DETROIT – The Metropolitan Detroit suburban office market was quieter in the third quarter, continuing a trend started in January, according to the Paragon Corporate Realty Services Third Quarter in Review. However, notes Matthew Fenster of the company, with pent-up demand satisfied by new construction, the market has achieved a balance. If developers continue at the current rate, he says, some suburbs may be threatened with overbuilding.

Developers started nearly 280,000 sf of new construction in Farmington Hills, the I-275 corridor, Bingham Farms and Auburn Hills. “The scarcity of vacant, buildable land for sale persists in all submarkets except Auburn Hills, which limits new construction,” he says. The report also said: o Tenants continued to lease vacant space, absorbing nearly 540,000 sf of space in the third quarter.

o Technology-based companies, such as telecommunication firms, software companies and application providers, continue to make up much of the demand for space.

o Rental rates remained stagnant, averaging $24.72 psf for suburban class A space and $20.88 psf for class B.

o Occupancies held firm, with the suburbs posting a 6.8% vacancy rate in the combined Class A and B markets.

o In sales, few properties changed hands, continuing an 18-month drought of available product.

Fenster says that plenty of interested buyers still exist, mainly local investors, pension fund advisors and a few REITS seeking property for 1031 exchanges.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.