Detroit Skyline overview Detroit Skyline Review | Spring 2014
Smaller options getting smaller; large occupiers face few choices
Direct Availability Sublease Availability Future Availability 10 s k c o l b 6 6 e g r a l
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0 25,000-49,999 s.f. 50,000-99,999 s.f. 100,000+ s.f.
35.0 Financial Ac vi es Professional and Business Services Informa on Government
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n For more information please contact: a
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-5.0 500 Griswold 226 East Hudson Suite 2435 Suite 200 -15.0 Detroit, MI 48226 Royal Oak, MI 48067 0 1 2 3
1 1 1 1 0 0 0 0 2 2 2 2 tel +1 313 309 1700 tel +1 248 581 3300
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specialized real estate services to clients seeking increased value by owning, occupying and investing Locations in real estate. With annual revenue of $4.0 billion, Jones Lang LaSalle operates in 70 countries from 1: 211 West Fort 9: One Kennedy Square 17: Tower 500 2: 150 West Jefferson 10: 1001 Woodward 18: Tower 600 estate outsourcing services to a property portfolio of 3.0 billion square feet. Its investment management 3: One Woodward Avenue 11: Compuware Headquarters 19: Ford Field business, LaSalle Investment Management, has $47.6 billion of real estate assets under management. 4: One Detroit Center 12: Tower 100 20: For further information, visit www.jll.com. 5: Guardian Building 13: Tower 200 21. Brewery Park 6: Chase Tower 14: Detroit Marriott 7: First National Building 15: Tower 300 ©2014 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed 8: Chrysler House 16: Tower 400 reliable; however, no representation or warranty is made to the accuracy thereof. Detroit Skyline overview Detroit Skyline Review | Spring 2014
Smaller options getting smaller; large occupiers face few choices
Direct Availability Sublease Availability Future Availability 10 s k c o l b 6 6 e g r a l
f 5 o
r e b m u N 1
0 25,000-49,999 s.f. 50,000-99,999 s.f. 100,000+ s.f.
35.0 Financial Ac vi es Professional and Business Services Informa on Government
25.0 ) s d
n For more information please contact: a
s 15.0 u o h t (
s
b 5.0 o
J
-5.0 500 Griswold 226 East Hudson Suite 2435 Suite 200 -15.0 Detroit, MI 48226 Royal Oak, MI 48067 0 1 2 3
1 1 1 1 0 0 0 0 2 2 2 2 tel +1 313 309 1700 tel +1 248 581 3300
1 2 5 6 8
10
3 4
9 14 7 15 11
12
13 16 17 19
18
20
21
specialized real estate services to clients seeking increased value by owning, occupying and investing Locations in real estate. With annual revenue of $4.0 billion, Jones Lang LaSalle operates in 70 countries from 1: 211 West Fort 9: One Kennedy Square 17: Tower 500 2: 150 West Jefferson 10: 1001 Woodward 18: Tower 600 estate outsourcing services to a property portfolio of 3.0 billion square feet. Its investment management 3: One Woodward Avenue 11: Compuware Headquarters 19: Ford Field business, LaSalle Investment Management, has $47.6 billion of real estate assets under management. 4: One Detroit Center 12: Tower 100 20: For further information, visit www.jll.com. 5: Guardian Building 13: Tower 200 21. Brewery Park 6: Chase Tower 14: Detroit Marriott 7: First National Building 15: Tower 300 ©2014 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed 8: Chrysler House 16: Tower 400 reliable; however, no representation or warranty is made to the accuracy thereof. Detroit Skyline Review Occupied floor Direct vacant floor Sublease vacant floor An analysis of the Detroit Future available Retail Other commercial use
Floor 75
70
65
60
55
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35
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One Renaissance Renaissance Renaissance Renaissance Renaissance Renaissance Renaissance Building name 211211 West West Ford Ford 150 150West WestJefferson WoodwardOne Woodward OneOne Detroit Detroit Center GuardianGuardian ChaseChase Tower Tower FirstFirst National National ChryslerChrysler House One Kennedy Kennedy 10011001 CompuwareCompuware Headquarters Headquarters TowerCenter 100 TowerCenter 200 DetroitCenter Marriott TowerCenter 300 TowerCenter 400 TowerCenter 500 TowerCenter 600 Ford Field Ford Field MadisonMadison Office BreweryBrewery Park Park Street Jefferson AveAvenue Center BuildingBuilding Building House SquareSquare WoodwardWoodward Tower 100 Tower 200 Marriott Tower 300 Tower 400 Tower 500 Tower 600 Building RBA (s.f.) 450,000 493,145 332,735 957,355 416,207 246,649 1,080,000 576,507 582,354 1,159,488 584,531 576,449 307,277 306,768 331,034 107,415 371,307 RBA (s.f.) 450,000 493,000 360,000 957,000 643,000 505,000 800,000 416,000 247,000 283,000 1,080,000 577,000 582,000 585,000 576,000 307,000 307,000 331,000 100,000 371,000 Percent leased 85.9% 78.2% 89.7% 50.2% 88.2% 96.3% 100.0% 82.2% 81.4% 100.0% 100.0% 82.5% 100.0% 99.3% 29.5% 17.4% 75.4% Percent Avg. directleased rent ($p.s.f.) $21.0086.7% $20.5080.2% $20.7595.3% $24.2564.0% 93.3% 100.0% 99.1% $20.7596.3% $26.58100.0% 97.5% N/A 100.0% $23.2585.3% $23.2592.5% N/A N/A 100.0% $23.2582.7% N/A 100.0% $23.2592.2% $23.25 75.5% $22.5012.7% $21.25 76.3% Direct rent Year built(FS) / renovated 1963/1995 $20.00 1989 $22.50 1962/2012 $23.75 1992 $23.25 $19.25 $23.75 1919/2003 $23.75 2006 $23.75 2003 1976/2005 $23.25 1975/2005 $23.25 1977/2007 1976/2005 1976/2005 $23.25 1981/2003 1981/2005 $23.25 2002 $23.25 2005 $21.75 1989 $21.25 Owner ACQUEST Realty Piedmont Office Rock Ventures iStar Financial Rock Ventures REDICO Compuware Corporation General Motors General Motors General Motors General Motors General Motors General Motors General Motors Detroit Lions Etkin Crain Communications renovated Advisors Realty Trust1989 2012 1992 2005 2011 1990 2003 2006 2009 2003 Company2005 Company2005 Company Company2005 Company2005 Company2003 Company2005 2002 2005 1989
Skyline vacancy cut in half as suburban tenants head downtown Skyline statistics 30% Skyline statistics Metro statistics Inventory 9,969,980 s.f. Inventory 59,997,187 the past 18 months. Those buildings include the Guardian Building, First National 25% Total vacancy 1,142,471 s.f. Total vacancy 15,265,220
y Total vacancy rate 11.5% Total vacancy rate 25.4%
c n 20% a 2013 absorption 423,427 s.f. 2013 absorption 750,878 c
Skyline has grown rapidly over the last three years, resulting in nearly 1.5 million a
v Gross asking rents $19.49
Gross asking rents $22.59 l
a 15% square feet of absorption over that time period and a reduction in total vacancy t o T from 26.0 percent to 11.5 percent. While some of this demand growth has been 10% suburban tenants looking to relocate to downtown. The largest three tenants over 5% Recent leasing transactions the last year to make such moves were Title Source, which took 330,000 square 0% Tenant Building Square feet Type 2010 2011 2012 2013 Title Source First National Building 330,000 New Lease feet in the First National Building, Quicken Loans, which added to its already Campbell Ewald Ford Field 122,000 New Lease considerable downtown presence with an additional 260,000 square feet and last, Quicken Loans One Woodward Avenue 120,000 New Lease Quicken Loans One Detroit Center 75,000 Renewal Lowe Campbell Ewald, which leased 122,000 square feet at Ford Field. 150 West Jefferson 70,000 Renewal $23.00 PWC One Detroit Center 70,000 New Lease While Detroit’s Skyline has seen a rise in interest from tenants, it has also Quicken Loans 1001 Woodward Avenue 65,000 New Lease The Kitch Firm One Woodward Avenue 53,000 Renewal s captured the attention of investors, most notably, Dan Gilbert, founder and t General Motors Renaissance Center Tower 200 34,000 New Lease n e
r $22.50 SEMCOG 1001 Woodward Avenue 28,000 New Lease Chairman of Quicken Loans and Rock Ventures. Over the course of the last g n i
k Gateway Community Health Brewery Park 26,000 New Lease s a three years, Rock Ventures’ real estate portfolio has grown from nothing to Ally Financial Renaissance Center Tower 200 17,000 New Lease s s o r $22.00 The Professional Group Chrysler House 15,000 New Lease Detroit’s growing urban core. The group also owns several parking garages G Amazon 150 West Jefferson 10,000 New Lease and a surface lot totaling more than 4,250 parking spaces. Some of Gilbert’s $21.50 2010 2011 2012 2013 One Woodward Avenue, Chrysler House and 1001 Woodward. Detroit Skyline overview Detroit Skyline Review | Spring 2014
Smaller options getting smaller; large occupiers face few choices
Direct Availability Sublease Availability Future Availability 10 s k c o l b 6 6 e g r a l
f 5 o
r e b m u N 1
0 25,000-49,999 s.f. 50,000-99,999 s.f. 100,000+ s.f.
35.0 Financial Ac vi es Professional and Business Services Informa on Government
25.0 ) s d
n For more information please contact: a
s 15.0 u o h t (
s
b 5.0 o
J
-5.0 500 Griswold 226 East Hudson Suite 2435 Suite 200 -15.0 Detroit, MI 48226 Royal Oak, MI 48067 0 1 2 3
1 1 1 1 0 0 0 0 2 2 2 2 tel +1 313 309 1700 tel +1 248 581 3300
1 2 5 6 8
10
3 4
9 14 7 15 11
12
13 16 17 19
18
20
21
specialized real estate services to clients seeking increased value by owning, occupying and investing Locations in real estate. With annual revenue of $4.0 billion, Jones Lang LaSalle operates in 70 countries from 1: 211 West Fort 9: One Kennedy Square 17: Tower 500 2: 150 West Jefferson 10: 1001 Woodward 18: Tower 600 estate outsourcing services to a property portfolio of 3.0 billion square feet. Its investment management 3: One Woodward Avenue 11: Compuware Headquarters 19: Ford Field business, LaSalle Investment Management, has $47.6 billion of real estate assets under management. 4: One Detroit Center 12: Tower 100 20: For further information, visit www.jll.com. 5: Guardian Building 13: Tower 200 21. Brewery Park 6: Chase Tower 14: Detroit Marriott 7: First National Building 15: Tower 300 ©2014 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed 8: Chrysler House 16: Tower 400 reliable; however, no representation or warranty is made to the accuracy thereof.