Crain's Detroit Business - 2011 Book of Lists - (Page 95)

December 27, 2010 CRAIN’S DETROIT BUSINESS Page 95 REAL ESTATE/SERVICES In this section Nonprofits . . . . . . . . . .97 Meeting facilities . . . . .99 General contractors . .101 Architects . . . . . . . . .101 Nonresidential property managers . . . . . . . . . .102 Residential brokers . . .102 Staffing firms . . . . . . .103 Logistics firms . . . . . .103 Law firms . . . . . . . . . .104 Foundations . . . . . . . .104 Classified . . . . . . . . . .105 Index . . . . . . . . . . . . .106 ith the passing of 2010, commercial real estate watchers are happy about one thing: It wasn’t 2009. While not a historically strong year in lease and sales volume, 2010 still showed yearover-year increases in most categories and sectors. Demand continues to be slow; and as the cost to buy or lease real estate has remained low, the users of real estate continue to win. Those same dynamics have made it difficult for landlords and investors interested in selling. Through the third quarter, there was negative absorption in the office and industrial sectors of commercial real estate: There was more space vacated than filled. However, the problems are slowing, especially in the industrial market. Through the third quarter of 2010, there was 251,000 square feet of negative absorption compared with 6.6 million during the same period of 2009, according to data from Washington, D.C.-based CoStar Group. On the office side, there was 626,900 square feet of negative absorption compared with 1 million in 2009. Metro Detroit ended the third quarter with a vacancy rate of 18.9 percent for office space, 13.9 percent for industrial and 11 percent for retail. At the end of September, $1.3 billion worth of commercial mortgage-backed security loans were more than 90 days late, according to New York-based Trepp LLC, representing a delinquency rate of 18.3 percent. Broken down to individual loans, 134 of the 788 loans were delinquent. Many in the industry worry that as the delinquent loans trigger foreclosures, the resulting bargain-basement sales will devalue buildings near the foreclosures. The foreclosure situation also has brought about some of the lowest sale prices seen in the area since the 1980s. Office and industrial buildings, apartments and hotels all showed bargain prices. The former Ritz-Carlton hotel in Dearborn was a glaring example. An investment group bought it for $3 million and named it The Henry. The firm got away with a building estimated to cost $100 million to replace. Through the end of November, there were 55 real estate sales in The former Ritz-Carlton. metro Detroit with a total sale volume of $591 million, according to New York-based Real Capital Analytics, compared with 22 deals at a volume of $284.1 million for all of 2009. Though that’s still far from the deal volume of more than 3 billion in 2007 and 2008. On the residential side, sale prices increased while the number of units sold decreased, according to the Farmington Hills-based MLS Realcomp II Ltd. The median sale price for the first 10 months of 2010 was $68,000, a 33.3 percent increase over $51,100 in 2009. There was a 7.7 percent decrease in the number of homes sold, with 42,635 sales in 2010 compared with 46,187 in 2009. The good news is the supply of homes on the market declined over the year. There were 27,300 homes available at the end of October 2010 compared with 40,000 at the same point in 2009. — Daniel Duggan Top leases While the metro Detroit office market saw few new office tenants, there were major leases signed in 2010. Here are the top five: 1. Blue Cross Blue Shield of Michigan Size: 465,000 square feet Moved to: Renaissance Center, Detroit Moved from: 26900 through 27300 W. 11 Mile Road, Southfield Significance: Moving 3,000 jobs out of Southfield and into downtown Detroit is expected to create an economic boost for the city. 2. Quicken Loans Inc. Size: 244,000 square feet Moved to: Compuware Building, Detroit Moved from: 20555 Victor Parkway, Livonia Significance: Expected to be the first of several moves by Quicken to the city. 3. R.L. Polk Size: 138,000 square feet Moved to: Travelers Tower II, Southfield Moved from: First Center Building, Southfield Significance: The 340,000square-foot building has been vacant for two years and now is 40 percent occupied. 4. International Automotive Components Size: 114,000 square feet Moved to: 28333 Telegraph Road, Southfield Moved from: 5300 Auto Club Drive, Dearborn Significance: The deal puts IAC in its own building and gives new life to the vacant building near I-696 on Telegraph Road. 5. Internal Revenue Service Size: 81,000 square feet Moved to: Comerica Tower, Detroit Moved from: McNamara Federal Building, Detroit Significance: The deal helped create some positive momentum for the 1 million-square-foot building in Detroit that has lost tenants since 2007. A 10,000-square-foot lease and 25,000-square-foot renewal followed the deal. W Top office furniture dealers Ranked by gross revenue, 2009: 1. Navigating Business Space Inc., Troy, $61 million 2. WorkSquared, Novi, $38.5 million 3. Interior Environments, Southfield, $13.5 million 4. American Interiors Inc., Wixom, $11.5 million 5. Space Care Interiors Inc., Berkley, $10.85 million 6. Interior Systems Contract Group Inc., Royal Oak, $8.5 million 7. Kentwood Office Furniture LLC, Novi, $8.45 million 8. Office Express, Troy, $7 million 9. The Casper Corp., Farmington Hills, $4.5 million 10. Metro Office Environments Inc., Madison Heights, $3.95 million Nonprofits Arts and cultural organizations dominated the news in 2010 for their collaborative and revenueseeking efforts. The Michigan Nonprofit Association and Cultural Alliance for Southeastern Michigan announced they would shepherd $1.1 million in grants for six local cultural collaborations working to create permanent operational alliances. The Troy-based Kresge Foundation and New York-based Ford Foundation put $2 million in grants behind the three-year project. The Detroit Chamber Winds & Strings expects to add two more organizations to its six-nonprofit collaborative in 2011 to help each member build capacity and increase outreach and revenue. Meanwhile, the Detroit Symphony Orchestra grabbed attention when its musicians went on strike in October over a contract dispute. A settlement had not been reached by press time. But giving some hope to struggling cultural organizations, the Legislature passed bills enabling the Detroit Institute of Arts to seek a millage to help fund its operations and the Detroit Zoo to seek a doubling of its current millage support. — Sherri Welch LISTS AS SPREADSHEETS You can buy individual Crain’s lists or our Book of Lists in Excel spreadsheet format at www.crainsdetroit.com. Pull down “Lists/Resources” in the top navigation bar to “Lists.” REDICO: Moving Michigan’s Real Estate Market Forward. > REDICO is now managing the landmark LAMCO Michigan Portfolio | 248.827.1700 New Management... New Approach... New Ideas... New Energy REAL ESTATE/SERVICES http://www.crainsdetroit.com http://www.redico.com

Table of Contents for the Digital Edition of Crain's Detroit Business - 2011 Book of Lists

Crain's Detroit Business - 2011 Book of Lists
The Big Picture
10 things to watch in 2011
10 things to remember about 2010
Private 200
Fastest-growing companies
Public school districts
Top-compensated CEOs
Top-compensated non-CEOs
Metro Detroit employers
Wayne County employers
City of Detroit employers
Livingston County employers
Washtenaw County employers
Macomb County employers
Oakland County employers
Publicly held companies
Hispanic-owned businesses
Native American-owned businesses
Asian-owned companies
Black-owned businesses
Woman-owned businesses
The Motor City
Airlines Serving Detroit Metro
Professional Sports Teams
Auto Suppliers
Auto Dealers
Aftermarket Suppliers
Divisions
Defense Contractors
New Economy/Health Care
Family-owned companies
IP law firms
Group health plans
Hospital companies
Physician organizations
Graduate business degrees
Engineering companies
Environmental companies
IT companies
Biotech companies
People/Awards
Salute to Entrepreneurs
CFO Awards
40 Under 40
Best Lawyers
20 in their 20s
Women to Watch
M&A Awards
Most Connected
Finance
Capital campaigns
Accounting firms
Banks and thrifts
Money managers
Business insurance agencies
SBA Lenders
Real Estate/Services
Office furniture dealers
Nonprofits
Meeting facilities
General contractors
Architects
Property managers
Residential brokers
Staffing companies
Logistics firms
Law firms
Classifieds
Index of Companies

Crain's Detroit Business - 2011 Book of Lists