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Could Big Beaver be the next downtown?

Could Big Beaver be the next downtown?. Joe Menard / The Detroit News Monday, January 23, 2006 http://www.detnews.com/apps/pbcs.dll/article?AID=/20060123/BIZ/601230356. Yes, This is Shameless Brown-nosing.

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Could Big Beaver be the next downtown?

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  1. Could Big Beaver be the next downtown? Joe Menard / The Detroit News Monday, January 23, 2006 http://www.detnews.com/apps/pbcs.dll/article?AID=/20060123/BIZ/601230356

  2. Yes, This is Shameless Brown-nosing • Professor Goodman’s favorite street is Big Beaver/16 mile/Walnut Lake/ Quarton/Metropolitan pkwy • Topic is worth 2.5 points of the presentation grade.

  3. The Story • The city of Troy is planning on two new developments along Big Beaver road • City and business leaders want to create a “Downtown Southeast Michigan”

  4. Overview • A look at Troy’s development history. • The demand for Land in the late 1960’s and early 1970’s • A look at Troy’s situation today. • The possible effects the new developments will have on supply and demand.

  5. A Brief History of Troy Development • Troy experienced steady growth in the late 1960’s and early 1970’s • The Somerset Mall opened in 1969. • K-mart headquarters moved there in 1970. • The city experienced 96% occupancy. • From 1970-2004, The population more than doubled- from 39,419 to 81,432.

  6. Land Demand • The increase in demand shifts the Demand curve right, raising both rent (R), and units (u) R D1 S D0 R1 R0 U1 U0 U

  7. Troy Today • 85% occupancy • National City Bank has recently moved its headquarters there. • A new development project that will have 155 condos, and 11,620 sq ft. retail space. • Development planned for the former K-Mart headquarters includes a luxury hotel, condos, shops, offices, and entertainment.

  8. Land Supply • The development projects planned for Troy will shift the supply curve to the right, increasing the number of units available, and lowering the value of the land. • City and business leaders hope that the new developments will make the city a more attractive place to live and do business, which would shift the demand curve to the right also.

  9. New Land Supply & Demand • The final equilibrium will depend on the size of the shifts in the curves. • Rent may increase or decrease, but the number of units will definitely increase D1 S0 D0 S1 R R1 R0 U0 U1 U

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