According to a mid-year report from Colliers, the city had a year-to-date absorption of R&D/HT space of 71,547 sf, leaving the vacancy rate at 9.82%. The suburbs, meanwhile, saw a negative absorption of the same class of space of 602,690 sf, leaving the suburbs with a 22.15% vacancy rate.
In the city, the asking rate for such space is $8.50 per sf. In the suburbs, landlords are asking $9.79 per sf. For the market as a whole, the overall average asking rate for R&D/HT space is now $9.77 per sf, down from the $10.25 per sf average that had held steady over the past 18 months.
Development of new high-tech space around the Wayne State University campus in Detroit is helping to create demand for such space in the city. The region has a total of 29.9 million sf of R&D/HT space; only 1.1 million sf of that is in the city.
Colliers says recent purchases of R&D/HT space has been running in the $95 per sf to $105 per sf range and those sales have been primarily in the Auburn Hills and Farmington Hills areas.
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