Generous Opportunity for Retail in Detroit
The Metro Detroit retail market continues to post positive figures in the third quarter of 2017. Vacancy rates decreased to 5.9%, down 10 basis points compared to the second quarter. Rental rates inched up to $13.19 per square foot and net absorption is moderately positive. 240,751 square feet were delivered in the third quarter, with a whopping 1.2 million square feet still under construction at quarter’s end.
Downtown Detroit and other downtown markets buzz with redevelopment and new construction activity as the demand for live/work opportunity drives retail in a positive direction across most sectors. In September, the highly anticipated $893 million Little Caesars Arena (LCA) opened with a concert by Detroit’s own Kid Rock. The downtown area, coined The District Detroit, is one of the largest entertainment developments in the country with Detroit being the first city to house all four sports teams within the city’s growing entertainment district. Planning is in various stages for a 50-plus-block surrounding LCA. Other retail projects across Detroit are in discussion and planning, with a mix of world-class tenants who will establish themselves here in Detroit. This quarter, Detroit’s Mayor Mike Duggan and the East Jefferson Development Co. announced a $60 million mixed-use development located in Detroit’s East Jefferson Corridor. The development addresses two needs, housing and grocery shopping. Plans include 220,000 square feet of commercial space with 120 retail parking spaces, more than 200 residential units with underground parking for 221 and a small-format Meijer grocery store on East Jefferson Avenue. As the rebuilding and excitement continues, expect to see new shops, bars, restaurants, office spaces, and residential dot the area.