The Metro Detroit office market’s vacancy rate rose to 11.9%. Approximately 217,000 SF of office space was delivered this quarter, with almost 2.5 million SF currently under construction. Net absorption is negative at approximately 829,000 SF.

Vacancies in the Metro Detroit industrial market decreased to 4.4%. There was approximately 1.2 million SF delivered this quarter, with over 9.5 million SF currently under construction. Absorption was positive at approximately 2 million SF.

Market Trends

• In the industrial market, leasing activity is at a 5-year high, with vacancy rates near an all time low across all property types.
• Over the past year, Detroit’s office sector has witnessed a drop in demand, as occupiers have returned over 2 million SF to the market.
• The office sector has witnessed relatively flat rent growth year-over-year, which is directly related to the amount of sublease space available.

Read more in the full report.