Detroit office market moves beyond CBD

Detroit

• The City of Detroit’s office market is beginning to grow beyond the CBD, which ended Q2 2016 with

average asking rents at $20.52. The real estate focused non-profit Midtown Inc. constructed a new Class

A office building in the heart of Midtown that is now fully leased. The Fisher building, located in the

neighboring New Center area, was purchased in the second quarter of 2015 by HFZ and is undergoing

renovations and attracting new tenants. While demand continues increasing for the urban submarkets,

cost constraints to build new product are pushing build-to-suit and speculative projects to the suburban

submarkets.

Source: JLL Research

Chart of the week: July 18, 2016

$15.50

$17.50

$19.50

$21.50

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

CBD Rents New Center Rents