Office space in the Ann Arbor market remains in high demand in early 2018. Total vacancy has decreased 1.7 percent year-over-year to its current 8.3 percent. The average asking rent for the market is $24.09 per square foot, while downtown and suburban rents are $30.62 and $23.09 per square foot, respectively.

1. © 2018 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.
Spring 2018
Ann Arbor
Office Insight
Office space in the Ann Arbor market remains in high demand in early 2018.
Total vacancy has decreased 1.7 percent year-over-year to its current 8.3
percent. The average asking rent for the market is $24.09 per square foot,
while downtown and suburban rents are $30.62 and $23.09 per square foot,
respectively. Several new developments are currently under construction,
with additional projects in the planning stage. This includes the 0.8-acre lot
near the Blake Transit Center known as the Y Lot, which the city is considering
buying back from the owner who had initially planned a mixed-use
development on the site.
Notable leases so far this year include Infor Global Solutions signing an 8,000-
square-foot lease at 2211 Old Earhart Road and Home Point Financial inking a
33,000-square-foot lease in the same building. The Michigan Business
Connection leased 11,000 square feet of space at 2200 Commonwealth
Boulevard. Oxford Companies has taken over the role as property manager for
the One North Main Building, and a new co-working space, Cahoot’s, is going
to occupy multiple floors at 206 East Huron Street, consisting of 24,000 square
feet.
Outlook
Rents will continue to steadily rise most notably among Class A product as
demand for quality office space remains high. Vacancies will likely keep
dropping until there is substantial new construction delivered. Potential
projects such as the Y Lot, the first floor of the parking garage at Ann Street,
and Elroy’s Place on North Main Street are all newly proposed projects to
keep an eye on. The need for new office space is apparent, while rents keep
increasing, making speculative construction all the more viable. Look for new
projects to break ground in 2018.
Fundamentals Forecast
Under construction 90,000 s.f. ▲
Total vacancy 8.3% ▼
Average asking rent (gross) $24.09 p.s.f. ▲
Concessions Falling ▼
Decreasing vacancy highlights high demand for quality
10.3%
12.6%
10.8%
9.8%
8.3%
2014 2015 2016 2017 2018
Total vacancy
$10.00
$20.00
$30.00
2014 2015 2016 2017 2018
Average asking rents ($/s.f.) Class A
Class B
For more information, contact: Harrison West | harrison.west@am.jll.com
• Average asking rents have been rising while vacancy continues to
decrease due to high demand and limited new development.
• 90,000 square feet of new construction is expected to deliver this year,
with more projects in the planning stages.
• 2211 Old Earhart Road sees significant leasing activity, highlighted by
Home Point Financial taking 33,000 square feet.
-200,000
0
200,000
2014 2015 2016 2017 YTD
2018
Supply and demand (s.f.) Net absorption
Deliveries
David Cutler | david.cutler@am.jll.com

2. © 2018 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.
Spring 2018
Ann Arbor
Office Statistics
For more information, contact: Harrison West | harrison.west@am.jll.com
Inventory
(s.f.)
Total
vacancy
(s.f.)
Total
vacancy
(%)
Average direct
asking rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Class A 517,010 38,268 7.4% $33.33 0 30,000
Class B 615,147 35,815 5.8% $27.72 0 0
Class C 173,150 0 0.0% NA 0 0
Downtown Ann Arbor 1,305,307 74,083 5.7% $30.62 0 30,000
Class A 2,587,353 202,751 7.8% $26.88 0 60,000
Class B 1,922,583 214,267 11.1% $21.95 0 0
Class C 859,732 64,702 7.5% $14.99 0 0
Suburban Ann Arbor 5,369,668 481,720 9.0% $23.09 0 60,000
Class A 3,104,363 241,019 7.8% $27.91 0 90,000
Class B 2,537,730 250,082 9.9% $22.78 0 0
Class C 1,032,882 64,702 6.3% $14.99 0 0
Ann Arbor Totals 6,674,975 555,803 8.3% $24.09 0 90,000
David Cutler | david.cutler@am.jll.com