Ryan D. Richmond

248.470.8533

As we near the end of 2009, the market continues to remain stable due to larger tenants moving in. Although there was a significant increase in the overall vacancy rate with mid and small organizations, there haven�t been any dramatic increases in several quarters. This stabilization is also reflected in the average lease rates.

Office Space

The Detroit area�s office vacancy rate increased from 17.2% at the end of 2008 to 17.4% at the end of the first quarter, with a negative net absorption of 87,043 square feet. The average lease rate increased, however, from $20.09 per square foot at the end of 2007 to $20.15 per square foot. Class B office space took most of the hit while Class A benefited as some users of Class B space moved into Class A to take advantage of its affordability.

 

Industrial Real Estate

Detroit�s industrial vacancy rate increased slightly from 12.2% at the end of 2008 to 12.3% with positive net absorption of 167,068. Average rental rates fell slightly from $5.22 per square foot last quarter to $5.14 at the end of the first quarter.