2019 Q4 Detroit Real Estate Market Report
The Metro Detroit office market’s vacancy rate rose to 9.7%. Approximately 14,000 SF of office space was delivered this quarter, with 2.2 million SF currently under construction. Net absorption is positive at approximately 98,000 SF. Vacancies in the Metro Detroit industrial market have risen to 3.6%. About 105,000 SF of industrial space was delivered with over
5.3 million SF currently under construction. Absorption was negative at approximately 660,000 SF.
- Detroit’s office market is experiencing trends that suggest the development of a tenant’s market, with landlords agreeing to notable concessions.
- Detroit’s economic landscape is seeing an employment growth rate of 2.1% in the manufacturing, trade, and transportation sectors.
- Detroit’s industrial market saw over 500 new leases throughout 2019, with almost 10 million SF absorbed at an average effective rental rate of $7.50/SF.
Read more in the full market report.