Newmark Knight Frank - Detroit Office Market Report - 1Q10

Commercial Real Estate Agent

Weakening conditions prevailed in the Detroit office market during the first quarter as the vacancy rate rose to 24.7% from 24.2% in the fourth quarter of 2009.  The vacancy rate has remained above 20.0% for over three years.  Total net absorption was negative for the ninth consecutive quarter as 418,407 square feet were returned to the market.

Average asking rents declined slightly in the first quarter to $19.63/sf from $19.67/sf in the fourth quarter and were down 1.7% from $19.97/sf reported one year ago.  Rents have declined 15.3% from $22.63/sf, the peak during the fourth quarter of 2000.

In the Detroit/The Pointes submarket, the vacancy rate rose To 23.6% from 21.9% in the fourth quarter of 2009, as 407,083 square feet of negative net absorption took place.  Average asking rents rose for the third consecutive quarter to $19.51/sf from $19.23/sf in the fourth quarter, and remained higher than the $18.77/sf rate reported one year ago.

Click here for a PDF download of Newmark Knight Frank's Detroit Office Market Report - 1Q10.

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Deepest Regards,

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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