Employment gains were led by the professional and business services sector, which added 8,900 jobs year-over-year.

1. Office real estate implications
Sources: JLL Research, Bureau of Labor Statistics
Job growth/loss by sector (12-month change)
Detroit
Total vacancy has continued to decline since hitting a record high of 29.2
percent in the first quarter of 2011. With an improving economy and increasing
space needs by office tenants, total vacancy is expected to continue its
downward trend through 2015. That said, over 14.5 million square feet of
office product remains vacant, ensuring tenant-favorable conditions across
most submarkets for several years. Rents are expected to increase modestly
over the next year, with the concentration of gains taking place among Class A
properties.
The economic challenges in Detroit have created significant barriers to
speculative office construction. Developers have steered clear of this market
for at least a decade and fundamentals are unlikely to justify any speculative
construction over the forecast, albeit build-to-suit activity will continue to take
place. As such, demand growth will continue to translate almost entirely into
vacancy improvements, as experienced over the last two years.
Total jobs vs. unemployment rate
Detroit
(25.0)
(15.0)
(5.0)
5.0
15.0
25.0
2011
2012
2013
2014
2015
Professional & Business Services Information Government Financial Activities
Office employment trends (12-month change)
Detroit
Office employment update
Metro Detroit . May 2015
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2000 2002 2004 2006 2008 2010 2012 2014
Peak: 2,217,186 jobs
unemployment rate
total jobs
3.0%
-2,000
100
200
1,100
2,400
2,600
5,300
8,700
8,900
10,900
-7,000 -2,000 3,000 8,000 13,000
Government
Other Services
Information
Leisure & Hospitality
Financial Activities
Educational & Health Services
Trade, Transportation & Utilities
Mining, Logging & Construction
Professional & Business Services
Manufacturing
Number of Jobs
6.0%Detroit unemployment
2.0%Detroit 12-month job growth
5.5%U.S. unemployment
2.3%U.S. 12-month job growth
• According to the most recent estimates from the BLS, total non-farm
employment in Detroit stood at ~1.9 million payrolls, representing an
annualized increase of 38,200 jobs or 2.0 percent. Meanwhile,
unemployment decreased 3.4 percentage points year-over-year to 6.0
percent.
• Office-using employment sectors have experienced substantial
employment expansion over the last year, recording an annualized net
gain of 9,500 jobs across the metro. Employment gains were led by the
professional and business services sector, which added 8,900 jobs year-
over-year.
• Total U.S. nonfarm employment increased by 126,000 jobs in March, the
lowest level since March 2013 and well below economist forecasts of
244,000 jobs. Downward revisions were also made to the January and
February figures, totaling 69,000 jobs.
• U.S. unemployment was unchanged at 5.5 percent and wage growth
remained sluggish as average hourly earnings increased only 2.1 percent
year-over-year, far below the Fed’s goal of 3.5 percent or better.

2. March 2013 March 2014 March 2015
Total Non-farm
Employment
1,844,000
1.8%
1,871,400
1.4%
1,909,600
2.0%
Unemployment Rate 9.8% 9.4% 6.0%
Detroit Supersectors March 2013 March 2014 March 2015
Mining, Logging and Construction 51,800 3.0% 52,900 2.1% 61,600 16.4%
Manufacturing 226,100 4.4% 236,700 4.7% 247,600 4.6%
Trade, Transportation, & Utilities 339,300 1.0% 347,200 2.3% 352,500 1.5%
Information 26,800 0.4% 27,400 2.2% 27,600 0.7%
Financial Activities 102,500 4.5% 103,400 0.9% 105,800 2.3%
Professional & Business Services 356,200 4.4% 361,600 1.5% 370,500 2.5%
Educational & Health Services 298,800 0.7% 300,700 0.6% 303,300 0.9%
Leisure & Hospitality 174,200 1.0% 176,500 1.3% 177,600 0.6%
Other Services 77,200 2.9% 76,700 -0.6% 76,800 0.1%
Government 192,000 -3.3% 188,300 -1.9% 186,300 -1.1%
JLL Americas Research • Detroit Office Employment Update 2
Industry employment stratification
Detroit
© 2015 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.
Employment statistics
Detroit
Professional &
Business Services,
371,900, 20%
Trade, Transportation
&Utilities,
351,700, 18%
Educational &
Health Services,
302,200, 16%
Manufacturing,
249,400, 13%
Government,
185,300, 10%
Leisure & Hospitality,
173,100, 9%
Financial Activities,
106,000, 6%
Other Services,
76,500, 4%
Mining, Logging
& Construction,
60,100, 3%
Information,
27,600, 1%
Aaron Moore
Research Analyst Intern
Great Lakes Region
tel +1 248 581 3308
Aaron.Moore@am.jll.com
226 East Hudson Avenue
Suite 200
Royal Oak, MI 48067
www.jll.com/detroit
Andrew Batson
Senior Research Analyst
Great Lakes Region
tel +1 248 581 3300
Andrew.Batson@am.jll.com
226 East Hudson Avenue
Suite 200
Royal Oak, MI 48067
www.jll.com/detroit
News on the street
Detroit businesses expanding, contracting, etc.
Achates Power I Automotive Supplier: Expanding
Achates Power recently opened a 4,000 square foot office in Farmington Hills to satisfy the demands of new customer contracts and rapid growth. The company’s
engine allows OEMs to achieve the world's most stringent current and future fuel efficiency and emissions standards without additional cost or complexity. Achates
expects to hire 12 new engineers and program managers immediately, with plans to employ a total of 20 employees by the end of 2015.
Ally Financial Ι Auto Lender and Banking: Consolidating Operations
Ally Financial (NYSE: ALLY) will remain a mainstay of Detroit. The company recently announced that it will its current headquarters in the Renaissance Center as
well as its other southeast Michigan offices into one unified Michigan headquarters at One Detroit Center, which will be renamed Ally Detroit Center. Ally says 1,300
employees will occupy 13 floors and 321,000 square feet in the center of Detroit’s burgeoning downtown business and technology district.
HelloWorld Ι Digital Marketing: Expanding
HelloWorld, the digital marketing company formerly known as ePrize, is moving from its longtime home in Pleasant Ridge to new and larger space in Southfield. The
company has signed an 11-year lease for more than 43,000 square feet spread over two and a half floors of the Southfield Town Center. The new headquarters will
accommodate HelloWorld's 300 metro Detroit employees with room to add an additional 20 percent more staffers over time.
MSX International I Consulting Services: Expanding
MSX International plans to relocate its North American operations center and 325 employees from Warren to Travelers Towers in Southfield during the third quarter.
The new, 36,000-square-foot location will provide 30 percent more space, enabling it to better accommodate its growing business, the company said in a news
release. The move follows MSX’s relocation of its global headquarters with about 15 of its executives to Ally Detroit Center at the end of 2013.
Reach Influence Ι Information Technology Services: Relocating
The retail analytics firm, reach | influence, has relocated its company headquarters from Royal Oak to the Madison Building in downtown Detroit. The company, with
about 20 employees, provides services and insight to independent retailers and wholesalers to help them measure marketing efficacy and engage shoppers. It will
share a 50,000 square foot space in the Madison Building with Detroit Venture Partners.
Varnum LLP Ι Legal Services: Expanding
The new Varnum LLP office expected to open in Detroit's Federal Reserve Building by July reflects a change in how at least one out-of-town law firm sees the
region. "We had some debate about expanding by moving into a second suburb (of Detroit), but that debate didn't last very long," Varnum Executive Partner Thomas
Kyros said about the new office. The 127-year-old firm with more than 145 attorneys statewide will lease 10,000 square feet on the Fed building’s fifth floor.