Detroit's Riverfront Bets A Billion On Its Next Boom
Photo: Unsplash
A wave of mixed-use towers along the Detroit River is the biggest downtown wager in a generation. Developers say the math finally works.
Detroit's skyline is about to get taller, and the money behind it is betting the city has turned a corner for good. A consortium of local developers unveiled plans this month for more than a billion dollars in riverfront construction, anchored by two residential towers and a ground-floor retail promenade stretching toward the water.
Why now
For years the riverfront was a story of potential more than payoff. What changed, according to the Corktown-based Larkspur Development Group, is a combination of falling vacancy rates downtown and a labor market that has stayed stubbornly tight. "The demand was always there," said Larkspur principal Dana Okonkwo. "The financing wasn't. Now it is."
The projects lean heavily on private capital, a shift from the public-subsidy model that defined Detroit's early comeback years. Analysts see that as a sign of maturing confidence: when banks price a Detroit high-rise the same way they price one in Chicago, the risk premium the city carried for a decade has finally thinned.
The risk
Not everyone is convinced the timing is right. Rising construction costs and higher borrowing rates have stalled comparable projects in other Midwest cities, and a single downturn could leave half-finished towers on the water. Still, for a city that spent the 2010s proving it could survive, building this big is its own kind of statement — that survival was never the goal, only the starting line.
More in Finance & Economy
A New Battery Plant Promised 2,000 Jobs. Mid-Michigan Is Counting.
The largest single employment commitment in the region in years is finally hiring. Whether it delivers on the headline number is another question.
Why Big Employers Are Moving Their Headquarters Back Downtown
After years of suburban office parks, a string of Michigan companies are relocating to downtown Detroit — and reshaping the workday for thousands.
Metro Detroit's Main Streets Are Full Again — On A Knife's Edge
Storefront vacancies have fallen sharply across the suburbs, but the small businesses filling them are navigating costs that leave little room for error.