Broder & Sachse has released their latest market report on Detroit rental properties and, no surprise, newer developments are commanding some steep prices. It used to be that $2 per square foot was the number to shoot for in rental prices in these areas of Detroit; now some new places are charging $3+ per square foot.
The report covers apartment complexes (not individual rentals) across Corktown, Downtown, Midtown, and the east side (it says Lafayette Park, but covers apartments all the way to the Jeffersonian). Most of these complexes and buildings are seeing occupancy rates over 90 percent. Here are a few key takeaways.
Grand Circus Park continues to command the highest prices downtown. This is even including the Fyfe Apartments, which have a much lower average price than its neighbors at $1.42 per square foot. Occupancy rates are reported at 98.2 percent in this region.
To note: The Iodent Lofts at 2233 Park Avenue were included, but its neighbor under the same owner—the Park Avenue House—was not included. This building has 180 apartments and tenants recently received eviction notices.
The Central Business District includes a wide variety of apartments and reports a 94.2 percent occupancy rate. While the average apartment comes in at $2.03 per square foot, new renovations and construction cost much more. The David Stott Building, currently leasing, has a $3 per square foot average. The Griswold, built on top of a parking garage, has a $2.53 per square foot average. The micro apartments at 28 Grand weren’t included in the overall average since they come fully furnished; these average $3.58 per square foot.
Some areas the report covered were limited, but Lafayette Park and the East Riverfront—which have thousands of apartments—are well represented. The apartments include many older, historic buildings like Alden Towers (average $1.34 per square foot) and newer builds like Orleans Landing ($3.21 per square foot, but only 57 percent occupancy), Water’s Edge ($1.78 per square foot), and DuCharme Place ($1.79 per square foot).
The full report can be accessed here. The Broder & Sachse team intends on updating it each month and continue to reach out to more developers to include.