Property Types

Detroit Metro Office Construction Costs Soar to Unprecedented Heights

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.

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

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.

Blake’s Orchard & Cider Mill Takes Over Erwin Orchards

Blake’s Orchard & Cider Mill owners will take over operations at Erwin Orchards. They hope to maintain the integrity of Erwin’s but with a Blake spin on it. Orchard Crossing, a 181-acre development at Silver Lake and Kent Lake roads will be positively impacted by the deal.  The Orchard Crossing development will leave 104 acres for preservation of orchards, the cider mill and other new enterprises. Blake’s is planning a 20,000-square-foot tasting room with a full-service restaurant, bar service and cidery/beer brewing. The year-round facility will be located on the northeast corner of Silver Lake and Ken Lake roads.  The north side orchard operations area will also include a 20,000-square-foot venue with a 400-person capacity and an outdoor patio. On the south side of Silver Lake, the existing cider mill will be expanded with a cider press, cafe, retail sales and office.

Developers Move Forward With Mobile Home Park in Ann Arbor Area

Sun Communities, Inc. is facing opposition from residents who don’t want hundreds of manufactured homes in the area. The Southfield-based company owns and operates mobile home parks, RV resorts and marinas across the United States.  The company had initially proposed a 500-unit mobile home park on about 140 acres on either side of U.S. 23 along Warren Road. The Ann Arbor Township denied that rezoning request.  The developers plan to continue with the manufactured homes development on the east side of U.S. 23 on 80 acres that is appropriately zoned for a dense mobile home park. About 17 neighbors attended the township planning commission meeting to protest the developers’ plans.

5-Story Building Planned For Downtown Birmingham

Birmingham-based developer, Surnow Co., has submitted plans for an 80-foot high, 53,000-square-foot building on the rear of the post office building parking lot. The developer currently has its offices in the redeveloped post office property at 329 Martin St. The building will include 5,400 square-feet of first-floor retail space, about 19,200 square feet of office space on the second and third floors, and six residential units on the fourth and fifth floors. It will also include underground parking with an automated parking system. The project is still in the planning stages.