The Detroit Office market ended the first quarter 2014 with a vacancy rate of 16.8%.
The vacancy rate was down over the previous quarter, with net absorption totaling positive 874,059 square feet in the first quarter. That compares to positive 449,308 square feet in the fourth quarter 2013. Vacant sublease space increased in the quarter, ending the quarter at 422,723 square feet.
Tenants moving into large blocks of space in 2014 include: Campbell Ewald moving into 117,057 square feet at 2000 Brush St; TRI-A Professionals moving into 92,074 square feet at 32255 Northwestern Hwy; and Botsford Hospital moving into 51,101 square feet at 27555 Farmington Rd.
Rental rates ended the first quarter at $17.47, an increase over the previous quarter.
There were no buildings delivered to the market in the quarter. 93,080 square feet was still under construction at the end of the quarter.
This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.5% from the previous quarter, with net absorption positive 21.68 million square feet in the first quarter. Average rental rates increased to $22.17, and 321 buildings delivered to the market totaling more than 16.1 million square feet.
The information in this news report is based on CoStar’s First Quarter 2014 Market Report, a 40+ page comprehensive research report available to CoStar subscribers. To learn more about quarterly research reports and other benefits available to CoStar subscribers, please call 888-226-7404.