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TROY, MI-Siemens Product Lifecycle Management Software has expanded to 51,000 sf at 5555 New King here, taking up almost half of the 114,000-sf office building. The facility is part of the eight-building North Troy Corporate Park, which is within the Northfield Hills Corporate Center Office Park, a 200-acre office/research park.

Siemens, formerly known as UGS, had leased 22,000 sf on the first floor of the building, says Mitch Lipton, EVP with Friedman Real Estate Group. Lipton and VP Steve Eisenshtadt represented the landlord, though the building was included in a sale of the North Troy buildings at about the same time as the Siemens lease. New York City-based Emmes & Co. purchased the 1.2-million-sf North Troy Corporate Park from a joint venture of Mack-Cali Realty and SL Green Realty Corp. in December for about $80 million, according to sources.

Siemens will be alone in the 5555 New King building, as the other former tenant, EDS, is moving out of North Troy park, moving out of about 475,000 sf and into the GM-owned Centerpoint park in Pontiac. Lipton tells GlobeSt.com that it may be difficult for the new owner to find new tenants in the slow Troy, and Metropolitan Detroit, market. “There’s not a lot of velocity,” he says. “There are deals, but nowhere where you’d like to see in a market the size of Troy. You have the same landlords fighting for the same deals, and it seems like every time you hear about a deal made, you hear about someone else vacating space.”

The Troy market of 13.5 million sf saw a negative 345,000 sf absorbed in the fourth quarter, the most of any Detroit market, according to a fourth-quarter report by CB Richard Ellis. The vacancy rate in Troy, just a few years ago seen as the strongest office market in Southeast Michigan, is now the highest in the area at 28.64%. The average lease rate is $19.29, though all lease rates have been dropping with the raised vacancy, according to CBRE. Also, all the local markets are reporting a hold on office construction, except for Ann Arbor, which is working on 245,000 sf.

Lipton says he’s hopeful that Troy will rebound. “There’s certainly not enough activity in the corridor right now to suggest that we’ll see any significant positive absorption in the near future, but I think it’s a solid market. I think it’s going to come back,” he says.

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