It's a bit of welcome news for an anemic market. Office vacancies in Detroit's Central Business District are running about 28%, according to a recent market report by Grubb & Ellis.
The vanancy rate for Class A space in the CBD declined, by 50 basis points to 28.4%, in the third quarter of 2003, the first decline in vacancy in the CBD in four quarters. Asking rates in the CBD are averaging $26.80 for Class A space, down 34 cents from the second quarter, according to the report.
The Detroit Public School system's decision last quarter to lease 74,000 sf in the New Center Building for administrative use and Behavior Health's 20,000 sf lease in Brewery Park helped lead to the vacancy rate decline.
The Penobscot Building, built in 1928, has just over 1 million total sf and is about 66% occupied, according to Friedman. Lease asking rates at the landmark building are generally about $15. Friedman's Steve Eisenshtadt, VP, represented the landlord, Lennar, in this lease transaction.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 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.
