JLL Great Lakes Full Circle Report 2017

© JLL 2017 1

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

corporate growth, and development activity

sparked the resurgence of downtowns across

the Great Lakes region

© JLL 2017 2

Introduction

Ann Arbor

Cincinnati

Cleveland

Columbus

Detroit

Grand Rapids

Louisville

Pittsburgh

Table of contents

3

5

12

19

26

33

40

47

54

2©© J JLLLL 22001177

© JLL 2017 3

IntroductionThere is a renaissance taking place in downtowns across the entire Great Lakes region. Revitalization and reurbanization are gaining

momentum and intensity. This reimagining of downtowns is drawing people, businesses, and investments back to the urban core.

Cultural, educational, and medical institutions anchor these city centers. They are also home to a growing number of retail and

entertainment options, creating optimal live-work-play environments. These downtowns also boast improved infrastructure and transit

systems, providing residents with superior levels of connectivity and walkability. The increasing availability of such amenities is

attracting Millennials and empty nesters to downtowns.

Downtowns are once again becoming the economic hubs of their respective regions. They are home to a diverse and growing

spectrum of companies and industries. So, as the population migrates downtown, large corporations and startups are also doing so

with increasing velocity. The attraction and retention of talent are fundamental to a business’ success, and companies are supporting

their employees’ desire to live-work-play in an urban landscape. In today’s dynamic business environment, companies are finding that

having a downtown address is a competitive advantage.

This migration toward urban areas is also encouraging large scale investments by both the public and private sectors. Private

investment is focusing primarily on residential and mixed-use development. Many developers, incentivized by state and federal tax

credits, are converting functionally obsolete properties for multifamily and hotel use. These converted buildings, frequently displaying

historic and beautiful architecture, are extremely popular and are nearly or fully pre-leased at the time of completion. This wave of

private development has increased the local tax bases, allowing cities to reinvest in themselves. Public investment projects have been

focused in the areas of mass transit, infrastructure, and public spaces, which in turn, have made downtowns more attractive places for

residents and businesses.

These themes are common across the entire Great Lakes region. However, there are trends and attributes that make each downtown

unique. This report examines these trends and the resurgence taking place in the downtowns across the Great Lakes region.

3© JLL 2017

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By the numbers

Square MilesResidential

population

Population

growth

since 2000

Percent

Millennials

Total

employment

2016

Business

attraction

and retention

(office tenants)

# of

investment

projects

(2012-

planned)

Total

investment

Private

investment

Ann Arbor 1.3 17,100 18% 60% 25,800 13 39 $587.5M 97%

Cincinnati 3.3 22,900 13% 33% 151,700 39 71 $2.4B 79%

Cleveland 2.9 14,000 79% 48% 98,000 70 108 $6.6B 67%

Columbus 2.7 8,900 54% 42% 104,400 26 152 $3.5B 52%

Detroit 7.2 37,700 3% 32% 140,300 27 116 $6.6B 77%

Grand Rapids 2.7 14,000 27% 39% 48,800 17 51 $1.2B 87%

Louisville 2.2 10,300 23% 31% 102,600 29 78 $2.6B 51%

Pittsburgh 4.8 33,000 17% 37% 134,400 70 111 $4.3B 87%

planned)

© JLL 2017 5

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

growth, and development activity sparked the

resurgence of downtown Ann Arbor

© JLL 2017 6

Downtown Ann Arbor

More than a college townHome to the University of Michigan, Ann Arbor has always had a strong presence and reputation in

the southeast Michigan community. With the continued influx of tech companies, startups, and

venture capital, the downtown core is undergoing a transformation. Ann Arbor’s residential and

office density is continually increasing, changing the downtown from a college town into an urban

center. As tech companies and startups continue to locate here to recruit talent from the university,

developments to house them will continue, as will demand for retail, entertainment and other

commercial amenities. Ann Arbor is well positioned for the future given its growing business

community, the presence of the University of Michigan, and its proximity to metropolitan Detroit.

6© JLL 2017

© JLL 2017 7

Downtown Ann Arbor by the numbers

60%Percent Millennials

25,800Total employment

13 Office tenants

2016 Business attraction and retention

39# of investment projects (2012-planned)

$587.5MTotal investment

97%Private investment

1.3Square miles

17,100Residential population

18%Population growth since 2000

7© JLL 2017

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People

200,000

260,000

320,000

380,000

12,000

14,000

16,000

18,000

2000 2010 2017

Population growthDowntown Ann Arbor has seen steady

population growth in recent decades, however,

that growth has accelerated recently thanks to

new multifamily development.

322.9K

344.7K

361.2K

14.4K14.9K

17.1K

DemographicsMillennials make up over half of the

downtown population, most of whom are

students, a significant factor driving

business attraction and retention.

28%

60%

5%5%

Generation Z (0-19)

Millennials (20-36)

Generation X (37-52)

Baby Boomers (53-71)

The Silent Generation (72+)

Residential developmentDevelopers have added nearly 2,000

residential units downtown since 2000,

with even more in the pipeline.

4,000

6,000

8,000

2000 2010 2017

5.4K

5.8K

7.2K

Downtown Ann Arbor

Downtown population Metro population

2017 downtown population by age

Downtown housing units

© JLL 2017 9

Business

Largest employers

Although the University is by far the largest

employer in Downtown Ann Arbor, private

companies from tech to banking are making

their presence felt.

University of Michigan

Washtenaw County

City of Ann Arbor

DTE Energy

Google Ann Arbor

14,710

1,330

850

500

400

Barracuda Networks

Llamasoft

Duo Security

Bank of Ann Arbor

Prime Research

270

200

150

140

110

Business attraction and retention

The University of Michigan is essential to Ann

Arbor’s strategy for attracting and retaining the

companies that are recruiting their talent.

Llamasoft

TD Ameritrade

FICO

Penny W. Stamps School

Duo Security

UM Alumni Association

Carlisle Wortman

Sight Machine

All Hands Active

Lakeside Software

Kohlitz Video Production

Atwell

Lotus Consulting

Retention or expansion Attraction

Employment by industry

Professional and business services

Hospitality, leisure and retail

Government

Construction, manufacturing and transportation

Downtown employment by industry

Information

Education and healthcare

Other

Downtown Ann Arbor has a thriving 21st

century economy with significant employment

in the business and technology industries.

37%

26%

13%

6%

5%

5%8%

Downtown Ann Arbor

© JLL 2017 10

Investment

61%

38%

Investment by project status

Investment activity surged over the last five

years and multiple projects are ready to

break ground in 2017.

Completed (2012-16)

Under construction

Planned

$359.1M

$7.5M

$221.2M

22

1

16

Status Investment

# of

projects

Investment by funding type

The vast majority of downtown investment

has been private multifamily projects, with

a handful of public use developments

making up the public investment.

97%

Private investment dollars

Public investment dollars

$0

$100

$200

$300

$400

$500

Education,infrastructure,

public use

Entertainment,retail

Hotel Office Residential

Investment by property type

Residential development has received by far

the largest share of investment, as other

product types have taken a back seat.

4

projects

26

projects

4

projects

4

projects3

projects

($M)

Downtown Ann Arbor

© JLL 2017 11

1 410 First

Significant projects under construction

1 611 E University

2 Kingsley

3 Kingsley Parkside

4 M Den Office Building

5 Madison on Main

6 Main on the Park

7 Montgomery Houze

8 Moving on Main

9 Residences at 615 Main

10 Running Fit Residential

11 South University Streetscape

12 The Calvin

13 The Collegian North

14 The Glen

15 The Jefferson

16 The Library Lot

Notable proposed projects

1 121 Kingsley West

2 414 Main

3 4th & William Garage Renovation

4 618 South Main

5 ArborBLU

6 Bank of Ann Arbor Expansion

7 Detroit Street Flatiron

8 Library Renovation

9 Foundry Lofts

10 Residence Inn

11 Selo/Shevel Renovation

12 The Graduate

13 515 Fifth

Significant projects completed in 2015-16

Investment map

Completed in 2015-16 Under construction Proposed

Downtown Ann Arbor

© JLL 2017 12

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


resurgence of downtown Cincinnati

© JLL 2017 13

Cincinnati becomes destination through urban growthDowntown Cincinnati has undergone a tremendous transformation over the last five years that has positioned its urban core to

be a live-work-play destination for companies, professionals, and visitors. Cincinnati is home to a mature corporate community

consisting of 10 Fortune 500 companies. In addition, Downtown Cincinnati has become a hotbed for startup activity as

companies flock to the Central Business District and Over-The-Rhine to attract and retain top talent.

The urban core is in a historic expansion phase for downtown population and residential units, which in return is

catalyzing its growth in retail and entertainment. The market fundamentals that have led to Downtown Cincinnati’s growth

are projected to continue through 2017 and further solidify the urban core as one of the more desirable destinations in

the Midwest for companies and professionals alike.

Downtown Cincinnati

13© JLL 2017

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Downtown Cincinnati by the numbers



39Office tenants



$2.4B Total investment


3.3Square miles



14© JLL 2017

© JLL 2017 15

1,400,000

1,800,000

2,200,000

18,000

21,000

24,000

2000 2010 2017

Population growth

Downtown Cincinnati has seen recent

population growth during a period of steady

growth at the metro level.

1.9M

2.1M

2.2M

20.3K19.7K

22.9K

Downtown population Metro population

Demographics

19%

33%23%

20%

Millennials make up one third of the

downtown population, a significant factor

driving business attraction and retention.

Generation Z (0-19)

Millennials (20-36)




11,000

13,000

15,000

2000 2010 2017

Residential development

12.8K12.6K

14.6K

Downtown housing units

Unlocking pent-up demand: Developers have

added 2,000 residential units downtown since

2010, and yet, occupancy remains above 95%.

People

Downtown Cincinnati


© JLL 2017 16

Largest employers

The largest private employers in downtown

Cincinnati span a broad range of industries,

illustrating the diversification of the region’s

economy.

Procter & Gamble

Fifth Third Bancorp

Western & Southern

American Financial Group

Rock Gaming

3,900

2,000

1,800

1,700

1,700

U.S Bank

The Kroger Company

Duke Energy

Macy’s Corporate

Cincinnati Bell

1,300

1,300

1,000

800

700


In 2016, downtown business attraction and

retention efforts secured commitments from

more than 39 office tenants. Below are the

companies that made the largest office

commitments in 2016.

Bricker & Eckler

Coca-Cola

CTI

Dean Houston

Arthur J. Gallagher

Bahl & Gaynor

Brandcraft Srategies

Cincinnati Convention Bureau

Cors and Basset

Doc Halo

Fifth Third Bank

Freking Myers & Reul

Graydon Head

JLL

Key Bank

Landor

Miller Coors

Northcreek Mezzanine

Retention or expansion (285,000+ s.f.)

Attraction (315,000+ s.f.)





Government


Information


Other

Downtown Cincinnati has a thriving 21st



28%

25%

25%

7%

5%

7%

Business

Empower Media Marketing

Interbrand

The Health Collaborative

Downtown Cincinnati

© JLL 2017 17

Downtown Cincinnati

65%

14%

21%


Downtown Cincinnati has transformed due to

increased investment activity, and current

projects planned and underway show no

signs of a slow down.

Completed (2012-16)

Under construction

Planned

$1.5B

$319.4M

$498.3M

51

8

12

Status Investment

# of

projects


Private investors have taken notice of the

momentum downtown and are answering the

call by funding the lions share of downtown

investment dollars.

79%

21%



$0

$250

$500

$750


public use




Residential development has driven investment

as investors work to address a underserved

market with occupancy over 95%.

9

projects

33

projects

11

projects

10

projects

($M)

8

projects

Investment

Downtown Cincinnati

© JLL 2017 18

7 Lytle Park Tunnel Renovation

8 Market Square

9 Merchants Building Lofts

10 Music Hall Revitalization

11 Streitmann Biscuit Co. Building

12 Ziegler Park

1 309 Vine

2 4th & Race

3 AC Hotel

4 Cincinnati Shakespeare Company

5 Empower MediaMarketing HQ

6 Lytle Park Renovation


1 4th & Walnut

2 824 Broadway

3 8th & Main

4 8th & Sycamore Phase

5 8th & Sycamore Phase 2

6 Freeport Row

7 Jewlers Exchange Building

8 Textile Building

16 John Weld Federal Building

17 KAO Office Expansion

18 Mercer Townhomes

19 Morelein Lager House

20 Renaissance Cincinnati

21 Seven at Broadway

22 Smale Park Phase 1 & 2

23 Smale Park Phase 3 & 4

24 Smale Park Phase 5

25 Sotto/Boca

26 Taft’s Ale House Place

27 Tea Company Townhomes

28 The Banks Phase 2 A

29 The Banks 2 B

30 YMCA

1 84.51

2 Abington Flats

3 Alumni Lofts

4 Anna Louise Inn

5 Aqua on the Levee & Aloft Hotel

6 AT 580

7 Cincinnati Streetcar

8 Cintrifuse

9 Cincinnati Parking Garage

10 Cutter Apartments

11 The Reserve

12 Holiday Inn Hotel

13 Homewood Suites

14 Horshoe Casino

15 Hyatt Regency Renovation


Investment map



Downtown Cincinnati

© JLL 2017 19

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


resurgence of downtown Cleveland

© JLL 2017 20

Cleveland’s resurgence gains national attention2016 was an exceptional year for Cleveland. In October, Forbes Magazine declared Cleveland, “America’s hottest city”, and

the title was fitting. In June, the Cleveland Cavaliers won the NBA Championship, in July, the city hosted the Republican

National Convention, and in October, the Cleveland Indians kept the magic alive with an appearance in the World Series.

The national spotlight these local accomplishments drew provided Cleveland with an opportunity to change its narrative.

Audiences across the nation had an opportunity to learn about downtown Cleveland’s resurgence, driven by residential

demand, corporate growth, and $6.6 billion in development activity.

The media’s expansive coverage of the region during this time focused on more than just excellence in athletics, highlighting

Cleveland’s burgeoning food scene, its thriving arts community, its affordability, and many other positive developments

transforming downtown Cleveland. These influential factors have allowed Cleveland to draw America’s youngest and

brightest away from economic hubs, such as; New York, Boston, and Silicon Valley.

Cleveland’s comeback story was cemented in 2016 under the national spotlight. Now as we enter 2017, look for downtown

Cleveland’s resurgence to continue with greater intensity and magnitude.

Downtown Cleveland

20© JLL 2017

© JLL 2017 21

Downtown Cleveland by the numbers



70 Office tenants



$6.6BTotal investment


2.9Square miles



21© JLL 2017

© JLL 2017 22

Downtown Cleveland

0

550,000

1,100,000

1,650,000

2,200,000

-

4,000

8,000

12,000

16,000

2000 2010 2017

Population growth

Downtown Cleveland has seen rapid

population growth despite stagnation at

the metro level.

2.1M 2.1M 2.1M

7.8K

9.9K

14.0K

Demographics

15%

48%

20%

14%

Millennials make up nearly half of the



Generation Z (0-19)

Millennials (20-36)




-

2,250

4,500

6,750

9,000

2000 2010 2017


Unlocking pent-up demand: Developers have

added more than 4,000 residential units

downtown since 2000, and yet, occupancy

remains above 90%.

4.3K

6.6K

8.6K

People

Downtown population Metro population Downtown housing units


© JLL 2017 23

Largest employers


Cleveland span a broad range of industries,


economy.

KeyCorp

Sherwin-Williams

Rock Gaming

Medical Mutual

Ernst & Young

4,810

3,430

2,080

1,800

1,170

Healthspan

Ohio Savings Bank

St. Vincent Medical Center

Huntington Bank

JPMorgan Chase

1,100

840

830

780

730

Business attraction and retentionIn 2016, downtown business attraction and





American Heart Association

BrightEdge

CapitalWorks

CoStar

Alexander Mann

HWH

Hyatt Legal Plan

Kelley & Ferraro

Maloney + Novotny

McDonald Hopkins

Morgan Stanley

OnShift

Plante Moran

Quicken

Schneider Smeltz

Taft

TransDigm

Ziegler Metzger






Government



Information


Other

Downtown Cleveland has a thriving 21st



36%

17%17%

7%

7%

6%

10%

Business

IBM (Explorys)

New York Life

Siegfried Group

Downtown Cleveland

© JLL 2017 24

53%

17%

30%


Investment activity surged during the past five

years, and the pipeline for additional

investment remains strong.

Completed (2012-16)

Under construction

Planned

$3.5B

$1.1B

$2.0B

64

22

22

Status Investment

# of

projects

Investment by funding typeWhile public funding has been instrumental in

kick starting a number of developments, private

funding has driven much of the investment

activity downtown.

67%

33%



$0.0

$0.7

$1.4

$2.1


public use




Residential development has received the largest

share of investment, driven by strong demand

and a tight apartment market.

28

projects

40

projects

19

projects

15

projects

24

projects

($B)

Investment

Downtown Cleveland

© JLL 2017 25

9 Ritz-Carlton Renovation

10 Standard Building Apartments

11 The Edge

12 The Garfield

13 The Milton

14 Whitlatch Building

15 Worthington Yards Apartments

1 H5/ByteGrid Data Center

2 Campus International School

3 Cleveland Athletic Club

4 College of Engineering

5 Federal Building Renovations

6 Global X Redevelopment

7 Lakefront Development

8 Residences at Leader

1 75 Public Square Apartments

2 925 Euclid Avenue

3 City Blue Apartments

4 Domain at Cleveland

5 Halle Residential Conversion

6 Jacobs Waterfront District

7 John Hartness Brown Building

8 May Company Building

9 nuCLEus

10 Old River Rd Redevelopment

11 Terminal Tower

12 The Beacon

13 The Q (Phase 2 Renovations)

14 Tower at Erieview Conversion

15 Weston Development

11 Public Square Renovation

12 Quicken Loans Expansion

13 Renaissance Renovation

14 Residences at 1717

15 Settler's Point

16 St Vincent Renovation

17 The Creswell

18 The Ivory

19 The Q (Phase 1 Renovations)

20 YMCA

1 Center for Medical Professions

2 Drury Plaza

3 First Energy Stadium Renovation

4 Flats East Bank (Phase 2)

5 Hilton

6 Innerbelt Bridge

7 Kimpton

8 Park/Southworth Buildings

9 Playhouse Square Streetscape

10 Progressive Field Renovations

Investment map





Downtown Cleveland

© JLL 2017 26

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


resurgence of downtown Columbus

© JLL 2017 27

New development is alluring residents

and businesses in ColumbusInvestments from both the private and public sectors are transforming downtown Columbus. There

has been an influx of new mixed-use projects, and this type of development has emerged as the

trend of the future. Developers, motivated by an array of incentives and initiatives, are pursuing

projects that will cater to residential and corporate demand for improved urban connectivity. These

projects, ranging from the adaptation of older buildings for new office space to high-rise multifamily

developments, have created a buzz around downtown Columbus. This burgeoning neighborhood

is now attracting young professionals and corporations alike.

Downtown Columbus

27© JLL 2017

© JLL 2017 28

Downtown Columbus by the numbers



26Office tenants





2.7Square miles



28© JLL 2017

© JLL 2017 29

0

550,000

1,100,000

1,650,000

2,200,000

-

4,000

8,000

12,000

16,000

2000 2010 2017

Population growthDowntown Columbus is growing at a rapid

pace alongside a surging, 11-county metro.

1.7M

1.9M2.0M

5.7K

7.9K8.9K

Demographics

13%

42%21%

18%

Millennials are flocking to downtown as

development and investment rise, bringing

along new business activity.

Generation Z (0-19)

Millennials (20-36)




-

2,250

4,500

6,750

9,000

2000 2010 2017


Rapid absorption of new multifamily units has

led to a strong pipeline, as developers seek to

accommodate surging demand.

4.0K

5.6K

7.1K

Downtown Columbus

People



© JLL 2017 30

Downtown Columbus has a strong corporate

base and a thriving start-up scene. As the

state capitol, there is also a significant public

sector presence.

Largest employers

Several companies’ corporate headquarters

are located downtown due to the region’s

acclaimed business climate.

Nationwide

AEP

PNC Financial

Columbia Gas

State Auto Insurance

10,990

3,700

1,000

960

850

Columbus Dispatch

OhioHealth

Motorists Insurance

CoverMyMeds

Bricker & Eckler

800

600

550

350

250


Class A demand has heavily influenced

Downtown business attraction and retention.

Below are companies that made commitments

to premier office space in 2016.

Abbott Laboratories

Homeside Financial

ODW Logistics

Office Evolution

Plaskolite

Accenture

Baker Hostetler

Cameron Mitchell

CoverMyMeds

Schneider

Downs

Crow Horwath

Lane Alton Hurst

Nationwide

Plante Moran

Weston Hurd

Retention or expansion Attraction




Government



Information


Other

34%

26%

17%

9%

6%5%

Business

Downtown Columbus

© JLL 2017 31

$0.0

$0.7

$1.4


public use



($B)

36%

25%

39%

Investment by project statusInvestment activity has been robust, with $2B

worth of projects either recently completed or

under construction. An additional $1.3B of

investment is in the pipeline.

Completed (2012-16)

Under construction

Planned

$1.2B

$858.0M

$1.4B

77

40

35

Status Investment

# of

projects

Investment by funding typeThe public sector has made significant

investments in Columbus in recent years, and

those investments have been evenly matched

by the private sector.

52%48%



Investment by property typeRoadway and streetscape projects make up the

bulk of public investment, while private

investment steers toward a booming multifamily

market incorporating a mix of uses.

28

projects

60

projects

28

projects12

projects

46

projects

Investment

Downtown Columbus

© JLL 2017 32

9 Parks Edge Condominiums

10 Scioto Peninsula Park

11 The Jerome

12 The Nielston

13 Two25 Commons

14 White Castle Short North

15 White-Haines/Madison’s

1 85-111 N High

2 Citizens Building

3 Convention Center Upgrades

4 Hotel LeVeque Collection

5 Jeffrey Park Phase 4

6 Lifestyle Communities Trautman

7 Coleman Governmental Center

8 Ohio Veterans Memorial/Museum

1 457-459 N High

2 711 N High

3 AC Hotel

4 Bollinger Tower

5 Buttles and High

6 Canopy by Hilton

7 Grandview Mercantile

8 Lifestyle Communities Matan

9 Millennial Tower

10 North Market Redevelopment

11 Parks Edge Phase II

12 Sixth Street Mews

13 Swan Cleaners Redevelopment

14 The Brunner

15 W Nationwide Mixed-use

11 Main Library Renovation

12 Microliving @ 260 S Fourth

13 Museum of Art Addition

14 Scioto Greenway

15 The Julian

16 The Prescott

17 The Welsh

18 TriVillage Downtown Storage

19 Truberry on Summit

20 YWCA

1 250 S High

2 Atlas Apartments

3 Battery B

4 Bishop’s Walk II

5 Buggyworks Office Redevelopment

6 Foundrey at Jeffrey Park

7 Goodale Garage

8 Hall of Justice Renovation

9 Hawthorn Grove Apartments

10 Leveque Tower Renovation

Investment map





Downtown Columbus

© JLL 2017 33

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


resurgence of downtown Detroit

© JLL 2017 34

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

34© JLL 2017

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Downtown Detroit by the numbers



27 Office tenants





7.2Square miles


3.1%Population growth since 2000

35© JLL 2017

© JLL 2017 36

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



Generation Z (0-19)

Millennials (20-36)




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


© JLL 2017 37

Largest employers


Detroit span a broad range of industries,


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


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


Downtown Detroit has an evolving 21st


in education, healthcare, business, and

technology.

28%

20%17%

13%

12%

4% 6%

Government



Information

Other




Business

McKinsey & Co

Miller Canfield

Plante Moran

Downtown Detroit

© JLL 2017 38

19%

37%

44%


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


Tax credits and incentives have been

instrumental in activating downtown

developments, however private investment

still outweighs public projects.

77%

23%



$0.0

$0.7

$1.4

$2.1

$2.8


public use




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 39

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





Downtown Detroit

© JLL 2017 40

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

growth, and development activity sparked the resurgence

of downtown Grand Rapids

© JLL 2017 41

Grand Rapids is attracting

national attentionGrand Rapids is the fastest growing metropolitan area in

Michigan. The city is positioned as a regional leader for

healthcare advancement, higher education, and the brewing

industry. Dubbed “Beer City, USA” – Grand Rapids is home

to over 40 breweries. As people and businesses have

migrated into the Grand Rapids community, the downtown

core has experienced rapid growth in development and

activity. A wave of new construction is underway, as

developers seek to add thousands of new multifamily units -

condo and apartments - in the near future to meet the

demand of incoming residents. As Grand Rapids continues

to grow in terms of economy and population, the downtown

core will become the focal point of this delightful city.

Downtown Grand Rapids

41© JLL 2017

© JLL 2017 42

Downtown Grand Rapids by the numbers



17Office tenants





2.7Square miles



42© JLL 2017

© JLL 2017 43


Demographics

24%

39%

18%

15%

Nearly two thirds of the downtown

population is younger than 36, providing a

solid base for economic growth.

Generation Z (0-19)

Millennials (20-36)




2017 downtown population by age 3,000

5,000

7,000

9,000

2000 2010 2017

Residential developmentApartment and condo numbers are on the rise in

the downtown area, as developers aim to vastly

increase residential options in the city center.

5.8K

6.8K

8.2K

700,000

900,000

1,100,000

10,000

12,500

15,000

2000 2010 2017

Population growth

Grand Rapids is the fastest growing region in

the state, and the downtown area is absorbing

a significant portion of this incoming population.

0.9M

1.0M

1.0M

11.1K

11.9K

14.0K

People


© JLL 2017 44

Largest employers

Downtown Grand Rapids largest employers

are a diverse mix of public and private sector

industries.

Spectrum Health

Mercy Health

Fifth Third Bank

Kent County

City of Grand Rapids

22,000*

2,500

2,300

1,600

1,300

Amway Hotels

Huntington Bank

American Seating Company

Founders Brewing Company

Wells Fargo Bank

1,300

900

400

300

170


Downtown Grand Rapids retained many key

tenants while also attracting other businesses

of note in 2016.

Greenleaf Trust

Honigman

Insight Global

JLL

Vision Real Estate Investment

Barfly Ventures

Independent Bank

JP Morgan Chase

McGarry Bair

McShane & Bowie

Miller Canfield

Modustri

Northern Trust

PNC

Regus

Robert Half

Spectrum Health

Retention or expansion

Attraction




Government



Information


Other

Downtown Grand Rapids has a thriving 21st


in the education and healthcare industries.

35%

18%14%

12%

7%

4%10%

Business


* Total regional employment

© JLL 2017 45

32%

27%

41%


Investment has been steady over the

past five years, with a robust pipeline

continuing into 2017.

Completed (2012-16)

Under construction

Planned

$386.5M

$334.2M

$497.0M

26

12

13

Status Investment

# of

projects


Public funding has been instrumental in kick

starting a number of developments, however,

private funding has driven the majority of

investment activity downtown.

87%

13%



$0

$200

$400

$600

$800


public use




The majority of downtown development dollars

have gone into residential projects, driven by

the lack of inventory and growing demand.

5

projects

34

projects

13

projects3

projects

4

projects

($M)

Investment


© JLL 2017 46

7 Embassy Suites by Hilton

8 Gateway at Belknap

9 Market Ave Apartments

10 MSU Research Center

11 River’s Edge

12 Trowbridge Flats

1 123 Division

2 20 Fulton

3 250 Monroe

4 601 West

5 B.O.B. Venue Tower

6 Consumers Energy

Training Center

1 10 Ionia

2 363 State Street

3 50 Monroe

4 Bond Apartments

5 Clancy Lofts

6 Coit Square Condos

7 Firestone Lofts

8 Grand River Restoration

9 Grand View Place

10 GVSU Health Sciences

11 Meijer Development

12 Ottawa & Lyon

13 Studio C!

9 Founder’s Brewery Expansion

10 Fulton Place

11 Klingman Lofts

12 Morton

13 New Holland – Knickerbocker

14 The Rowe

15 Waters Center

1 25 Ottawa

2 300 Monroe

3 616 Lofts at 820 Monroe

4 616 Lofts on Alabama

5 7th Street Lofts

6 Arena Place

7 Barley Flats

8 Creston Plaza Apartments

Investment map






© JLL 2017 47

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


resurgence of downtown Louisville

© JLL 2017 48

Downtown Louisville

Louisville’s momentum rolls onOver the last five years, downtown Louisville has experienced a historic transition

thanks to its investment in bourbon tourism, entertainment, and hospitality. This

transition has infused life into the urban core and created an attractive

environment for both young professionals and corporations alike. Residential

units downtown are being added at historic levels, and developers are working

vigorously to keep up with demand. As downtown Louisville continues to develop

into a true live-work-play destination, more investment will follow, as seen with the

$1.7 billion of development currently under construction.

48© JLL 2017

© JLL 2017 49

Downtown Louisville by the numbers



29 Office tenants





2.2Square miles



49© JLL 2017

© JLL 2017 50

800,000

1,050,000

1,300,000

6,000

7,500

9,000

10,500

2000 2010 2017

Population growth

Downtown Louisville has seen steady population

growth reflecting the trend at the metro level.

1.1M

1.2M

1.3M

8.4K

9.8K

10.3K

Demographics

20%

31%23%

21%

Millennials make up nearly a third of the



Generation Z (0-19)

Millennials (20-36)





1,000

4,000

7,000

2000 2010 2017

Residential developmentWorking to address an underserved residential

market, developers have added more than

1,400 residential units downtown since 2000.

4.6K5.0K

6.0K

Downtown Louisville

People


© JLL 2017 51

Largest employers


Louisville span a broad range of industries,


economy.

Humana

Kentucky One Health

Kindred Healthcare

LG&E and KU Energy

PNC Bank

12,500

6,000

2,400

2,200

1,500

Al J. Schneider Company

Republic Bank & Trust

Mercer

ZirMed

JP Morgan Chase

1,000

700

600

500

500


In 2016, downtown business attraction and





El Toro

ISCO Industries

Oohology

Atria Senior Living

Blackstone Media

Computershare

Conifer Health Solutions

Fisher Phillips

Frost Brown Todd

iHealth

K. Norman Berry

Kentuckiana Works

Luckett & Farley

MedSynergies

Mightily

SGS International

Tachau Maddox Dickens







Government



Information

Other

Downtown Louisville has a thriving 21st



39%

28%

10%

9%

5%4% 5%

Business

Downtown Louisville

© JLL 2017 52

18%

66%

16%


With greater than 80% of the development

pipeline under construction or planned,

downtown investment is expected to

continue its growth phase.

Completed (2012-16)

Under construction

Planned

$471.4M

$1.7B

$415.2M

48

14

16

Status Investment

# of

projects


Public investment in infrastructure,

entertainment, and public space has been

a catalyst for growth as private investors

flock to downtown Louisville.

51%49%



$0.0

$0.5

$1.0

$1.5


public use




Public investment in education, infrastructure,

and public use has accounted for the majority

while private investors address demand for

other property types.

21

projects

14

projects

10

projects

21

projects

12

projects

($B)

Investment

Downtown Louisville

© JLL 2017 53

9 Kindred Health Headquarters

10 Old Forester Distillery

11 Omni Louisville Hotel & Residences

12 Omni Louisville Hotel Garage

13 The 800 Tower City Apartments

14 UL Medical Research Building

15 UL Pediatric Health Care

16 Whiskey Row Streetscape

1 111 Whiskey Row

2 741-749 South Third

3 Canopy by Hilton Renovation

4 Home 2 Suites by Hilton

5 Homewood Suites

6 Ice House Lofts

7 Kennedy Interchange/Bridge

8 Kentucky Convention Center

1 565 S. Fourth Street

2 South Fourth Street Streetscape

3 700 East Main

4 811-819 W. Main

5 AC NuLu Hotel

6 Cambria Hotel & Suites

7 East Market/Nulu Streetscape

11 JCTC Building Courtyard

12 JCTC Theater

13 Jewish Hospital ER Expansion

14 Jim Beam Urban Still House

15 Kentucky Museum of Art Renovation

16 Kosair Hospital Renovation

17 Kurfees Self Storage

18 Downtown Marriott Renovation

19 St. Francis High School Expansion

20 Wayside Christian Mission Expansion

1 310 @ Nulu

2 Aloft Louisville Downtown

3 Angel’s Envy Distillery

4 Brown Hotel Renovation

5 Embassy Suites Renovation

6 Fincastle Building Renovation

7 Guthrie Street Reopening

8 Holiday Inn Express

9 Hyatt Regency Renovation

10 Nucleus Park Garage

8 Hosparus Unit Expansion

9 Hotel Indigo

10 Jefferson Educational Center

11 Michter’s Distillery

12 Nucleus Building 2

13 The Moxy/Westin Hotel

14 UL Instructional Building

Investment map





Downtown Louisville

© JLL 2017 54

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


resurgence of downtown Pittsburgh

© JLL 2017 55

Pittsburgh’s resurgence

gains national attentionThe economy in downtown Pittsburgh is gaining momentum,

driven by growth in multiple sectors. Companies like Uber

and Amazon are taking advantage of the highly technical

workforce Carnegie Mellon University and the University of

Pittsburgh continue to provide. While the engineering and

robotics industries continue to grow in Pittsburgh, the

announcement of Shell’s cracker plant in Beaver County has

inspired a new sense of optimism in the energy sector

across the entire region.

As Pittsburgh’s future potential is gaining more recognition,

the investments flowing into downtown are changing the

landscape. A number of buildings are currently being

redeveloped by outside investors, while several new

developments are close to breaking ground. The excitement

and energy around downtown is tangible and with over 4,000

residential units currently in the construction pipeline,

population is expected to grow in the coming years.

Downtown Pittsburgh

55© JLL 2017

© JLL 2017 56

Downtown Pittsburgh by the numbers



70 Office tenants





4.8Square miles


16.6%Population growth since 2000

56© JLL 2017

© JLL 2017 57

Downtown Pittsburgh

1,500,000

1,900,000

2,300,000

2,700,000

20,000

25,000

30,000

35,000

2000 2010 2017

Population growth

Current downtown population estimates show

a considerable increase since 2010 due to

substantial residential development.

2.4M2.3M

2.7M

28.3K27.4K

33.0K

Demographics

21%

37%

16%

4%

Generation Z and Millennials make up over

half of the population downtown, fueling

Pittsburgh’s new dynamic economy.

Generation Z (0-19)

Millennials (20-36)





8,000

12,000

16,000

2000 2010 2017


With an additional 4,000 apartment units

in the pipeline, the downtown residential

market is positioned for rapid growth.

10.8K

12.3K

15.8K

People


© JLL 2017 58

Largest employers


Pittsburgh span a broad range of industries,

illustrating the region’s diverse economy.

UPMC

HighmarkHealth

PNC Financial

BNY Mellon

US Steel

46,500

20,900

11,400

7,000

4,200

PPG

Alcoa

UnitedHealth Group

Rivers Casino

EDMC

2,300

1,700

1,600

1,500

1,500

Business attraction & retention

In 2016, urban demand remained strong as

nearly 70 office tenants made a commitment

downtown. Below are several of the largest

commitments.

Amazon

Brickstreet Insurance

Frost Brown Todd

Industrious

Ariba (SAP)

Carmeuse

Confluence

EDMC

Federated Investors

Highmark

Marshall Dennehey

Morgan Lewis

Peoples Natural Gas

Seubert & Associates

Tucker Arensberg

UnitedHealth Group

UPMC

US Steel

Retention or expansion (1,300,000+ s.f.)





Government



Information


Other

Downtown Pittsburgh has a thriving 21st



36%

23%

13%

9%

7%

10%

Business

Netflix

Oculus

Uber

Downtown Pittsburgh

© JLL 2017 59

23%

23%

54%


Investment activity has surged over the last

five years and many large planned projects

have yet to begin construction.

Completed (2012-16)

Under construction

Planned

$1.0B

$1.0B

$2.3B

43

29

39

Status Investment

# of

projects

Investment by funding typePrivate funding accounts for the majority

of investment spending over the past five

years, as outside investors have noticed

Pittsburgh’s diverse economic potential.

87%

13%



$0.0

$0.7

$1.4

$2.1


public use




Office projects have received the largest share

of investment dollars, driven by large private

developments.

37

projects

20

projects

36

projects

9

projects9

projects

($B)

Investment

Downtown Pittsburgh

© JLL 2017 60

7 Pitt Building Redevelopment

8 Pittsburgh Stadium Garage

9 Riverfront Landing Apartments

10 Pittsburgher Building

11 Town Place Development

1 3 Crossings: The Hub

2 Cambria Suites at PPG Arena

3 City-County Building Renovations

4 Heinz Lofts: Service Building

5 Nova Place Renovation

6 Penn Rose Redevelopment

1 20 Stanwix

2 3 Crossings: Riverfront West

3 319 Third Avenue

4 525 William Penn Renovations

5 Allegheny Building Improvements

6 Allegheny County Courthouse

7 Civic Arena Site

8 Continental Residential Project

9 Heinz Research Apartments

10 Macy’s Redevelopment

11 Northbank Hotel

12 One Oxford Redevelopment

13 Penn Avenue Plaza Restoration

14 Post Gazette Redevelopment

15 PPG Glass Warehouse

16 Produce Terminal Development

17 Rivers Casino Hotel

18 Steelworkers Building Renovation

19 The Highline

11 Monongahela Incline

12 Point Park Center for Media

13 PPG Ice Rink Expansion

14 ALCOA Building Conversion

15 The Tower at PNC Plaza

16 The Yards at 3 Crossings

17 JLL Center / Hilton Garden Inn

18 Union on 5th

19 Union Trust Improvements

20 Verizon Building Restoration

1 3 Crossings: 2501 Smallman

2 3 Crossings: 2555 Smallman

3 907/909 Penn Avenue

4 Allegheny Health Department HQ

5 Benedum Center Expansion

6 Clark Building

7 Embassy Suites & Oliver Building

8 Flats on Fifth

9 Homewood Suites

10 Liberty Center Improvements

Investment map





Downtown Pittsburgh

© JLL 2017 61

For more information, please contact:

Ann Arbor, Detroit, Grand RapidsHarrison West

Research Analyst

+1 248 581 3298

[email protected]

Cincinnati Abby Armbruster

Research Analyst

+1 513 252 2148

[email protected]

Great Lakes region Andrew Batson

Director, Research

+1 216 937 4374

[email protected]

PittsburghTobiah Bilski

Research Analyst, GIS

+1 412 208 1426

[email protected]

ColumbusSam Stouffer

Research Analyst

+1 614 460 4419

[email protected]

Cleveland Noah Bill

Research Analyst

+1 216 937 [email protected]

www.jll.com/research

© 2017 Jones Lang LaSalle IP, Inc. All rights reserved.

LouisvilleRoss Bratcher

Research Analyst

+1 513 719 3706

[email protected]