Q2 2020 Detroit Real Estate Market Report
The Metro Detroit office market’s vacancy rate increased slightly to 9.9%. Approximately 129,000 SF of office space was delivered this quarter, with almost 3.5 million SF currently under construction. Net absorption is negative at approximately 208,000 SF.
- Both the office and industrial markets in Detroit are experiencing negative rent growth for the first time in several years due to the resulting financial impact from the pandemic.
- Detroit’s office market could be looking at commercial office space rental rates falling by potentially 10% over the next four quarters as the lockdown creates uncertainty and social distancing disrupts standard office environments.
- Detroit’s industrial market is anticipated to remain healthy with significant capital investment and demand due to the strong economy prior to the pandemic.
Read more in the full report.