New Office Developments On State Street
Business to Business Monthly Magazine
Date -- December, 2000 - By Bill Milliken, CCIM
Ann Arbor Area Chamber of Commerce
For Christmas, several real estate developers are giving us new office building s along the State Street corridor, extending toward Briarwood Shopping Center.Wah Yee Associates of Southfield has designed a Frank Lloyd Wright "prairie house" style, Class A office building that is under construction at 2144 S. State Street, adjacent to the University of Michigan golf course.
Developer Tracy Wintermeyer, who has already been active in the Ann Arbor market with Eisenhower Commerce Park, says the structural steel for his 17,116 square foot building will be erected this month. Completion is estimated for the second quarter of 2001?maybe in May.
The contractor is Foresight Contractors from Bloomfield Hills. The two?story building will be built into the grade on the rolling site and incorporate the traditional trussed roof over a red brick exterior. About sixty ceilingheight window systems will be punched into the exterior walls to provide dramatic views of the golf course and the natural features at the site.
Rates for the building are estimated to be $18.50 per square foot, plus net charges (taxes and insurance, etc.) of about $5.00 per square foot. Wintermeyer says he is talking with several prospective tenants, but that no leases have yet been signed.
United Bank Leases 10,000 FeetOak Brook Hills, a Jonah Realty Ventures development, has pre?leased 10,000 square feet of office space in the 60,000 square foot building (the first of three) it will build on State Street, a block north of Eisenhower Parkway. This three?story building is site plan approved by Ann Arbor on a fifteen acre parcel and will com?mence construction in the spring of 2001. Real estate broker Neal Warling of Grubb & Ellis says it will be ready for occupancy by United Bank by the second quarter of 2002. He also reports they are in discussions with four other prospective tenants, two of whom would come from outside the Ann Arbor market.
United Bank & Trust is Tecumseh, MI?based and has eyed the Ann Arbor market for years. It will open in interim space at Burlington III on Eisenhower Parkway. When its move to Oak Brook Hills is completed, United Bank will operate a 2,500 branch bank and a 7,500 square foot administrative office.
Kinko's Coming This MonthRoland Frey, trying his hand at development for the first time, is just completing his new 2800 S. State Street Building. At 16,000 square feet and two stories, it replaces Frey's 3,500 square foot Advance Interiors building that was a State Street fixture for years. Kinko's, which will vacate its Washtenaw Avenue location near Eastern Michigan University, is moving into 6,500 square feet of storefront in the building this month.A 5,000 square foot, national credit office lease was executed last month, but Frey declined to name the tenant. Another 5,000 feet of Class A office is available. The Farbman Group is quoting $23.50 per square foot, plus the cost of electricity for the space.
State Corporate Center ExpandingPerched on the crest of the hill on State Street, the former Townsend & Bottum building (22,000 sq. ft.) has been substantially renovated by the local real estate partnership that acquired it in 1998. Now they are preparing for a spring ground breaking to add a two?story, 25,000 square foot office building, focusing on technology companies. Broker Douglas Smith estimates rental rates will be in the low? to mid?twenties, plus net charges, when the property comes to market late next year.Across the street, Amvest is completing the renovation of 2058 S. State Street, the 8,000 square foot office building it acquired earlier this year. A unit of the University of Michigan has already leased the building. Developer Jerry Spears will add a 3?story, 10,000 square foot addition behind the building, beginning next Spring. It has been designed by J. Bradley Moore, and asking rent is estimated at $17.00 to $18.000 per square foot, triple net.
Grubb & Ellis Survey Shows Vacancy Rate On The RiseAnn Arbor's office vacancy rate rose to 6.4% in the third quarter of this year, up from 3.3% in the second quarter, according to a Grubb & Ellis Ann Arbor market analysis released last month. However, Grubb & Ellis' data show flex vacancy rates increased to 10.3% in the third quarter from 9.5% in the prior quarter. According to Neal Wading, senior vice president, the Ann Arbor market is seeing a dramatic shift to socalled flex or "high tech" space, with a development "pipeline" that will bring as much as 500,000 additional square feet of flex space to market by the end of 2001 from its current level of 200,000 square feet.
For More Information Contact:
Bill Milliken, CCIM
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