"The Detroit automotive industry has undergone significantstructural changes and will continue to seek a new form," says FredLiesveld, EVP and managing director for Grubb & Ellis' Detroitoffice. "It will take some time for commercial real estate to adaptto these changes and stabilize. In the meantime, we hope to seesome relief from alternative energy and other industries."

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The industrial market looks to be the first property type set torecover, according to recent market report on 2010 released byGrubb & Ellis. During 2009, both vacancy and negative netabsorption increased, but a slight uptick at year end is indicativeof things to come.

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Since the industrial market is less dependent on job growth andthe recovery of the office and retail sectors. Vacancy rates willbegin to recover at the end of 2010, with the percentage expectedto grow 70 basis points to 11.4% vacancy. Rental rates should beginto correct during the second half of 2011.

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There will still be 75 million square feet of negative netabsorption to contend with in 2010, a significantly lower numberthan the 158 million square feet of negative net absrption in2009.

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"Ultimately, the region's economy depends on growth in jobs andmanufacturing production, and only time will tell when we'll seemeaningful improvement in those areas," Liesveld says.

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