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Who's Afraid Of Detroit? - A City Full Of Surprises
It’s been said so many times it’s become colloquial: Detroit is a dying city… but is it really dying? In a recent article published by Forbes...
Antranik Kabajouzian of Bay Area Equity Group has been one of those people. When Antranik founded Bay Area Equity Group 4 years ago, many people were skittish to purchase one of the real estate investment properties his company offers investors. These days, people are flocking to company in an effort to make double digit returns on their investment. “Prices for homes in Detroit were low, but still held value. Through careful selection of certain properties, we saw an opportunity to create a model that would provide an excellent return on investor capital. We knew that it was only a matter of time before Detroit would return to prominence either through the recovery of the auto industry or by investment in the technology sector towards becoming the next Silicon Valley.”
This return to prominence has been quickened during recent months as the Democratic party utilizes Detroit as an example of everything President Barack Obama has done right in his efforts towards job creation. As the auto industry continues to rebound from the bailout, new businesses with an indirect relationship to the automotive industry have given Detroit the largest unemployment reduction among U.S. markets over the previous quarter according to the U.S. Bureau of Labor and Statistics. The Metropolitan unemployment rate has now dropped from 11.1% to 8.7% over the previous quarters’ unemployment rate, and recruitment efforts of new college graduates by the Detroit Three have more than doubled.
Not to place all of its eggs in one basket, Detroit has also been ramping up its technology sector. Recently Stik.com has decided to relocate from California’s Silicon Valley to join other prominent tech and creative companies in the M@dison Building in downtown Detroit. Companies such as Twitter, Detroit Venture Partners, Skidmore Studio, and Detroit Labs reside in the M@dison building as well, and are using the hub to create a central collaboration area for budding technology in Detroit.
The recovery of Detroit has been making significant strides, but the city still faces a number of real challenges as the effort continues. Some people, such as those at Bay Area Equity Group, are betting on Detroit succeeding. While the change will not take place over night, the signs of recovery are abundant. If Detroit does make the kind of comeback that the signs are pointing towards, investors who get in at the ground floor are sure to make healthy returns on their investments.