After many urban centers in the United States fell into decline for the last five decades, a new revitalization movement has successfully swept the nation. From the West Coast to the East Coast, urban areas are seeing a rebirth, economically and culturally. America's re-focus on the local economy, as well as independent businesses, has led to the growth in appeal of urban centers. In addition, the lure of city centers continues to grow stronger with large segments of the population, including younger professionals, empty-nest couples, and individuals without children.
The convenience of living downtown, with work and entertainment options, along with the excitement of enjoying the city, has prompted many urban deaths to be re-born. With that said, the question remains: Will Detroit real estate enjoy the rebirth of urban renaissance? San Diego: From slums to luxury From the 1950s to the mid-1980s, Downtown San Diego experienced significant decline. Not only did residents leave, but they were followed by the retail, entertainment, and restaurant establishments that opted to conduct business elsewhere. With the fleeing of both residents and businesses, Downtown turned into an essentially abandoned area, filled with vagrants, drugs, and crime.
Due to city initiatives, Downtown San Diego has experienced a significant revitalization, now becoming one of the most valued property locations in the county. With the opening of the prestigious San Diego Convention Center, San Diego Padres' Petco Park, along with the tremendous growth in popularity of the luxurious Gaslamp District, thousands of residential condos were developed to meet the demand. In fact, when the Hard Rock Hotel San Diego offered suites for sale, they sold out in the very first day. Today, Downtown San Diego, especially in the Gaslamp District, hold very high rent values, as restaurants, retail stores, and entertainment venues vie to open their doors in the highly popular area.
The revitalization of Downtown San Diego has been incredibly successful, turning the abandoned area into a luxurious destination filled with waterfront properties, popular live-work buildings, and five-star hotels. Revitalization of city centers around the country San Diego is by far not the only example of a highly successful downtown revitalization. From Los Angeles to New York, and Philadelphia and Baltimore in between, many downtowns ? and their savvy investors ? have enjoyed the benefits of a city rebirth.
There are several elements that are impacting the revitalization of our nation's downtowns: ? Rising cost of transportation: The continuously rising oil prices, along with the consumer's greater awareness of eco-friendly choices, have prompted both people and businesses to choose downtown areas. The ability to walk or bike to work and entertainment destinations is quite attractive. ? Changing demographics: The growth of the population, as well as professionals' desire to reduce commute times, has the areas surrounding centers to undergo gentrification. Understandably, this shifts the demographics of the region, and the once-shunned downtown becomes more attractive for living, especially because of the lower values in comparison to the already gentrified areas. ? Diversified industries: One of the reasons many downtowns fell from grace stems from the struggle of the region's main industry. However, with the diversification of industries, city centers are enjoying a rebirth.
Cleveland, Pittsburgh, and Baltimore are all great examples of a former failing industrial region converted into a diversified economy ? and a subsequently reborn urban center. The future of Detroit's real estate revitalization The successful revitalization around the nation ? from abandoned industrial slums into luxurious renaissance city centers ? bodes well for the future of downtown Detroit. With its deep history, ranging from Motor City to Motown and the Red Wings, the cultural lure of Detroit is undeniable. Detroit shares many of the same pre-requites for successful revitalization. "Motor City" is indeed growing more diversified, including industries in human resources, finance, and the health sciences.
Although the McMansions will always be prevalent at 30 Mile Road, the younger generation of professionals ? who care about the environment and enjoying cultural entertainment ? will be apt to move downtown. The signs of revitalization are already clear in Detroit, including the popularity of the RiverWalk development, which connects the Joe Louis Arena to Gabriel Richard Park. The brownfield redevelopments throughout Detroit have also been met with success, such as the FD Lofts in Eastern Market, which homes many creative businesses as a mixed-use building. For the savvy investor who is willing to overcome certain hurdles, the opportunities are lucrative in downtown Detroit investment properties.
Although Detroit MI real estate is still on the cusp between death and rebirth, the probability is high that the future of Detroit is akin to its other successfully revitalized urban counterparts. Thus, the investor who sees the future of Detroit real estate can purchase great properties at incredibly discounted pricing ? building in significant profit for the subsequent full revitalization boom. As a Detroit real estate investor, you enjoy the foresight of the revitalization success seen in other urban areas. By seeing the future of Detroit's rebirth, you can build your long-term portfolio of profitable equity from the demand that flows in from those seeking a culturally rich and convenient lifestyle downtown.
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