Games

Tags

Cities, Games, Urban Planning

Daniel Hertz, a senior fellow at City Observatory, wrote an article for The Atlantic describing what he learned about urban planning by playing computer games. He cites two specific games about building: SimCity and Cities:Skyline. Zoning, traffic, parking, public transportation, and growth are all challenges to be had in the games. Seemingly, left out are the human aspects: politics, diversity, income driven neighborhoods. These factors contribute to the richness of urban dwelling that the games don’t appear to incorporate.

If you don’t want to plan a city, you may want to try being President. Gene Billingsley, founder of GMT Games, has a board game in development called Mr. President, which will hopefully be available by late fall 2016. “Mr. President is a solitaire game that puts you in the shoes of the President of the United States, attempting to govern, with limited resources, in a complex and ever-changing world.”, according to Billingsley.

Advertisement

Detroit – Matching Vacant Space and a Business

Tags

Business, Commercial Real Estate, Detroit, Entrepreneurs, Grants

In 2015, Motor City Match provided $500,000 in matching grants; connecting business owners with property owners. Property owners with vacant space looking for tenants and entrepreneurs looking for space in Detroit may look to find help through this potentially viable option.

Grant Applications for Business Owners and Building Owners in Round 3 is currently open and will close January 1st.

In the previous round, 10 businesses received a share of the $500,000 Grant to start or expand a business plus 87 businesses received assistance in planning or guidance to get their businesses started.

For more information and to submit an application go to www.motorcitymatch.com.

The Detroit Economic Growth Corporation, a private, non-profit organization, one of the partners in Motor City Match, has a lot of resources to help companies and businesses arrive and thrive in Detroit.

 

Downtown Condos in Demand Across the Country

Tags

Commercial Real Estate, Downtown Condos, Office Space

Downtown Ann Arbor condo developments are booming. Urban living is more desirable than ever all across the country. A recent NPR broadcast reports larger cities, that were once ghost towns on the weekends, are emerging as the new places that Millennials want to live and developers are altering their mindset from office developments to walkable residential community.

Some cities are turning vacant floors in office buildings or total office buildings into higher-end residential condos or apartments. Detroit, Michigan, Wilke-Barre, Pennsylvania, Cleveland, Ohio, and Milwaukee, Wisconsin have all had residential conversions and are experiencing an upturn in downtown living.

Detroit has numerous companies that have moved from the suburbs to downtown.

Office markets are improving, due in part to conversions pulling office space out of the market.

The largest age group living in cities is 25-34 followed by Baby Boomers who are finding it increasingly more attractive to live “downtown”.

Source: Crain’s Detroit

Source: Urban Milwaukee

Source: Cleveland.com

Source: Citizens Voice

 

We’re Still Talking about Millennials…

Tags

Commercial Real Estate, Marketing, Millennials, Trends

And we will be for the foreseeable future. In order to market commercial real estate to Millennials, the 20-34 year age group, you have to understand them.

A good place to start is the government report, 15 Economic Facts about Millennials by The Council of Economic Advisers, issued late last year. Some facts stated are:

• 15% of that age group were born in a foreign country
• They are technologically connected
• A study found half of those surveyed expressed interest in starting a business
• They are a third of the labor force
• They stay at early-career jobs longer
• Women have more labor market equality
• Millennials get married later
• They are less likely to be homeowners
• They are more likely to live in urban areas

Millennial Nicole Weinburger gives her perspective in a National Real Estate Investor article. Some of her key points are:  You have to keep up with technology to close sales; millennials will demand more information; video tours of commercial real estate listings will become more prominent; online leads will outpace referrals. Ms. Weinburger writes: “Millennials that have started to build up some equity and need to know with whom to invest their new, hard-earned money……Millennials who are first generation investors that don’t know who to trust will immediately turn to the internet as their first source.”

Photo:  Death to the Stock Photo

Commercial High-Rent Blight

Tags

Blight, Commercial Real Estate, Detroit, Downtown Ann Arbor, Retail Leasing

Recently an article in The New Yorker explained high-rent blight in the West Village area. Rising properties values allow landlords to justify raising rents on commercial properties often pricing long-term tenants out of the market. This has resulted tenants being forced to close their business or having to move. Many storefronts have been closed for a long time, as landlords wait for higher paying tenants, often whom are national chains.

New York City is not the only place that high commercial rents start to undermine the unique character that makes areas of a city appealing to shop and visit. When too many national chains move in, it reduces an area’s special attributes and hurts the small businesses that have created the charm and character in the first place.

Ann Arbor’s State Street retail district, adjacent to the University of Michigan’s central campus, recently saw two restaurants closing with claims of “high rent” as a factor in their decisions.

One city is finding a way to deal with empty storefronts. In 2011 a group of people in Minneapolis came together to develop a community real estate cooperative. Northeast Investment Cooperative buys and develops real estate. They have bought, sold, and renovated buildings in an area that was once empty storefronts. The area is now thriving with several businesses enhancing the neighborhood.

To reduce blight in Detroit a task force was created in 2013 called Detroit Blight Removal Task Force. They have been targeting residential neighborhoods first; starting with those that are most populated and have the fewest abandoned homes. The city’s goal is to tear down 200 houses a week.  Commercial blight will be more challenging as there are more than 5,400 commercial, civic and church properties on the removal list.

Source: MLive.com

Source: MLive.com

Source: Crosscut.com

Source: Detroit Free Press

Source: MLive.com

Ann Arbor Parking Structure Upgrade

Tags

Ann Arbor, Downtown Development Authority, Parking Structures

Ann Arbor’s parking structure at Fourth and William will be upgraded. The Downtown Development Authority approved approximately a $3.7 million contract with Spence Brothers who will be the main contractor. The DDA had approved $5 million for the project in 2014. The planned improvements are to replace stair and elevator tower along William, ground floor lobby area, new parking equipment, improved electrical system and new exterior signage. An additional 200 square feet is planned for each level.

A possible future project that would create a retail incubator space on the structure’s first floor has a projected cost of $2 million.

Source: The Ann Arbor News

Photo: Google Maps

Malls: Dead or Alive?

Tags

Businesses, Cities, Malls, Retail

Every adult must know of a mall that they grew up with that is no longer a mall. While some may have been repurposed most have been closed or torn down. If you’re unsure of the status of your childhood mall go to the website deadmalls.com. There is a forecast that hundreds of malls will be gone in the next decade.

Some of their demise can be attributed to consumers doing their shopping online. However, high-end malls seem to be doing better and are getting a help from sales at technology stores, think Apple and Microsoft.

As malls are declining in the US, it appears that investors are interested in financing malls in China and Korea where there is growing demand.

Malls have always been social gathering places and as baby boomers age the mall is still a good place to meet.

Racked has some ideas of what a mall might look like in the future: interactive technologies (full body scanner); hypercustomization (3-D printing); commerce center to community experience (unique activities); digital shopping carts, varied tenant mix and smarter selling floors.

Source:  The New Yorker

Source:  Fortune

Source:  Wall Street Journal

Source: Yahoo Finance

Urban Land Institute’s Emerging Trends in Real Estate 2015 Report

Tags

Cities, Commercial Real Estate, Real Estate Trends

The Urban Land Institute and PwC (PricewaterhouseCoopers) have published their Emerging Trends in Real Estate 2015 forecast report.

This is a lengthy report but worthwhile to peruse.

Some points in “Chapter 1: Sustaining Momentum but Taking Nothing for Granted” are:

• Job growth will be in those cities that have an activity in the evening, the live-work-play experience
• During the next seven years watch whether millennials stay in urban centers or move to the suburbs
• Boomers actually set the trend of moving to urban areas
• Medical office use strengthening
• US labor force may face a worker shortage
• Technology is pushing the change of how space is used; focus on tech and media companies to lease office space, retailers are using the internet to drive consumers into stores
• US is not investing in its infrastructure, which will be a problem for real estate if it continue; public/private partnerships may help

“Chapter 2: Real Estate Capital Flows” indicates that for 2015 it may be better to be a seller than a buyer.

A few points in “Chapter 3: Markets to Watch”

• You have to pick the right market that will be sustainable
• Crowdsourcing is a movement to raise capital for real estate which may be subject to regulation in the future
• Equity and debt investors are moving ahead, carefully
• Capital will continue to flow in more markets in 2015
• Dollars invested in tertiary markets continue to grow
• Due to rising labor costs overseas, US manufacturing is coming back

“Chapter 4: Property Type Outlook”, provides an in-depth look at these property types: Industrial, Hotels, Apartments, Retail, Offices, & Housing.

Detroit from Above and Before

Tags

Cities, Detroit, Investment, Planning

In the New York Times Sunday Review, aerial photographer and pilot, Alex S. MacLean, showcases Detroit. Not every photo is flattering but all are interesting. Detroit is rebounding and as with all cities that have rebounded, it takes time.

A fantastic place to see photos from Detroit’s great past is at HistoricDetroit.org, on their website they have photos of “Buildings, Places and Landmarks”.

Looking at what Detroit once was it’s easy to be optimistic that the city can reflect that spirit once again.

Repurposing School Buildings

Tags

Cities, Repurposing Buildings, Schools, Senior Housing

As schools close across the country a trend is developing to find new uses for these buildings. The school buildings are being sold and finding a variety of new uses. As of June 2013 the Detroit public school district has made $16 million either by selling or leasing closed school buildings or vacant land. One of the purchasers converted a 100 year old school building into a movie theater, Cass City Cinema which is now called Cinema Detroit showing indie films. Other Detroit schools buildings have been turned into lofts, a music school and a recording studio.

In Kansas City a school is being repurposed as affordable senior housing. A school in Portland was bought and turned into a hotel. Chicago has closed nearly 50 schools and is having a harder time finding buyers. They have sold 8 building for approximately $8.3 million in total. They have received interest for turning a school into a community center, affordable senior housing or market rate housing.

When a new high school was built in Ypsilanti, Michigan the former historic 3-story Ypsilanti High School was sold and successfully developed into senior housing units.

The Michigan Historic Preservation Network has “A Community Guide to Repurposing Vacant and Underutilized Historic Buildings”.

Amy Freundl of Reinhart Commercial has an elementary school building in Munith listed for sale which could be developed into a vocational training center, multi-family or senior housing. See Listing info.

Source: Huffington Post

Source: Chicago Tribune