MOMENTUM CONTINUES IN METRO DETROIT’S OFFICE MARKET
Vacancies tightened in Metro Detroit’s CBD and suburban office market; the conditions were positive all around in the third quarter 2018 as rental rates climb and absorption is positive. There is an undeniable entrepreneurial spirit, energy and vibe that contributes to the positive momentum in our region. With this growth, Metro Detroit has become a hub for tech companies who are locating to our region due to our talent pool, affordability, and low operation costs, and to be near the synergy of automotive, start-ups, and tech related companies.
This quarter, Chemical Bank, Michigan’s largest bank, announced plans to build a 250,000-square-foot office headquarters in Detroit’s CBD. Chemical Bank will relocate 500 employees to their new building upon completion, construction is to take shape by mid-2019. In the tech sector, May Mobility, an autonomous self-driving shuttle development company, signed a lease for 10,000 square feet at 600 Woodbridge Street, Detroit. Earlier this year Ford Motor Co. purchased the iconic Michigan Central Station in Corktown, Detroit for $90 Million. Ford’s plans to spend $740 Million to develop 1.2 million-square-foot autonomous self-driving car division and a mobility and technology driven mixed-use campus. The campus will be integrated into the community, open for people, entrepreneurs, and tech occupiers. In the District Detroit, Little Caesar’s $150 million, 234,000- square-foot-headquarters is expected in early 2019. While, LinkedIn is on track to move into the historic 74,500 square-foot Sanders building by mid-2019. Overall, optimism remains high in our region.