Next generation cellular networks require huge capacity, ubiquitous coverage and maximum energy efficiency. In order to meet these targets, Device-to-device (D2D) communication is being considered for future heterogeneous networks (HetNets). In this paper, we consider a three tier hierarchical HetNet by exploiting D2D communication in traditional HetNet. D2D communication is deployed within the HetNet where closely located mobile users are engaged in direct communication without routing the traffic through cellular access network. The proposed configuration mandates to reduce the interference offered by the resultant HetNet by reducing the transmitter-receiver distance and ensuring that the mobile users are transmitting with adaptive power subject to maintaining their desired link quality. In this context, we analyzed and compared the spectral efficiency improvements in hierarchical HetNet against traditional HetNet. Simulation results show that D2D communication offers much higher spectral efficiency as compared to traditional HetNet.