Ann Arbor Office Rent Price & Sales Report

2021 Office Space Rent & Sales

  • $25.70 2021 Avg. Asking Rent
  • -2.83% Y-o-Y Avg. Asking Rent Change
  • 14.04% 2021 Office Vacancy Rate
  • $38.1M2021 Total Office Sales
  • $155.46Avg. Sale Price/SF

Ann Arbor office price per square foot in 2021 was $25.70 on average. This marked a -2.83% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 14.04% across all asset classes combined. The 6 transactions that closed here throughout 2021 amounted to a total sale volume of $38.1M. Ann Arbor office space commanded an average sale price per square foot of $155.46.

Average Rent by Office Class

2021 Average Office Rent per Square Foot

  • Ann Arbor Class A & A+ Office Space$30.40
  • Ann Arbor Class B Office Space$25.99
  • Ann Arbor Class C Office Space$22.46
  • Michigan Class A & A+ Office Space$24.29
  • Michigan Class B Office Space$20.42
  • Michigan Class C Office Space$17.17

Ann Arbor, MI Office Asking Rents by Class

Average office rent in Ann Arbor rested at $25.70 per square foot in 2021. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Ann Arbor averaged $30.40 per square foot. Across all submarkets, class B office space recorded an average asking rent of $25.99 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $22.46 per square foot, on average. Comparably, statewide Michigan average office rents by class in 2021 were: $24.29 per square foot for class A office space; $20.42 per square foot for class B office space; $17.17 per square foot for class C office space.

Office Spaces for Rent in Michigan

Ann Arbor Office Sale Price per SF

  • $155.462021 Avg. Price per SF
  • -0.33%Y-o-Y Avg. PpSF Change
  • $38.1M2021 Office Sales Volume
  • 62021 Number of Transactions

Ann Arbor, MI Sale Price per SF Trend

  • Ann Arbor Avg. Sale Price per SF in 2021$155.46
  • Michigan Avg. Sale Price per SF in 2021$104.92
Ann Arbor office space cost in 2021 marked a -0.33% change compared to the previous year. The sale price for office space in Ann Arbor averaged $155.46 per square foot in 2021, across all market subdivisions and asset classes. Conversely, the statewide Michigan average office sale price during the same time period was $104.92 per square foot.

2021 Office Sales Volume

  • Ann Arbor, MI Total Office Sales Volume in 2021 $38.1M
  • Ann Arbor, MI Total Number of Office Sales Closed in 2021 6
A total of 6 deals closed on the Ann Arbor office market in 2021, adding up to a yearly sales volume of $38.1M. Notably, the largest transaction on the market saw Park Place 5 change hands for $14,857,000 on 11/15/2021.

Largest Ann Arbor Office Sales in 2021

Property name Address Date Price
Park Place 5 2373 Oak Valley Drive 11/15/2021 $14,857,000
Ann Arbor Commerce Park - 1665 & 1777 Highland Drive 1665 Highland Drive 5/11/2021 $7,087,778
Ann Arbor Commerce Park - 4370 Varsity Drive 4370 Varsity Drive 5/11/2021 $4,574,444
Plymouth Building, The 2929 Plymouth Road 12/2/2021 $4,500,000
Ann Arbor Commerce Park - 1050 Highland Drive 1050 Highland Drive 4/8/2021 $3,543,889
Data provided by Commercial Edge

Coworking Spaces in Michigan

2021 Office Construction in Ann Arbor, MI

  • Ann Arbor, MI Total SF completed in 2021 230,000

During 2021, 230,000 square feet of new office space were delivered across the market. At the close of 2021, the Ann Arbor office inventory included 1 buildings equal to or larger than 25,000 square feet, which comprised 230,000 square feet of office space.

Largest Office Properties Recently Completed in Ann Arbor
Office building Address SF Completed
The Crossroads - Office Campus Southwest Corner of West Liberty Road and South Wagner Road, 48103 148,000 2022
Ann Arbor Office Suites for Lease 2385 Oak Valley, 48108 19,951 2020
New Construction Downtown Retail/Office Space For Lease 1215 S. University, 48104 6,000 2017
Class A Office 2373 Oak Valley Drive, 48108 0 2017
Concourse Office Center-37,000 SF 4343 Concourse, 48108 75,000 2015
IHA Domino's Farms 4200 Whitehall Drive, 48105 46,828 2014
The Gables Office Center 1136 Oak Valley Dr, 48104 32,400 2008
The Dakota Building 1785 W. Stadium, 48103 19,959 2007
Office Condos for Sale or Lease in Ann Arbor 1310 S. Main Street, 48104 1,414 2007
Earhart Corporate Center 2211 Old Earhart Road, 48105 196,087 2006

Worth noting among recent office completions on the Ann Arbor market is The Crossroads - Office Campus, which is currently the largest new office development in the city, at 148,000 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2021 through December 31st 2021. Construction pipeline data represented herein is valid as of April 2022. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Ann Arbor commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.