Tenants leased a net positive 83,575 sf during the second quarter, creating 102,873 sf total of positive absorption for the first half of the year. The vacancy rate here, for all classes, is now 19.6%, according to Grubb & Ellis.
In the largest single deal in the submarket in the quarter, ThyssenKrupp Materials NA leased 64,607 sf of class A office at 22355 W. Eleven Mile Rd. Despite 107,870 sf of negative absorption in Southfield during the first quarter, the class B market bounced back as tenants absorbed 153,471 sf during the second quarter.
Available sublease space continued a downward trend as 61,123 sf either expired or was leased, leaving 584,585 sf still on the sublease market. Class A asking rates in the city average $26.86 per sf; class B space goes for $23.36 per sf. Meanwhile, 65,000 sf of office space is under construction in Southfield.
The overall Detroit market, which contains some 67 million sf of office space, in all classes, posted a 20% vacancy rate in the Grubb & Ellis mid-year report. Overall average asking rates for class A space is $25.99 per sf; class B average asking rate is $23.21 per sf.
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