"Automation Alley" has seen new businesses spring up to support the nearby automotive industry.

Marcus and Millichap's apartment research report also says the Birmingham/Bloomfield submarket will continue to be among the tightest areas in the region due to the high demand for residency in its affluent neighborhoods. The current average vacancy is below 3%, and with the increasing loss of apartment stock due to condo conversions, this submarket will continue to experience low vacancy levels, according to the report. The Southeast Oakland submarket has also seen average vacancies well below 3%, a trend Marcus and Millichap predicts will continue over the next 12 months due to a lack of developable land, affordable rents and desirable location.

Apartment ownership in the Detroit area will continue to be dominated by single and private local investors, Marcus and Millichap forecasts. With the baby-boomers, who represent a significant ownership interest in the market, transitioning into retirement, sales velocity should increase as they look to cash out of their long-term investments. New buyers should be plentiful in 2001, attracted by low vacancies and the potential for high rent growth.