Detroit Office Market
The Metro Detroit office market vacancy rate climbed 90 basis points to 21.5% during the second quarter of 2023 as just over 694,000 square feet in net vacancies were added to the market. The volume of vacant space being added to the market is outpacing last year’s total. During the first half of 2023 1.65 MSF was added in net vacancies compared to 1.2 MSF total in 2022. Available sublease space grew 14% to a 20-year high of 2,180,227 square feet in the second quarter.
Detroit Industrial Market
The Detroit Metro vacancy rate held at 3.1% during the second quarter of 2023 as just over 434,000 SF were absorbed. Net absorption was limited by lower construction completion levels during the second quarter of 2023 due to a scarcity of vacant existing space. Year to date, the industrial market has posted over 2.6 million SF of absorption. Just over 1.67 million SF of new constriction has been completed in 2023, with an additional 8.7 million SF under development. Class A bulk warehouse accounts for 80%.0 of SF under development. Overall asking rates continue to climb on limited supply of space. The average asking is up 12.95% to $7.56/SF from a year ago and over 25% from two years ago.