Home / Business and Economy / Pandemic Upends Office Market, Reshaping Michigan's Brownfield Incentives
Pandemic Upends Office Market, Reshaping Michigan's Brownfield Incentives
24 Aug
Summary
- Free Press sues Michigan Treasury for Bedrock subsidy data
- COVID-19 caused 1.1 billion sq ft of empty office space nationwide
- Michigan overhauled brownfield program to focus on "live-play" communities
In August 2025, the Free Press, along with the Mackinac Center for Public Policy, is engaged in a legal dispute with the Michigan Department of Treasury over the release of reports that would identify the businesses and number of new employees at real estate developer Bedrock's downtown projects benefitting from a major taxpayer subsidy. The Free Press is seeking this information to understand job growth at Bedrock's sites, including the Hudson's building, the Book Tower, and One Campus Martius.
However, the article explains that the underlying premise behind the Free Press' inquiry - that the new office space delivered by Bedrock has not yet attracted new office users and jobs - is misguided. The COVID-19 pandemic has had a significant impact on the nation's office market, with a staggering 1.1 billion square feet of empty office space across the country. Metro Detroit has not been immune, with negative "net absorption" of 370,000 square feet of office space in the most recent quarter.
In response to this seismic shift, the Michigan legislature has radically overhauled the state's brownfield program. While the program was initially focused on creating new office jobs when first enacted in 2017, the 2023 reforms have updated the focus to building vibrant "live-play" communities. The lawmakers recognized that downtowns and town centers can no longer be one-dimensional business districts, and the key to Michigan's success now lies in creating thriving residential, shopping, dining, and entertainment districts to attract and retain talent, drive tourism, and grow the state.
