Market Information

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

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DETROIT AREA RETAIL MARKET

After a porous start, it was evident that by year’s end, there was little change in 2009 for the Detroit Area retail market. It ended the year with a vacancy rate of 12.7%. Net absorption for the year was nearly a negative 2 million square feet. Total retail inventory in the Detroit Market amounts to roughly 231 million square feet in almost 14,000 properties. The average rental rate for retail space is $12.01 per square foot which represents a decrease of $1.10 over the previous quarter.

The sales activity for retail properties was basically flat when compared to the third quarter of 2009. The average per square foot sale price for retail properties was roughly $62/sf. Cap rates edged higher to 8.24% from 8.10%. 

FUTURE OUTLOOK

The Metropolitan Detroit Retail Market is stable with rental rates, vacancy rates and sales values improving. This trend should continue due to a slow down of true speculative development.

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