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Detroit Market Reports

Detroit Office Market

Average Asking Rent (Price/SF) $19.48
Vacancy Rate (%) 16.3%
Net Absorption (SF) 607,832

Metro Detroit Office market vacancy fell 70 basis points to 16.3% during the fourth quarter of 2017 as just over 607,000 square feet was absorbed. Beaumont Health System's move to Southfield and Hewlett Packard Enterprise's relocation in Auburn Hills both accounted for the lion's share of absorption in the suburban markets. In the Detroit Central Business District, unprecedented growth in the office, commercial and residential markets over the past five years has resulted in the city breaking ground during the fourth quarter on what will be its tallest skyscraper. For the year, the Metro Detroit office market absorbed just under 1.0 million square feet in 2017, compared to 1.6 million square feet in 2016.

Detroit Industrial Market

Average Asking Rent (Price/SF) $4.96
Vacancy Rate (%) 5.0%
Net Absorption (SF) 2,800,556

The staggering rise of the automotive industry and the diversification of the Metro Detroit industrial market over the last seven years has resulted in historically low vacancies and historically high construction levels. Despite a slight decline in U.S. automotive sales from their peak of 17.5 million units in 2016, 2017 was another banner year for the metro industrial market, which recorded more than 6.9 million square feet of absorption and 4.3 million square feet of completed new construction. By comparison, absorption in 2016 totaled 7.6 million square feet, while new construction totaled 1.9 million square feet. The acquisition and expansion of buildings has not been limited to automotive companies: the e-commerce sector, led by Amazon, has been critical to Metro Detroit's diversified industrial expansion. Over the past two years, Amazon has dramatically expanded its footprint in Metro Detroit from roughly a half million square feet to over 3 million square feet by the end of 2018. In 2017, Amazon completed a 1.0 million-square-foot distribution center in Livonia, began construction of 850,000 square feet in Romulus and is in the planning stages of building a another 1.0 million-square foot facility in Macomb County.

Detroit Office Market Report
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Detroit Industrial Market Report
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