The Metro Detroit office market saw slight improvements in the fourth quarter of 2010. Net absorption was positive 924,996 square feet and vacancy rates decreased to 19%. Rental rates increased slightly to $18.77 per square foot. Construction remains low as the real estate market continues to recover from the economic downturn. Challenges remain for commercial property owners as high vacancies persist through 2011.

1. Q4 2010 | OFFICE
METRO DETROIT & WASHTENAW MARKET
RESEARCH REPORT
Detroit Office Market
DETROIT OFFICE MARKET REPORTS A SLIGHT INCREASE IN RENTAL RATES AND
DECREASE IN VACANCY RATES
At the end of 2010, the fourth quarter Metro Detroit office market area has finally shown
positive results after a long steady decline due to the current recession that the entire
Nation is experiencing. Net absorption totaled a positive 924,996 square feet at the end of
MARKET INDICATORS Q4 the fourth quarter 2010. Vacancy rates decreased to 19 percent this quarter. Rental rates
2009 2010 slightly increased to $18.77 per square foot.
VACANCY
The Detroit Michigan real estate market has taken a hard hit over the last few years due to
NET ABSORPTION increasing unemployment and continuing downsizing of organizations. New development
and construction are practically nonexistent. Through 2011, challenges remain for
CONSTRUCTION commercial property owners as mortgages become due, vacancies remain high and new
projects are scarce.
RENTAL RATE
1500000 0.2
UNDER CONSTRUCTION BY SUBMARKET
1000000 0.195
0%
I-696 Corridor
500000
M illion Square Feet
0.19
V acancy (^)
23% Northern Oakland
0
County
0.185
-500000 Macomb County
Area
0.18
-1000000 I-96 Corridor
77%
-1500000 0.175
Washtenaw County
-2000000 0.17
Q4 Q1 Q2 Q3 Q4
2009 2010 2010 2010 2010
Completions Absorption Vacancy Rate (%)
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2. RESEARCH REPORT | Q4 2010 | OFFICE | DETROIT
RENTAL RATES Local landlords must continue to offer
Total office inventory in the Detroit market A building’s vacancy is the major factor in aggressive incentives on both new leases
area amounted to 164,292,884 Square feet in its rental rate rather than the overall and renewals.
2,940 properties. performance of a market sector. Rates
range from $12.04 to $25.58. CONSTRUCTION
Total year to date net absorption at the end of
2010 totaled a positive 223,249 square feet. Fourth quarter delivered any additional
The Metro Detroit’s average rental rate 44,500 square feet of office product to the
increased since third quarter 2010 and market. All Class B type and located in the
stands at $18.77 per square foot. This Oakland County Central Submarket.
represented a $0.33 decrease from 12
months ago. Construction activity decreased this quarter
compared to third quarter. With 8,885
Currently, the average rental rate in fourth square feet of office space reported under
quarter for Class A was $22.49, Class B construction, mainly concentrated in the
was $18.17 and Class C was at $14.38. Suburban market and majority Class B type
Detroit’s Downtown average asking rental property.
rate decreased $0.06 to $18.45 while a
$0.04 increase to $18.70 reported in the continued on page 4
suburban markets.
SALES ACTIVITY
PROPERTY ADDRESS CITY SALE DATE SALE PRICE SIZE PRICE PER SF
333 E Jefferson Ave (3 Properties) Detroit 12/2/2010 37,800,000 550,094
401-411 S Old Woodward Ave Birmingham 11/12/2010 15,300,000 250,000 61.2
38525 Woodward Ave Bloomfield Hills 12/17/2010 7,000,000 63,186 110.78
43630 Hayes Rd (5 Properties) 12/29/2010 6,525,000 98,830 66.02
17199 N Laurel Park Dr Livonia 12/23/2010 6,000,000 124,000 48.39
1349 S Rochester Rd Rochester Hills 12/22/2010 2,825,000 64,000 44.14
500 Avis Dr Ann Arbor 10/29/2010 2,000,000 27,160 73.64
6001 N Adams Rd Bloomfield Hills 12/28/2010 2,000,000 67,484 29.64
29621 Northwestern Hwy Southfield 11/5/2010 1,875,000 26,500 70.75
800-900 W University Blvd Rochester 12/3/2010 1,500,000 40,400 37.13
6050 Greenfield Rd Dearborn 11/5/2010 1,434,532 15,100 95
17000 Executive Plaza Dr Dearborn 11/30/2010 1,250,000 60,000 20.83
LEASE ACTIVITY
BUILDING NAME SUBMARKET TENANT SIZE SF
28333 Telegraph Rd. Southfield Int. AutomotiveComponentsGroup 113,894
401 - 407 E. Liberty St. Washtenaw Google 81,292
100 Galleria Southfield NA 41,865
2800 Livernois Rd. Troy Carlson Marketing 36,720
P. 2 | COLLIERS INTERNATIONAL

3. RESEARCH REPORT | Q4 2010 | OFFICE | DETROIT
SUBLEASE NET ABSORPTION U/C & PROPOSED AVG
EXISTING PROPERTIES DIRECT VACANCY VACANCY TOTAL VACANCY - SF NEW SUPPLY - SF - SF RENT
Total
Inventory 4Q Current Under
Class Bldgs. Sq. Ft. Sq. Ft. Rate Sq. Ft. Rate Sq. Ft. Rate Period YTD Period YTD Constr. Proposed Rate
DOWNTOWN MARKETS
Detroit CBD and New Center Area
A 24 11,563,170 2,012,289 17.4% 2,704 0.0% 2,014,993 17.4% 815 (282,975) 0 0 0 194,604 $23.00
B 96 15,919,800 2,574,908 16.2% 45,831 0.3% 2,620,739 16.5% 7,362 (249,448) 0 0 0 0 $16.89
C 50 2,963,362 545,473 18.4% 0 0.0% 545,473 18.4% 42,721 83,915 0 0 0 0 $15.81
All 170 30,446,332 5,132,670 16.9% 48,535 0.2% 5,181,206 17.0% 50,898 (448,508) 0 0 0 194,604 $19.11
Outer Detroit, Dearborn, and Downriver, Airport, The Pointes
A 26 5,669,774 333,750 5.9% 15,060 0.3% 348,810 6.2% 116,768 139,960 $21.21
B 179 10,020,178 2,373,361 23.7% 57,401 0.6% 2,430,762 24.3% 187,727 (39,426) 40,000 $18.67
C 165 5,910,157 924,731 15.6% 0 0.0% 924,731 15.6% 57,271 247,747 0 0 0 $12.04
All 370 21,600,109 3,631,842 16.8% 72,461 0.3% 3,704,303 17.1% 361,766 348,281 0 0 0 40,000 $17.52
DOWNTOWN TOTALS
A 50 17,232,944 2,346,039 13.6% 17,764 0.1% 2,363,803 13.7% 117,583 (143,015) 0 0 0 194,604 $22.41
B 275 25,939,978 4,948,269 19.1% 103,232 0.4% 5,051,501 19.5% 195,089 (288,874) 0 0 0 40,000 $17.58
C 215 8,873,519 1,470,204 16.6% 0 0.0% 1,470,204 16.6% 99,992 331,662 0 0 0 0 $13.30
All 540 52,046,441 8,764,512 16.8% 120,996 0.2% 8,885,509 17.1% 412,664 (100,227) 0 0 0 234,604 $18.45
SUBURBAN MARKETS
I-696 Corridor: Madison Heights, Royal Oak, Ferndale, Southfield
A 26 6,173,667 1,339,889 21.7% 159,978 2.6% 1,499,867 24.3% 178 (39,725) 949,000 $20.97
B 229 15,225,304 3,299,200 21.7% 95,120 0.6% 3,394,320 22.3% 211,879 112,057 85,550 $17.47
C 172 5,012,512 691,164 13.8% 25,980 0.5% 717,144 14.3% 52,632 86,994 0 0 0 0 $13.92
All 427 26,411,483 5,330,253 20.2% 281,078 1.1% 5,611,332 21.2% 264,689 159,326 0 0 0 1,034,550 $17.61
Oakland County Central: Birmingham, Bloomfields, Troy
A 46 7,461,835 1,681,745 22.5% 40,732 0.5% 1,722,477 23.1% (33,769) (191,536) 27,220 627,003 $21.20
B 263 14,099,756 4,506,191 32.0% 185,082 1.3% 4,691,273 33.3% (68,023) (91,459) 44,500 60,500 93,550 $19.21
C 90 2,208,549 315,901 14.3% 47,577 2.2% 363,478 16.5% 26,476 (12,792) 0 0 $15.83
All 399 23,770,140 6,503,837 27.4% 273,391 1.2% 6,777,229 28.5% (75,316) (295,787) 44,500 87,720 0 720,553 $19.52
Northern Oakland County: Rochester, Auburn Hills, Clarkston, Lake Orion, Pontiac
A 16 6,334,686 207,769 3.3% 22,497 0.4% 230,266 3.6% 8,563 31,130 419,852 $23.99
B 140 6,963,072 2,561,828 36.8% 60,301 0.9% 2,622,129 37.7% 28,099 25,120 293,464 $17.80
C 81 2,557,867 487,059 19.0% 0 0.0% 487,059 19.0% 14,709 327 0 0 0 $15.76
All 237 15,855,625 3,256,656 20.5% 82,798 0.5% 3,339,455 21.1% 51,371 56,577 0 0 0 713,316 $19.94
Macomb County Area: Warren, Sterling Heights, Shelby Twp., Roseville, Clinton Twp., Saint Clair Shores, Macomb Twp.
A 11 611,896 185,039 30.2% 0 0.0% 185,039 30.2% 1,456 53,567 70,327 $23.59
B 255 6,379,069 1,104,675 17.3% 8,669 0.1% 1,113,344 17.5% (7,959) 8,545 212,002 $17.81
C 141 2,741,134 232,343 8.5% 3,600 0.1% 235,943 8.6% 11,357 14,535 0 0 0 $13.34
All 407 9,732,099 1,522,057 15.6% 12,269 0.1% 1,534,327 15.8% 4,854 57,352 0 0 0 282,329 $16.91
I-96 Corridor: Novi, Howell, Brighton, South Lyon, Farmington
A 30 3,470,040 604,692 17.4% 143,503 4.1% 748,195 21.6% (12,281) (45,875) 1,720,746 $23.10
B 263 10,066,754 1,280,684 12.7% 17,074 0.2% 1,297,758 12.9% 165,730 293,736 6,885 355,108 $19.22
C 90 1,780,694 270,569 15.2% 0 0.0% 270,569 15.2% (21,225) (50,037) 0 0 0 14,000 $17.15
All 383 15,317,488 2,155,945 14.1% 160,577 1.0% 2,316,522 15.1% 132,224 197,824 0 0 6,885 2,089,854 $19.86
I-275 Corridor: Livonia, Westland, Canton, Plymouth, Northville
A 11 1,579,420 287,199 18.2% 4,655 0.3% 291,854 18.5% (20,697) (16,916) 100,000 $21.03
B 151 4,771,134 887,933 18.6% 15,489 0.3% 903,422 18.9% 21,181 44,202 251,204 $17.78
C 75 2,284,063 308,803 13.5% 0 0.0% 308,803 13.5% (3,231) (32,673) 0 0 0 $14.03
All 237 8,634,617 1,483,935 17.2% 20,144 0.2% 1,504,080 17.4% (2,747) (5,387) 0 0 0 351,204 $17.38
SUBURBAN TOTALS
A 140 25,631,544 4,306,333 16.8% 371,365 1.4% 4,677,698 18.2% (56,550) (209,355) 0 27,220 0 3,886,928 $22.14
B 1,301 57,505,089 13,640,511 23.7% 381,735 0.7% 14,022,246 24.4% 350,907 372,906 44,500 60,500 6,885 1,290,878 $18.31
C 649 16,584,819 2,305,839 13.9% 77,157 0.5% 2,382,996 14.4% 80,718 6,354 0 0 0 14,000 $14.72
All 2,090 99,721,452 20,252,683 20.3% 830,257 0.8% 21,082,941 21.1% 375,075 169,905 44,500 87,720 6,885 5,191,806 $18.70
WASHTENAW COUNTY
A 24 3,345,044 271,016 8.1% 1,156 0.0% 272,172 8.1% (17,155) (16,793) 0 806,381 $25.58
B 214 7,801,244 665,653 8.5% 41,425 0.5% 707,078 9.1% 152,228 178,069 0 0 2,000 267,127 $19.15
C 72 1,378,703 191,160 13.9% 0 0.0% 191,160 13.9% 2,184 (7,705) 0 0 $17.22
All 310 12,524,991 1,127,829 9.0% 42,581 0.3% 1,170,410 9.3% 137,257 153,571 0 0 2,000 1,073,508 $20.65
MARKET TOTALS – DOWNTOWN, SUBURBAN, AND WASHTENAW COUNTY
A 214 46,209,532 6,923,388 15.0% 390,285 0.8% 7,313,673 15.8% 43,878 (369,163) 0 27,220 0 4,887,913 $22.49
B 1,790 91,246,311 19,254,433 21.1% 526,392 0.6% 19,780,825 21.7% 698,224 262,101 44,500 60,500 8,885 1,598,005 $18.17
C 936 26,837,041 3,967,203 14.8% 77,157 0.3% 4,044,360 15.1% 182,894 330,311 0 0 0 14,000 $14.38
All 2,940 164,292,884 30,145,024 18.3% 993,834 0.6% 31,138,860 19.0% 924,996 223,249 44,500 87,720 8,885 6,499,918 $18.77
QUARTERLY COMPARISON AND TOTALS
Q410 2,940 164,292,884 30,145,024 18.3% 993,834 0.6% 31,138,860 19.0% 924,996 223,249 44,500 87,720 8,885 6,499,918 $18.77
Q310 2,911 163,189,957 30,709,526 18.8% 986,171 0.6% 31,695,699 19.4% 0 (701,747) 27,220 16,000 740,309 6,925,908 $18.75
Q210 2,891 162,710,814 30,323,377 18.6% 1,005,839 0.6% 31,329,218 19.3% 0 (612,530) 16,000 16,000 202,528 7,311,514 $18.98
Q110 2,931 168,406,862 29,844,859 17.7% 1,245,183 0.7% 31,090,044 18.5% (510,483) 0 0 149,709 7,764,636 $18.92
Q409 2,895 166,790,401 29,081,419 17.4% 1,346,110 0.8% 30,427,531 18.2% (2,830,949) 88,719 165,557 285,409 8,114,232 $19.10
Q309 2,843 163,465,688 27,428,354 16.8% 1,033,600 0.6% 28,461,956 17.4% 0 (1,191,121) 20,872 76,838 223,575 6,378,890 $19.20
Q209 2,819 161,069,549 27,376,284 17.0% 1,011,099 0.6% 28,387,385 17.6% 0 (654,896) 0 55,966 197,463 8,361,715 $19.38
Q109 2,824 161,898,822 27,658,991 17.1% 1,191,626 0.7% 28,850,619 17.8% (683,664) 55,966 55,966 228,624 8,787,019 $19.58
Q408 2,798 162,686,534 26,483,723 16.3% 1,270,905 0.8% 27,754,630 17.1% 189,881 0 48,260 319,158 8,558,723 $19.62
COLLIERS INTERNATIONAL | P. 3

4. RESEARCH REPORT | Q4 2010 | OFFICE | DETROIT
480 offices in
VACANCY 61 countries on
The overall office vacancy rate in the Metro
Detroit market decreased to 19.0% in the
6 continents
Net absorption for Detroit’s Central Business
fourth quarter 2010 compared to third United States: 135
District increased this quarter to a positive
quarter; higher than it was 12 months ago at Canada: 39
50,898 square feet. The suburban markets Latin America: 17
18.2%.
saw a decline and posted a positive 375,075 Asia Pacific: 194
square feet for the fourth quarter 2010. EMEA: 95
The average vacancy rate for Class A
projects was 15.8%, Class B projects 21.7% • $1.9 billion in annual revenue
and Class C projects 15.1%. Detroit’s SALES ACTIVITY • 2.4 billion square feet under
Downtown vacancy rate decreased to 17.1% management
At the end of the third quarter of 2010, total
and the Suburban vacancy slightly • Over 15,000 professionals
office building sales activity was up
decreased to 21.1% in the fourth quarter of
compared to 2009. In the first nine months
2010.
of 2010, the market saw 34 office sales UNITED STATES:
transactions with a total volume of over Colliers International - Detroit
$195 million. The price per square foot 2 Corporate Drive
ABSORPTION/LEASING ACTIVITY averaged $76. In the same first nine months Suite 300
Net absorption for the overall office market of 2009, 17 transactions posted with a total Southfield, Michigan 48076
in the fourth quarter 2010 amounted to a volume of over $53 million. The price per TEL +1 248 540 1000
positive 924,996 square feet, an increase square foot averaged $44. Locally, sales FAX +1 248 540 1038
from last quarter. are averaging approximately $35 - $75 per
square foot and capitalization rates between
The Outer Detroit Dearborn submarket 8.5 and 9.5%.
reported the highest absorption while the RESEARCH DEPARTMENT:
Oakland County submarket came in with the Michelle McGuckin
lowest. 2010 has amounted to a positive TEL +1 248 226 1848
223,249 square feet. FAX +1 248 226 1849
EMAIL michelle.mcguckin@colliers.com
Copyright © 2010 Colliers International.
The information contained herein has been obtained
from sources deemed reliable. While every reasonable
effort has been made to ensure its accuracy, we cannot
guarantee it. No responsibility is assumed for any
inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the
material contained in this report.
Accelerating success.
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