JLL Ann Arbor Full Circle Report 2017

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Full circle: Ann ArborAn in-depth look at how residential demand, corporate

growth, and development activity sparked the

resurgence of downtown Ann Arbor

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Downtown Ann Arbor

More than a college townHome to the University of Michigan, Ann Arbor has always had a strong presence and reputation in

the southeast Michigan community. With the continued influx of tech companies, startups, and

venture capital, the downtown core is undergoing a transformation. Ann Arbor’s residential and

office density is continually increasing, changing the downtown from a college town into an urban

center. As tech companies and startups continue to locate here to recruit talent from the university,

developments to house them will continue, as will demand for retail, entertainment and other

commercial amenities. Ann Arbor is well positioned for the future given its growing business

community, the presence of the University of Michigan, and its proximity to metropolitan Detroit.

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Downtown Ann Arbor by the numbers

60%Percent Millennials

25,800Total employment

13 Office tenants

2016 Business attraction and retention

39# of investment projects (2012-planned)

$587.5MTotal investment

97%Private investment

1.3Square miles

17,100Residential population

18%Population growth since 2000

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People

200,000

260,000

320,000

380,000

12,000

14,000

16,000

18,000

2000 2010 2017

Population growthDowntown Ann Arbor has seen steady

population growth in recent decades, however,

that growth has accelerated recently thanks to

new multifamily development.

322.9K

344.7K

361.2K

14.4K14.9K

17.1K

DemographicsMillennials make up over half of the

downtown population, most of whom are

students, a significant factor driving

business attraction and retention.

28%

60%

5%5%

Generation Z (0-19)

Millennials (20-36)

Generation X (37-52)

Baby Boomers (53-71)

The Silent Generation (72+)

Residential developmentDevelopers have added nearly 2,000

residential units downtown since 2000,

with even more in the pipeline.

4,000

6,000

8,000

2000 2010 2017

5.4K

5.8K

7.2K

Downtown Ann Arbor

Downtown population Metro population

2017 downtown population by age

Downtown housing units

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Business

Largest employers

Although the University is by far the largest

employer in Downtown Ann Arbor, private

companies from tech to banking are making

their presence felt.

University of Michigan

Washtenaw County

City of Ann Arbor

DTE Energy

Google Ann Arbor

14,710

1,330

850

500

400

Barracuda Networks

Llamasoft

Duo Security

Bank of Ann Arbor

Prime Research

270

200

150

140

110

Business attraction and retention

The University of Michigan is essential to Ann

Arbor’s strategy for attracting and retaining the

companies that are recruiting their talent.

Llamasoft

TD Ameritrade

FICO

Penny W. Stamps School

Duo Security

UM Alumni Association

Carlisle Wortman

Sight Machine

All Hands Active

Lakeside Software

Kohlitz Video Production

Atwell

Lotus Consulting

Retention or expansion Attraction

Employment by industry

Professional and business services

Hospitality, leisure and retail

Government

Construction, manufacturing and transportation

Downtown employment by industry

Information

Education and healthcare

Other

Downtown Ann Arbor has a thriving 21st

century economy with significant employment

in the business and technology industries.

37%

26%

13%

6%

5%

5%8%

Downtown Ann Arbor

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Investment

61%

38%

Investment by project status

Investment activity surged over the last five

years and multiple projects are ready to

break ground in 2017.

Completed (2012-16)

Under construction

Planned

$359.1M

$7.5M

$221.2M

22

1

16

Status Investment

# of

projects

Investment by funding type

The vast majority of downtown investment

has been private multifamily projects, with

a handful of public use developments

making up the public investment.

97%

Private investment dollars

Public investment dollars

$0

$100

$200

$300

$400

$500

Education,infrastructure,

public use

Entertainment,retail

Hotel Office Residential

Investment by property type

Residential development has received by far

the largest share of investment, as other

product types have taken a back seat.

4

projects

26

projects

4

projects

4

projects3

projects

($M)

Downtown Ann Arbor

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1 410 First

Significant projects under construction

1 611 E University

2 Kingsley

3 Kingsley Parkside

4 M Den Office Building

5 Madison on Main

6 Main on the Park

7 Montgomery Houze

8 Moving on Main

9 Residences at 615 Main

10 Running Fit Residential

11 South University Streetscape

12 The Calvin

13 The Collegian North

14 The Glen

15 The Jefferson

16 The Library Lot

Notable proposed projects

1 121 Kingsley West

2 414 Main

3 4th & William Garage Renovation

4 618 South Main

5 ArborBLU

6 Bank of Ann Arbor Expansion

7 Detroit Street Flatiron

8 Library Renovation

9 Foundry Lofts

10 Residence Inn

11 Selo/Shevel Renovation

12 The Graduate

13 515 Fifth

Significant projects completed in 2015-16

Investment map

Completed in 2015-16 Under construction Proposed

Downtown Ann Arbor

JLL Ann Arbor Full Circle Report 2017

Real Estate

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