jll detroit full circle report 2017

© JLL 2017 1

Full circle: DetroitAn in-depth look at how residential demand, corporate

growth, and development activity sparked the

resurgence of downtown Detroit

© JLL 2017 2

Detroit’s comeback continuesDetroit has recovered from bankruptcy to a state of economic

stability under the guidance of local civic leadership. The city’s

downtown core is thriving once again, and thousands of multifamily

units are either under construction or in the planning stages. Detroit

is rebranding itself as a hub of innovation and entrepreneurialism.

Startups are flocking here, attracted not only by lower rents and

costs, but also by a sense of freedom and individuality not present in

other large metropolitan areas. As businesses and residents return to

the downtown core, the community’s excitement is tangible.

Detroit is forging a new path into the future and is positioned to

experience sustainable, long-term

economic growth.

Downtown Detroit

2© JLL 2017

© JLL 2017 3

Downtown Detroit by the numbers

32%Percent Millennials

140,300Total employment

27 Office tenants

2016 Business attraction and retention

116# of investment projects (2012-planned)

$6.6BTotal investment

77%Private investment

7.2Square miles

37,700Residential population

3.1%Population growth since 2000

3© JLL 2017

© JLL 2017 4

Downtown Detroit

0

2,500,000

5,000,000

-

20,000

40,000

60,000

2000 2010 2017

Population growth

The downtown population is expected to increase

rapidly in the coming years as new residential

inventory comes online.

4.5M4.3M 4.3M

36.6K32.9K

37.7K

Demographics

16%

32%

19%

25%

Millennials make up nearly a third of the

downtown population, a significant factor

driving business attraction and retention.

Generation Z (0-19)

Millennials (20-36)

Generation X (37-52)

Baby Boomers (53-71)

The Silent Generation (72+)

2017 downtown population by age 19,000

22,000

25,000

28,000

2000 2010 2017

Residential developmentDowntown Detroit is seeing a boom in

multifamily construction, with an estimated

8,000 new units either under construction

or planned.

22.7K

24.1K

27.3K

People

Downtown population Metro population Downtown housing units

© JLL 2017 5

Largest employers

The largest private employers in downtown

Detroit span a broad range of industries,

illustrating the diversification of the region’s

economy.

14,000

9,100

8,700

7,600

7,400

Wayne State University

BCBSM

DTE Energy

MGM Grand Detroit

Ally Financial

5,800

5,700

3,900

2,400

1,100

Rock Ventures

Detroit Medical Center

Henry Ford Health

Ilitch Companies

General Motors

Business attraction and retention

Downtown Detroit continues to attract new

businesses and retain those already with a

presence. Below are the companies that made

the largest office commitments since the

beginning of 2016.

Ally Financial

Bamboo Detroit

Huron Capital Partners

LoVasco Consulting

Adient

Amazon

ASTI Environmental

Detroit Pistons

Fifth Third Bank

Gail & Rice

Healthy Living Medical Supply

International Bancard

Lear Corporation

MarxModa

Microsoft

Nolan Transport

Rocket Fiber

WeWork

Attraction

Retention or expansion

Employment by industry

Downtown Detroit has an evolving 21st

century economy with significant employment

in education, healthcare, business, and

technology.

28%

20%17%

13%

12%

4% 6%

Government

Construction, manufacturing and transportation

Downtown employment by industry

Information

Other

Education and healthcare

Professional and business services

Hospitality, leisure and retail

Business

McKinsey & Co

Miller Canfield

Plante Moran

Downtown Detroit

© JLL 2017 6

19%

37%

44%

Investment by project status

With a healthy amount of activity seen in the

past five years, many projects are currently

underway, and a there is a robust pipeline

moving forward.

Completed (2012-16)

Under construction

Planned

$1.2B

$2.5B

$2.9B

43

40

33

Status Investment

# of

projects

Investment by funding type

Tax credits and incentives have been

instrumental in activating downtown

developments, however private investment

still outweighs public projects.

77%

23%

Private investment dollars

Public investment dollars

$0.0

$0.7

$1.4

$2.1

$2.8

Education,infrastructure,

public use

Entertainment,retail

Hotel Office Residential

Investment by property type

Residential development has received the largest

share of investment, driven by strong residential

demand and a tight apartment market.

11

projects

70

projects

28

projects

8

projects

8

projects

($B)

Investment

Downtown Detroit

© JLL 2017 7

14 Little Caesars Headquarters

15 QLine

16 Orleans Landing

17 The Corner

18 The Elliott Building

19 The Griswold

20 The Plaza

21 The Selden

22 Third and Grand

23 Vinton Building

24 Mike Ilitch School of Business

25 Wurlitzer Building

1 28 Grand

2 Baltimore Station

3 Book Tower

4 Capitol Park Building

5 City Modern

6 David Stott Building

7 DuCharme Place

8 Element Detroit

9 Farwell Building

10 Fisher Building

11 Foundation Hotel

12 Kahn Building

13 Little Caesars Arena

1 Bedrock Riverfront

2 Brewster Douglass

3 Broadway Street

4 Cass & York

5 Elton Park

6 Hudson’s Site

7 Marquette Building

8 Monroe Block

9 Paradise Valley

10 Proposed MLS Stadium

11 Russell Flats

12 Shinola Hotel

13 Statler City Apartments

14 The Free Press Building

15 The Vernor

16 The Woodward @ Midtown

6 The Ashley

7 The Scott at Brush Park

8 The Strathmore

9 Woodward Willis

1 Cobo Center Renovation

2 David Whitney Building

3 Detroit Savings Bank Building

4 G.A.R. Building

5 Globe Tobacco Building

Investment map

Significant projects under construction

Significant projects completed in 2015-16

Notable proposed projects

Completed in 2015-16 Under construction Proposed

Downtown Detroit

jll detroit full circle report 2017

Real Estate