Newmark released its first quarter 2020 office trends data for the Detroit region this week.
Metro Detroit’s office vacancy rate climbed 20 basis points to 15.1 percent during the first quarter of 2020, as net vacancies totaling just over 157,000 square feet were added to the market. The suburban market accounted for the uptick in available space, as large consolidations and relocations added 175,000 square feet in new vacancies, pushing the vacancy rate up 50 basis points to 15.7 percent. Most of the vacancies came from the core suburban submarkets of Southfield, Troy and Farmington Hills. By contrast, the Detroit CBD remains the metro area’s hot spot, as vacancies in the submarket continue to decline. Strong demand in the CBD has led to the construction of the largest development since the Little Caesars Arena was built. Bedrock’s planned new skyscraper at the former Hudson site, slated to be the second tallest in Detroit, took another step closer to breaking ground, as the developer committed to a spring 2020 construction start date.
“The first quarter 2020 stats showed us there are strong segments and weak segments in metro Detroit’s office market,” said Fred Liesveld, Managing Director of Newmark’s Detroit office. “However, both the CBD and suburban areas are going to see challenges in the coming months as COVID-19 slows the market. Landlords will have to be creative in maintaining and attracting new tenants.”
See the full report for submarket-specific summaries here: http://www.ngkf.com/Uploads/FileManager/1Q20-Detroit-Office-Market.pdf
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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