CN RA IL
DETROIT’S
AT IOT
IN
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B AU ST
Dequindre/ Eastern Market Employment District
RN STE KET A E AR M
CULTIVATING TRADITION & INNOVATION
Presented by:
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Dequindre/Eastern Market Employment District
Detroit & Southeast Region A great place to live, work and play in a Great Lakes state. Detroit, and the seven-county region around it, is known around the world for its rich history of global leadership in the automotive industry. Many of the same factors that built that reputation in the early 20th Century are helping to reaffirm Detroit and southeast Michigan’s resurgence in the early 21st Century: ·· Transportation infrastructure — highways, railroads, a waterway and airports — that can deliver goods to the majority of the U.S. population within four hours ·· High capacity international connections via highway, rail, and air ·· A huge pool of talent with high skills in engineering, information technology, manufacturing and creative industries ·· Suppliers in the automotive sector that now also serve the defense and aerospace sectors ·· Food and agriculture companies ·· Globally recognized research universities and R&D centers for international companies ·· A diverse base of companies, from very small startups to Fortune 500 global corporations that supply consumers and each other.
Complementing its industrial assets, the Detroit metropolitan area is well known for its contributions to culture, especially in music, art and architecture, and it is home to globally recognized institutions of education and culture. These, along with the tremendous attraction of the Great Lakes and other natural resources; popular entertainment; and major league, college and amateur sports make the region a great place to live and play as well as grow a business. Now is an attractive time to invest or grow in Detroit, as government, private companies, global corporations, major educational and cultural institutions, philanthropic organizations and community groups are collaborating in unprecedented ways to apply innovative strategies to revitalize the city. These collaborations are creating substantial opportunities for investors, companies and individuals to contribute to the growing economic, cultural, recreational and neighborhood development momentum right now. This publication describes the Dequindre/Eastern Market Employment District — one of seven core employment districts identified by Detroit Future City. These employment districts contain a high level of activity and have the potential to receive significant levels of investment and serve as the engine for the city’s economic growth.
Southeast Michigan Workforce: Employees per Major Sector 247,225 Health Care & Social Assistance Top 5 Manufacturing Divisions by Employment 40,041 Other Types of MFG
28,368 Machinery MFG
30,596 Fabrication Metal Product MFG
97,905 Transportation Equipment MFG
213,677: Manufacturing (MFG) Total
10,101: Plastics & Rubber Products MFG 6,666: Primary Metal MFG
182,431 Retail Trade 173,067 Professional, Scientific, & Technical Services 159,174 Government 140,561 Accommodation & Food Service 126,612 Administrative, Support, Waste Management & Remediation Service 74,368 Wholesale Trade 61,534 Finance & Insurance 52,548 Other Services (except Public Administration) 51,052 Transportation & Warehousing
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Source: QCEW Employees - EMSI 2014.2 Class of Workers
ST. CLAIR COUNTY
UPPER PENINSULA
OAKLAND COUNTY
·· 1,250 foreign firms from 40 countries
NORTHERN MICHIGAN MIDMICHIGAN WESTERN MICHIGAN
WAYNE COUNTY
DETROIT
·· Strong farm-to-table food industry collaborations
VAN DYKE
W OO AR DW
TELEGRAPH
AN
DR
MACOMB COUNTY
D
GR
·· Defense Corridor
MONROE COUNTY
SOUTHEAST MICHIGAN
OAKLAND COUNTY
·· Global automotive R&D and design
8 MILE
McNICHOLS IVE
MT ELLIOTT
R
Coleman A. Young International Airport
DEQUINDRE/ EASTERN MARKET MIDTOWN
WAYNE COUNTY
E
FORD
JE
E FF
RS
ON
DOWNTOWN SOUTHWEST
M
ATI OT
WASHTENAW COUNTY
GR
LIVINGSTON COUNTY
SOUTHEAST MICHIGAN TRICOUNTY REGION:
MACOMB COUNTY
CORKTOWN
GAN ICHI
KEY EMPLOYMENT DISTRICTS
W JEF
Detroit Metropolitan Wayne County Airport
FORT
F E RS O
N
Dequindre/Eastern Market District Primary Employment Districts Secondary Employment Districts
REGIONAL INFRASTRUCTURE ASSETS Airports Rails Highways Arterials Waterways County Boundaries
INFRASTRUCTURE ASSETS AIRPORTS
Coleman A. Young International Airport
RAILWAYS
Detroit North Rail Yard, Freight Rail
INTERSTATES/ MAIN TRUCK ROUTES
1-94, I-96, I-75, M-10, M-39
ARTERIALS
Woodward, Telegraph, Gratiot, Van Dyke, Grand River, Ford, Michigan, Fort, Jefferson
0
1
2
4 MILES
Source: Detroit Future City
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Dequindre/Eastern Market Employment District
Cultivating Tradition & Innovation Every Saturday, Detroit’s Eastern Market bustles with thousands of visitors shopping for fresh, locally grown or produced food in the charming environment of old-fashioned farm stands in large sheds. Over the course of more than 120 years, the Market and the area around it have grown to become an important center for importing, processing and selling wholesale food as well. Food defines the southern end of the Dequindre/Eastern Market Employment District — one of seven areas of the city that are generating the most business investments and jobs. However, the district’s key location along I-75 near I-94 and service by a major railway have also made it a prime location for automotive
suppliers or other innovative companies that want to take advantage of the transportation assets, pool of skilled labor and proximity to cultural and recreational amenities. About 650 companies employ 4,400 people throughout the district — among them Pepsi Bottling and Wolverine Packing. The Federal Reserve Bank of Chicago, DTE Energy, Detroit Public Schools and the City of Detroit also have substantial operations in the district. Detroit Economic Growth Corporation (DEGC) representatives have information on available sites and the expertise to facilitate applications for appropriate incentives to companies that invest in the district.
DEQUINDRE/EASTERN MARKET DISTRICT VITALS
DEQUINDRE/EASTERN MARKET ECONOMIC ANCHORS5
LAND AND INFRASTRUCTURE
ANCHOR
SIZE (acres)
American Axle & Manufacturing Holding Inc.
595
Pepsi-Cola Metropolitan Bottling Company, Inc.
400
Wolverine Packing Co.
300
1,130
EMPLOYEES
VACANCY (acres)
307
UNDERUTILIZED (acres)
42
VACANT & PUBLICLY OWNED2
7.7%
Wolverine Solutions Co.
250
INFRASTRUCTURE ASSETS
I-94, 1-75, Detroit North Rail Yard and Freight Rail, Dequindre Cut
Federal Reserve Bank
200
General Linen & Uniform Svc
150
Detroit Renewable Power LLC
148
I-94 widening, Dequindre Cut Phase II
New Center Stamping Inc.
129
EQ Detroit
100
Vesco Oil Corporation
100
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PLANNED INFRASTRUCTURE INVESTMENTS
BUSINESS AND ECONOMY TOTAL NUMBER OF BUSINESSES3
650
CURRENT EMPLOYEES4
4,400
4
Table Sources: 1) Motor City Mapping 2014; 2) Ibid.; 3) NETS 2010 Estimates; 4) Private sector employment from QWI, non-private employment from LEHD—On the Map. Private sector employment was apportioned to districts using NETS data for 2010; 5) Crain’s Detroit Business
Dequindre/Eastern Market Employment District
0
0.25
1 MILE
0.5
MT. ELLIOTT EMPLOYMENT DISTRICT
HAMTRAMCK
American Axle & Manufacturing Holdings Inc. Wolverine Solutions Co.
GM DETROIT HAMTRAMCK ASSEMBLY PLANT
E
Russell Industrial Center
RE
PR OP O GR SED T ATI IER OT 1R O
N
BLV D
R WA
ND
General Linen & Uniform Service
RA
Federal Reserve Bank
E. G
VD BL
TT LIO
Detroit Renewable Power LLC
. EL MT
GR
D AN
UT
New Center Stamping
EQ Detroit CK MA
WAYNE STATE UNIVERSITY
EN Vesco Oil RR WA Corporation
Pepsi-Cola Metropolitan Bottling Company, Inc.
MIDTOWN DETROIT EMPLOYMENT MEDICAL DISTRICT CENTER
VE
R
R NO
HW
Y.
WO OD
Eastern Market District
R WA
KJ
R
D
ML
D BLV
Wolverine Packing Co.
ace Studio; City of Detroit; STOSS
MILE
ECONOMIC ASSETS & OPPORTUNITIES
NETWORK INFRASTRUCTURE & OPPORTUNITIES
Core Employment District
Proposed Transit Routes
District Anchors
Rail Lines
Potential Business Investment Opportunities
Proposed Freeway Carbon Forests Proposed Green Industrial Buffers
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Dequindre/Eastern Market Employment District
A Place to Grow...
Wolverine Packing Thrives in a Food Industry Hub
IRG Realty Advisors Retools a Manufacturing Site
In the 1930s Wolverine Packing began strictly as a lamb and veal business. The company has grown since then into a protein distributor throughout the United States, with products as varied as beef, veal, pork and seafood that are sold to restaurant chains and other food service companies. Wolverine manages thousands of items in Detroit facilities that total about 250,000 sq. ft.
Industrial Realty Group, LLC (IRG) sees the 108-acre former site of a large American Axle manufacturing operation as a prime piece of industrial real estate. Sitting at one end of the district, it’s located next to I-75 at Holbrook St. and served by a rail line.
The company recently expanded its operations in the Eastern Market, reacting to double-digit annual growth. The company attributes its success to its location. Vice president Jay Bonahoom says, “Being in the food business and located in a food hub, there is a lot of activity here in our industry. We’re also a big transportation business, and Detroit happens to be in a good location for getting to the East coast and buying products from the West coast.” Bonahoom adds, “We love Detroit, and we love being here. We love the close proximity to all of the sports venues and the Eastern Market itself, which has great restaurants and is a lot of fun to be in.”
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IRG’s experience includes redeveloping the former Goodyear Tire & Rubber Co. headquarters in Akron, Ohio and other large manufacturing complexes. Stuart Lichter, president of IRG, says, “The automotive industry is coming back, and the market is tight for industrial land. We’d love to do a supplier park filled with second and third tier suppliers serving the automotive industry.” IRG envisions a campus with a number of buildings on it, including the proposed AAM Advanced Technology Development Center and a logistics facility that is operating now. Lichter says, “This is a good time. There’s good demand, it’s right on the highway, surrounded by a strong labor pool, and a lot of business people prefer to be in Detroit right now.”
“A lot of business people prefer to be in Detroit right now.”
See For Yourself!
– Stuart Lichter President, Industrial Realty Group
Detroit’s Real Estate for Sale or Lease1 DETROIT
INDUSTRY
RETAIL
3.4 Average rental
$
OFFICE
10.1 Average rental rate
$
PER SQ FT
rate for industrial building space
17.6
$
PER SQ FT
PER SQ FT
for retail building space
Average rental rate for office building space
RETAIL
OFFICE
Dequindre/Eastern Market’s Estate for Sale or Lease2 DEQUINDRE/ EASTERN MARKET
AVAILABLE LAND
120
+
ACRES
Up to 120 acres of land available for sale or lease
INDUSTRY
4.3M
6K
SQ FT
+/- 4,300,000 sq ft of industrial building space available
70K
SQ FT
+/- 6,000 sq ft of retail building space available
SQ FT
+/- 70,000 sq ft of office building space available
Dequindre/Eastern Market’s Business Composition3 DEQUINDRE/EASTERN MARKET’S FIRM TYPE 21% 17% 11% 9% 7% 7% 27%
Wholesale Trade (WST) Retail Trade (RT) Manufacturing (MFG) Professional, Scientific, & Technical Services Accommodation & Food Services Other Services (except Public Administration Other Types of Dequindre/Eastern Market firms WHOLESALE TRADE (WST) FIRMS
64% 34% 2%
Merchant Wholesalers, Nondurable Goods Merchant Wholesalers, Durable Goods Wholesale Electronic Markets & Agents & Brokers RETAIL TRADE (RT) FIRMS
50% 18% 7% 25%
Food & Beverage Stores Miscellaneous Store Retailers Building Materials & Garden Equipment & Supplies Dealers Other Types of Retail Trade Firms
64%
21% WST
27%
Other Firm Types
34% 2%
17% RT
7% 7% 9% 21%
11% MFG
50% 18%
25%
7%
38% 21% 10% 10%
MANUFACTURING (MFG) 38% 21% 10% 10% 21%
Food MFG Printing & Related Support Activities Fabricated Metal Product MFG Machinery MFG Other Types of Manufacturing Firms Sources: 1) Mid-Year 2014 CoStar Reports; 2) Ibid.; 3) Reference USA 2014
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DEQUINDRE/EASTERN MARKET EMPLOYMENT DISTRICT Cultivating Tradition & Innovation This publication was produced as a collaboration of:
Seven Primary Employment Districts are identified within the Detroit Future City Strategic Framework because they represent the best opportunity for large-scale economic growth, and they define a place-based strategy for growth and investment based upon economic cluster analysis. Located across the city, these districts represent a diverse cross-section of Detroit’s economy. These core employment districts are defined by the presence of significant economic anchors to build upon, including major legacy businesses or institutions, diverse economic activity, excellent infrastructure access, a recognized niche or brand that can help to attract additional businesses, and relatively vibrant existing employment activity. For additional information on Primary Employment Districts, please refer to pp. 58-73, 76-77 in the Strategic Framework. In addition to the Primary Employment Districts, a series of peripheral nodes of industrial activity comprise an equally important, yet smaller and less intensive set of Secondary Employment Districts. Each of these districts offers potential development opportunities to further strengthen the city’s auto, metals, transportation, distribution and logistics clusters. For additional information on Secondary Employment Districts, please refer to pp. 74-75 in the Strategic Framework. Detroit Economic Growth Corporation 500 Griswold St. Suite 2200 Detroit, MI 48226 www.degc.org (313) 963-2940 info@degc.org @degcallbusiness
Detroit Future City 2990 W. Grand Blvd. Suite 2 Detroit, MI 48202 www.detroitfuturecity.com (313) 259-4407 info@detroitfuturecity.com
DEGC is a non-profit organization that serves as the lead implementing agency for business retention, attraction and economic development initiatives in the city of Detroit. DEGC is led by a 60-member board comprised of business, civic, labor and community leaders. Its 45 professionals provide staff services for key public authorities that offer tax credits and other forms of financing for projects that bring new jobs or economic activity to the city. Among them: the Downtown Development Authority (DDA), Detroit Brownfield Redevelopment Authority (DBRA), and the Economic Development Corporation (EDC). DEGC also provides planning, project management and other services under contract to the City of Detroit.
The Detroit Future City (DFC) Implementation Office opened in 2013 to be the steward of the DFC Strategic Framework, a shared vision for Detroit’s future. The office strategically coordinates actions and resources, to maximize their impact and catalyze long-term capacity within all contributing stakeholders. The DFC Implementation Office is supported by the Kresge Foundation, Detroit Economic Growth Corporation, W.K. Kellogg Foundation, John S. and James L. Knight Foundation and the City of Detroit.