Michigan Markets Commercial Real Estate News Brief: April 2017

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In the latest edition of our monthly news brief, JLL’s regional team curates the top commercial real estate industry articles impacting Michigan markets to keep you in-the-know.

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High-Profile Transactions Bolster Detroit’s Q1 Office Standings

Downtown Detroit closed Q1 of 2017 with a number of high-profile tenant commitments and transactions. Among the 470,000 square feet of leases signed is Microsoft’s tech center and Hudson’s Block Plan.

While downtown activity is booming, our research shows there is still plenty of interest in suburban office markets as well. Among suburban commitments include new leases by Magna Seating and Blue Cross Blue Shield of Michigan.

With so much activity within the urban core and Detroit’s submarkets, our experts expect rental rates to rise. Currently, the average asking rental rate is at $19.66 per square foot, which is competitively low compared to other high-demand regions.

Mixed-Use and Hospitality Developments Move Forward in Ann Arbor

Construction of a new hotel, Fairfield Inn & Suites, has begun near the Ann Arbor Marriott Ypsilanti at Eagle Crest. Construction follows at the city looks to widen its hospitality offerings. The hotel is expected to open this fall and will include a business center, gym and 24-hour fitness center.

Also making progress is the Packard Square development, which will become a mixed-use development. Plans for the site include more than 200 apartment units, retail and mixed-use space, and an underground parking garage.

Grand Rapids Welcomes Tech Expansion, Mixed Use Proposal

A Sweden-based technology company, Configura, recently announced its plans to relocate to Blue35 in downtown Grand Rapids this summer. The company will lease the top two floors of the building, which total 12,000 square feet.

The new office will be designed to accommodate a variety of work styles, cultures and ages, and will include features that compliment its Swedish roots. Blue35, which is a former hotel property, also includes flexible features for high-tech tenants.

In addition to this new tenant, Downtown Grand Rapids may also see changes to its proposed movie theater district near the Van Andel Arena. Original plans included a movie theater, multifamily and retail space. Now, developers are in talks of adding an office tower and hotel to the proposal.