On the heels of Detroit’s resurgence from bankruptcy, the metro area’s apartment market has seen increased performance and development. As businesses have begun to move back into the city following decades of relocation to the suburbs, residents have been quick to follow. The city’s greater downtown core has seen most of the activity...

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.
Summer 2018
Detroit
Multifamily Insight
On the heels of Detroit’s resurgence from bankruptcy, the metro area’s
apartment market has seen increased performance and development. As
businesses have begun to move back into the city following decades of
relocation to the suburbs, residents have been quick to follow. The city’s
greater downtown core has seen most of the activity, as hundreds of new
market-rate units have recently delivered. The city has also created a $250.0
million affordable housing fund to build 2,000 units in the next five years. As
new amenities and mixed-use developments are delivered such as the QLine
and Little Caesars Arena, Detroit is becoming more desirable, especially
among the younger generations. As tenants seek amenity-rich living amidst
an urban backdrop, vacant building renovations have become relatively
common, and ground-up construction has picked up in recent years.
Over the past few years, multiple major upscale apartment projects have
delivered. The Scott in Brush Park brought 199 units on-line in an up and
coming section of Midtown, while Orleans Landing provided the long-
neglected riverfront area of downtown with 278 new units. DuCharme Place in
Lafayette Park and The Griswold are other examples of high-end
developments that are not concentrated in one section of Downtown.
Outlook
Looking ahead, we can expect the trends seen in recent years to continue. As
companies continue to move back to Detroit and the metro region as a whole
stays on the rebound, the viability of new multifamily projects remains strong.
Investors and developers are looking outside the CBD and Midtown and into
neighborhoods such as Corktown, New Center, and West Village. Large-scale
projects in these submarkets like Elton Park in Corktown and The Boulevard
in New Center will help rebuild and transform their neighborhoods into
vibrant, urban micro markets within Detroit.
Fundamentals Forecast
Inventory (units) 172,019 ▲
Under construction (units) 3,603 ▲
Total occupancy 96.1% ▶
Average asking rent (gross) $1.04 p.s.f. ▲
Greater downtown leads the way for Detroit multifamily
96.9%
96.8%
96.4%
96.1%
2015 2016 2017 2018
Total occupancy
$0.00
$0.50
$1.00
$1.50
2015 2016 2017 2018
Average asking rents ($/s.f.)
Class A Class B Class C
For more information, contact: Harrison West | harrison.west@am.jll.com
• As Detroit continues its rebound from bankruptcy, developers and
investors see a city rife with opportunity
• Multifamily construction pipeline, both renovations and new builds, has
seen huge increase in recent years
• New deliveries are no longer concentrated within Detroit’s downtown
core, as developers and residents look to surrounding neighborhoods
0
2,000
4,000
6,000
2014 2015 2016 2017 YTD
2018
Supply and demand (s.f.) Under Construction
Deliveries

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.
Summer 2018
Detroit
Multifamily Statistics
For more information, contact: Harrison West | harrison.west@am.jll.com
Class
Inventory
(Units)
Total
Occupancy (%)
YoY Occupancy
Change (%)
Average Monthly
Rent PSF ($)
YoY Rent
Growth
(%)
Under
Construction
(Units)
Urban
Greater Downtown A 4,910 97.95% 2.14% $1.76 3.99% 1,281
Suburban
Downriver A 713 99.30% -0.70% $1.28 7.18% 138
East Side A 2,361 96.61% -1.85% $1.12 0.21% 1,102
North Oakland County A 2,011 95.56% -0.86% $1.19 0.77% 465
Southeast Oakland County A 739 97.49% 0.54% $1.56 3.65% 181
Western Oakland County A 3,358 95.62% -0.61% $1.16 1.44% 68
Western Wayne County A 665 91.08% 0.90% $1.40 7.09% 0
Metro Detroit Totals 14,757 96.19% 0.00% $1.32 2.62% 3,235
Class
Inventory
(Units)
Total
Occupancy (%)
YoY Occupancy
Change (%)
Average Monthly
Rent PSF ($)
YoY Rent
Growth
(%)
Under
Construction
(Units)
Urban
Greater Downtown B 2,327 95.30% -1.92% $1.42 1.96% 0
East Detroit B 694 95.13% -1.30% $1.26 8.35% 0
West Detroit B 200 97.00% 3.50% $0.97 -2.56% 0
Suburban
Downriver B 6,858 96.13% 0.08% $1.02 3.07% 0
East Side B 12,800 95.73% -0.49% $0.99 3.11% 0
North Oakland County B 7,907 96.10% -0.26% $1.05 4.70% 0
Southeast Oakland County B 7,516 96.10% -1.28% $1.07 0.66% 0
Western Oakland County B 11,916 96.21% -1.28% $1.11 1.88% 0
Western Wayne County B 5,183 95.43% -1.20% $1.17 -0.23% 0
Metro Detroit Totals 55,401 95.72% -1.00% $1.08 2.33% 0
Class
Inventory
(Units)
Total
Occupancy (%)
YoY Occupancy
Change (%)
Average Monthly
Rent PSF ($)
YoY Rent
Growth
(%)
Under
Construction
(Units)
Urban
Greater Downtown C 5,092 93.84% -0.35% $1.30 6.13% 0
East Detroit C 1,619 95.08% 1.31% $1.07 9.56% 0
West Detroit C 5,469 94.62% 2.35% $0.86 4.82% 0
Suburban
Downriver C 16,231 96.26% -0.67% $0.92 3.90% 0
East Side C 21,333 96.08% -0.76% $0.93 2.88% 0
North Oakland County C 11,300 97.26% -0.74% $0.95 3.38% 368
Southeast Oakland County C 17,611 96.60% -0.49% $0.99 2.24% 0
Western Oakland County C 8,875 96.31% -2.20% $1.00 3.19% 0
Western Wayne County C 14,331 96.61% -0.95% $1.00 4.62% 0
Metro Detroit Totals 101,861 96.27% -0.67% $0.97 3.59% 368

3. © 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.
Summer 2018
Detroit
Capital Markets
For more information, contact: Harrison West | harrison.west@am.jll.com
Investment Trends
Debt capital sources continue to have enthusiasm for multifamily deals - and everyone is involved, from local credit
unions and banks to CMBS and hard money lenders. There has been a more disciplined approach to underwriting to make
multifamily deals work, however, Agencies will continue to place capital aggressively. While we expect origination volume
to continue growing, its pace will likely slow. With attractive deals in the market and favorable fundamentals, we
anticipate continuing capital inflows to the sector. The new tax law has provided encouragement to real estate buyers and
should boost multifamily activity moving forward.
87%
7%Private
Institutional
Private Equity
REIT/Public
Type of Buyer
7.8%
7.1%
7.3%
6.7% 6.7%
2014 2015 2016 2017 2018
Cap Rate Trends
$0.00
$50,000.00
$100,000.00
2014 2015 2016 2017 2018
Sales Pricing Avg. Price PSF
55,431
30%
27%
With college degrees
Of residents are
renters
Median household income
Metro Detroit at a glance
17.2M
U.S. vehicles sold in 2017
4.3%
Unemployment rate
3.7%
Downtown population growth
since 2010

4. © 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.
Summer 2018
Detroit
Recent Market Sales
For more information, contact: Harrison West | harrison.west@am.jll.com
Property Name Address Sale Date Units Sale Price Price Per Unit
Fairlane Town Center 100 Lincoln Dr., Dearborn December 2017 200 $38,700,000 $193,500
Chimney Hill Apartments 6834 Chimney Hill Dr., West Bloomfield January 2017 328 $52,100,000 $158,841
Park Place of Northville 43001 Northville Place Dr., Northville August 2017 736 $115,500,000 $156,929
Riverfront Towers 100 Riverfront Dr., Detroit June 2016 555 $79,500,000 $143,243
Village Green of Troy East 2330 John R Rd., Troy August 2016 205 $28,200,000 $137,561
Northville Woods Apartments 18800 Innsbrook Dr., Northville January 2018 274 $35,150,000 $128,285
Emerald Apartments 298 E 13 Mile Rd., Madison Heights January 2017 29 $3,650,000 $125,862
Cinnamon Pointe Apartments 201 Cassia Ct., Canton October 2017 194 $24,000,000 $123,711
The Heights 1545 E 13 Mile Rd., Madison Heights June 2016 225 $26,100,000 $116,000
Canton Club East 41265 Crossbow Cir., Canton August 2016 148 $16,240,000 $109,730