Detroit, MI - Office Market Overview
The Detroit Metropolitan Area includes the Bagley Commercial, Greenfield Commercial, and Middle East Central Commercial office submarkets. With a metropolitan population of over 1.7 million people, Detroit is famously nicknamed the 'Motor City'. While still home to auto manufacturing businesses, a large amount of the demand for Class A office space in Detroit is driven by the government, healthcare, and high-technology industry sectors.
As of mid-2017, the Greater Detroit office market encompasses over 25.5 million square feet of existing office space in properties larger than 50,000 square feet. Detroit is home to numerous Fortune 500 and other large company headquarters that propel the consistent demand for commercial real estate in Detroit.
Detroit, MI - Office Inventory Description
While auto manufacturing still makes a significant contribution to the economy of Detroit, today's white-collar office employers such as the government, high technology, and large corporate offices increasingly drive the demand for office space in Detroit. With a gross metropolitan product of over $81 billion annually, the need for office space in Detroit is consistently strong year after year.
Some of the most robust demand for Class A office space in Detroit comes from the Central Business District office market. Located along the Detroit River just west of I-375, this area is home to portfolio-grade office buildings such as the Cadillac Tower, the Fort Washington Plaza, and the historic Guardian Building on 500 Griswold Street.
Detroit, MI Commercial Inventory Breakdown
Total: 32,522,215 SF
By square footage range:
- 50k to 100k SF: 3,484,555 SF / 10.71% of total office
- 100k to 500k SF: 13,767,296 SF / 42.33% of total office
- 500k to 1M SF: 13,872,364 SF / 42.66% of total office
- > 1M SF: 1,398,000 SF / 4.3% of total office
- Class A+: 898,000 SF / 2.76% of total office
- Class A: 13,703,809 SF / 42.14% of total office
- Class B: 14,877,741 SF / 45.75% of total office
- Class C: 686,706 SF / 2.11% of total office
Detroit, MI - Green Office Space
Both tenants and office building investors in Detroit understand the economic benefits of Class A green office space. An excellent example of a LEED certified office building in Detroit is the U.S. Government's Citizenship and Immigration Services building on 11411 East Jefferson Avenue. This nearly 56,000 square foot Class A office building is located in the Foch commercial real estate market, was constructed in 2009 and holds a LEED Gold certification.
The most recent National Green Building Adoption Index survey ranks Detroit 29th among the top 30 large office markets in the U.S. for adoption of green office building standards. While not quite 1% of the office buildings in Detroit that are larger than 50,000 square feet are LEED-certified, over 4% are EPA Energy Star-rated, and nearly 5% are rated as green buildings.
The Index also found that over the past 12 years, the percentage of large energy-efficient, green office buildings across the top 30 markets has increased from less than 5% to about 38% by mid-year 2017.
Detroit, MI's Top Office-Using Sectors
The demand for Class A, white-collar office space and Detroit commercial real estate is driven by a strong mix of business and industry. Some of the top office-using sectors in Detroit include the government & healthcare, technology firms, auto manufacturing companies, and Fortune 500 and other large corporate office users.
- Government & Healthcare – Some of the largest employers and users of white-collar office space in Detroit include the Detroit Medical Center, the City of Detroit, the U.S. Government, and the Henry Ford Health System.
- Technology – White-collar office employment in Detroit is created by companies such as Quicken Loans, DTE Energy, Compuware, and HP Enterprise.
- Auto Manufacturing – General Motors, American Axle, Chrysler, and Detroit Diesel all help to drive the commercial real estate market in Detroit.
- Corporate Office – Ally Financial, Shinola, Little Caesars, Rossetti Architects, and Lowe Campbell Ewald generate demand for Class A office space in Detroit.
- Total Population679,865
- Male Population(47.3 %) 321,341
- Female Population(52.7 %) 358,524
- Median Age34.70
- Average Household Income$40,314
- Median Household Income$27,838
- Median Income Under 25$15,511
- Median Income 25-44$26,900
- Median Income 45-64$30,077
- Median Income Over 65$29,235
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