Downtown Detroit is beginning to show its credit worthiness to the capital markets. With interest rates at all time lows but expected to rise in the near future, investors are looking to take advantage.
Over the coming year, rent increases are forecasted to continue within the Class A product type while asking rents for Class B assets are forecasted to hold firm as vacancy increases and negotiating leverage shifts.
Exactly how far vacancy rates fall downtown in 2015 remains to be seen as Key Bank hands back several floors at Key Tower and BakerHostetler sheds up to 45,000 square feet through a planned move.
Downtown Detroit is beginning to show its credit worthiness to the capital markets. With interest rates at all time lows but expected to rise in the near future, investors are looking to take advantage.
Over the coming year, rent increases are forecasted to continue within the Class A product type while asking rents for Class B assets are forecasted to hold firm as vacancy increases and negotiating leverage shifts.
Exactly how far vacancy rates fall downtown in 2015 remains to be seen as Key Bank hands back several floors at Key Tower and BakerHostetler sheds up to 45,000 square feet through a planned move.
JLL Grand Rapids Office Insight Q4 2015Aaron Moore
The repurposing of downtown Grand Rapids’ older office stock is continuing to gain momentum. There has been a diverse mix of new construction and redevelopments, which addressed the inventory shortage issue.
JLL Ann Arbor Office Insight & Statistics - Spring 2018Harrison West
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.
JLL Grand Rapids Office Insight & Statistics - Spring 2017Harrison West
Leasing velocity remains healthy, while rents are holding strong. The urban core is among the most active areas of the market, as newly renovated inventory will soon deliver at 50 Monroe and 250 Monroe.
Industrial market fundamentals continue to tighten in Cleveland amid robust demand growth. Concessions have all but dried up and landlords continue to push rents.
Demand remains strong in the CBD as vacancy continued its slow decline over the start of the year, falling to 12.9 percent, while outpacing the suburban market by over 2.0 percent.
Northern New Jersey’s Paterson Real Estate Market RisesJamie Simon
Jamie Simon-Wainick is a real estate professional committed to assisting New Jersey clients in the property acquisition and sale process. Knowledgeable about the community she serves, Jamie Simon-Wainick stays informed on real estate trends across northern New Jersey.
One community that has witnessed significant growth is Paterson, which traditionally had crime issues that hampered property investment. However, Zillow data indicates that two Paterson zip codes are among those that appreciated most rapidly from February 2020 to June 2021, with “07501” jumping 32 percent and “07522” rising 26 percent. A major contributor was demographic shifts related to the pandemic.
Industrial Digitisation / Logistics: Company presentation by Zvi Schreiber, CEO of Freightos at the NOAH Conference 2019 in Tel Aviv, Hangar 11, 10-11 April 2019.
Vacancy at the top of the market is slowly moving upward, although levels remain below historic norms. New supply and givebacks upon relocation due to efficiency have begun to and will continue to result in rising vacancy.
Since 2010 more than 4.8 million square feet of office space has been absorbed by local companies growing operations and expanding footprints. Office demand growth has favored downtown, but has not been limited to it.
JLL Grand Rapids Office Insight Q4 2015Aaron Moore
The repurposing of downtown Grand Rapids’ older office stock is continuing to gain momentum. There has been a diverse mix of new construction and redevelopments, which addressed the inventory shortage issue.
JLL Ann Arbor Office Insight & Statistics - Spring 2018Harrison West
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.
JLL Grand Rapids Office Insight & Statistics - Spring 2017Harrison West
Leasing velocity remains healthy, while rents are holding strong. The urban core is among the most active areas of the market, as newly renovated inventory will soon deliver at 50 Monroe and 250 Monroe.
Industrial market fundamentals continue to tighten in Cleveland amid robust demand growth. Concessions have all but dried up and landlords continue to push rents.
Demand remains strong in the CBD as vacancy continued its slow decline over the start of the year, falling to 12.9 percent, while outpacing the suburban market by over 2.0 percent.
Northern New Jersey’s Paterson Real Estate Market RisesJamie Simon
Jamie Simon-Wainick is a real estate professional committed to assisting New Jersey clients in the property acquisition and sale process. Knowledgeable about the community she serves, Jamie Simon-Wainick stays informed on real estate trends across northern New Jersey.
One community that has witnessed significant growth is Paterson, which traditionally had crime issues that hampered property investment. However, Zillow data indicates that two Paterson zip codes are among those that appreciated most rapidly from February 2020 to June 2021, with “07501” jumping 32 percent and “07522” rising 26 percent. A major contributor was demographic shifts related to the pandemic.
Industrial Digitisation / Logistics: Company presentation by Zvi Schreiber, CEO of Freightos at the NOAH Conference 2019 in Tel Aviv, Hangar 11, 10-11 April 2019.
Vacancy at the top of the market is slowly moving upward, although levels remain below historic norms. New supply and givebacks upon relocation due to efficiency have begun to and will continue to result in rising vacancy.
Since 2010 more than 4.8 million square feet of office space has been absorbed by local companies growing operations and expanding footprints. Office demand growth has favored downtown, but has not been limited to it.
Grand Action, a non-profit organization made of the city’s wealthiest benefactors, led the way on three major projects that, starting in the 1990s, transformed downtown Grand Rapids. The
Downtown Detroit is in the midst of a renaissance, bolstered by a recent series of high-profile lease announcements, the latest of which was by Fifth Third Bank.
Investment activity returned to Louisville as two high-profile office assets traded hands to end the year, reaffirming investor confidence in the market. The downtown office market notched another significant win as Computershare announced a ten year, 1,100 job hiring increase that will result in an expansion of 100,000 square feet in Meidinger tower. As newly delivered Class A product is be absorbed within the market, Class B space continues to lag behind as asking rates are decreasing.
JLL’s Mid-Year Skyline Update: A Closer Look at OH, MI & PAJLL
JLL's annual Skyline review is back and more advanced than ever before. Register for free to access the floor-by-floor data in roughly 1,200 of our nation’s most prominent towers, including Class A buildings in Cincinnati, Cleveland, Columbus, Detroit and Pittsburgh.
Q1 2015 U.S. office market statistics, trends and outlookJLL
Though vacancy remained unchanged at 15.6 percent in Q1, as the year continues we expect it to drop below 15 percent for the first time in a decade. Corporate growth is driving expansionary activity, and tenants are thus faced with increasingly challenging market conditions. Currently more than one-third of all markets are favorable to landlords, and that’s expected to increase to three-quarters. With this leverage, landlords will continue driving rents upward, potentially surpassing a 5.0-percent increase by year end.
Learn more and see market-by-market data at http://bit.ly/1Cfucrv
U.S. Office market statistics, trends and outlook: Q2 2015 JLL
After a slow first quarter, office market fundamentals made a significant rebound at the close of Q2, undermining suggestions that both economic and office-market growth were slowing. As activity returns—and in many markets, intensifies—much needed supply will offer new opportunities to carry us into latter half of the decade.
Since the start of the year, rents have increased by 2.5%, with some in-demand markets increasing up to 5%. If market momentum continues as we anticipate, rents could reach a 5-7% annual growth rate by year end.
JLL Grand Rapids Office Insight - Fall 2016Aaron Moore
Companies rooted in the twenty first century - think technology and healthcare - understand the correlation between a rich cultural environment and attracting top notch talent.
Class A vacancy once again has dipped below that of Class B properties as a number of tenants opt for more modern and newer space, compelled by improving economic conditions.
The Indy industrial market continued to grow this quarter. Net absorption has already surpassed last year’s total and completed construction is closing in on last year’s total.
Finance and insurance driving expansions and relocations in the market
As of third quarter, metro employment in the finance and insurance industries finally approached pre-recession levels.
The office market saw substantial leasing activity from firms like Ally Financial which recently relocated 150 employees to the Shoreview Corporate Center with plans to add another 250 jobs by 2017.
Other firms like One Beacon Insurance Group, Securian Financial Group, Travelers Companies, and General Casualty Company have either invested in new space or absorbed existing space in all corners of the Minneapolis-St. Paul market.
Minneapolis CBD leads in large leasing deals
Vacancy rates in Minneapolis CBD continue their trend of shrinking every quarter. Vacancy at IDS Center declined 250 basis points since 2014 and the building now has its lowest quarterly vacancy in recent years. The demand for premium downtown office space is substantial and even co-working firms are getting in on the craze. Recently, two shared-space companies out of Chicago, Industrious and Assemble, leased a collective 36,000 sf with plans to rent out collaborative workspace to entrepreneurs and small firms by end of year.
Leasing activity and tenant demand in Cleveland looks quite strong. Office employment sectors have recorded sustained jobs growth over the last three years, which is translating into increased tenant demand.
After increasing in July, the local labor market contracted by 2,000 workers in August. Along with that employment held flat, still near a historic high. As a result, unemployment edged down 40 basis points to 3.3 percent.
The size of the local labor force declined by 32,000 workers in August. That contraction caused the unemployment rate to decline 40 basis points to 5.7 percent.
According to the most recent estimates from the Bureau of Labor Statistics, total nonfarm employment in Detroit stood at ~2.0 million payrolls, representing an annualized increase of 45,200 jobs or 2.4 percent. Meanwhile, unemployment decreased 2.7 percentage points year-over-year to 6.2 percent.
Total net absorption across the metro equaled 322,977 square feet in the third quarter, a welcome change from the negative absorption posted in each of the previous two quarters.
Detroit’s economy added 46,900 net new jobs over the last year, representing a 2.5 percent increase. With steady employment gains across the metro, look for further improvement in Detroit’s office and industrial property sectors.
Manufactured goods constitute 90 percent of Illinois exports and roughly half of the state’s manufacturing output. Last year Chicago area companies accounted for over two thirds of the $68.3 billion worth of exports that originated in Illinois. Metro exports have exhibited steady improvement over the past five years growing by an average of $3.8 billion annually as manufacturing user demand followed suit.
Roughly 60 percent of Chicago’s exports were sent to countries with existing free trade agreements in place. According to the Department of Commerce members of the proposed Trans-Pacific Partnership imported $28.7 billion worth of products from Chicagoland last year. Should TPP move forward escalating trade volumes are likely to impact the local industrial market.
The local labor force remained flat in July as the influx of college graduates leveled off. That, coupled with a growth in employment caused the unemployment rate to decline 20 basis points to 6.1 percent.
The KA Housing - Catalogue - Listing TurkeyListing Turkey
Welcome to KA Housing, a distinguished real estate development nestled in the heart of Eyüpsultan, one of Istanbul’s most promising districts.
Just 10 minutes from the bustling city center, Eyüpsultan offers a serene escape with the convenience of urban living. The direct metro line ensures seamless connectivity to all parts of Istanbul, making it an ideal location for residents who seek both tranquility and vibrancy.
KA Housing boasts unparalleled accessibility, with proximity to Istanbul Airport only 30 minutes away, facilitating easy international travel. Effortless city access is guaranteed by direct metro and transportation links to Istanbul’s cultural and commercial hubs. Quick access to key metro lines connects you to every corner of the city within minutes, making commuting and exploring the city hassle-free.
The development offers luxurious living spaces with a range of unit layouts from 1+1 to 4+1, designed with meticulous attention to detail. Each unit features balconies or terraces, providing stunning vistas of Istanbul and enhancing the living experience. High-quality materials and superior craftsmanship ensure durability and elegance, while sound-proof insulation and high ceilings (2.95 m) offer comfort and sophistication.
Residents of KA Housing enjoy exclusive on-site amenities, including a state-of-the-art gym, outdoor swimming pool, yoga area, and walking paths. Entertainment options abound with a private cinema, children’s playground, and a variety of dining options including a café and restaurant. Security and convenience are paramount with 24/7 security, a dedicated carpark garage, and an IP intercom system.
KA Housing represents a prime investment opportunity with limited availability in a high-demand area, ensuring enduring value and potential for lucrative returns. Homes in this development provide exceptional value without compromising on quality, offering affordable luxury for discerning buyers. The construction is of the highest quality, built to the latest seismic and disaster resistance standards, ensuring safety and resilience.
The community and surroundings of KA Housing are enriched by close proximity to prestigious universities such as Haliç University, Bilgi University, and Istanbul Ticaret University, making it an ideal location for students and academics. The development is adjacent to the Alibeyköy stream leading into the Halic waters, offering serene natural escapes amidst lush greenery. Residents can enjoy the cultural richness of the area, surrounded by historical and cultural landmarks that blend leisure, nature, and culture seamlessly.
https://listingturkey.com/property/the-ka-housing/
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
The Tersane Suites Residences offers a wide range of options, from studio apartments to spacious four-bedroom units, all designed to the highest standard. The suites are finished with high-quality materials and feature modern, open-plan living spaces, fully-equipped kitchens, and large balconies with stunning views of the city and sea.
One of the standout features of Tersane Suites Residences is the Rixos management, which provides a truly exclusive and upscale living experience. Residents will have access to a range of luxury amenities, including a fitness center, spa, and indoor and outdoor swimming pools. Plus, the on-site restaurants and cafes provide a taste of the local and international cuisine.
The Tersane Suites Residences also offers a great opportunity for investors, as it provides a rental guarantee program. This means that investors can enjoy a steady income stream, with the peace of mind that their property is being managed by a reputable and experienced team.
The location of Tersane Suites Residences is also unbeatable, with easy access to the city’s main transportation links and within close proximity to the historic center, making it the perfect base for exploring all that Istanbul has to offer.
Rams Garden Bahcelievler - Istanbul - ListingTurkeyListing Turkey
Implemented by Rams Global in Bahcelievler, the Rams Garden Bahcelievler Apartments includes 796 residences of different types from 2+1 to 5+1.
Next to the project, which will have 33 thousand square meters of green area, there will be 42 thousand 300 square meters of woodland. There will also be a 210-meter-long pond in the landscape of the project. There are 94.5 square meters of green space per flat.
Rams Garden Bahcelievler Apartments, which has 8 times more green space than the average of Istanbul with its 33 thousand square meters of green area located within a total of 75 thousand square meters, offers various housing options from 2+1 to 5+1.RAMS Garden has brought a lifeline to the construction industry.
Rams Global, which has signed projects in many places from Dubai to Phuket and delivered more than 20 thousand residences, is now starting new projects in Istanbul.
Rams Garden Bahcelievler is located 9 minutes from Metroport AVM, 5 minutes from Marmara Forum AVM, 12 minutes from Kazlıçeşme beach, 9 minutes from Yıldız Technical University, 7 minutes from Istinye University, 9 minutes from Ramada Hotel and Medicana Hospital.
https://listingturkey.com/property/rams-garden-bahcelievler-apartments/
Elegant Evergreen Homes - Luxury Apartments Redefining Comfort in Yelahanka, ...JagadishKR1
Experience unmatched luxury at Elegant Evergreen Homes, offering exquisite 2, 3, and 4 BHK apartments in the serene locality of Yelahanka, Bangalore. These meticulously crafted homes blend modern design with timeless elegance, providing a harmonious living environment. Enjoy top-tier amenities and a prime location, making Elegant Evergreen Homes the ideal choice for discerning homeowners.
Torun Center Residences Istanbul - Listing TurkeyListing Turkey
THERE IS LIFE IN ITS CENTER!
The most energetic spot of the city that will add utterly different pleasures to your life, with a park that will make Istanbul breathe, delighting indoor and outdoor bistros, cafes, restaurants, the brand-new Food Hall concept, where dozens of unique tastes are served together, market area, cinema, theater, fitness club, SPA and event venue...
All the pleasures that will enrich your lives are awaiting you on the most beautiful side of the city, at Torun Center Residences. In Mecidiyeköy, where the heart of Istanbul beats, business, life and entertainment opportunities are located at the exact center, at Torun Center, the most beautiful side of the city.
Penthouse apartments and different styles of flats from 1 + 1 to 4 + 1, from 100 to 425 square meters in a 42-story residence tower, have been designed for those who want to live in the center of magnificence. Torun Center is the redefinition of a better life with specially landscaped floor gardens, apartment options with private balconies, and automatic glass systems equipped with Trickle Ventilation that offers clean air comfort.
Business and life in the same place
Excellent service
Torun Center has many delightful details, from a swimming pool to sunbathing and resting terrace. With 24/7 concierge services, 24/7 security, valet, technical service, closed-circuit camera system (CCTV), central heating and cooling system, it makes your life easier.
Delightful details
The two-story Torun Center Lounge, with its indoor and outdoor seating areas, children's playroom, private dining and TV lounge, promises unforgettable memories to you and your loved ones with its unique Istanbul view.
Neighboring to the most pleasant square of Istanbul
A few steps from the Torun Center Residences, you can reach the city's most modern city square and open the doors of a quality city life. Torun Center Residences brings together on the same project the long-awaited city life for Istanbul and gourmet restaurants, cafes, gym and SPA, and state-of-the-art cinema and Artı Stage, hosting the most famous plays of the season.
Located at the intersection of alternative public transportation options such as the metro and Metrobus, Torun Center comes to the fore as the most accessible office for both sides of Istanbul. With a central location and rich transportation lines, Torun Center offices make life easier for employees and increase productivity.
Dynamics 365 Bid Management for Construction ProjectsDynamic Netsoft
This PDF provides a straightforward guide to using Dynamics 365 for efficient bid management in construction projects. Learn how to streamline processes, improve accuracy, and enhance productivity with practical tips and step-by-step instructions.
https://dnetsoft.com/dynamics-365-bid-management-software
Omaxe Sports City Dwarka stands out as a premier residential and recreational destination, offering a blend of luxury and sports-centric living. Located in the thriving area of Dwarka, this project by Omaxe Limited is designed to cater to modern lifestyle needs while promoting a healthy, active living environment.
Brigade Insignia offers meticulously designed apartments with modern architecture and premium finishes. The project features spacious 3,3.5,4 and 5 BHK units, each thoughtfully planned to provide maximum comfort, natural light, and ventilation.
https://www.newprojectbangalore.com/brigade-insignia-yelahanka-bangalore.html
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...Joseph Lewis Aguirre
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus on Public Safety as Job #1, Engagement, Wealth of HOA, Branding, Communication, Culture, Civic Responsibility
One FNG by Group 108 Sector 142 Noida Construction UpdateOne FNG
One FNG by Group 108 is launching a new commercial project in Sector 142 Noida. Office space and high street retail shops on the FNG and Noida Expressway. For more information visit the website https://www.onefng.com/
Need MCA leads? No sweat! MCAs are great for small biz funding. Learn how to snag top-notch leads: businesses needing cash, with repayment ability, decision-makers, and accurate contacts. Use content, social ads, lead platforms, partnerships, and capture processes for quality leads.
https://www.leadgeneration.media/blog/b/streamline-your-mca-sales-process-with-pre-qualified-leads
500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
Simpolo Tiles & Bathware
Tile ho,
toh Simpolo.
Since the first steps were taken in 1977, Simpolo Ceramics has carved its niche as a consistently growing organisation with unparalleled innovation and passion rooted in simplicity.
We endure gratification for every experience we offer, created to share something meaningful. It may not resonate with the majority, but that makes us a class apart. If only a handful were to understand the purpose of our existence, we would be proud to have found our believers. Rather, people with whom we can share our beliefs.
VISUALIZER
Design your space in your style with our very own Visualizer. Now, you can choose the tiles of your liking from our wide selection and see how they would look in a space. Select the tile from the multiple options and the visualiser will replace the surfaces in the image with the selected tiles. This way, instead of just your imagination, you can choose the tiles for your place by getting an actual picture of how they would look in a space. So, design your space the way you desire digitally and implement it in real life to get the best results!
You can also share this visualiser with others to help them design their space.
Committed to delighting customers with world-class ceramic products and services. Make Simpolo synonymous with the best quality and set new benchmarks of excellence for all stakeholders. Pursue best business practices with utmost integrity to make Simpolo an exciting organisation to work with, for vendors, channel partners, investors and employees alike.
Gain worldwide recognition in the field of ceramic building products through Research and Innovation and bring an enhanced lifestyle within reach for every household.
Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szet...Volition Properties
=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===
Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.
The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:
☑️ Specifically WHERE should you invest?
☑️ What are the best markets to invest in and why?
☑️ How much are property prices there?
☑️ What are the returns like?
☑️ What is cashflow like?
☑️ Compared to investing in Toronto or other cities in Ontario, what are the benefits / tradeoffs?
☑️ What ownership structure should I use?
☑️ What are the tax implications?
☑️ Can I get financing?
☑️ What are tenants like?
Enter Erwin Szeto, a longtime friend of Volition. Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in transacting over $440,000,000 in income properties. Faced with issues like affordability constraints, tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in the U.S. Here, there is a significant influx of investments leading to the creation of high-paying manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where landlord rights are stronger and there is no rent control.
To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.
Erwin is “Making Real Estate Investing Great Again”!!
Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/
Are you searching for your dream home? Finding the perfect house involves more than just browsing listings; it’s about discovering a space that fits your lifestyle and needs. Whether you’re looking for a cozy suburban home, a chic urban apartment, or a spacious rural property, the right real estate can transform your life. Consider the location, amenities, and potential for future growth. Think about the community, nearby schools, and the convenience of shopping and transportation. A good real estate agent can guide you through the process, from identifying suitable properties to negotiating the best deal. Your dream home is out there, waiting to be found – let’s embark on this journey together!
Lixin Azarmehr, a Los Angeles-based real estate development trailblazer, co-founded JL Real Estate Development (JL RED) in 2015 and serves as its CEO. Her expertise has propelled the firm to specialize in luxury residential and mixed-use commercial projects, with a portfolio that features upscale retail spaces and sophisticated care facilities.
1. Office employment and vacancy move in opposite directions
Source: JLL Research
Availability in Detroit’s CBD continues decline
Source: JLL Research
Differential between urban and suburban asking rents
Source: JLL Research
Tenant demand continues to mount downtown
2,257
Office Insight
Detroit | Q2 2015
61,685,222
Total inventory (s.f.)
197,306
Q2 2015 net absorption (s.f.)
$18.17
Direct average asking rent
376,000
Total under construction (s.f.)
23.2%
Total vacancy
795,213
YTD net absorption (s.f.)
2.8%
12-month rent growth
93.8%
Total preleased
600
630
660
690
15.0%
20.0%
25.0%
30.0%
2010 2011 2012 2013 2014 2015 YTD
Office Employment (000s) Vacancy %
0.0%
10.0%
20.0%
30.0%
2010 2011 2012 2013 2014 2015 YTD
$17.00
$19.00
$21.00
$23.00
2010 2011 2012 2013 2014 2015 YTD
Urban Suburban
Job growth spurs office demand
Office-using employment sectors have experienced substantial employment
expansion over the last year, recording an annualized net gain of 14,500 jobs
across Metro Detroit. Appropriately, office 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. Albeit Detroit’s
improving economic condition, fundamentals are unlikely to justify any
speculative construction for the short-term. Consequently, demand growth will
continue to translate almost entirely into vacancy improvements.
Big firms trade the suburbs for the city
Detroit’s CBD is the circumstance of an underserved submarket with pent up
demand. Developers are racing to fill that void and attract tenants by renovating
and developing in CBD. The market is becoming increasingly bullish on
Downtown, with firms such as Ally Financial and Fifth Third signing long term
leases for 320,000 square feet and 62,000 square feet, respectively. Class A
availability in the CBD continues to decline from a recent high of 24.9 percent in
2010 to 9.6 percent at the end of Q2 2015. The CBD will continue to creep near
capacity in the near-term as demand growth outpaces supply additions.
Tenants will find shifting dynamics across the landscape
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.