"The Metro Detroit economy seems to have hit a bump during the first quarter," says the report's executive summary.
Grubb & Ellis says a decline in asking rates across all classes of buildings has particularly increased demand for class-A office space. Three straight quarters of positive absorption in class-A office space has lowered the vacancy rate 140 basis points to 18.5%.
"With asking rates low and the significant supply of vacant space on the market, it remains a tenant's market," the report says.
Detroit's CBD office space vacancy rate declined 10 basis points to 29.7% in the first quarter.
According to the report, asking rates for class-A office space rents are averaging $26.27 per sf in the suburbs and $26.52 per sf in the CBD. The overall average asking price is $26.32 per sf. Class B space has an average asking rent rate of $23.32 per sf.
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