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Metro Office Vacancy Rate Highest in 5 Years

DETROIT-The vacancy rate, with available sublease space included, almost doubles from last year, rising to 17.6%. However, Paragon Corporate Realty Services thinks the time is now for the upswing.

By Robert Carr | Updated on April 18, 2002

DETROIT-Paragon Corporate Realty Services of Farmington Hills, MI says the metropolitan area had more class-A office space available for lease and subleaseduring the first quarter than at any time in the last five years. The direct class-A office vacancy rate for space climbed to 12.5% from 10.1% to start the year, the company says.

With available sublease space considered, that vacancy rate jumped to 17.6% in first quarter, up from 13.7% at year-end and from 9.1% a year ago. That is the highest overall class-A vacancy rate recorded since the metro Detroit office market slowdown began, says Matthew Fenster, Paragon’s executive director.

“The good news is that activity — both in terms of users looking at space and actual signed leases — picked up noticeably in first quarter. I think metro Detroit’s market bottomed out early in the year, and the upswing is now beginning,” Fenster says.

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