Office Report -NAI Farbman.indd
Transcription
Office Report -NAI Farbman.indd
DETROIT MARKETNAME REPORT NAI MEMBER Offi | Second QuarterQuarter 2010 2010 Office ce Report | Second DETROIT Overall Vacancy (%) OVERVIEW: TRENDS: Vacancy Rate Overall Vacancy (%) The 2nd quarter is showing continued signs of improvement in the office market. After a relatively quiet start to 2010, vacancy rates are coming down and rental rates are stabilizing. 20% 19% 18% 17% 16% Farbman Group has completed leases this quarter at several of their office buildings, such as Sheffield Office park in Troy and Bingham Office Center in Bingham Farms. Other major transactions are listed below. Net Absorption 15% 2Q09 3Q09 4Q09 1Q10 2Q10 Source: The CoStar Office Report- 2nd Quarter 2010 Another bright spot in the commercial office market is the healthcare real estate sector. Due to unemployment rates and most of the major healthcare systems instituting capital freezes, we have seen an increase in activity over the last 6 months. The increase in activity is more on the leasing side versus acquisition. There is a great deal of optimism in the air with respect to increased competition with the healthcare systems that could stimulate growth in the medical real estate market. This optimism stems from the recent transaction between DMC, a non-profit, and for-profit Vanguard Health Systems. Involving 8 hospital and millions of dollars, investment by Vanguard will go towards new developments including a new Children’s Hospital tower and other new real estate developments that could also stimulate spin off activity such as new retail shops, restaurants and other amenities to support the new medical developments. Construction Asking Rents Cap rates have been higher in 2010, averaging 9.13% compared to the same period in 2009 when they averaged 8.63%. Average Asking Rental Rate Average Asking Rental Rate / SF $25 $20 $15 $10 $5 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Source: The CoStar Office Report- 2nd Quarter 2010 Net Absorption (SF) Class C 21% Class A 25% Cl Class B 52% One of the largest transactions that has occurred within the last four quarters in the Detroit market is the sale of Columbia Center in Troy. This 506,598 sq. ft. office building sold for $122.39 per sq. ft., and closed 5/14/2010. Source: The CoStar Office Report- 2nd Quarter 2010 Major Lease Transactions Tenant: Building: Size (SF): Submarket: Charter County of Wayne Penobscot Building 145,030 SF Wayne County GalaxE Solutions, Inc 1001 Woodward 27,484 SF Wayne County N/A PNC Center 19,443 SF Oakland County N/A Sheffield Office Park IIIIIII 16,826 SF Oakland County N/A Sheffield Office Park IIIII 8,972 SF Oakland County Source: The CoStar Office Report- 2nd Quarter 2009 *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. Oaklanbd County hosts a rich mix of Fortune 500 companies: Borders Group, Borg Warner, Inc.mLear Corporation, Kelly Services, FederalMogul, Pulte Homes, and United Auto Group all have headquarters here. Daimler Chrysler North America AG is also headquartered here. General Motors Corporation ranks as the 18th largest corporation in the world, is headquartered in Detroit, and is the largest employer in Oakland County. Oakland Macomb Southfield Wayne Detroit Your City Submarkets: Suburbs City / Downtown * Sources: Fortune Global, Crain’s Detroit Business: 2009 Book of Lists, Detroit Free Press. com, www.oakgov.com, wikepedia.com Macomb County W 6 MILE ER HIGHLAND PARK 75 10 DIL C LA D LV DB 1 TIREMAN ST GE Y FW WYOMING ST D LV Detroit W JOY RD MILLER RD DB AN AN GR GR W. WARREN AVE 153 IVM VD BL 96 W CHICAGO ST ST AN JE ST PLYMOUTH RD. E AV CA 39 N RE AR EW E. SOUTHFIELD FWY SCHOOLCRAFT ST COOLIDGE HWY 5 ST 53 FENKEL ST LOD • N 97 NN • W OUTER DR. CO • 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. Macomb County is home to one of the world’s largest and most productive industrial corridors where you will find factories and research facilities of the Big Three automakers, the U.S. Army Tank - Automotive and Armaments Command and other manufacturing companies. Northern Macomb county land remains largely agricultural. Features 94 industrial parks, 8 community hospitals, Macomb Community College and University Center. ST NT NA CO • 12 * Sources: www.macombcountymi.gov, automationalley.com Wayne County • • • • • • 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 County Population Median Income Oakland 1,202,174 $66,641 Macomb 830,663 $55,265 1,949,929 $42,529 Wayne Source: US Census 2008 estimates * Source: www.waynecounty.com NAI Farbman | 28400 Northwestern Hwy, 4th Floor | Southfield, MI 48034 | 248.353.0500 | www.naifarbman.com DETROIT MARKET Office Report | Second Quarter 2010 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 Quarter 2010 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 Quarter 2007 2010 NAI Farbman | 28400 Northwestern Hwy, 4th Floor | Southfield, MI 48034 | 248.353.0500 | www.naifarbman.com DETROIT MARKET Office Report | Second Quarter 2010 NAI Farbman | 28400 Northwestern Hwy, 4th Floor | Southfield, MI 48034 | 248.353.0500 | www.naifarbman.com Full-Service Commercial Real Estate Whether around the corner or around the world, NAI Farbman combines the power and expertise of NAI Global with the advantage of strong, long-standing relationships in southeastern Michigan, continuing our role as one of the largest and most respected full-service real estate organizations in the Midwest. NAI Farbman is a dynamic member of NAI Global, the world’s leading managed network of Brokerage commercial real estate firms. With over 800 offices in 55 countries worldwide, we bring Property Management clients come to us for our deep local knowledge. They build their businesses on the power Development Construction Finance 28400 Northwestern Hwy. 4th Floor Southfield, Michigan 48034 www.naifarbman.com together people and resources to deliver results for our clients wherever needed. Our of our global managed network.