Market Information

Gain insight to the current and future Detroit area office, industrial and retail marketplace through L. Mason Capitani's Market Information reports.

Select your market of interest:

DETROIT AREA OFFICE MARKET

The Detroit area office market ended 2009 with a vacancy rate of 18.6%.  Net absorption of office space was on the negative side by more than 2,000,000 square feet.  Total office inventory in the Detroit Market amounted to roughly 190,000,000 square feet in almost 8,000 buildings. Currently there is approximately 2.6 million square feet of office space available for sublease in the Detroit area. 2010 will continue to favor the tenant rather than the landlord as the average effective rental rates will surely decrease due to a high vacancy rate.

Total office building sales fell when compared to 2008. The total number of sale transactions decreased by 10%. Sales of bank owned distressed assets have resulted in a decrease in property values by 30% in some areas.

FUTURE OUTLOOK

The Metropolitan Detroit Office Market continued to lag behind a number of major markets across the country. The upside is that many area businesses have posted higher earnings due to various cost-cutting measures. Also, many Michigan based companies are in the midst of major restructuring which will eventually translate into job growth and will have a positive affect on the market in terms of office expansion.

TOP