The Detroit Office market ended the third quarter 2014 with a vacancy rate of 16.5%.
The vacancy rate was down over the previous quarter, with net absorption totaling positive 542,636 square feet in the third quarter. That compares to negative (179,467) square feet in the second quarter 2014. Vacant sublease space increased in the quarter, ending the quarter at 458,575 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 third quarter at $17.68, an increase over the previous quarter.
One building delivered to the market in the quarter totaling 10,000 square feet, with 405,544 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.2% from the previous quarter, with net absorption positive 27.56 million square feet in the third quarter. Average rental rates increased to $22.38, and 233 buildings delivered to the market totaling almost 13.2 million square feet.
