Retail Looking Up For 2017
The Metro Detroit and Ann Arbor retail markets posted a solid ending to a solid year for 2016. Quoted rental rates checked in at $13.13 per SF, a solid increase from $12.53 in the third quarter. The market also reported 610,749 SF of positive absorption, and ended the quarter with a 7.1% vacancy rate—a 20 basis point improvement from the previous quarter’s 7.3% vacancy rate.
In effect, the fourth quarter reflected the broader hurry-up and wait dynamic that Detroit’s retail market has experienced over the past few years. Trends are positive, trends move in the right direction, but the trends certainly move slowly. The market has yet to step on the gas, but the market is moving forward.
The slow but steady dynamic will likely remain in place for 2017. Michigan will continue to receive more interest from national retailers, especially restaurants, but certain submarkets will continue to report high vacancies and low rents. Moving forward, expect Metro Detroit’s retail market to continue the positive momentum into the spring and summer of 2017.