2019 marked another year of positive growth for the Detroit office market. Vacancies fell 1.6 percent year-over-year, while rent growth flattened. In the fourth quarter, London-based WPP grabbed headlines with its announcement to lease nine floors of the vacant Marquette Building at 243 W. Congress Street, investing over $19.2 million and adding 1,000 jobs downtown.

1. © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q4 2019
Detroit
Office Insight
2019 marked another year of positive growth for the Detroit office market.
Vacancies fell 1.6 percent year-over-year, as over 684,000 square feet was
absorbed. In the fourth quarter, Strategic Staffing Solutions signed a 57,400-
square-foot lease at the Fisher Building, moving its headquarters from the
Penobscot Building in the CBD. Coworking continues to grow in the Detroit
market, with three operators taking space in the fourth quarter. Venture X
signed a 22,000-square-foot lease downtown at 220 W Congress; Spaces
signed a lease for 47,000 square feet at the Women’s City Club Building and
Sevenco took 21,000 square feet at 888 Big Beaver in Troy. Boston Consulting
Group leased 30,000 square feet at Olympia’s new $70.0 million office
development at 2715 Woodward, joining Warner Norcross & Judd and the
DMC Sports Medicine Institute.
London-based WPP grabbed headlines with its announcement to lease nine
floors of the vacant Marquette Building at 243 W. Congress Street, investing
over $19.2 million and adding 1,000 jobs downtown. The Marquette Building
had previously been planned for auto supplier Adient’s new headquarters, but
the plan was scrapped in June of 2018. Kelly Services plans to sell its Troy
headquarters and lease back a portion of the space, consolidating employees
at 295 Kirts Boulevard.
Outlook
In 2020, we expect the current market conditions to continue course. Detroit’s
CBD remains very tight outside of the Renaissance Center and rent growth
market-wide appears to have leveled off, with a spike likely not occurring until
there is an influx of new inventory. The market will be keeping a close eye on
Bedrock’s two office developments – the Hudson’s Site and Monroe Blocks –
as the size and scope of both projects continues to change. A large anchor
tenant will likely be needed for either project to move forward.
Fundamentals Forecast
YTD net absorption 684,259 s.f. ▲
Under construction 1,838,000 s.f. ▲
Total vacancy 18.6 % ▼
Average asking rent (gross) $19.80 p.s.f. ▲
Concessions Falling ▼
-500,000
0
500,000
1,000,000
2016 2017 2018 YTD
Supply and demand (s.f.) Net absorption
Deliveries
More good news for Detroit’s CBD as WPP announces
plans to occupy Marquette Building
21.0%
19.8%
20.2%
18.6%
2016 2017 2018 YTD
Total vacancy
$0.00
$10.00
$20.00
$30.00
2016 2017 2018 YTD
Average asking rents ($/s.f.) Class A
Class B
For more information, contact: Harrison West | harrison.west@am.jll.com
• WPP will lease 9 floors of the vacant Marquette Building, investing over
$19.2 million and adding 1,000 jobs in the CBD.
• Total vacancy sits at 18.6 percent market-wide, down 1.6 percent year-
over-year, while rent growth is flat over the same time period.
• Coworking operators signed leases in both the CBD and the suburbs,
bringing three new locations to the market.

2. © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q4 2019
Office Statistics
Detroit
For more information, contact: Harrison West | harrison.west@am.jll.com
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption (%
of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ p.s.f.)
YTD
Completions
(s.f.)
Under
Development
(s.f.)
Birmingham/Bloomfield Totals 3,900,532 -30,154 72,816 1.9% 15.4% 15.4% $26.47 0 48,000
Dearborn Totals 2,855,625 -68,986 127,003 4.4% 23.8% 24.0% $17.38 0 0
Downriver Totals 483,907 -497 125,936 26.0% 12.3% 12.3% $15.22 0 0
Farmington/Farmington Hills Totals 4,658,516 -81,576 149,037 3.2% 15.0% 15.2% $18.66 0 0
Macomb Totals 1,309,591 -5,277 -35,158 -2.7% 11.4% 14.7% $15.39 0 0
North Oakland Totals 2,267,648 12,489 113,353 5.0% 10.7% 11.5% $17.98 0 0
Northern I-275 Corridor Totals 4,466,691 721 -149,094 -3.3% 13.3% 14.1% $19.83 0 0
Royal Oak / SE Oakland Totals 837,998 4,285 78,810 9.4% 2.4% 2.4% $16.20 55,000 140,000
Southern I-275 Corridor Totals 1,077,525 25,780 112,144 10.4% 1.4% 17.0% $17.50 0 0
Southfield Totals 12,978,505 -92,577 -299,268 -2.3% 28.5% 31.2% $18.11 0 0
Troy Totals 11,022,945 -34,866 130,889 1.2% 20.3% 22.4% $19.38 0 0
Washtenaw Totals 6,661,211 -39,245 -40,793 -0.6% 5.9% 9.6% $24.27 30,000 0
Suburbs Totals 52,520,694 -309,903 385,675 0.7% 17.9% 20.0% $19.38 85,000 188,000
CBD Totals 13,436,359 16,147 161,055 1.2% 12.9% 13.9% $22.33 0 1,650,000
New Center Totals 1,486,775 58,599 137,529 9.3% 11.8% 11.8% $22.12 0 0
Urban Totals 14,923,134 74,746 298,584 2.0% 12.7% 13.7% $22.29 0 1,650,000
Detroit Totals 67,443,828 -235,157 684,259 1.0% 16.8% 18.6% $19.80 85,000 1,838,000
Birmingham/Bloomfield A 1,519,953 10,513 39,833 2.6% 23.3% 23.3% $27.32 0 48,000
Dearborn A 596,890 0 150,000 25.1% 0.8% 0.8% $25.00 0 0
Farmington/Farmington Hills A 618,109 0 32,014 5.2% 2.9% 2.9% $22.50 0 0
Macomb A 295,494 0 -893 -0.3% 0.9% 4.0% $19.95 0 0
North Oakland A 548,665 15,996 33,336 6.1% 9.1% 9.1% $21.23 0 0
Northern I-275 Corridor A 1,187,841 -7,978 2,905 0.2% 10.0% 10.0% $19.67 0 0
Royal Oak / SE Oakland A 131,288 0 52,955 40.3% 1.6% 1.6% NA 55,000 140,000
Southern I-275 Corridor A 832,753 25,780 133,005 16.0% 0.0% 19.4% NA 0 0
Southfield A 5,305,216 -13,514 -99,392 -1.9% 26.8% 30.8% $20.18 0 0
Troy A 3,178,994 4,392 -37,187 -1.2% 18.1% 23.9% $21.56 0 0
Washtenaw A 3,278,983 -18,809 -97,447 -3.0% 4.3% 11.8% $29.08 30,000 0
Suburbs A 17,494,186 16,380 209,129 1.2% 15.4% 20.0% $22.05 85,000 188,000
CBD A 6,313,864 10,616 51,608 0.8% 8.6% 10.3% $25.50 0 1,650,000
Urban A 6,313,864 10,616 51,608 0.8% 8.6% 10.3% $25.50 0 1,650,000
Detroit A 23,808,050 26,996 260,737 1.1% 13.6% 17.4% $22.56 85,000 1,838,000
Birmingham/Bloomfield B 2,380,579 -40,667 32,983 1.4% 10.4% 10.4% $25.47 0 0
Dearborn B 2,258,735 -68,986 -22,997 -1.0% 29.9% 30.1% $17.32 0 0
Downriver B 483,907 -497 125,936 26.0% 12.3% 12.3% $15.22 0 0
Farmington/Farmington Hills B 4,040,407 -81,576 117,023 2.9% 16.9% 17.0% $18.54 0 0
Macomb B 1,014,097 -5,277 -34,265 -3.4% 14.5% 17.9% $15.32 0 0
North Oakland B 1,718,983 -3,507 80,017 4.7% 11.3% 12.3% $17.17 0 0
Northern I-275 Corridor B 3,278,850 8,699 -151,999 -4.6% 14.5% 15.6% $19.87 0 0
Royal Oak / SE Oakland B 706,710 4,285 25,855 3.7% 2.6% 2.6% $16.20 0 0
Southern I-275 Corridor B 244,772 0 -20,861 -8.5% 6.2% 8.5% $17.50 0 0
Southfield B 7,673,289 -79,063 -199,876 -2.6% 29.7% 31.5% $16.78 0 0
Troy B 7,843,951 -39,258 168,076 2.1% 21.2% 21.8% $18.49 0 0
Washtenaw B 3,382,228 -20,436 56,654 1.7% 7.4% 7.4% $21.63 0 0
Suburbs B 35,026,508 -326,283 176,546 0.5% 19.1% 20.0% $18.28 0 0
CBD B 7,122,495 5,531 109,447 1.5% 16.6% 17.1% $20.53 0 0
New Center B 1,486,775 58,599 137,529 9.3% 11.8% 11.8% $22.12 0 0
Urban B 8,609,270 64,130 246,976 2.9% 15.8% 16.2% $20.93 0 0
Detroit B 43,635,778 -262,153 423,522 1.0% 18.5% 19.2% $18.66 0 0