The City of Detroit, it is not only Michigan’s largest city, but also the seat of Wayne County, whose population exceeds 1.8 million. Detroit is the major cultural, financial, and transportation center in the Metro Detroit area, and serves as the major port on the Detroit River connecting the Great Lakes system to world markets. In 2010, the city had a population 713,777 and ranked as the 18th most populous city in the United States. The Detroit-Windsor area, a critical commercial link straddling the Canada-U.S. border, has a total population of about 5.7 million.
Detroit is the birthplace of the automobile and is synonymous with the American automobile industry. Downtown Detroit has seen an explosive revitalization in recent years, and has become the preeminent entertainment destination in Southeastern Michigan. With the opening of three new casino resort hotels, two new stadiums (with a third on the way) and the continued redevelopment of the Detroit Riverwalk, social activities are abound. Shrewd and well-capitalized investors are vying for access to the downtown, midtown and riverfront submarkets. Several other noteworthy developments are also underway in Detroit, signaling a renaissance that has finally begun to materialize.
From a multifamily standpoint, the City of Detroit is perhaps one of the most sought after markets in the country both from a investor and renter standpoint. As of late rental rates in the downtown are reaching levels over $2.00 per square foot, which is consistent with other major metropolitan areas and an excellent indicator of this market’s potential for multifamily investors. As rental rates in downtown have continued to rise it has pushed many quality renters out of this sub-market and into the outlying areas. This in-turn has resulted in improved occupancy rates across the city as well as rising rental rates. With no end in sight for revitalization of downtown, the future is very bright for the city as a whole.
SUBMARKET OVERVIEW – PALMER PARK:
Close to all of the action in downtown Ferndale and Royal Oak, Palmer Park contains some of Michigan’s most notable historic houses and apartment buildings. Listed on the National Register of Historic Places in 1983, the neighborhood continues to be a mecca for those wanting to be part of a close-knit community, but not far from the action of downtown Detroit. The area contains an abundance of exotic architectural styles including Egyptian, Spanish Colonial Revival, Mediterranean, Moorish Revival, Tudor, 1930’s Art Modern, and International Style. In addition to incredible architecture the area also boasts a large city park, a public golf course and the acclaimed Detroit Country Club.