Post Number: 145
|Posted on Wednesday, April 25, 2007 - 1:28 pm: || |
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.
Post Number: 664
|Posted on Wednesday, April 25, 2007 - 1:31 pm: || |
How many properties does Farbman own within the city?
Post Number: 359
|Posted on Wednesday, April 25, 2007 - 1:33 pm: || |
Wow, that's great news, I think it will be really helpful to those companies.
It makes good vibes.
Post Number: 503
|Posted on Wednesday, April 25, 2007 - 1:43 pm: || |
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.
Post Number: 24
|Posted on Wednesday, April 25, 2007 - 1:46 pm: || |
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
Post Number: 1011
|Posted on Wednesday, April 25, 2007 - 2:02 pm: || |
web page showing properties owned by Farbman...most notably, the Fisher building
(Message edited by thejesus on April 25, 2007)
Post Number: 848
|Posted on Wednesday, April 25, 2007 - 2:05 pm: || |
Sounds like a good innovative idea. Good luck Michigan!
Post Number: 691
|Posted on Wednesday, April 25, 2007 - 3:36 pm: || |
Wow! That's the kind of generosity that we've been lacking from big business! All right, Farbmeister!
Post Number: 5422
|Posted on Wednesday, April 25, 2007 - 4:55 pm: || |
This is the type of creativity I want to see in this state.
Post Number: 415
|Posted on Wednesday, April 25, 2007 - 4:57 pm: || |
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
Post Number: 65
|Posted on Wednesday, April 25, 2007 - 5:08 pm: || |
Is it generosity or desperation? Farbman manages a whole lotta empty office buildings.
Post Number: 417
|Posted on Wednesday, April 25, 2007 - 5:11 pm: || |
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.
Post Number: 5423
|Posted on Wednesday, April 25, 2007 - 6:29 pm: || |
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.
Post Number: 1026
|Posted on Thursday, April 26, 2007 - 4:17 pm: || |
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
Post Number: 122
|Posted on Thursday, April 26, 2007 - 4:27 pm: || |
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.