Photo: Mandi Wright ~ USA TODAY NETWORK
DETROIT, June 2, 2025 ~ Metro Detroit office building owners are struggling to make payments on loans as the value of these buildings plummets.
A new report from Crain’s Detroit Business found that fewer office workers are working from home since the COVID-19 pandemic began, bringing down the value of these buildings. “We took a look at some of the office buildings around town that are the most underwater, among them the Bank of America building in Troy, which is sort of a distinctive pyramid-looking building. It’s worth 71% less than it sold for just seven years ago (when) it sold for $75 million,” Crain’s editor Mike Lee told WJR. “It’s now appraised at $25 million. That’s a result of companies not looking for huge floor plans for their offices because they have workers working hybrid and remotely still, so it’s just changed the economics of these big buildings.“
PODCAST:
June 2, 2025 ~ Crain’s Detroit Business Managing Editor Mike Lee talks with Chris Renwick and Jamie Edmonds about Mayor Mike Duggan‘s proposed plan to improve Michigan schools, a Nomad hotel planning to take up the top five floors of Michigan Central Station, a Grand Rapids distillery’s peculiar new gin flavor, and more.
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