1. Differential between urban and suburban rents
Detroit
• A range of determinants will come into play when large tenants consider urban versus suburban leasing.
When a tenant looks at the downtown market versus the suburban market, the difference between
asking rates is typically $4 to $6 per square foot and at times can reach a spread of $9 to $11 because of
the city income tax and other factors. However, companies seeking to lure a highly skilled workforce and
position themselves within a cluster of economic activity are reaping the benefits of downtown. This shift
has already upended some long-standing dynamics of city versus suburban leasing prices and
occupancy rates.
Source: JLL Research
Chart of the week: July 6, 2015
$17.00
$20.00
$23.00
2010 2011 2012 2013 2014 2015 YTD
Urban asking rents Suburban asking rents