You are viewing this article in the archives. For the latest breaking news and updates in Ann Arbor and the surrounding area, see
Posted on Tue, Dec 11, 2012 : 5:57 a.m.

Annual report: University of Michigan's biggest commercial real estate leases

By Lizzy Alfs

To accommodate its growing health system, the University of Michigan expanded its portfolio of large commercial leases in 2012, according to an annual report released Monday.

U-M — which is already one of the largest renters of private commercial real estate in the Ann Arbor region — has six property leases in its portfolio that exceed 50,000 square feet. The list includes the under-construction offices in Northville for the University of Michigan Health System Northville Health Center.


U-M occupies nearly 25 percent of Ann Arbor Township's Domino's Farms Office Park.

The university also expanded several of its offices this year, including leasing an additional 18,000 square feet at Domino’s Farms Office Park. U-M now occupies nearly 25 percent of the complex, which is the county’s largest at close to 1 million square feet.

Here are U-M’s six property leases that exceed 50,000 square feet:

1. 240,920 square feet on Frank Lloyd Wright Drive at Domino’s Farms in Ann Arbor Township: University of Michigan Health System departments use the space for various departments, including sports medicine and plastic surgery.

2. 125,815 square feet at the KMS Building on South State Street in Ann Arbor: The space is used for hospital clinical billing and other UMHS groups.

3. 100,000 square feet of under-construction offices in Northville: The space will be leased from REIS-Northville LLC for the UMHS Northville Health Center.

4. 70,754 square feet on East Eisenhower Parkway at the Burlington Office Center in Ann Arbor: The space is used by various departments, including physical medicine and rehabilitation.

5. 63,920 square feet at 2301 Commonwealth Boulevard in Ann Arbor: First Properties Associates leases the space to various UMHS groups.

6. 51,534 square feet on North Canton Center Road in Canton: UMHS Canton Health Center leases the space from Saltz Center.

Lizzy Alfs is a business reporter for Reach her at 734-623-2584 or email her at Follow her on Twitter at



Tue, Dec 11, 2012 : 5:52 p.m.

So for all of those who say the U does not pay property tax, here is evidence to the contrary. In fact. since the U leases from PRIVATE landlords, they pay property tax with rents AND if the U pulled out of all those leases, the vacancy rate at private offices would plummet. Basic supply and demand. The U provides a HUGE demand for office space, and housing space in the city of Ann AArbor. But don't let facts ruin your argument


Tue, Dec 11, 2012 : 1:48 p.m.

....and Dr. Peskovitz announced UM Health System running a deficit and must cut costs. Perhaps too many unnecessary acquisitions have contributed to the problem?


Tue, Dec 11, 2012 : 1:17 p.m.

Bingo! Perhaps the city should legally reserve "first dibs" to purchase and become "realtor" of land within its own jurisdiction. Call it "Population Security, Health ,and Welfare". No more University incursion into the tax base. Rent can be adjusted to public service expense. The ability to modify lease contracts tat will o suit owner needs and preferences just like any capital enterprise would. Unlike the glutton of wealthy landlords taking local monies back home to places like Atlanta, Chicago, New York, and Boca Raton, Ann Arbor would get to be the business fat cat - for a change


Tue, Dec 11, 2012 : 1:01 p.m.

Now if UMHS can do something about the front office employees' attitudes. If it wasn't for the doctors, I go somewhere else. The front office employees' attitudes are horrible. Where do UMHS find these people?


Tue, Dec 11, 2012 : 11:48 a.m.

With the expansion of the UM using up more and more property around Ann Arbor, what do they give back to the city in regards to taxes for using city facilities. I know they do provide many, many jobs, but there, in my opinion, should be some compensation for police and fire.

Lizzy Alfs

Tue, Dec 11, 2012 : 2:26 p.m.

@kejamder: That is correct. The property owner would still be required to pay taxes.


Tue, Dec 11, 2012 : 2:13 p.m.

Hopefully the reporter can clarify this for us - I'm under the impression that when the U leases commercial property, it pays rent to a (private) landlord, who IS paying property taxes. Does having a non-profit tenant absolve the landlord from property taxes?