Capitalizing on Ford’s New Tech Campus: Top Areas for Landlords to Invest in Detroit
If you’re in real estate, you know that major developments can transform neighborhoods and cities.
One of the most exciting projects currently underway in Detroit is Ford Motor Company’s transformation of the historic Michigan Central Station into a state-of-the-art tech campus. This nearly $1 billion investment is more than just a facelift for the Corktown area; it’s a harbinger of significant economic growth and opportunity for Detroit as a whole.
The Big Picture: Detroit’s Regeneration
To understand why this is such a big deal, let’s zoom out a bit.
Detroit has been undergoing a massive regeneration over the past few years. Neighborhoods around Michigan Central Station, like Corktown, are already Class B or trending upward, with most rentals going for at least $2,000 a month.
The news of the station’s reopening has been circulating for years, which means many properties in these areas were snapped up early by savvy investors.
But the story doesn’t end there.
The ripple effects of this project extend far beyond Corktown. We recently spoke with an investor who was torn between Cleveland and Detroit. His decision ultimately hinged on the amount of investment happening in each city.
And guess what? Detroit came out on top.
The level of investment pouring into this city is staggering and speaks volumes about its future potential. That just can’t be said for other rental hotspot cities like Cleveland or Jacksonville.
Why More Investment Means More Appreciation
More investment generally translates to higher property appreciation and better tenant quality.
The Michigan Central Station project alone is attracting attention, but it’s part of a larger wave of economic activity. Ford’s vendors, for instance, may also relocate to the campus, driven by a desire for economies of scale. Ford has a history of encouraging its vendors to centralize operations, which could lead to a mini-boom in commercial real estate in the area.
On top of that, Detroit’s retail district is seeing an injection of $1.5 billion, coupled with another $1 billion from Henry Ford Health Systems. Plus, there are whispers of new developments at the Renaissance Center and the Hudson’s Building. All these projects contribute to a more vibrant, economically robust Detroit, making it a magnet for new residents and businesses alike.
The Economic Impact: What’s In It for You?
So, what does all this mean for you as a landlord? Quite a lot, actually:
- Property Appreciation: With massive investments flowing in, property values are set to rise. Early investment means you get to ride that wave of appreciation.
- High-Quality Tenants: More job opportunities and better amenities attract higher-quality tenants, reducing turnover and increasing rental income stability.
- Diverse Investment Opportunities: Whether you’re looking at residential or commercial properties, Detroit offers a range of options to diversify your portfolio.
Strategic Areas to Consider
While areas close to Michigan Central Station, like Corktown, New Center, Midtown and Downtown, have reached peak prices, savvy landlords should look further afield for investment opportunities.
Here are some promising neighborhoods:
North End: Close to lots of major new developments and with many <$150k properties, this area is gaining attention as an affordable yet appreciating market.
Islandview: Proximity to Belle Isle and ongoing development make this neighborhood a hidden gem with significant growth potential.
Oak Park: Close to desirable Ferndale with more affordable price tags, this investor favorite is quickly getting gentrified. Buy now while there are still deals to be had.
Grandmont-Rosedale: Strong community initiatives and affordable housing options make this area attractive for investment.
For more detailed information on which areas to invest in Detroit, check out all of our Deep Dives – in-depth, data-driven overviews of every neighborhood in the city, plus all the cities in the Metro Detroit area.
Conclusion
The transformation of Michigan Central Station is a landmark event, but it’s just one piece of Detroit’s larger regeneration puzzle.
For landlords, this presents a golden opportunity to invest in a city that’s on the rise. With nearly 30 years of experience in this area, we can confidently say that the time to invest in Detroit is now.
Want to get in on investment opportunities in the Motor City? Talk to us about the turnkey properties we have available now.