"The situation right now is tenuous," he tells GlobeSt.com.
However, he said the commercial real estate market seems to be picking up, especially the office segment, week by week.
"It's tough trying to measure the pulse," he adds. "However, I've seen that in the last 30 days, Detroit area property owners are getting much more aggressive, and tenants are coming out of the woodwork."
He says while vacancies continued to rise in the third quarter, by the fourth quarter, certain Detroit submarkets showed the beginnings of stabilization and net absorption, in part thanks to developers not overbuilding the market.
In Ann Arbor, the vacancy rate increased more than 4.7 percentage points mostly due todot-com fallout, Greene says, and an additional 120,000 sf of new space became available.
New Birmingham residential development in the Downtown will spur more office and retail demand, Greene notes.
Vacancies in the Central Business District have continued to rise, but there has been recent activity, he says. The occupancy rate in the CBD increased to 84.3% from 76.8%, due in part from General Motors Corp. taking the 500 and 600 Renaissance Tower buildings off the market; offsetting the 220,000 sf now available in the Guardian Building, Greene explains.
Average rental rates for Detroit increased by $0.33 per sf.
The Troy/Auburn Hills submarket, the Southfield submarket, the Dearborn submarket and the Farmington Hills submarket all were pretty much unchanged with vacancy andoccupancy rates. Dearborn and Auburn Hills were significantly slower than usual because of the automotive slowdown, Greene notes.
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