Three Towers Sign Almost 350,000 SF of Office

DETROIT-Three Downtown office buildings have recently signed almost 350,000 sf of new leases, according to the New York City-based owners, the Northern Group. Leases were signed, renewed and expanded at the 47-story Penobscot Building (645 Griswold), the 26-story First National Building (660 Woodward Ave.) and the 40-story Cadillac Tower (65 Cadillac Square).

Most of the leases were either signed or renewed for about 3,000 sf. However, the City of Detroit renewed and expanded its lease at the First National Building for 105,000 sf, and at the Cadillac Tower for 170,000 sf. Also, in the Penobscot Building, Tanoury, Corbet, Shaw, Nauts & Essad PLLC renewed for 16,000 sf, and Detroit Commerce Bank renewed for 10,500 sf.

Northern Group did not divulge the lease rates for the transactions. The average lease rate for class B office properties in the Detroit area is $22.20 per sf, according to a fourth-quarter Grubb & Ellis market report. A spokeswoman for Northern says the average lease rate in the buildings is $14 per sf.