, leaving a “gap”—the difference between development costs and what market rents or projected commercial revenue can support. For Detroit, that gap can be significant.


Read more:  Curbed Detroit


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Potd_img_6455_373 Spotted on Washington Blvd. in downtown Detroit

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