Vacancy in Metro Detroit Office Market Hits 14-Year Low

Just five years ago, One Detroit Center was 60% vacant, but today the Philip Johnson-designed structure is fully leased.

DETROIT—The Metro Detroit office market posted more than 500,000 square feet of positive absorption during the first quarter of 2016, pushing the overall vacancy rate down 90 bps to 18.7%, a rate not seen since 2002, according to a new report from Newmark Grubb Knight Frank.

Companies have continued to demand space in the CBD, pushing the vacancy rate to a record low and spurring investors to refurbish and modernize even more of Detroit’s vacant iconic office buildings. And although the suburban office market had struggled for a time, especially in the aftermath of the recession, it also showed great gains last quarter. Office vacancy outside the city fell 50 bps to 19.3%, the lowest in years.