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Suburban Office Market Quieter, Says Paragon

DETROIT - Threat of overbuilding looms with more construction, less demand, according to report

By Robert Carr | Updated on November 10, 2000

DETROIT – The Metropolitan Detroit suburban office market was quieter in the third quarter, continuing a trend started in January, according to the Paragon Corporate Realty Services Third Quarter in Review. However, notes Matthew Fenster of the company, with pent-up demand satisfied by new construction, the market has achieved a balance. If developers continue at the current rate, he says, some suburbs may be threatened with overbuilding.

Developers started nearly 280,000 sf of new construction in Farmington Hills, the I-275 corridor, Bingham Farms and Auburn Hills. “The scarcity of vacant, buildable land for sale persists in all submarkets except Auburn Hills, which limits new construction,” he says. The report also said: o Tenants continued to lease vacant space, absorbing nearly 540,000 sf of space in the third quarter.

o Technology-based companies, such as telecommunication firms, software companies and application providers, continue to make up much of the demand for space.

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