Office Market Posts Stable Quarter
The Metro Detroit overall vacancy rate for the office market posted another stable quarter at 10.2% in the fourth quarter; from 10.3% in the third quarter 2017.
Demand for urban office space is at an all-time high pushing vacancy rates in the Central Business District (CBD) down to 7.8% in the fourth quarter. The overall asking rate in the CBD is $21.09 per square foot. This quarter, Google inked a lease for 29,178 square feet downtown at 52 E. Henry Street next to the new Little Caesars Arena. They will move more than 100 employees from their downtown Birmingham location when their office is complete in the spring. UBS announced plans to lease 13,000 square feet from Bedrock starting in mid-2018. Their new space is located off Woodward Avenue, and is situated between the neighboring Grinnell Building and Sanders Building, which are uniquely connected by the sixth floor. The buildings are currently under renovation. Once renovations are complete in mid-2018, UBS plans to rent out 6,000 square feet to nonprofits and other organizations and occupy the remaining space. LinkedIn gained a presence in Detroit, opening offices in WeWork at Campus Martius while they consider larger spaces downtown to grow into by next summer. In the suburban market, Village Green signed a 10-year lease for their new corporate headquarters at the One Northwestern Plaza building located at 28411 Northwestern Highway in Southfield. In Troy, Hayman Co. announced that the former Troy Officentre will be renamed PentaCentre and the 732,000 square-foot complex will undergo $10-million in renovations. Hayman purchased the five-building property for $55 million in June 2017.