Newmark released its second quarter 2020 office trends data for the Detroit region this week.
Metro Detroit’s office market vacancy rate held steady at 15 percent during the second quarter of 2020. The market was predictably inactive, given COVID-19-related stay-at-home orders that put a halt to most business interactions. The three-month long mandate caused many to fear companies would collapse, leaving the office market flooded with vacant office space. One main indicator of this is the volume of subleasing being added to the market in the core office submarkets. The market, as a whole, did not see a surge in sublease space as expected. The numbers reveal that while some submarkets saw a greater share of sublease space coming on the market, most saw few or none at all. In fact, in terms of square footage, overall sublease space fell 14.0 percent as space was either leased or expired into direct available space. In the core office submarkets, 14 sublease units came on the market during the second quarter, compared with 20 units that came on the market during first quarter 2020 and 19 units that came on the market during fourth quarter 2019.
“The Metro Detroit office market was expectantly quiet during the second quarter as business activity drastically slowed following mandated stay-at-home orders.” said Fred Liesveld, managing director of Newmark’s Detroit office. “The positive news is that the market did not see a flood of sublease space come on the market as some might have expected which indicates an underlying strength of the service sector.”
See the full report for submarket-specific summaries here: https://www.ngkf.com/storage/uploads/documents/2Q20-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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