Michigan Real Estate News

Timely  |  Relevant  |  Informative

Detroit Metro Office Construction Costs Soar to Unprecedented Heights

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According to a new report from the Chicago-based brokerage JLL, the construction costs of new office space in metro Detroit has increased by double digits, in excess of 25 percent in some cases. This is in keeping with the trend across North America with costs increasing 22.9 percent year over year.  The trend includes a 25.4 percent increase in hard costs, 20.8 percent increase in soft costs, 22 percent increase in FF&E and a 12 percent increase in tenant factors. The increases are caused by spikes in material costs, supply chain disruptions and labor shortages. The rising construction costs are unprecedented.

 

Redico Purchases One North Main Building in Ann Arbor.

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Redico LLC has purchased the One North Main office building in downtown Ann Arbor, to the tune of $25.3 million.  Redico will renovate the 115,000-square-foot building by improving common areas, elevators and offices.  The University of Michigan and law firms Varnum LLP and Miller Canfield are the  primary tenants in the building. The building is currently 75 percent leased.  Redico is also developing a 167-unit apartment community and a 156-acre mixed-use development in Ann Arbor.

 

Renaissance Center Faces More Loss

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Blue Cross Blue Shield of Michigan is vacating the RenCen and consolidating its Health Plan Business employees from that location into the high-rise it owns at 600 E. Lafayette Blvd. Last month, the complex lost Deloitte LLP, its third-largest tenant. At this time, the exact number of BCBSM employees the move impacts is unknown. BCBSM has stated that the move is a result of reintegrating remote workers back into the office environment. It holds a long-term lease through 2026.