Special offer

Marketing Makeover: The Suburban Detroit Loft Market

By
Real Estate Agent with Coldwell Banker Weir Manuel

Marketing works.  Right now the hot commodity in Detroit’s hippest suburbs (I know that sounds like an oxymoron, stop laughing!) is the loft.  But suburban Detroit is not Soho, and our trendy suburbs do not have warehouse districts with artists squatting in abandoned buildings and gentrifying them.

For the most part, our “lofts” are new construction condominiums with the obligatory exposed brick wall and unfinished ceiling.  Other industrial decorating touches help to create the coveted loft mystique.  It’s really pure marketing genius.  Just don’t tell the super excited new owners that they’ve just paid an extra $50k for something everyone else knows is just an overpriced condo, ok? 

Kristal Kraft
Novella Real Estate - Denver, CO
Selling Metro Denver Real Estate - 303-589-2022

In Denver we call the new construction lofts, "soft lofts".  Conversely the old, antique renovated buildings are the "hard lofts".

Soft loft somehow sounds better than "overpriced condo," don't you agree?

Kristal Kraft ~ Denver, Colorado

Aug 24, 2006 01:31 AM
Maureen Francis
Coldwell Banker Weir Manuel - Bloomfield Hills, MI
Coldwell Banker Weir Manuel
Yeah, I was harsh.  And I do like our lofts!
Aug 24, 2006 01:48 AM
Sara Lipnitz
Max Broock Realtors - Birmingham, MI

No Maureen, you were not harsh.  That is maybe the best observation I've heard in a long long time.  On Sunday I was holding open a "regular" condo.  I had a couple in that was also considering a "soft loft"... thank you Kristal!  We spent some time talking about value and I think that they got it.  Lofts are cool, lofts are trendy.  BUT BOY OH BOY are the prices bloated!

Did you know that the "brick walls" in these lofts are peel & stick brick.  What a scam... they're not even real! 

Aug 24, 2006 02:00 AM
Kristal Kraft
Novella Real Estate - Denver, CO
Selling Metro Denver Real Estate - 303-589-2022

Maybe sarcastic, but not harsh!  :)

Aug 24, 2006 02:24 AM
Maureen Francis
Coldwell Banker Weir Manuel - Bloomfield Hills, MI
Coldwell Banker Weir Manuel
Kristal, any difference on Soft loft values vs hard lofts?  How about soft lofts vs other new construction condos?  Are buyers paying a premium for soft lofts in your market too?
Aug 24, 2006 02:46 AM
Kristal Kraft
Novella Real Estate - Denver, CO
Selling Metro Denver Real Estate - 303-589-2022

Our loft market is crazy.  I believe there is a stronger value given to the hard lofts, only because they are limited, we aren't making them anymore. 

The soft loft market is as all markets, it depends on the location and quality of the complex.

Right now in my area we are in the finishing stages of "light rail".  Urban villages along the rail line have popped up, with nice soft lofts and high prices.  Whether the values hold remains to be seen.

Aug 24, 2006 03:01 AM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

Maureen, If only artists could afford Soho anymore. The artists have discovered Brooklyn.

A couple of weeks ago I was showing a $4million 1 Bedroom in a new condo. It was classified as a loft in the west village. Concrete ceiling and floor to ceiling windows. We are calling it "raw space" in "Designer buildings". The selling point is you can look into Nicole Kidman's apartment.

When we got downtairs onto the street, my buyer from the suburbs was complaining a homeless person was watching her Range Rover. I said  OH  "The grit and glamor that NewYorkers love about downtown".

 

Aug 24, 2006 03:02 AM
Maureen Francis
Coldwell Banker Weir Manuel - Bloomfield Hills, MI
Coldwell Banker Weir Manuel

Kristal, we have a light rail thing going on here too.  Mixed use buildings.  Live/work.  One of the complexes seems to be having trouble selling out.  Not sure about the other.

Mitchell, I don't think I've been to NYC in about 15 years. My perception is that selling housing in Manhattan would be super challenging.    No MLS, right?

Aug 24, 2006 07:44 AM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

Maureen. It is challenging to say the least.  There is an MLS but it only has about 25% of the listings. Most firms belong to REBNY, it's a real estate board, we share listings and have rules but there is no central database. Different companies use different systems for data.

 Most brokers think the "MLS" is The New York Times online.

Aug 24, 2006 08:30 AM