Detroit Experiencing a Building Boom in Multiple Market Sectors | Columbus Ohio Dump Trucks

Scott Catallo
Principal
NORR

It’s an exciting time for the AEC industry in Detroit, where many transformative projects are taking shape and nearing completion, signifying momentum that was lost during the COVID-19 pandemic, says Catallo.

One of the most prominent projects is a 1.5-million-sq-ft mixed-use redevelopment in downtown Detroit featuring residential, hotel, office and event/retail space on the site of the former J.L. Hudson flagship department store.

In April 2024, General Motors announced it will relocate its global headquarters from the Renaissance Center to the Hudson site, occupying 400,000 sq ft and becoming the anchor tenant of the office portion of the property.

“At the same time, design studies are underway to reimagine the Renaissance Center to better serve Detroit’s evolving needs,” Catallo notes.

Another area being revitalized is the Detroit riverfront, where Catallo says the iconic Dodge Fountain has been restored and the Ralph C. Wilson Jr. Centennial Park, a 22-acre green space, has been renovated and was scheduled to open in October.

“Projects such as the Hudson site and the riverfront transformation are creating destinations that attract residents, businesses and visitors alike, fueling economic growth and elevating the city’s global profile,” Catallo says.

Energy is also evident in the Corktown neighborhood, where plans are advancing for Alumni Field, a 15,000-seat soccer-specific stadium for Detroit City FC that would be accompanied by a mixed-use development slated for the site of the long-shuttered Southwest Detroit Hospital.

In the health care arena, Henry Ford Hospital is constructing a 20-story tower expansion that will feature private rooms, 400 beds and 28 operating rooms, representing an estimated $2.2-billion investment.

“Investments in health care and education demonstrate a commitment to improving quality of life for Detroiters, while mixed-use projects in neighborhoods like Corktown reflect a shift toward more sustainable, community-centered urban design,” Catallo says.

Catallo believes growth will continue in downtown Detroit as its stock of existing buildings to be renovated dwindles.

“The industry will pivot toward developing expansion projects and new ground-up developments,” he says. “Over the next 12 to 18 months, we will not only see new building construction but also new methods of delivery—faster, smarter and more sustainable.”

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While Detroit’s prospects look good, Catallo says the city’s AEC firms are facing many of the same challenges being seen across the country—rising costs, modest impacts from tariffs and a tightening labor pool.

“Labor shortages remain one of the most pressing concerns locally,” he says. “The demand for skilled trades and design professionals continues to outpace the available workforce, creating ripple effects on project schedules, delivery methods and, ultimately, client expectations.”

Catallo says NORR’s approach is to view these challenges as opportunities to innovate.

“By leveraging tools such as artificial intelligence and the latest BIM technologies, we can better communicate, streamline project delivery, reduce costly change orders and collaborate earlier with our partners to keep costs under control,” he says.

“Just as importantly, we are investing in the next generation of Detroit’s design talent to strengthen the pipeline of professionals who will carry this columbus oh dump truck work forward,” he adds.

Overall, Catallo says 2025 has been a strong year for the AEC market in Detroit. He believes that momentum will continue in 2026.

“While single-family housing permits within the city remain limited, multifamily, health care and public projects are driving much of the current activity—signaling a broader shift toward denser, community-oriented investment in Detroit’s urban core,” he says.

He adds that an upcoming mayoral transition, following the Nov. 4 election, will be one of the most significant factors shaping Detroit’s immediate future.

“Mayor Mike Duggan successfully led the city out of the largest municipal bankruptcy in U.S. history and guided it through a global pandemic,” Catallo says. “With his term ending, the question is whether the new administration will continue building on this momentum or chart a different course. For those of us who have invested decades in serving Detroit through architecture and planning, this moment is both a challenge and an opportunity to see how leadership will shape the city’s next chapter.”

Annemarie Mannion is editor of ENR Midwest, which covers 11 states. She joined ENR in 2022 and reports from Chicago.