Research collaboration among the Urban Markets
Initiative of the Brookings Institution, Social
Compact and the University of Michigan yielded many
positive findings for downtown Detroit and adjacent
neighborhoods oriented to downtown. This
information will be used to better target new
residents and investment into downtown Detroit.
A copy of the complete report can be downloaded by
CLICKING HERE.
Some of the key findings include:
Resident Demographics and Retail Potential—Downtown and Adjacent
Neighborhoods
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74,300 residents live in the downtown core and
adjacent neighborhoods (up 13% from 2006 census
projections)
-
Median home values of $115,000 (up 31% from 2006
census projections) in this same market area
-
The market area has a workforce of 193,000.
Assuming worker spending of $1,800 per year,
this yields a spending potential of $350 million
-
Nearly 50% of employment and 47% of revenue for
the City of Detroit occurs in this market area
-
There is a 125,000 sq. ft. demand for grocery
stores in the market area
-
The market area holds a 389,000 sq. ft. demand
for clothing and clothing accessories; furniture
and home furnishings; electronics and
appliances; building materials and garden
equipment
Housing, Office and Visitor
Information—Downtown Core (within freeways)
-
A strong and growing residential market with
demand for 1,700 residential units (340
annually). More than 2,400 residential units
have been developed in the greater downtown (New
Center to the Riverfront) since 2000. [Katherine
Beebe & Associates for Detroit Renaissance Lower
Woodward Housing Study.]
-
6,500 residents with an average household income
of $59,300 (33% higher than 2006 census
projections)
-
According to a recent survey, new residents tend
to be young and highly educated. [Katherine
Beebe & Associates for Detroit Renaissance Lower
Woodward Housing Study].
-
Downtown has 80,500 workers, composing 21% of
the city’s total employment and 22% of its
revenue
-
Downtown has highly desirable parcels available
for signature headquarters-style offices
-
Detroit has a nationally significant critical
mass of urban entertainment venues. There
is an emerging Midwestern perception of metro
Detroit as an entertainment destination for
trendy adults.
New Research Shows Demand for Downtown Detroit
Retail, Housing;
More Downtown Residents, Higher Incomes Than
Expected
–
About the Study
–
The study was conducted for the Downtown Detroit
Partnership and the Detroit Economic Growth
Corporation in conjunction with the City of
Detroit. The study builds on best practices in
market analysis with new data sets and methodology.
This “DrillDown” methodology was pioneered by a
national initiative of business leaders seeking
dependable, business-oriented profiles of “emerging”
neighborhood markets. In all cases this
field-proven technique resulted in more favorable
Detroit numbers than conventional census-based data
sources. The analytics, which are particularly
useful in transitioning markets such as downtown
Detroit, have been applied successfully in several
US cities. In Houston, a prominent local developer
used DrillDown findings to attract retailers to the
first new center-city construction in 50 years. The
retail center, now one of Houston’s busiest, has
100% occupancy and is credited with creating 2,000
jobs. Washington DC has used DrillDown statistics
to attract major retailers to downtown and
neighborhoods.
In Detroit, downtown leaders plan to use the
findings to focus on retail recruitment, leverage
the market strength of housing demand and new
downtown residents, segment marketing to key
audiences, enhance the branding of downtown as a
sports and entertainment destination for adults, and
pursue owner-occupied office headquarters.
City leaders also plan to engage Social Compact,
inventor of the DrillDown, in similar analyses to
support retail recruitment for Detroit
neighborhoods.
The study incorporates earlier residential market
research by Katherine Beebe and Associates for
Detroit Renaissance, and tourism market research by
the Detroit Metro Convention and Visitors Bureau.
Over the past decade, more than $15 billion has been
invested downtown by the private and public sectors
according to the Tourism Economic Development
Council. This investment has built two new
professional sports stadiums, live theatre and opera
venues, gaming casinos and hotels, major new Class A
offices for General Motors and Compuware, rental
residential, retail, restaurants and nightclubs. As
a result of these investments, the character of
downtown has fundamentally changed into a growing
mixed use district at the center of the eighth
largest metropolitan area in the US.
A copy of the complete report can be downloaded by
CLICKING HERE.
