As we end 2009, the market continues to remain stable. Although there was a slight increase in the overall vacancy rate, there haven’t been any dramatic increases in several quarters. This stabilization is also reflected in the average lease rates.

Office
The Detroit area’s office vacancy rate increased from 17.9% at the beginning of 2008 to 18.4% at the end of 2008, with a negative net absorption of 87,043 square feet. The average lease rate increased, however, from $20.09 per square foot at the end of 2007 to $20.15 per square foot. Class B office space took most of the hit while Class A benefited as some users of Class B space moved into Class A to take advantage of its affordability.

Industrial
Detroit’s industrial vacancy rate increased slightly from 12.2% at the end of 2007 to 12.3% at the end of 2008 with positive net absorption of 167,068. Average rental rates fell slightly from $5.22 per square foot last quarter to $5.14 at the end of the first quarter.

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