The dispute lies in part with Detroit's current reputation. Thecity's office market is not doing well, with more than 30% vacancyin the CBD. "There's a lot of incentives for deals to get done,it's a stagnant market," says Mark Talley, a Detroit office brokerwith Grubb & Ellis. "The average office lease is less than $20.It's more like in the mid- to high-teens."

Edward Thomas, corporation counsel for the county, told thepartnership in a letter June 22 that the county will not berenewing its lease in its five-story home. "As a matter of publictrust, this administration cannot in good conscience renew a leasethat imposes the excessive rental rates which have been historicalcharged," Thomas said in the letter, obtained by GlobeSt.com."After much research, we believe the current rental rate for thisbuilding is grossly disproportionate in the market. In ourestimation the county is required under the existing lease to paynearly three times the amount we believe the annual rent should befor a similar building." The company has gotten bids at otherbuildings nearby, including $15.48 per sf at the Penobscot buildingand $13 per sf at the First National building.

A spokesman for the building owner tells GlobeSt.com that it'spossible there will be a rent reduction. The partnership said in astatement June 27 that it will present the county with a revisedproposal on Monday, July 2. "We are dedicated to working with thecounty to find a way to continue our relationship in a mutuallybeneficial manner, whether through a new lease or sale of thebuilding," said the spokesman in the statement.