2016 Begins with Good News
Metro Detroit started 2016 with a modest but positive quarter. Certain sectors and statistics reported growth and positive trends. The overall market saw the vacancy rate decrease by twenty basis points, and reported 617,472 SF of positive net absorption. Quoted rental rates also increased, from $18.60 to $18.81 per SF.
The market continues to operate in a dual state. Many top shelf, Class A buildings such as One Detroit Center are almost at full occupancy. On the other side of the spectrum, many former user buildings, such as the former Blue Cross Blue Shield complex in Southfield, continue to sit empty or close to empty. Converting buildings from single to multi-tenant occupancy has not been an easy task for many landlords in Metro Detroit.
The first quarter represented a continuation of previous trends. The overall market remains a tenants market, but landlords that offer quality amenites in certain locations are beginning to reap the benefits. The overall tenants market has encouraged many landlords to make needed updates to the common areas, systems, and lobbies of their buildings, which will be good for Metro Detroit’s office market in the long run.