Discuss Detroit » Archives - Beginning January 2007 » Michigan Landlord to Offer Free Space « Previous Next »
Top of pageBottom of page

Wordonthestreet
Member
Username: Wordonthestreet

Post Number: 145
Registered: 11-2003
Posted on Wednesday, April 25, 2007 - 1:28 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

By THE NEW YORK TIMES
Published: April 25, 2007

http://www.nytimes.com/2007/04 /25/business/25michigan.html?_ r=1&oref=slogin

DETROIT, April 24 — Michigan’s largest commercial landlord is offering free space as an incentive to attract business into the economically challenged state.

The landlord, the Farbman Group, which operates 20 million square feet of office space and other real estate in Michigan, plans to announce on Wednesday a program called Michigan Now that will subsidize office and industrial space for start-up companies and companies new to the state.

Farbman, based in Southfield, Mich., intends to accept applications for the program through June 30 and begin placing companies in available space by fall.

“We’re trying to help retain and grow some of the strengths and entrepreneurial spirit of the state,” Farbman’s president, Andrew Farbman, said. “If we could get 10 to 20 great companies we’d be really excited. Some might be 1,000 square feet; some might be 10,000 square feet.”

Companies that are selected for the Michigan Now program will be responsible for utilities and other operating costs of their space, but Farbman will not charge rent, Mr. Farbman said. Office space in the Detroit area typically leases for $15 to $25 a square foot annually.
Top of pageBottom of page

Iheartthed
Member
Username: Iheartthed

Post Number: 664
Registered: 04-2006
Posted on Wednesday, April 25, 2007 - 1:31 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

How many properties does Farbman own within the city?
Top of pageBottom of page

Jasoncw
Member
Username: Jasoncw

Post Number: 359
Registered: 07-2005
Posted on Wednesday, April 25, 2007 - 1:33 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Wow, that's great news, I think it will be really helpful to those companies.

It makes good vibes.
Top of pageBottom of page

Johnnny5
Member
Username: Johnnny5

Post Number: 503
Registered: 06-2005
Posted on Wednesday, April 25, 2007 - 1:43 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

A smart business decision for a company with a growing list of vacated office buildings. If you can't rent them out you might as well have someone else paying the utilities.
Top of pageBottom of page

Rb336
Member
Username: Rb336

Post Number: 24
Registered: 02-2007
Posted on Wednesday, April 25, 2007 - 1:46 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I think Farbman either owns or acts as leasing agent for about 40 buildings in Detroit, not counting the suburbs. This includes some well-known buildings, little industrial parks, strip malls, etc
Top of pageBottom of page

Thejesus
Member
Username: Thejesus

Post Number: 1011
Registered: 06-2006
Posted on Wednesday, April 25, 2007 - 2:02 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

web page showing properties owned by Farbman...most notably, the Fisher building

http://www.farbman.com/propert ies.shtml

(Message edited by thejesus on April 25, 2007)
Top of pageBottom of page

Charlottepaul
Member
Username: Charlottepaul

Post Number: 848
Registered: 10-2006
Posted on Wednesday, April 25, 2007 - 2:05 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Sounds like a good innovative idea. Good luck Michigan!
Top of pageBottom of page

Rhymeswithrawk
Member
Username: Rhymeswithrawk

Post Number: 691
Registered: 11-2005
Posted on Wednesday, April 25, 2007 - 3:36 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Wow! That's the kind of generosity that we've been lacking from big business! All right, Farbmeister!
Top of pageBottom of page

Lmichigan
Member
Username: Lmichigan

Post Number: 5422
Registered: 10-2003
Posted on Wednesday, April 25, 2007 - 4:55 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

This is the type of creativity I want to see in this state.
Top of pageBottom of page

Spiritofdetroit
Member
Username: Spiritofdetroit

Post Number: 415
Registered: 11-2006
Posted on Wednesday, April 25, 2007 - 4:57 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Very interesting. I imagine a lot of their vacant space is in their many Detroit buildings... I wonder what the conditions include, and why the NYT picked up on this before the Freep and News
Top of pageBottom of page

Higgs1634
Member
Username: Higgs1634

Post Number: 65
Registered: 10-2005
Posted on Wednesday, April 25, 2007 - 5:08 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Is it generosity or desperation? Farbman manages a whole lotta empty office buildings.
Top of pageBottom of page

Spiritofdetroit
Member
Username: Spiritofdetroit

Post Number: 417
Registered: 11-2006
Posted on Wednesday, April 25, 2007 - 5:11 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I wonder how the paying tenants are gonna feel about this....

However, it is good news for Farbman...They will at least have companies paying for utilities and some upkeep of the building. Also, for the buildings with retail in them, there could be new businesses opening there as a result of more people to cater to within the building. Plus, if the company likes what it gets from Farbman they may have a lot of companies willing to commit to them when this "free rent" time is up.
Top of pageBottom of page

Lmichigan
Member
Username: Lmichigan

Post Number: 5423
Registered: 10-2003
Posted on Wednesday, April 25, 2007 - 6:29 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Higgs, it would seem that this is out of obvious desperation, but that's a hell of a motivator and gives birth to some pretty creative ideas and programs.
Top of pageBottom of page

Thejesus
Member
Username: Thejesus

Post Number: 1026
Registered: 06-2006
Posted on Thursday, April 26, 2007 - 4:17 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

well it took a couple of days, but Det News has the story now too

http://detnews.com/apps/pbcs.d ll/article?AID=/20070426/BIZ/7 04260393
Top of pageBottom of page

El_jimbo
Member
Username: El_jimbo

Post Number: 122
Registered: 12-2006
Posted on Thursday, April 26, 2007 - 4:27 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

SpiritofDetroit,

In the long run, If I were another business in a Farbman building, I would be ok. Eventually, their rents would keep increasing as Farbman would have to pay more and more of the utilities themselves.

Add Your Message Here
Posting is currently disabled in this topic. Contact your discussion moderator for more information.