Industrial Space Still Struggling, Says Colliers

However, there is interest in larger facilities, brokers add.

Overall vacancy is flat, Colliers says. Warehouse and manufacturing vacancy is at 10.81% while research/development and high-tech space vacancy is at 16.62%.

It's clearly a buyer's market now, Colliers officials conclude. Though asking rates are still at the same level for most submarkets, effective rents on completed leases are 15% to 20% less than asking price, and free rent is offered constantly, sometimes up to six months.

Colliers believes concessions will continue until mid-2003 to early 2004.

There are some promising sales, Colliers reports, including a four-building, 97,000-sf complex in Southfield that sold for a little more than $4 million.

Market success differs, Colliers notes. Detroit warehouse and manufacturing space captured more than 2.4 million sf of positive absorption, while the south suburbs saw negative absorption. The north suburbs have had 191,165-sf warehouse/manufacturing space absorbed, but the same area saw research/development space empty 900,000 s since December.