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Rent assailed by Detroit, Wayne County BY DAVID ASHENFELTER FREE PRESS STAFF WRITER February 27, 2002.

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Presentation on theme: "Rent assailed by Detroit, Wayne County BY DAVID ASHENFELTER FREE PRESS STAFF WRITER February 27, 2002."— Presentation transcript:

1 Rent assailed by Detroit, Wayne County BY DAVID ASHENFELTER FREE PRESS STAFF WRITER February 27, 2002

2 Rent at Coleman A. Young Municipal Center Detroit and Wayne County officials are upset about the high rent they're paying for office space at the Coleman A. Young Municipal Center. Last year, the city and county paid $21.65 per square foot -- double what the county paid to lease the Wayne County Building and three times the average that other tenants are paying for several other Detroit office buildings. The figures are based on a study conducted by the Farbman Group Inc. of Southfield, which manages several office buildings in southeast Michigan.

3 Farbman Study The Farbman study, completed last month, said it cost the city and county $21.65 per square foot for rent last year, compared with $10.40 for the Wayne County Building. The average rent for nine Detroit office buildings, including the Wayne County Building, was $7.06 per square foot, the report said.

4 Building Authority Response William Polakowski, the authority's general manager, questioned the study, saying it significantly understates the leases charged by other office buildings. He also said it doesn't take into account the more than $1 million the authority rebated to the city and county in 1999 and 2000, resulting in lower lease rates each year, of $16.74 and $17.44 per square foot. Polakowski said it costs more to operate the municipal center because more people use it than other downtown office buildings.

5 Excess Rent? City is Paying$21.65 per square foot at the Young Center City is Paying$10.40 per square foot at the Wayne County Building Average Rent for 9 Detroit Office Bldgs $7.06 per square foot The study questioned the need for 54 full-time building attendants – double what would be expected at other office buildings. It also questioned the need for all of the supervisors, electricians, carpenters, window cleaners, painters and others.


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