Ann Arbor Office Market Trends

Office Rental Market

  • $27.45 2019 Avg. Asking Rent
  • 8.87 % 2019 Avg. Vacancy Rate
  • 0 2019 Office Completions (Sqft)
  • 230,000 2020 Estimated Pipeline (Sqft)
In 2019, the average asking rent for office space in Ann Arbor was $27.45 per square foot, and the office vacancy rate across the market averaged 8.87 %. During 2019, developers added 0 square feet of new office space to the Ann Arbor market inventory. Office developments estimated for delivery during 2020 total 230,000 square feet.

Average Office Asking Rents by Class

2019 Average Office Rent per Square Foot

  • Ann Arbor Class A Office Buildings$32.63
  • Ann Arbor Class B Office Buildings$25.60
  • Ann Arbor Class C Office Buildings$16.18
  • MI Class A Office Buildings$25.15
  • MI Class B Office Buildings$20.81
  • MI Class C Office Buildings$17.05

Ann Arbor, MI Office Asking Rents by Class

Office asking rents vary across the Ann Arbor office market depending on several factors, one of which is property class. While rents for Class A office buildings in Ann Arbor averaged $32.63 per square foot in 2019, Class B office properties garnered average rental rates of $25.60 per square foot. Rental rates for Class C office property in Ann Arbor averaged $16.18 per square foot. On a statewide level, Class B office space rents averaged $20.81 per square foot, while rents for Class A office space across Michigan averaged $25.15 per square foot. On average, Class C office properties in Michigan commanded rents of $17.05 per square foot.

OFFICE CONSTRUCTION IN Ann Arbor, MI

  • Ann Arbor, MI Total Sqft completed in 2019 0
  • Ann Arbor, MI Total Sqft under construction in 2020 230,000
10 Largest Office Buildings in Ann Arbor
Building name Address Total Sqft Year built
Domino's Farms 24 Frank Lloyd Wright Drive, 48105 939,774 1985
Wickfield Center 100 Phoenix Drive, 48108 330,000 1970
The 777 Building 777 East Eisenhower Pkwy, 48108 303,000 1973
W.K. Kellogg Eye Center 1000 Wall Street, 48105 230,000 1985
Wolverine Tower 3003 South State Street, 48109 225,000 1973
Northeast Corporate Center 2500 Green Road, 48105 221,747 1988
Eisenhower Commerce Center 1100 Eisenhower Place, 48108 216,000 1982
Burlington Office Center 315 East Eisenhower Pkwy, 48108 200,000 1986
Earhart Corporate Center 2211 Old Earhart Road, 48105 196,087 2006
Atria Park Business Center 2008 Hogback Road, 48105 156,286 1973
Largest Office Properties Recently Completed in Ann Arbor
Office building Address Sqft Completed
Park Place 5 2373 Oak Valley Drive, 48103 60,449 2018
3900 Research Park Drive 3900 Research Park Drive, 48108 44,525 2018
674 South Wagner Road 674 South Wagner Road, 48103 39,543 2017
600 South Wagner Road 600 South Wagner Road, 48103 91,960 2016
4200 Whitehall Drive 4200 Whitehall Drive, 48105 44,174 2014
State Street Executive Park - 5220 South State Road 5220 South State Road, 48108 60,380 2007
4840 South State Road 4840 South State Road, 48108 54,607 2007
5683 Hines Drive 5683 Hines Drive, 48108 50,000 2007
Valley Ranch Business Park - 1136 Oak Valley Drive 1136 Oak Valley Drive, 48108 32,400 2007
Earhart Corporate Center 2211 Old Earhart Road, 48105 196,087 2006
Data provided by Commercial Edge

Office Spaces for Rent in Michigan

ANN ARBOR OFFICE SALES TRENDS

  • $203.482019 Avg. Price per Sqft
  • 108.19 %Y-o-Y Avg. PpSF Change
  • $54.8M2019 Office Sales Volume
  • 32019 Number of Transactions

In 2019, office sales in Ann Arbor averaged $203.48 per square foot. This marked a 108.19 % increase in office price per square foot, compared to the previous year. A total of 3 office sales closed on the Ann Arbor office market in 2019, amounting to a total sales volume of $54.8M.

Average Office Sale Price per Sqft

Ann Arbor, MI Sales Trends

  • Ann Arbor Price per Sqft$203.48
  • Michigan Price per Sqft$124.04

Office Sales - Trend and Volume

  • Ann Arbor, MI Total Office Sales Volume in 2019 $54.8M
  • Ann Arbor, MI Total Number of Office Sales Closed in 2019 3

Largest Ann Arbor Office Sales in 2019

Property name Address Date Price
Earhart Corporate Center 2211 Old Earhart Road 6/6/2019 $41,071,000
Ann Arbor Commerce Bank Building 2950 South State Street 2/12/2019 $12,205,000
3985 Research Park Drive 3985 Research Park Drive 1/29/2019 $1,550,000
Data provided by Commercial Edge

The Ann Arbor office market contains an inventory of 9,279,670 square feet of office space, in 162 buildings that are equal to or larger than 25,000 square feet.

This market trends report is based on analysis of city-level data. Averages were calculated based on values dated January 1st 2019 through December 31st 2019. Construction pipeline data shown is valid as of April 2020. The information on this page was compiled using data provided by our sister company, CommercialEdge – a market intelligence solution which offers comprehensive 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.