Summary:

The Dime Building is 23 story, 320,000 square foot office building located in Downtown Detroit. When it was built in 1912 it was the tallest building in the city and the first skyscraper. The building is ideally located in the Financial District of the city and convenient parking made it attractive. The detached parking deck was performing well and the building was only about 1/3 occupied. The building was considered Class "C" at the time and was one of 3 surviving Daniel Burnham buildings in the city. It has a beautiful exterior and at one time had a magnificent lobby.

Challenge:

The overall office market is weak and Detroit has suffered from long-term population decrease. More in depth research revealed however that the vacancy factor for Class "A" buildings was only 5%. Detroit has very few class "A" buildings because there has been very little office building construction in downtown over the past 40 years. Additionally, parking was commanding an increasing premium. The automobile is the only viable means of transportation to downtown and that meant everyone has to drive and ultimately park. The 437 car parking deck was insufficient to meet market demand.

Solution:

It was decided to renovate the Dime Building to Class "A" status. This would provide needed space in a high-demand market sector. Furthermore, that category of building attracts higher quality tenants. It was also decided to expand the garage to meet the needs of a renovated office building.

Results:

The renovated building had the only large blocks of Class "A" space in the city. H&R Block Financial Advisors, who had their headquarters in the city, took 100,000 square feet in the building. BOSC bought their existing building since it was adjacent to the parking garage. That building was then demolished and allowed for the garage expansion. The building has reached 70% occupancy and is performing well in a challenging market. As the auto industry in Detroit recovers it is anticipated the building will perform at an even higher level.