The second quarter in the Detroit office market brought a decrease in vacancy and continued rent growth. Total vacancy across the market is currently at 18.5 percent, while average asking rents are $19.85 per square foot, representing a 2.1 percent increase year-over-year...

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.
Q2 2019
Detroit
Office Insight
The second quarter in the Detroit office market brought a decrease in vacancy
and continued rent growth. Total vacancy across the market is currently at
18.5 percent, while average asking rents are $19.85 per square foot,
representing a 2.1 percent increase year-over-year. UBS opened their
downtown office in April, occupying 11,000 square feet in a Bedrock owned
building at 1523 Woodward, while IBM announced they will occupy
approximately 10,000 square feet at Ally Detroit Center later this year. In the
suburbs, Northwestern Technological Institute leased 33,650 square feet at
Northwestern Corporate Center in Southfield, while Success Mortgage signed
a 13,478-square-foot lease at Laurel Office Park in Livonia.
Google made headlines with news of a $17.0 million expansion effort in both
Detroit and Ann Arbor, where their total footprint will grow to combined
210,000 square feet. Northfield Office Park in Troy sold to New York-based
Group RMC for $12.2 million, approximately $52 per square foot, while Time
Equities purchased a pair of downtown buildings totaling 87,735 square feet
for $5.9 million, or roughly $67 per square foot. Also downtown, Bedrock
bought the long-vacant 55,000-square-foot Fowler Building at 1225
Woodward for an undisclosed price, with renovation work beginning
immediately.
Outlook
Fundamentals remain strong in the market, and vacancies will continue to
compress while rent growth will keep its slow and steady pace. Keep an eye
on the big developments downtown and if there is any preleasing activity, it
will be interesting to see what rents are achieved at these new developments.
New Center and Corktown will be submarkets to watch as the CBD submarket
gets tighter and more expensive for tenants.
Fundamentals Forecast
YTD net absorption 752,006 s.f. ▲
Under construction 1,553,000 s.f. ▲
Total vacancy 18.5 % ▼
Average asking rent (gross) $19.85 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
Detroit office market maintains steady pace
21.0%
19.8%
20.2%
18.5%
2016 2017 2018 YTD
Total vacancy
$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
• UBS opened their downtown office at 1523 Woodward, where they
occupy 11,000 square feet.
• Google plans to invest $17.0 million to expand their southeast Michigan
footprint to 210,000 square feet.
• Total vacancy across the market is currently at 18.5 percent, while
average asking rents are $19.85 per square foot, representing a 2.1
percent increase year-over-year.

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.
Q2 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 3,979,668 31,967 59,640 1.5% 17.0% 17.4% $26.68 0 0
Dearborn Totals 2,855,625 16,229 239,497 8.4% 19.9% 20.1% $17.12 150,000 0
Downriver Totals 483,907 0 123,243 25.5% 12.9% 12.9% $14.06 0 0
Farmington/Farmington Hills Totals 4,658,516 98,898 99,877 2.1% 15.0% 16.2% $18.53 0 0
Macomb Totals 1,333,505 87,402 31,175 2.3% 9.2% 9.5% $16.62 0 0
North Oakland Totals 2,260,888 24,682 36,760 1.6% 14.5% 14.9% $18.55 0 0
Northern I-275 Corridor Totals 4,467,691 21,173 -105,663 -2.4% 12.3% 13.1% $19.53 0 0
Royal Oak / SE Oakland Totals 837,998 58,297 68,096 8.1% 3.7% 3.7% $19.53 55,000 0
Southern I-275 Corridor Totals 1,077,525 7,217 -1,708 -0.2% 1.4% 27.5% $17.50 0 0
Southfield Totals 12,945,449 -31,294 -23,466 -0.2% 26.6% 28.5% $17.96 0 0
Troy Totals 11,003,062 10,718 81,542 0.7% 20.0% 22.7% $19.00 0 0
Washtenaw Totals 6,698,612 -184,470 19,955 0.3% 5.7% 9.6% $25.92 0 30,000
Suburbs Totals 52,602,446 140,819 628,948 1.2% 17.3% 19.6% $19.37 205,000 30,000
CBD Totals 13,477,209 30,667 86,399 0.6% 13.0% 14.4% $22.76 0 1,523,000
New Center Totals 1,486,775 -294 36,659 2.5% 15.6% 15.7% $21.47 0 0
Urban Totals 14,963,984 30,373 123,058 0.8% 13.3% 14.5% $22.56 0 1,523,000
Detroit Totals 67,566,430 171,192 752,006 1.1% 16.4% 18.5% $19.85 205,000 1,553,000
Birmingham/Bloomfield A 1,569,497 5,060 11,428 0.7% 25.4% 26.1% $28.63 0 0
Dearborn A 596,890 0 150,000 25.1% 0.8% 0.8% $25.00 150,000 0
Farmington/Farmington Hills A 618,109 0 21,609 3.5% 4.6% 4.6% $22.50 0 0
Macomb A 295,494 0 4,595 1.6% 2.1% 2.1% $19.12 0 0
North Oakland A 541,905 3,091 4,686 0.9% 14.5% 14.5% $21.20 0 0
Northern I-275 Corridor A 1,187,841 17,801 18,502 1.6% 8.7% 8.7% $19.57 0 0
Royal Oak / SE Oakland A 131,288 55,000 49,996 38.1% 3.8% 3.8% $30.00 55,000 0
Southern I-275 Corridor A 832,753 10,217 19,153 2.3% 0.0% 33.1% $0.00 0 0
Southfield A 2,970,217 4,063 -8,303 -0.3% 25.0% 27.3% $20.91 0 0
Troy A 1,924,131 -27,764 -16,296 -0.8% 11.4% 16.3% $25.82 0 0
Washtenaw A 3,278,983 -216,818 -87,512 -2.7% 4.0% 11.5% $32.72 0 30,000
Suburbs A 13,947,108 -149,350 167,858 1.2% 12.3% 17.3% $24.19 205,000 30,000
CBD A 6,354,714 25,342 18,250 0.3% 8.3% 10.7% $25.52 0 1,523,000
Urban A 6,354,714 25,342 18,250 0.3% 8.3% 10.7% $25.52 0 1,523,000
Detroit A 20,301,822 -124,008 186,108 0.9% 11.1% 15.2% $24.49 205,000 1,553,000
Birmingham/Bloomfield B 2,410,171 26,907 48,212 2.0% 11.6% 11.7% $23.87 0 0
Dearborn B 2,258,735 16,229 89,497 4.0% 24.9% 25.2% $17.04 0 0
Downriver B 483,907 0 123,243 25.5% 12.9% 12.9% $14.06 0 0
Farmington/Farmington Hills B 4,040,407 98,898 78,268 1.9% 16.6% 18.0% $18.35 0 0
Macomb B 991,381 87,402 26,580 2.7% 11.7% 12.1% $16.48 0 0
North Oakland B 1,718,983 21,591 32,074 1.9% 14.5% 15.0% $17.71 0 0
Northern I-275 Corridor B 3,279,850 3,372 -124,165 -3.8% 13.5% 14.8% $19.53 0 0
Royal Oak / SE Oakland B 706,710 3,297 18,100 2.6% 3.7% 3.7% $17.79 0 0
Southern I-275 Corridor B 244,772 -3,000 -20,861 -8.5% 6.2% 8.5% $17.50 0 0
Southfield B 9,975,232 -35,357 -15,163 -0.2% 27.1% 28.9% $17.01 0 0
Troy B 9,078,931 38,482 97,838 1.1% 21.8% 24.1% $18.28 0 0
Washtenaw B 3,419,629 32,348 107,467 3.1% 7.4% 7.7% $22.65 0 0
Suburbs B 38,608,708 290,169 461,090 1.2% 19.1% 20.4% $18.21 0 0
CBD B 7,122,495 5,325 68,149 1.0% 17.2% 17.7% $21.08 0 0
New Center B 1,486,775 -294 36,659 2.5% 15.6% 15.7% $21.47 0 0
Urban B 8,609,270 5,031 104,808 1.2% 16.9% 17.4% $21.16 0 0
Detroit B 47,217,978 295,200 565,898 1.2% 18.7% 19.9% $18.59 0 0