The market's 21.1% vacancy rate for office space, as reported by the Detroit office of CB Richard Ellis, is down about half a percentage point from year end. Asking rates held steady from the fourth quarter at about $20.37 per sf.
According to CBRE's first quarter report, the Troy market absorbed a total of 199,405 sf in the first quarter. Even with that volume, however, the city still has a vacancy rate of 19.4%.
The region's largest submarket, Southfield with almost 16 million sf of office space, continues to see high vacancy--some 26.3% of space in that city is vacant. Southfield had a negative first quarter absorption of 239,491 sf. Asking rates in Southfield average $20.01 per sf.
The Central Business District had a negative absorption of 46,252 sf and stands at 24.9% vacant. Asking rates there average $18.76 per sf, CBRE says.
Colliers International, in its first-quarter report on the Detroit market, says absorption figures in the market are expected to shift by the third period as previously announced moves by Thyssen Krupp, MSX International and Raitt Heuer & Weiss from the CBD take place to Southfield and Warren.
"Vacancy rates will most likely remain at current levels for the next two to three quarters until real expansion of space occurs," Colliers says.
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