DETROIT—The Metro Detroit office market posted more than 500,000 square feet of positive absorption during the first quarter of 2016, pushing the overall vacancy rate down 90 bps to 18.7%, a rate not seen since 2002, according to a new report from Newmark Grubb Knight Frank.
Companies have continued to demand space in the CBD, pushing the vacancy rate to a record low and spurring investors to refurbish and modernize even more of Detroit's vacant iconic office buildings. And although the suburban office market had struggled for a time, especially in the aftermath of the recession, it also showed great gains last quarter. Office vacancy outside the city fell 50 bps to 19.3%, the lowest in years.
“The consistent level of demand we are seeing from the Detroit CBD to Southfield and Farmington Hills is indicative of the overall health of the office market,” says Frederick Liesveld, managing director of NGKF's Detroit office.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
