"Whichever direction the economy takes in the coming months, tenants can continue to secure good bargain rates and increasing lease concessions in the immediate future," the report predicts.
Grubb & Ellis says about 54.7 million sf of the 505.1 million sf of industrial space in the metropolitan area market, about 15.15%, is now available for lease. Net asking rent rates in the market are $5.43 for general industrial sf per year and $9.99 for R&D/flex sf per year. Average asking sales price per sf is $51.55.
The company says in the Western Wayne County section of the market, many landlords have had to drop lease asking rates as much as 10% in the first half of 2003, due to decreasing demand. There, the overall space availability rate increased 173 basis points to 11%.
In the city of Detroit and its enclave cities of Hamtramck and Highland Park, general industrial space has a net asking rate of $3.02 and just over 26% of all the industrial space was available for rent.
Grubb & Ellis says increasing optimism in several sectors of the economy was not enough to translate into increased demand for industrial space. "The good news for the Detroit metro area is that the stable automotive industry is holding demand at bay," the company says.
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