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Detroit Office Market Approaches Milestone

DETROIT—There hasn't been any significant new construction in the CBD for about 15 years, but Dan Gilbert's Bedrock is seeking to break ground on a 1.2 M SF complex.

By Brian J. Rogal | brianjrogal | Updated on April 12, 2017

StreetcarDETROIT (3) The new QLINE will open in May, and stretch for several miles along Woodward Ave., making the CBD even more attractive to office users.

DETROIT—The vacancy rate for the Metro Detroit office market fell 70 bps to 16.5% during the first quarter of 2017, as just over 697,000 square feet was absorbed, according to a new report from Newmark Grubb Knight Frank. This marks the 19th consecutive quarter of positive absorption for the office market, totaling 7.8 million square feet.

But the CBD has been the standout performer, accounting for 30% of overall absorption. During the first quarter, the CBD’s vacancy rate sank 110 bps to a historically low 11.8%, and that has some developers eager to launch significant new construction, once an unthinkable option. 

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