Detroit, a city in decline since 1950 and declared bankrupcy in 2013 after the consequences of the subprime crisis, has regained growth since 2014 thanks to the participation of Dan Gilbert and other billionaires, native of Detroit. Thanks to this intervention, Detroit had an economic and real estate revolution.
Detroit knows different types of real estate projects that revive its economy. In 2018 Ford announces the renovation of Detroit Central Station in the Cork Town district and which will create more than 2,500 jobs. Or the CorkTown campus that according to the company will be: “An innovation hub for Ford’s vision for the future of transportation.
A few years ago, the city invested throughout Jefferson Avenue for residential projects worth around $13 million. The Fitzgerald neighborhood has also benefited from government support. Or Brush Park with assistance of four million dollars in 2017, 13 million in 2018.
Corporates’ participation has also led to projects worth $2- $5 million, such as Amazon’s shipping facilities. They have developed their logistics sites in the city and the nearest suburbs, developing thousands of jobs.
Even if today the real estate investment is very interesting, it is still necessary to focus on a short-term trade investment. Most buildings are old (40-60 years) and even if their cost in the first year remains very interesting, the following years must ensure maintenance of these old properties that represent a significant cost.