Home News Penobscot Building ownership adds updates, markets to new tenants after years of problems

Penobscot Building ownership adds updates, markets to new tenants after years of problems

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Has the Penobscot Building finally, finally, taken a step in the right direction?

Or maybe its ownership — an outcast among the cadres of downtown office landlords who have been steadily renovating and filling buildings over the past decade or more — did what it needed to do after being forced by the city. We are just trying to bend that approach. Little by little, to the adult dining table?

In fact, the answer to both of these questions may be yes.

First, the Toronto family that owns Penobscot has hired the company to lease it to tenants for the first time in years. That’s important because the occupancy rate is just 35%, according to data from his CoStar Group Inc., a Washington, D.C.-based real estate information service.

Perhaps that metric is just one sign that handling that critical task in-house has gone awry, with little to no results since 2018. But clearly, there’s more to the numbers than that.

And if you peruse the 56-page marketing brochure produced by the new Southfield-based brokerage PA Commercial, you’ve never seen such a packet before. There are also some pockets of local friendliness to the LGBTQ+ community.

It’s really encouraging to see this and I hope more brokerages and landlords see what they are for.Probably important to many employers looking to locate here Not just any problem, but of course their employees and the community as a whole.

Terence Edmondson, a longtime Detroit office broker and senior partner at Exclusive Realty LLC, said:

It’s a deliberate play to promote these two things, says Matt Shiffman, the new CEO and managing member of PA Commercials, who goes public with colleague Mike Gunn.

Shiffman said the property’s owner, the Apostolopoulos family, Triple Property, approved the material and agreed to include a page that brings those issues to the forefront.

Triple Properties did not immediately respond to a request for comment on Tuesday afternoon.

Perhaps a sign of positive thinking from a company that has kept Penobscot in the dark ages for years.

“We felt the need to really highlight what Detroit is now to people outside the city, many businesses out of state, and even the international public,” Shiffman said. We thought it was important to highlight the diversity of Detroit, and everyone has their own image of Detroit, and we thought it was important to highlight that.”

This brings us to the bitter pill.

The image of Detroit outside the region is one, but it’s hard to imagine A more challenging office space climate, More Difficult Downtown Detroit Properties When more difficult recent past.

you can’t really show off Over 10 years of mismanagement Iconic complex comprising the original 13-story building, a 22-story annex and a 47-story skyscraper, the tallest building in the city for half a century before it was taken from its crown It was eye-catching. The 727-foot Marriott Hotel at the Renaissance Center.

We’re talking about an array of maintenance failures, from nonfunctioning toilets that accumulate human waste to people trapped in elevators hundreds of feet above the ground. Other debris and waste piled up and during the recent winter people were shivering in the cold with no heating.

But Shiffman says steps have been taken to bring the property into the 21st century. He said the owner has spent $6 million from his $5.5 million on improvements over the past two years.

Nine of the facility’s 26 elevators have been “modernized,” according to Shiffman, with new safety controls and new cabling and other infrastructure. The drain pump has been upgraded to prevent flooding as has been a problem in the past. A new system has been put in place to deal with toilet problems. Heating and air conditioning have improved with steam system upgrades, new valves, pressure controls, and more, Shiffman said.

According to the city, Triple Properties has so far paid $48,515 in sick ticket fees, with an outstanding balance of $4,475, and Triple has “responded” to addressing the matter. A letter will be issued.

In any case, serious efforts are needed on the part of Triple Properties and PA Commercial to overcome years of poor management and horror stories from office tenants.

And while Triple may have hired a team of professional brokers to lure new users into the building, it doesn’t hire an outside management company to run it. With some brokers I’ve spoken to, it’s not lost.

Or, apparently, on the building’s website, which seems to indicate that Triple Properties knows they have a lot to do. “We are constantly working to raise the bar of our service.”

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