METRO DETROIT’S OFFICE MARKET REMAINS STEADY
The Metro Detroit office market felt a bit subdued in the first quarter compared to recent years. The vacancy rate in Metro Detroit is 9.1% in the first quarter, representing an increase of 2 basis points from the fourth quarter, 2018. We’re not expecting this minor bump to pose a threat on Detroit’s office landscape as activity felt robust as we moved into the second quarter and the positive energy and good vibes in Metro Detroit continues to push optimism to new heights in our region. Additionally, other fundamentals such as economic growth, population make up, advancing technology and innovation, cost of living, and the business climate in Metro Detroit are positive and will continue to attract Occupiers. In a very short time, Detroit has gained many well-established and start up companies like Microsoft, Google, Amazon, Stock X, Ford, Nike, H&M, Whole Foods, Shake Shack, Lululemon, and recently announced Chemical Bank. This quarter, LinkedIn moved into 74,500 square foot office space in the historic Sanders Building along Woodward Avenue in Detroit’s CBD. It’s worth noting that LinkedIn choose Detroit over 10 other cities surveyed in their search. Mike Gamson, who lead the search for LinkedIn said: “We made a conscious decision to invest in Detroit because we believe we can have a meaningful impact on the local economy and put our money to work in a community that is rebuilding. This is an important step to help level the playing field and further democratize access to jobs.” The pulse of Detroit IS undeniable, and our comeback story is well into the making.