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

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

The spokeswoman says the Downtown Detroit office market is goingvery well, much better than can be expected in the Michiganeconomy. The Downtown area has about 30% vacancy, total, for officespace, according to Grubb & Ellis, whereas the overallDetroit-area vacancy rate is about 21%. The spokeswoman says theCadillac has 15% vacancy, the First National Building has 25%vacancy and the Penobscot has 30% vacancy.