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Detroit Market Reports

Detroit Office Market

Average Asking Rent (Price/SF) $19.98
Vacancy Rate (%) 15.0%
Net Absorption (SF)  110,576

Metro Detroit’s office market vacancy rate fell 30 basis points to 15.0% during the third quarter of 2019, as nearly 110,000 square feet was absorbed. The Farmington Hills submarket accounted for the greatest share of absorption after Trinity Health took occupancy of a large block of office space. In the Detroit Central Business District, the vacancy rate spiked as property owners are bringing more renovated space onto the market to capture the growing office user base. Meanwhile, the downsizing educational market continues to create new vacancies around Metro Detroit. During the previous quarter, South University and the Art Institute of Michigan in Novi created nearly 100,000 square feet of new vacancies. During the third quarter, Northwestern Technological Institute and University of Phoenix added a combined 82,000 square feet of vacant space in Southfield.

Detroit Industrial Market

Average Asking Rent (Price/SF) $5.87
Vacancy Rate (%) 4.1%
Net Absorption (SF) 404,746

Metro Detroit's industrial construction activity continued to grow during the third quarter of 2019 despite market battling tariffs and looming General Motor autoworkers strikes. Seven new construction projects broke ground during the third quarter totaling 1.6 million square feet- an increase of 34.0% over the previous quarter- to 5.6 million square feet. Year-to-date, new construction starts total 5.1 million square feet with new completions totaling 1.5 million square feet. Build-to-suits make up the bulk of new construction for companies such as Subaru, Cooper Standard, Aperam, Tiberina Group and SAPA Transmission. These projects continue the trend of major investments coming into Metro Detroit. Earlier in the year, Fiat Chrysler began construction on a new, $1.6 billion production facility at the Mack Engine complex, and Amazon is currently planning to redevelop the former 127-acre Pontiac Silverdome site into a 3.0 million-square-foot distribution site. Meanwhile, as regulations for a legalized marijuana market are drafted and local municipalities approve laws regarding the growth and distribution of marijuana, developers are building new inventory to accommodate the cannabis industry. Metro Detroit's industrial vacancy rate held steady at 4.1% during the third quarter of 2019, as net absorption totaled just over 404,000 square feet.



Detroit Office Market Report
3Q19
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Detroit Industrial Market Report
3Q19
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