We’ve all seen rent prices rise in the downtown area over the last few years. Which areas have the highest average rent? Which have the least availability?
Broder & Sachse Real Estate, a company that specializes in both property management and development, recently released their downtown Detroit market report for rentals. A few things to make clear: this is obviously a report from a company that does a lot of work in this area. And the boundaries of this rental report go to 94 to the north (just short of New Center), St. Aubin to the east (Lafayette Park included), Rosa Parks and the Lodge to the west (Corktown included), and the Detroit River to the south.
This report only includes multi-family apartment buildings (excluding rental in homes).
The report includes details for each apartment complex in downtown, Midtown, Corktown, and Lafayette Park, including amenities, history, occupancy, and rental prices.
Grand Circus Park has the highest average rental prices downtown, with a three bedroom apartment averaging $2.25 per month.
Apartments in this district include the David Whitney Building, the Kales Apartments, and Broderick Tower.
Grand Circus Park currently has a 98.8% occupancy rate.
More apartments will be coming online later this year, with construction underway at City Club Apartments.
The Central Business District includes apartment buildings in Capitol Park, along lower Woodward, and in Greektown. These include the Albert, Renaissance City Apartments, the Lofts at Merchants Row, and the Ashley.
It’s here that we see the sharp rise in price when micro-apartments come into the picture (it’s worth noting those apartments come furnished and with utilities included).
We also see a greater variety of offerings downtown, from higher prices at places like the Albert and the Malcomson (in Capitol Park) to lower prices at the Claridge ($1.40 per square foot for a one-bedroom) and and Renaissance City Apartments ($1.73 per square foot for a one-bedroom).
The CBD has a 94.2% occupancy rate.
Corktown only has a few complexes listed and the neighborhood offers the most lofts of any other in the greater downtown area.
Most options here are lofts (Lafayette Lofts, Coat Factory Lofts, Brooklyn Park Lofts).
The apartments at Riverfront Towers show a sharp increase in rental prices, coming in at $2.15 per square foot for a one-bedroom apartment. They also offer more amenities and river views.
Lafayette Park has many of the larger three-bedroom apartments available in the downtown area. They also have some of the more affordable options close to downtown. Lafayette Park currently has a 91.3% occupancy rate.
While many of the older buildings offer lower prices for their apartments, newer developments such as DuCharme Place and Orleans Landing have a much higher average price per square foot. DuCharme Place is coming in at $1.86 per square foot for a one-bedroom apartment, while Orleans Landing—located right by the Riverfront—has a $2.57 average per square foot.
Midtown currently has a 97% occupancy rate and according to the report, it has the largest concentration of cultural, educational, and medical institutions in southeast Michigan. Apartment buildings in this report include the newly-built Scott at Brush Park, the recently renovated Strathmore Apartments, and the newly-renovated Plaza. (Noticeably missing are the Forest Arms Apartments.)
A one-bedroom at the Plaza will run about $2.25 per square foot, while nearby on Woodward, Studio One Apartments rent for $1.70 per square foot.
Overall, the average rental price in the greater downtown area is coming in at $1.78 per square foot. Many new apartment developments are in the works (in the arena district and in Brush Park, most notably), and it should be interesting to see if the market can meet the demand for new apartments coming online in the next few years. Will those prices continue to rise closer to an average of $2.00 per square foot?
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