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Detroit Office Market

Average Asking Rent (Price/SF) $19.36
Vacancy Rate (%) 16.0%
Net Absorption (SF) 607,832

Metro Detroit's office market vacancy rate fell 30 basis points to 16.0% during the first quarter of 2018, as just over 488,000 square feet was absorbed. Strong leasing activity by large office users, such as Flextronics America, LLC, Mortgage Center, LC, Wells Fargo Clearing Services, LLC, Society of Manufacturing Engineers (SME) and ConcertoHealth, boosted the suburban market. In particular, the suburban submarkets of Southfield, Troy, Auburn Hills and Farmington Hills accounted for nearly 400,000 of the overall metro absorption totals for the quarter. The Detroit CBD office market remains active with groundbreaking construction and massive renovations, as property owners and investors look to capitalize on the continued growth of the Central Business District.

Detroit Industrial Market

Average Asking Rent (Price/SF) $5.06
Vacancy Rate (%) 5.1%
Net Absorption (SF) 565,874

The Metro Detroit industrial market vacancy held steady at 5.1% during the first quarter of 2018, although just over 565,000 square feet was absorbed. Limited availabilities of modern existing space continues to slow absorption while at the same time spurring new construction activity and investments into upgrades of older buildings. New construction starts jumped 30.0% to 5.9 million square feet during the first quarter. Increased diversification and investments from out-of-town companies are fueling Metro Detroit's construction boom. Amazon began construction of its third 1.0 million-square-foot distribution facility, while other outside companies, such as Kentucky Trailer and Berkshire's E-Supply, are also constructing major facilities. Meanwhile, major speculative developments are showing immediate returns. Of the 1.5 million square feet of speculative development under construction, over 1 million square feet is already pre-leased.

Detroit Office Market Report
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Detroit Industrial Market Report
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