DETROIT—Although its vacancy rate ticked up in the second quarter, the Troy office market, the second largest in Detroit's suburbs, has had a solid run of leasing activity over the past year, and a series of big purchases this summer shows it has caught the eye of investors.

Hayman Co. made the most significant recent acquisition when it bought the 732,000-square-foot Troy Officentre for $55 million. And the Southfield, MI-based company has big plans for the five-building office campus.

The company will manage and lease the building, as well as serve as construction manager for the nearly $10 million building enhancements, significant signage improvements and exterior property upgrades.

“We see tremendous opportunity here with what we know is a great price per square foot as we continue to lay the foundation for continued success—not only for the businesses in this complex, but the Troy community at large,” Hayman president Andrew Hayman told GlobeSt.com. “With our planned investments for the center, we are working toward creating a more dynamic environment to enhance our tenant experience and property offerings.”

Other companies, including ones on the coasts, seem to agree that the Troy market presents opportunities. CBRE, Inc., for example, recently helped complete the sale of Wilshire Plaza North and West at 900 and 1050 Wilshire Dr. to an affiliate of New York City-based real estate investment firm Group RMC. The two-building, 349,625-square-foot class A office portfolio was 90% occupied at the time of sale. The financial terms of the deal were not disclosed.

Group RMC has been an active buyer throughout the Midwest, but this was its first office acquisition in MI. Anne Galbraith Kohn with CBRE's Detroit office represented the seller.

Although the city's CBD has rightly gotten a lot of attention, the occupancy rate for the suburbs has increased from just over 82% four years ago, to about 88% in this year's first quarter, according to a Colliers International report.

Troy's vacancy rate did jump 50 bps to 20.1% during the second quarter as the former ITT Campus at 1522 E. Big Beaver Rd. was vacated and sold to an investor looking to re-lease the facility, according to a new report from Newmark Knight Frank. The town's class A vacancy rate edged up 10 bps to 12.3% during the second quarter.

Instant Insights /

Investors Pick Up Deals in Suburban Detroit

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