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Detroit Market Reports

Detroit Office Market

Average Asking Rent (Price/SF) $19.72
Vacancy Rate (%) 15.0%
Net Absorption (SF)  216,948

Metro Detroit's office market vacancy rate fell 30 basis points to 15.0% during the second quarter of 2019, as just over 216,000 square feet was absorbed. Demand remains healthy in the City of Detroit, as well as in a few of the suburban submarkets of Southfield, Troy, Farmington Hills and Birmingham. Ann Arbor's office market also is seeing a surge in office demand. On the flip side, Novi is seeing large vacancy upswings after losing two major office users. In Livonia, demand remains soft.

Detroit Industrial Market

Average Asking Rent (Price/SF) $5.72
Vacancy Rate (%) 4.1%
Net Absorption (SF) 780,356

The Metro Detroit industrial market vacancy rate fell 10 basis points to 4.1% during the second quarter of 2019, as just over 780,000 square feet was absorbed. Year-to-date absorption totaled just nearly 2.0 million square feet, compared with 2.7 million square feet during the same period last year. As vacancies continue to dwindle, the bulk of absorption has come from new construction. Limited supply continues to spur new construction activity across Metro Detroit, particularly for large modern manufacturing facilities. Just in the second quarter, new construction starts increased 20.0% from the previous quarter to nearly 4.2 million square feet, while completions totaled 360,000 square feet. In Southeastern Oakland County, where the vacancy rate is just 2.6%, developers are demolishing The Palace of Auburn Hills, former home of the Detroit Pistons, to add new supply where demand has been the strongest in Metro Detroit.



Detroit Office Market Report
2Q19
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Detroit Industrial Market Report
2Q19
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