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It's been long argued that sports teams in big cities create economic opportunities, but perhaps not as many as some think.
Bill Shea and Kirk Pinho of Crain's Detroit business reports:
Moving the Detroit Pistons downtown seems like a magnet for economic development, bringing more people and businesses into the planned entertainment district.
And it should be — but only for certain kinds of businesses.
The Pistons' move, expected to be formally announced this month, is expected to help lure some of the investment promised when the Ilitch family's Olympia Entertainment announced plans for the 50-block The District Detroit residential development anchored by the new Little Caesars Arena. Little outside investment beyond the Ilitches' own promised $1.2 billion investment in the district has been announced so far.
The sports arena is expected to generate business for restaurants, bars and lamddlords, but not necessarily retail.
"The Pistons moving downtown will be attractive to new real estate developers and investors who will want to locate near the arena or along the M-1 Rail (streetcar). In fact, I hosted a New York developer yesterday that is seeking to invest in housing in Midtown, and he was attracted by the Pistons move," Robert Gibbs, a retail and urban planning expert based in Birmingham, tells Crain's.
