TROY, MI-Nemer Proeprty Group Inc., one of the partners in thejoint venture that owns the fived-building Troy Place officecampus, has brought on Grubb & Ellis Co. to help with leasing.The five-building, 750,000-square-foot complex is 35% vacant.

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While the property is at W. Big Beaver Road and CoolidgeHighway, at what had formerly been State and Main for officeleasing in the Detroit area, corporate downsizing has hit the areahard. The Troy submarket, much like the rest of the metropolitanarea, is about 30% vacant.

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Troy Place has as a main tenant the military contractor BAE,which leases 90,000 square feet, but also has lost more than 65,000square feet after Sears pulled out of the building. The complex isacross the street from the former Kmart world headquarters, whichmoved to Hoffman Estates, IL after Sears acquired the company. “Welost several tenants after Kmart’s offices closed, they weresuppliers,” says Larry Nemer. The Kmart site is now owned by theForbes Co., which also owns the nearby Somerset Collection mall andis part owner in the Troy Place venture.

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Daniel Canvasser with Grubb & Ellis tells GlobeSt.com thatthe complex is still one of the top office sites in the Detroitarea. “About 95% of the tenants who have left were moved because ofconsolidation, or they went out of business in Michigan. We’re notlosing them to other buildings,” he says.

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Troy also boasts most of the metropolitan area’s newest officebuildings, but because of the downturn now can offer pretty cheaprent, Canvasser says. The asking rate in the complex runs from$16.95 to $18.50, gross. Also, the complex has undergone millionsof dollars in renovations to keep a current look for tenants.

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Regardless, both men said they know they have their work cut outfor them, as movement in the suburban office market is mostlytenants going from one site to another. “And then you’ve got thebuildings that go into foreclosure and get snatched up cheap, thebuyers can charge lower rent and put more downward pressure on themarket,” Nemer tells GlobeSt.com. “Bottom line, we need some jobsfor the area, and we need to see absorption and growth in thecorporate settings.”

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