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Detroit Office Vacancies Exceed 22%

DETROIT-Office leasing activity in the metro region was slow in the first quarter of 2005, although first quarter activity was still ahead of a flat Q4 in 2004. Despite sluggish results in Q1, the Downtown market continues its revitalization efforts in preparation for several large sporting events on the horizon, most notably the 2006 Super Bowl.

By Dan Heaton | Updated on June 01, 2005

DETROIT-According to a recent report released by CB Richard Ellis, first quarter posted a vacancy of 22.5%, up from 21.6% in the fourth quarter, though about 86,000 sf was absorbed. The going asking rate for the market for the quarter averaged $20.16.

Though the market continues to have a high vacancy rate, CBRE did note several positive developments in the first quarter of the year. After three consecutive quarters with large new vacancies, the Troy submarket leveled out and absorbed 124,239 sf in the first quarter, to finish the quarter with a 23.3% vacancy rate. The Farmington Hills/ West Bloomfield submarket also had positive absorption for the fifth quarter in a row with a net of 13,391 sf taken off the market, given the submarket had a 15.7% vacancy rate.

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