Newmark Knight Frank - Detroit INDUSTRIAL Market Report - 2Q09

Commercial Real Estate Agent

During the second quarter of 2009, the Detroit industrial market continued to weaken.  The third consecutive quarter of negative net absorption has added 7.3 million square feet of space to the market, 5.1 million square feet of which have been added in 2009.  The vacancy rate increased to 18.0%, its highest level on record, from 17.1% in the previous quarter.  The average asking rental rate fell in the second quarter to $4.25/sf from $4.37/sf reported during the first quarter, and is down 4.0% from $4.43/sf over the last year.  Rents have declined 23.9% from $5.59/sf, the peak during the third quarter 2000.

In the Groesbeck submarket, the vacancy rate climbed to 15.8% from 14.0% reported in the first quarter and is up from 10.8% reported one year ago.  Net absorption was negative as nearly 1 million square feet were returned to the market.  Rents dropped to $4.02/sf from $4.34/sf in the previous quarter, and are down 10.9% from one year ago. 

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Jason Tucker | Associate Director 

Newmark Knight Frank, Inc.
34975 W. Twelve Mile Road | Farmington Hills, MI 48331
Phone: 248-848-4084 | Fax: 248-848-9041 | Cell: 248-431-8138
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