nai member name

DETROIT
MARKETNAME
REPORT
NAI MEMBER
Office
| Fourth
Quarter
2007
Office Report
| First
Quarter
2007
DETROIT
TRENDS:
Vacancy Rate
Net Absorption
Overall Vacancy (%)
OVERVIEW:
Overall Vacancy (%)
20%
While 2007 remained flat, the outlook in 2008 looks to provide
modest growth in all sectors of the market throughout Greater
Detroit. Deal volume in general has slowed, but this has been
largely attributed to troubles in the debt market nationwide. As
the debt market corrects itself in 2008, we anticipate greater
deal flow to follow.
19%
18%
17%
16%
15%
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
Source: The CoStar Office Report- 4th Quarter 2007
Average Asking Rental Rate
Construction
Asking Rents
The Office Market continues to be “musical chairs” as many
of the submarket gains have largely been relocating tenants
taking advantage of aggressive opportunities. Troy continued
its reign as the leader in Office Vacancy (27%), but flexed
tremendous strength by reabsorbing 290,000 square feet at
the Troy Concept Center. Detroit’s CBD lured several large
tenants in the 3rd Quarter, but re-absorption at One Detroit
Center may be the true test of the CBD’s desirability in 2008.
Across all markets, landlord incentive packages have grown
yet again and will likely remain tenant friendly through 08.
Expect modest gains in 2008 while the market continues its
lingering struggle to stabilize.
Average Asking Rental Rate / SF
$25
$20
$15
$10
$5
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
Source: The CoStar Office Report- 4th Quarter 2007
Net Absorption (SF)
Class C
7%
Class A
66%
Class B
27%
Source: The CoStar Office Report- 4th Quarter 2007
Major Lease Transactions
Tenant:
Building:
Daimler Mercedes-Benz Financial Services
Farmington Hills Office Center
Henry Ford Health Systems
Columbus Corporate Office Centre
Marketing R Us, Inc
Size (SF):
153,500 SF
Oakland County
129,999 SF
Oakland County
Bingham Office Center
40,725 SF
Oakland County
Hamilton Anderson Assoc., Inc
First National Building
32,000 SF
Wayne County
Vertical Lend
Troy Office Centre - Bldg A
30,557 SF
Oakland County
Source: The CoStar Office Report- 2nd Quarter 2007
Submarket:
*All rents are per SF/per YR unless otherwise noted.
NAI Farbman | 28400 Northwestern Hwy, 4th Floor | Southfield, MI 48034 | 248.353.0500 | www.naifarbman.com
DETROIT MARKET
County / Market Statistics / Market Map
Oakland County
•
•
•
•
•
Oakland County consists of 910 square miles and is located 20
miles north of downtown.
Significant entertainment and sports venues include DTE and
Meadowbrook outdoor theaters, the Palace of Auburn Hills -- home to
the Detroit Pistons, Cranbrook Institutions and the Detroit Zoological
Park.
Oakland County also ranks as the fourth wealthiest county in the
nation among counties with populations of more than one million
people.
Forty-seven percent of Fortune 500 companies have a business
located in Oakland County. Lear Corporation, Kelly Services, Delphi
Automotive, Federal-Mogul, Pulte Homes, United Auto Group, Collins
& Aikman, Arvin Meritor all have headquarters here. Daimler
Chrysler North America AG is also headquartered here.
General Motors Corporation ranks as the fifth highest revenue
generating company in the world and third in the country and is the
largest employer in Oakland County.
Oakland
Macomb
Southfield
Wayne
Detroit
Your City Submarkets:
Suburbs
City / Downtown
* Source: Fortune Magazine, Crain’s Detroit Business: 2006 Book of Lists, Detroit Free Press.
com, www.oakgov.com
COOLIDGE HWY
C
LA
VD
BL
WYOMING ST
ST
MILLER RD
AN
DIL
W. WARREN AVE
IVM
JE
•
1
TIREMAN ST
153
County
D
LV
DB
AN
GR
Detroit
W
JOY RD
D
LV
DB
•
•
96
W CHICAGO ST
ST
PLYMOUTH RD.
E
AV
CA
39
N
RE
AR
EW
AN
•
10
GR
•
Wayne County consists of 623 square miles and features a vibrant
downtown and New Center Area.
Home to three major airports and one of the nation’s busiest marine
ports.
Home to the largest boat Marina in the country (Bell Isle’s Detroit
Yacht Club)
Access to Windsor, Canada by bridge or tunnel
Home to two of the world’s largest corporations, General Motors
Corporation and Ford Motor Company.
Entertainment venues include Casino gambling, Cobo Hall, and Joe
Louis Arena
75
E.
SOUTHFIELD FWY
SCHOOLCRAFT ST
Y
FW
•
ST
53
5
GE
Wayne County
ER
HIGHLAND PARK
FENKEL ST
LOD
* Source: www.macombcountymi.gov
W 6 MILE
NN
•
W OUTER DR.
CO
•
N
97
T
TS
•
Macomb County consists of 482 square miles and is located 20
miles north of downtown.
Three of the largest communities in Michigan are located in Macomb
County: Warren, Sterling Heights, and Clinton Twp.
Manufacturing is one of Macomb County’s leading industries,
employing roughly one third of the workforce.
Features 94 industrial parks, 8 community hospitals, Macomb
Community College and University Center.
N
NA
•
CO
Macomb County
12
Population
Median Income
Oakland
1,221,798
$61,134
Macomb
845,096
$53,294
1,974,838
$42,051
Wayne
Source: NAI Site Right, Yr. 2007
* Source: www.waynecounty.com
NAI Farbman | 28400 Northwestern Hwy, 4th Floor | Southfield, MI 48034 | 248.353.0500 | www.naifarbman.com
DETROIT MARKET
Office Report | Fourth Quarter 2007
Some of the data in this report has been gathered from third party sources and has not been independently verified by NAI Farbman. NAI Farbman makes no warranties or
representations as to the completeness or accuracy thereof.
NAI Farbman | 28400 Northwestern Hwy, 4th Floor | Southfield, MI 48034 | 248.353.0500 | www.naifarbman.com
DETROIT MARKET
Office Report | Fourth Quarter 2007
Some of the data in this report has been gathered from third party sources and has not been independently verified by NAI Farbman. NAI Farbman makes no warranties or
representations as to the completeness or accuracy thereof.
NAI Farbman | 28400 Northwestern Hwy, 4th Floor | Southfield, MI 48034 | 248.353.0500 | www.naifarbman.com
DETROIT MARKET
Office Report | Second
First Quarter
Fourth
Quarter
Quarter
2007
2007
2007
NAI Farbman | 28400 Northwestern Hwy, 4th Floor | Southfield, MI 48034 | 248.353.0500 | www.naifarbman.com
DETROIT MARKET
Office Report | Fourth Quarter 2007
Wells Fargo (NAI Farbman)
NAI Farbman | 28400 Northwestern Hwy, 4th Floor | Southfield, MI 48034 | 248.353.0500 | www.naifarbman.com
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