Grand River Growth Plan -All Gibbs for City Jan 2 2026 - Flipbook - Page 67
Summary
New office developments along the Grand River corridor are likely to command rents in the upper $20s
per square foot per year (sf/yr), specifically ranging from $26 to $29 sf/yr on a gross or a modified gross
basis. Gross rents include property taxes and insurance, The building lease holder pays for their own
utilities, interior improvements and some of properties’ common area maintenance (CAM). These rates
may surpass the City of Farmington Hills’ existing average of $21 per sf/yr.
These projected real estate lease rents are justified by strong demand drivers. Chief among these are
entrepreneurs seeking a closer-to-home workplace and healthcare-related users looking to position
themselves near Corewell Health. Consequently, potentially higher rents align with the corridor’s
strategic appeal and underscore its potential for sustained growth.
Figure 3: Aerial photo of the 2-mile south Grand River Avenue study area looking northeast.
Background
Gibbs Planning and Indigo Retail have been retained by the City of Farmington Hills to conduct an
independent market potential analysis to project how much new office development may be
supportable along the south Grand River Avenue area by 2030. The 2-mile long corridor is located in
southeast Farmington between Orchard Lake and Eight Mile Roads. Eight Mile Road is the City of
Detroit’s northern border.
The projections of this study are based on Grand River’s economic characteristics utilizing the real estate
industry’s best practices. This study does not necessarily reflect the Avenue’s existing building stock and
area's physcal character.
Additionally, this study’s office space projection reflects statistical market demand, but not necessarily
the availability of existing real estate properties to accommodate new office space. This analysis
considers current market conditions and trends to estimate a potential office demand for the study area,
given its site characteristics, competitive position and other factors.
Grand River Corridor Office Market Analysis
Gibbs Planning Group
July 2, 2025
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