Business Climate

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Fortune 500 Companies

RankCompanyHQ City2017 Revenue ($M)
10General MotorsDetroit$157,311
11Ford Motor CompanyDearborn$156,776
139Penske Automotive GroupBloomfield Hills$21,389
148Lear CorporationSouthfield$20,467
232DTE EnergyDetroit$12,607
289AutolivAuburn Hills$10,382
299Ally FinancialDetroit$9,866
301BorgWarnerAuburn Hills$9,799
373MascoLivonia$7,644
449American Axle & ManufacturingDetroit$6,266
Source: Fortune magazine

Largest Private Firms

Company2016 Revenue (billions)Full-Time Employees in Detroit Area (January 2017)
Penske Corp. $30,0981,936
Rock Ventures$6,50016,617
International Automotive Components (IAC)$6,000833
Meridian Health Plan$3,7321,610
Ilitch Companies$3,4003,914
TI Automotive Ltd.$3,300819
Inteva Products.$2,800819
Plastipak Holdings$2,689N/A
Barton Malow Co.$2,4251,100
Moroun Family Holdings$2,218N/A
Source: Crain's Detroit Business

Largest Foreign Firms

CompanyRevenue 2016 ($M)Detroit Regional EmploymentParent Company Country
FCA US LLC$72,794.731,875United Kingdom
ZF$14,446.02,717Germany
Robert Bosch LLC$13,700.0Germany
Continental Automotive Systems U.S. Inc.$10,951.3Germany
Magna International of America Inc.$9,884.34,213Canada
Denso International America Inc.$9,700.0Japan
Faurecia North America$6,100.003,200France
Aisin World Corp. of America$5,778.0Japan
Hyundai Mobis (formerly Mobis North America)$5,555.7South Korea
Yazaki North America Inc.$4,056.01,480Japan
Source: Crain's Detroit Business

Cost of Living Index for Select Metro Areas, 2017 Average Data

Metro AreaIndex
Memphis, TN83.3
Columbus, OH89.7
St. Louis, MO90.6
Detroit, MI96.9
Atlanta, GA99.0
Pittsburgh, PA99.6
Buffalo, NY100.2
Cleveland, OH101.2
Dallas, TX102.1
Minneapolis, MN104.9
Denver, CO112.0
Baltimore, MD117.0
Philadelphia, PA117.2
Chicago, IL123.6
Boston, MA148.2
Seattle, WA149.0
Washington-Arlington-Alexandria, DC-VA155.7
San Francisco, CA192.9
Manhattan, NY238.6
Source: C2ER

Taxes
Michigan Personal Income Tax Rate: 4.25%
Michigan Corporate Income Tax Rate: 6%

StateOverall RankCorporate Tax RankIndividual Income Tax RankSales Tax RankUnemployment Insurance Tax RankProperty Tax Rank
Michigan1281494725
Washington17486491827
Missouri155282477
Massachusetts273713184945
Texas14496371237
Illinois232610353846
Georgia361042333521
Wisconsin39304373634
Ohio45454729411
Minnesota464345252833
Source: Tax Foundation

Industrial and Office Real Estate

The Detroit region offers more than 583 million square feet of industrial space and 209 million square feet of existing office inventory.

Market Trends, Industrial

Rental Rates. The average quoted asking rental rate for available Industrial space in Detroit market area was $5.82 per square foot per year at the end of the fourth quarter 2017. This represented a lower rate than the national rate of $6.26. The average quoted rate within the Flex sector was $9.57 per square at the end of the fourth quarter 2017, while warehouse rates stood at $5.34.

Vacancy Rates. Vacancy rates in the Detroit region continue their trend downward to 3.0% for the fourth quarter of 2017. It is lower than the national average at 4.9%. Flex space reported a vacancy rate of 6.3% at the end of the fourth quarter 2017, down from 6.7% at the end of the fourth quarter 2016. Warehouse space reported a vacancy rate of 2.6% at the end of the fourth quarter 2017, down from 2.7% at the end of the fourth quarter 2016.

Market Trends, Office

Rental Rates. The average quoted asking rental rate for available office space, all classes, was $19.20 per square foot per year at the end of the fourth quarter 2017 in the Detroit market area. It was 24% lower than the national average of $25.15.

The average quoted rate within the Class-A sector was $21.83 at the end of the fourth quarter 2017, while Class-B rate stood at $18.73, and Class-C rates was $16.03. At the end of the fourth quarter 2016, Class-A rate was $21.31 per square foot, Class-B rate was $18.62.

The average quoted asking rental rate in Detroit’s CBD was $21.09 at the end of the fourth quarter 2017, and $19.04 in the suburban markets.

Vacancy Rates. Detroit region’s office vacancy rates are declining at a faster rate than the national average and they are approaching the national average vacancy rates for 2017. The office vacancy rate in the Detroit market area decreased to 10.2% at the end of the fourth quarter 2017, down from 12.4% at the end of the first quarter 2016.

Class-A projects reported a vacancy rate of 11.9% at the end of the fourth quarter 2017, down from 13.8% at the end of the first quarter 2016. Class-B projects reported a vacancy rate of 11.2% at the end of the fourth quarter 2017. Class-C projects reported a vacancy rate of 6.3% at the end of the fourth quarter 2017.

The overall vacancy rate of office in Detroit’s CBD at the end of the fourth quarter 2017 dropped dramatically to 7.8% from 14.2% in 2015.

Regional Detroit Industrial Real Estate, Q4 2017

ClassExisting Inventory
(million sf)
Net Absorption
(million sf)
Vacancy Rate
(%)
Lease Rate
(usd psf)
Detroit582.74.23.0$5.82
Airport/I-275 Ind127.51.72.8$5.57
Detroit Area Ind87.80.33.8$4.22
Downriver Ind50.20.1
3.5$4.20
East Area Ind123.50.91.6$5.58
I-96 Corridor Ind57.00.33.1$7.44
Oakland County NW Ind53.40.34.6$7.21
Royal Oak/Southfield Ind20.30.34.9$6.20
Troy Area Ind31.00.02.1$6.84
Washtenaw Ind31.90.32.5$9.22
Source: CoStar Detroit Industrial Market Report

National Industrial Real Estate, Q4 2017

MarketExisting Inventory
(million sf)
Net Absorption
(million sf)
Vacancy Rate
(%)
Detroit582.74.23.0
Chicago1.2 B 17.96.5
Cleveland492.21.73.9
Columbus268.85.94.5
Dallas878.722.96.4
Indianapolis331.22.75.7
Memphis257.26.65.9
Milwaukee325.83.54.1
Minneapolis387.90.74.1
Pittsburgh184.7(0.2)6.2
United States22.4 B310.84.9
Source: CoStar National Industrial Market Report

National Industrial Real Estate, Lease Rates, Q4 2017

MarketLease Rate
(usd psf)
Warehouse Space
(usd psf)
Flex
(usd psf)
Detroit$5.82$5.34 $9.57
Chicago$6.05$5.64 $10.98
Cleveland$4.29 $3.93 $9.58
Columbus$3.93$3.72 $8.98
Dallas$5.60 $4.75 $9.80
Indianapolis$4.50 $4.15 $9.71
Memphis$3.49$3.30$7.91
Milwaukee$4.57 $4.20 $7.97
Minneapolis$6.66 $6.01 $8.75
Pittsburgh$6.16 $5.19 $12.17
United States$6.46 $5.72$12.43
Source: CoStar National Industrial Market Report

Regional Detroit Office Real Estate, Q4 2017

MarketExisting Inventory
(million sf)
Net Absorption
(million sf)
Vacancy Rate
(%)
Lease Rate
(usd psf)
Detroit CBD26.00.67.8$21.09
Detroit Suburban182.71.210.5$19.04
Ann Arbor/Washtenaw15.10.07.5$22.89
Bloomfield17.4(0.1)9.9$21.99
Detroit/The Pointes46.30.79.2$20.07
Downriver3.40.013.7$16.48
Flint8.80.13.4$17.40
Livingston/W Oakland9.00.65.9$20.94
Macomb16.60.18.2$16.51
North Oakland18.8(0.1)10.2$19.32
Royal Oak5.20.06.5$18.59
Southfield23.80.019.9$18.46
Troy18.10.214.2$19.47
West Wayne26.20.47.3$16.88
Source: CoStar Detroit Office Market Report

National Office Real Estate, Q4 2017

MarketExisting Inventory
(million sf)
Net Absorption
(million sf)
Vacancy Rate
(%)
Lease Rate
(usd psf)
Detroit208.71.810.2
$19.20
Detroit CBD26.00.67.8$21.09
Detroit Suburban182.71.210.5$19.04
Chicago474.63.913.0$23.71
Cleveland147.80.79.5$17.36
Columbus99.81.46.4$18.07
Dallas370.75.614.7$25.01
Indianapolis104.41.17.0$18.35
Memphis53.10.312.2$17.45
Milwaukee83.71.6 7.1$16.56
Minneapolis194.60.17.3$19.47
Pittsburgh130.3(0.4)8.6$21.30
United States11.0 B76.69.4$25.15
US CBD2.5 B8.49.5$32.82
US Suburban8.5 B68.29.4$23.45
Source: CoStar National Office Market Report

 

Contact
    • Angela
    • Ladetto
    • Director, Business Research
    • aladetto@detroitchamber.com
    • 313.596.0418
    • Christyn
    • Lucas
    • Manager, Business Research
    • clucas@detroitchamber.com
    • 313.596.0372
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Contact
    • Angela
    • Ladetto
    • Director, Business Research
    • aladetto@detroitchamber.com
    • 313.596.0418
    • Christyn
    • Lucas
    • Manager, Business Research
    • clucas@detroitchamber.com
    • 313.596.0372
How Can We Help?

Your Name (required)

Your Email (required)

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