Search
 

Office Construction Slows With Economy

FARMINGTON HILLS, MI-First-half demand keeps rents stable, thanks to developers and owners smartly holding back on new building. Vacancies haven't skyrocketed and asking rents remain stable, says Paragon Corporate Realty Services.

By Robert Carr | Updated on August 06, 2001

FARMINGTON HILLS, MI-While Southeast Michigan’s office market continued to cool during the second quarter, the market appears to be adjusting to the nation’s economic downturn, says Matthew Fenster of Paragon Corporate Realty Services Inc. Activity dropped from the first quarter’s sluggish level but vacancies have not skyrocketed and asking rents remained stable, he adds.

In general, companies remain cautious about committing to office space, Fenster notes.

“Tenants looking in the Detroit area needed the space regardless of the economic conditions, or those seeking to take advantage of the down market,” he says, adding the only real activity was in sublease space, which increased 40% during the second quarter. A total of 1.25 million sf of sublease space was available through metropolitan Detroit at midyear 2001.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.