Optimism is contagious, and real estate investors are among those catching Detroit fever.
The Wall Street Journal chronicles that development in an article report that says "the 'Dan Gilbert effect' ... appears to be spreading."
Despite a fiscal plight that forced the city to seek Chapter 9 bankruptcy protection five months ago, the real-estate market has been picking up in Detroit's downtown core. Mr. Gilbert has led the charge. . . .
Lately, other investors have begun buying trophy buildings and starting to develop apartments to meet the rising demand from workers who prefer downtown living. City officials estimate residential occupancy downtown is 97 percent.
The projects show that some real estate investors are looking beyond the bankruptcy to an eventual rebound in Detroit. They are hoping that property values and rents will rise due to the region's resurgent automotive industry and the expansion of its medical community and nascent technology industry.
"Billionaire's Detroit Buying Spree Starts to Spread" is the headline atop Matthew Dolan's report. He mentions the hockey arena-entertainment district project OK'd last week by the Downtown Development Authority.
