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Commercial building construction is about more than just the floors and walls. Your retail construction project deserves attention to every detail to ensure that you get exactly the store you want. Our excellent commercial contractors at Stovall Construction, Inc. have the skill and expertise necessary to deliver the very best.
Whether your dream is a cozy boutique, a massive warehouse store or anything in between, we can make it a reality.
Why Choose Us:
In the competitive world of retail sales, having a retail construction company that understands the business is key to developing a winning design. We can help you create a comfortable space where your customers can relax and shop longer, adding up to more sales for you and more dollars to your bottom line.
Quality workmanship on your retail building construction project also translates to better product flow. Before a customer even sets a foot through the door, products must make their way to the display areas. Smooth movement of inventory from storage spaces to retail shelves is planned during the design phase. Cutting down the amount of time your employees spend navigating the storage areas increases their availability on the sales floor. Our retail building construction experts understand these challenges and can help find the right design for your business.
When you choose our retail space construction company for your project, you are getting the very best. We are a family owned company that has been in the commercial building construction business for more than 40 years.
Our clients award us with their projects time after time, proving our excellent customer satisfaction rating is well earned.
In addition to taking care of our customers, we also take care of our employees. Unlike many of our retail space construction competitors, we have an employee safety program in place to take care of the workers on your job. We have many long-tenured staff members and subcontractors who appreciate the fact that we value them and their skills and their appreciation shows in the high quality of their work.
Let us help you on your next retail building construction project. Well provide the right designs, deliver the best quality workmanship, and do everything in our power to ensure your satisfaction.
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The cost of commercial construction projects fluctuates considerably depending on numerous factors. Below is a chart with rough estimates of the cost of various commercial construction projects in the Midwest. It does not attempt to account for the many factors that can cause such fluctuation. It simply provides a basic guideline. For information about the factors that can influence the cost of a building, see our blog post on need-based factors that can influence cost or contact ustothoughtfully compile a plan for your facility that incorporates these and other factors and receive a preliminary estimate regarding the cost of your prospective building.
Whether youre looking at a retail, office, medical or another type of commercial or industrial building, our team is ready to help you estimate the cost and timing of your project. Just have an idea about what you want to build but no concrete plans? Thats ok too. We work with customers from dream, to concept, to planning, to buildall the way through. Just usethe form below to request a free consultation. And lets talk.
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While youre hunting for the perfect location, dont let other preparations fall by the wayside. Make sure you select the right POS for your style of business. For large inventories, we suggest using Lightspeed. They make it easy to make sure you never run out of stock, and also let you build customer contact lists to quickly advertise your sales. Start a free trial today.
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Before you go out and scout potential locations for your business, you need to know what you can afford. This will help you narrow down your choices and prevent you from jumping on a place simply because it looks appealing. Remember, your lease amount will take big chunk out of your monthly budget so its important to stick to a figure youre comfortable with.
The maximum percentage a business should allocate to their lease payment differs depending on the industry. However, the range is typically 3 % to 10 % of gross monthly sales. Ideally, you should spend no more than 10% of your monthly gross sales on your lease payment.
Below are sample figures from property management company, Hartman, to give you an idea of how much different types of retail stores typically spend on rent.
In order to determine what percentage of your business profits will go to your lease payment, simply take the annual cost of rent and divide it by your gross annual income.
Here is a quick sample calculation:
Annual rent: $150,000.00
Gross Annual Income: $2 million
Equation: $150,000.00/ $2 million = 8%
This means that 8 cents of your profits go to rent for every $1 dollar your business earns.
Although this list will vary from city to city, here are some of the main factors that influence retail leasing costs:
Apart from the lease base rate, there are other one-off and recurring items you need to take into consideration and include in your budget such as:
Be conservative when setting your lease budget because youll need extra cash on hand to run your business day to day and pay for unexpected expenses. These experts agree:
Cedric Stewart, Residential & Commercial Sales Consultant, Entourage RG at Keller Williamssays:
Depending on your type of business,
Carrie Wood, Chief Marketing Officer, Leaseref.comagree:
Its easy to analyze the gross rent,
If you work with a broker, be sure to also factor in their fee. Commercial real estate brokers who lease retail space generally charge from 7 to 10% of the total lease costs. For example, if you sign a 3 year lease at $50,000 a year ($150,000 total), and your broker charges 10%, then the brokers fee would be $15,000.
It is also possible that the fees may be charged on a per square foot basis, generally $1-$5 dollars depending on the length of the lease. For instance, lets say you lease a 5000 square foot building with a 3 year lease term. Your broker fee would be around $15,000 (5000 sq. ft x $3).
To learn more about broker fees and whether you should use a broker, see our commercial real-estate article.
Different landlords offer different types of leases. The main differences between lease types are the kinds of costs each party will shoulder. Below are the types of leases you may come across, what they mean, and how they will impact your monthly lease budget.
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When you lease retail space, you dont want to pay for space that you wont need, but you also want to have enough space to accommodate business growth. Space needs will vary for each business, but here are some common areas for which you may need space:
Come up with a general calculation of how much space you need, within 250 or so square feet, and you will narrow down your property significantly.
Heres a basic formula for estimating the size of your sales floor based on sales goals:
Here are some more tips on how to determine ballpark figures of finding the average sales per square foot.
Check out our articles on Planning Your Store Layout and Store Displays How To Pick The Right Ones For Your Business for additional information concerning how to setup your space.
Now that you have your budget figured out, it is time to locate 4 to 5 quality options for renting retail space. You do not want to limit yourself to one right from the beginning. Instead, find 4 or 5 options that could work and then compare and contrast them to one another to determine the best fit. Having multiple options also gives you more leverage when you negotiate cost later.
Here are the best ways to locate property:
There is no substitute for local knowledge. That is why local brokers are still the top option for locating property for your retail needs. A local broker should have in-depth knowledge of your area, knowing exactly who lives in what sections of town and where the retail traffic is. Even better is if they have previous experience working with the landlord.
Several sites have free commercial real estate listings, such as Loopnet, Craigslist, and Catylist.
These sites usually include featured listings, lease prices, types of businesses that are allowed to operate in the space, property addresses, and agent contact information.
Property listing subscription services help you locate retail properties. The advantage of this is that it is much more than a location tool, also offering in-depth analysis of local markets, demographics, and other pertinent information. However, it will also cost you, around $300 $1000/month depending on the package selected.
Check out our reviews of real estate listing websites and see if its something youd like to consider when hunting for your retail space.
Now that you have 4 or 5 good options, it is time to narrow them down to the one that is best for you. Finding the right retail store for lease really comes down to three things: cost, size, and location. Once you know your budget and the approximate size you are looking for, it all comes down to location.
Heres a summary of the things you should consider when choosing a location:
Now that you have a space picked out, it is time to review and negotiate your lease. This can be a complicated process, especially considering all the legal terminology and lease-speak.
Use an attorney who is experienced in commercial lease agreements and commercial property transactions whenever possible. We recommend LawTrades, an online legal service provider that will match you with a dedicated attorney. You can sign up for a no commitment free trial here.
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In evaluating your lease, do an extensive review of what you can or what you cant do with the space youre leasing. Below are some items and clauses to watch out for before considering a space for your business:
If your business depends on foot traffic, then you may want to try and negotiate an exclusive use clause into the contract. An exclusive use clause prevents your landlord from renting space out to one of your competitors in the same building or shopping complex.
If you need to make alterations to the space, then you want to make sure it is clearly outlined in the lease what alterations you are allowed to make.
Some space improvements that the tenant has to take on can be counted towards rent, advises Kevin Godfrey, a realtor at Douglas Elliman. If you are replacing a toilet for $500, you can request for that amount to be deducted from next months rent. When a property is not in a good condition, ask for anything and everything you can think of. A broker wants to close the deal and will be more than happy to pitch to the landlord additional requests you may have.
If you want to post for sale signs, open/closed signs, or other signs in your storefront, then make sure that you understand what is and isnt allowed to be installed in the space.
Whenever possible, you want to have the ability to sublease your space. This offers some protection if you are no longer able to pay the rent, or if you have expanded to the point where you need to move into a larger space.
If your business depends on the foot traffic that another nearby business brings into an area, then you should consider adding a co-tenancy clause which allows you to break your lease if the anchor tenant leaves. This is especially important in shopping centers and malls which have one or two very large stores that are responsible for a large portion of the malls customers.
We have an in depth explanation of all the things to consider in a commercial lease in our article How To Lease Commercial Real Estate.
Here are some items you can negotiate on.
You can try to bring this down, especially if youre looking at renting the space long-term. However, if youre looking to stay for less than 3 years, you have less negotiating room here and should focus on your efforts in other areas.
Landlords will generally try and work into the lease an annual increase in rent based on the consumer price index or some other measure. These are also called escalations and should be fully understood before entering into any lease.
Utilities also take a chunk out of your profits, so try to see if this is something the landlord can include in the base rate. While they might not agree to include all, try to negotiate some items such as water and sewage.
Lease terms vary from state-to-state, but are often 1-5 years in duration. Long term lease terms can be daunting, especially if you are just starting out. The majority of lease agreements require a tenant to pay the rent whether their business survives or not, so it can help to be conservative and negotiate down your lease duration. However, do note that a shorter lease duration increases the lease base rate.
You dont know whats going to happen to your business, so try to see if you can include a clause that will allow you to get out of the lease prematurely under unexpected circumstances, such as damages within the space vicinity, loss of sales and bankruptcy, environmental contamination, etc.
Most commercial leases ask tenants to initially pay up to 3 months rent upfront. Try to negotiate this to one or two months to conserve cash flow.
Carrie Wood of Leaseref.com gives a final parting tip. Dont give the impression that you are so interested in the space even with your own broker. Negotiations are won by whomever cares the least. So always leave the impression that you could walk away from the deal.
The best thing to do is to give yourself some time to weigh and consider the options so that youll avoid making hasty decisions. After all, your retail space is the truest representation of your business. If you want to lease retail space for your business, youll need to do a lot of planning, but we hope that this step by step guide gave you a good idea on how to get started and ultimately, close a great and cost-efficient deal with a broker.
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Retail Space Definition | Bizfluent -
October 15, 2017 by
Mr HomeBuilder
by Laura Scott; Updated September 26, 2017
Retail space is the last stop in the manufacturing chain, the spot where merchants sell products to customers. Retail space differs from other commercial properties, such as industrial or office space, in that the emphasis is on product display and customer accommodation.
Merchants usually create or find retail spaces in single-standing buildings, in malls, and on the main streets of busy commercial districts. Airports, college campuses, subway stops, sports arenas, hospitals, train stations and other places that experience heavy foot traffic also have retail space.
Merchants either buy or lease retail space. A triple net lease, which requires merchants to pay for insurance, maintenance and taxes, in addition to rent, is a common arrangement in retail. Rent can be a fixed amount due each month, or a percentage of the retailer's receipts.
Roughly 70 percent of the space in a retail business is devoted to product display, with the remaining area used for office work and inventory. A well-lit spacious floor plan helps merchants present goods to customers. Easy access, nearby parking and proximity to other popular shops and restaurants benefit customers and are considered assets for retail space.
Laura Scott has been reporting for Gatehouse Media New England, Essex County Newspapers and other regional publishers since 1997. She won several New England Press Association awards for her coverage of the fishing industry and coastal communities. Scott is a graduate of Vassar College and has a master's degree in American studies from Boston College. She also attended art school in Italy.
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Retail Space Definition | Bizfluent
Even in its downtrodden days, the Rosemary District stood out for its unbeatable location, just a few blocks from downtown Sarasota and the bay. But not until 2014, when the city increased density for new projects in the neighborhood from 25 units to 75 units per acre, did development take off. More than 1,500 residential units are being developed, have been approved or are awaiting approval. A hotel, three apartment projects and 11 condominiums are rising, with some units priced at more than a million dollars. Restaurants, furniture stores and offices are cropping up, and the district was recently rated one of the 10 most walkable neighborhoods in Florida.
Click here to view a larger version of this map.
1A Lolita Tartine1419 Fifth St. Breakfast through dinner, casual French fare in a colorful industrial space; owners own two Cest La Vie restaurants.
1B Toasted Mango Caf430 N. Tamiami Trail. Cheerful, reasonably priced, breakfast and lunch.
1CBlue Apron Caf and Catering436 Central Ave. Small eatery, breakfast and lunch.
1D Mandeville Beer Garden428 N. Lemon Ave. A district hotspot offering 30 craft beers on tap or 150 beers by the bottle; packed Tuesday trivia nights.
1E Station 400400 N. Lemon Ave. A favorite breakfast and brunch spot in a restored train depot.
1F The Blue Rooster1525 Fourth St. Live blues and Southern fare.
1G The Rosemary411 N. Orange Ave. American bistro in Citrus Square open for breakfast, lunch and dinner.
2A Hotel Indigo Sarasota1223 Boulevard of the Arts. Four-story, 95-room boutique hotel.
2B The Sarasota Modern Hotel591 Cocoanut Ave. Under construction, an 89-room luxury hotel, includes 151-seat restaurant; open early 2018.
2C Cambria Hotel and SuitesFruitville Road between Central and Cocoanut. Five-story, 118-room hotel; construction has not started.
3A Rosemary Court Wellness Center810 Central Ave. A small complex of four 1920s homes; includes popular Rosemary Court Yoga.
3B Planned Parenthood of Southwest and Central Florida736 Central Ave. Headquarters of the 22-county Planned Parenthood affiliate.
3C The Salvation Army Sarasota1400 10th St. Food, shelter and social services for the needy.
3D Home Resource741 Central Ave. Contemporary furniture store in a renovated garage.
3E The Sarasota Collection Home Store622 Central Ave. Eclectic furniture store of four big showrooms.
3F Canned Ham Vintage1435 Seventh St. Small shop jammed with vintage clothing, jewelry and home goods.
3G Architectural Revival421 Central Ave. Repurposed furnishings and custom furniture design.
3H Blue Line Inc.301 Central Ave. Longtime downtown art and office supply store.
4A BOTA Center1570 Boulevard of the Arts. Meticulous renovation of the old Babcock Furniture Store into a center for creatives and their businesses, anticipated completion fall 2017.
4B CitySide Apartments700 Cocoanut Ave. Four-story, 228-unit apartment complex ushered in Sarasotas apartment building boom; a second phase of 261 apartments is planned.
4C Valencia at Rosemary Place601 Cocoanut Ave. About 30 townhomes under construction, starting in the mid-$500,000s, anticipated completion 2017.
4D Rosemary Square1440 Boulevard of the Arts. Three-building campus includes a condominium of 30 residences (all sold to the Sarasota Opera for artists) with retail and office on the ground floor; a building with studio space for The Players and Sarasota Contemporary Dance; and a building with two restaurants; anticipated completion January 2018.
4E Elan Rosemary Apartments710 N. Lemon Ave. Four-story, 286-apartment project, anticipated completion December 2018.
4F The Courtyard at Citrus461 N. Orange Ave. Phase II and III of European-style three-story condo/retail project will include 28 condos priced between $395,000 to $455,000 and commercial space, anticipated completion 2017/2018.
4G Risdon on Fifth1350 Fifth St. 22 modern-style condos priced between $389,000 to $949,000; ground-level commercial space; anticipated completion fall 2017.
4H The Risdon1374 Fifth Way. 11 modern-styled luxury condos, $600,000 to $1.5 million, construction to start in spring 2018.
4I Fifth and Central435 Central Ave. Another Risdon Group project, three-story building with 3,000 square feet of ground-level retail with two stories of six condos, $500,000 to $850,000, ready for occupancy fall2017.
4J Vanguard Lofts1343 Fourth St. Six modern townhomes, $550,000 to $900,000; anticipated completion fall 2017.
4K 1515 Fruitville1515 Fruitville Road. Upscale, modern 15,000-square-foot retail center under construction.
4L Urban Flats1401 Fruitville Road. Five-story, 228-unit apartment complex under construction, rents averaging $1,700 a month; anticipated completion fall 2017.
4M Kretzmer Artist Residence751 Cohen Way. Five town-homes with 20 bedrooms for visiting Florida Studio Theatre artists and young theater professionals; anticipated completion October 2017.
4N DRAPAC1359 Fourth St. Modern-style condo of 62 units with 2,820 square feet of commercial space; construction has not started.
4O Zahrada1542 Fourth St. Six luxury townhomes, above $1.3 million-plus to start; 5,150 square feet of commercial space; construction has not started.
4P BLVD Sarasota540 N. Tamiami Trail. 49-unit condominium, $1.6 million-plus units, includes a 7,250-square-foot restaurant space; anticipated completion, summer/fall 2019.
5A Sarasota School of Arts and Sciences645 Central Ave. A-rated public charter middle school.
5B Sarasota Military Academy801 N. Orange Ave. High school campus of the C-rated public charter school.
5C The Players Theatre838 N. Tamiami Trail. The city of Sarasota is considering buying the 2-acre site of the longtime community theater, which is moving to Lakewood Ranch
5D Rosemary Cemetery851 Central Ave. Historic-designated cemetery with graves dating back to 1887.
5F Rosemary District Indie Market701 Cohen Way. Artists, craftspeople and farmers gather at this corner parking lot every third Saturday in season.
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Your Guide to the Rosemary District - Sarasota
Midtown 6 developers nab $110M construction loan
Developers paid $28M for the 2.14-acre development site
ByKatherine Kallergis | August 28, 2017 12:15PM
Jim Losik and a rendering of Midtown 6
The developers of Midtown 6, a luxury rental tower planned for Midtown Miami, just closed on a $110.3 million construction loan, according to HFF.
Magellan Development Group,J.P. Morgan Asset Management and Alex Vadia secured the financing from PNC and BMO Harris Bank. PNC is the lead lender. HFFsScott Wadler and Elliott Throne arranged the loan, Wadler told The Real Deal.
Last week, Vadia sold the 2.14-acre development site at 3101 Northeast First Avenue for $28 million to a partnership that included him and Magellan. As planned, Midtown 6 will have 447 luxury apartments and 40,500 square feet of retail space.
Magellan, a Chicago-based residential developer, received approvals earlier this year for Midtown 6 and 7, the latter of which will be another 32-story tower with 838 units. The buildings, designed byChicago-based bKL Architecture, will share a common courtyard and pedestrian plaza. Midtown 6 will also have nearly 74,000 square feet of amenities, including a pool and spa, fitness areas, game room, lounge, office, kitchen and bars, and fireplaces.
Earlier this year, Magellan and Midtown Development opened Midtown Five, a 24-story tower with 400 units, 52,000 square feet of amenity space, along with ground floor retail. According to an apartment guide, rental rates at Midtown Five range from $1,544 a month for a studio to $5,323 a month for a three-bedroom apartment.
Magellan financed Midtown Five, which opened in January, with an$80 million construction loan.
Vadias Midtown Opportunities began acquiring land in Midtown Miami back in 2010, amassing 22 acres of developable land. The company still owns the 2-acre development site of Midtown 8, where Wood Partners plans to build a28-story, 387-unit at2951 Northeast First Avenue.
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Midtown 6 developers nab $110M construction loan - The Real Deal Magazine
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The $13.5 million Dillard project is scheduled to break ground in October and be completed in spring 2019, Deb Wendel-Daub, a Kilbourne project manager, said Wednesday, Aug. 23.
The construction site is now a parking lot owned by the Dillard family but had once been home to row houses and a lumberyard, according to Kilbourne. Like many parking lots, it's not appealing to pedestrians and the new building is intended to change that.
The Renaissance Zone Authority on Wednesday recommended tax exemptions for the project worth $967,000 over five years. After the incentives expire, Kilbourne estimates it would pay $202,000 a year in property taxes. The parking lot now pays $2,400 a year. Because the area is also part of a tax-increment financing district paying for a city-owned parking ramp that the developer finished in June, the taxes would go towards the ramp.
Plans call for a 94,000-square-foot, six-story building with 84 apartment units and 13,000 square feet of ground-level retail space. Conceptually, it will be a lot like Roberts Commons with studio and one-bedroom units and retail space facing an alley.
But, unlike Roberts Commons, which faces the publicly owned Roberts Alley, the Dillard project will also face a privately-owned alley south of the neighboring Herald Square building, according to Wendel-Daub. That allows Kilbourne to add features such as canopies or landscaping.
The mix of market-rate apartments include 24 alcove units, a kind of studio with a small sleeping space that can be blocked off by a sliding door; 39 one-bedroom units; 16 two-bedroom units; and five three-bedroom units.
Wendel-Daub said Kilbourne did consider providing affordable housing but the cost of the land and of cleaning contaminated soil made that unfeasible. She said the cost of rents are still under discussion.
Of the retail space, 8,000 square feet will face Roberts Street and could be divided into four separate stores, she said. The remaining 5,000 square feet will face the alleys and could be divided into three stores, she said.
Kilbourne already has interest from two potential tenants, one facing Roberts and one facing an alley, she said.
The Dillard project is actually one phase of a larger project Kilbourne announced in January 2016, when it entered a city competition to develop two city-owned parking lots to the south.
One of those lots now include the adjacent 455-stall parking ramp and the Roberts Commons building under construction around the ramp. The second city lot to the south across Second Avenue North would also be developed into the Kessler Block mixed-use building.
Kilbourne spokeswoman Adrienne Olson said the Kessler Block, which originally was scheduled for construction before the Dillard project, won't be built for a few years because it's needed as a staging area for work on Roberts Commons and the adjacent Black Building, which Kilbourne also owns.
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New building with apartments, retail space planned in downtown ... - INFORUM
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The project will take just over two years to complete.
Dallas designer Emily Summers is doing the interiors for the residential units. And HKS architect Eddie Abeyta designed the sleek metal and glass tower.
"The purpose of a model is to engage the client you don't know," Summers said. "You try to focus on the views. What we try to do for them is offer great options."
The mock up apartment located at Hall's KPMG Plaza tower overlooks the construction site. It includes living and dining areas, a model kitchen and bathroom.
"This is probably one of the most premier sites in the entire country," Abeyta said. "This is a special place for people to actually live here and be part of the heart and soul of the Arts District.
"The architecture is trying to be very simple and sophisticated," he said. "It's not trying to compete and overwhelm what already exists."
Along with the condo tower, the construction includes a 183-room hotel that will front on Ross Avenue.
The condo tower will include restaurant and retail space on the ground floor along Flora.
"Three of the homes have their own swimming pool," said Hall, including the 2-story unit he's taking on the sixth floor.
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Check out the new Hall Arts Residences luxury condo unit in Dallas' Arts District - Dallas News
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Signs are pointing toward an upcoming renovation of the long-vacant Loyal Order of the Moose Lodge building at 2115 Cass Ave. in downtown Detroit.
A document that the Ilitch family's Olympia Development of Michigan filed with the Michigan Department of Environmental Quality last week shows some asbestos cleanup is scheduled to take place over a few days next week, with Detroit-based Qualified Abatement Services Inc. as the contractor.
In addition, there has been parking lot work around the building at Cass Avenue and Elizabeth Street across from Bookie's Bar and Grill recently, as well as some painting done on plywood on window coverings.
Seems to me that historic renovation is in the works. But Olympia is remaining mum to me about any details of a renovation.
I asked Ed Saenz, director of communications for the Detroit-based company, for information Thursday about what's in store for the property, but he only said Olympia has "not announced future plans yet."
The DEQ document lists Detroit-based Olympia as the owner and says the building is 30,000 square feet (although Washington, D.C.-based real estate information service CoStar Group Inc. says it's about 45,000 square feet).
Olympia is spearheading the 45- to 50-block District Detroit project anchored by Little Caesars Arena for the Detroit Red Wings and Detroit Pistons that is set to open next month.
In May, the company announced plans to renovate four other long-vacant buildings around the arena for residential use:
Historic Detroit, which tracks the city's buildings and architecture history, says the Moose Lodge building opened in 1922 and was designed by Baxter, O'Dell & Halpin. Curbed Detroit reported on some minor repair work taking place there in 2013.
There were plans as far back as 1994 to turn the vacant building into a nightclub, Crain's reported at the time.
Olympia paid $1.5 million for it in February 2007, according to city records.
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Is long-vacant Moose Lodge building inching toward renovation? - Crain's Detroit Business (blog)
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Retail Space Construction | Comments Off on High-profile parcel in Plano’s Legacy Business Park getting high-rise office, hotel – Dallas Business Journal
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