In general, companies remain cautious about committing to officespace, Fenster notes.
"Tenants looking in the Detroit area needed the space regardlessof the economic conditions, or those seeking to take advantage ofthe down market," he says, adding the only real activity was insublease space, which increased 40% during the second quarter. Atotal of 1.25 million sf of sublease space was available throughmetropolitan Detroit at midyear 2001.
In addition, property owners tended to be more aggressive by theend of the second quarter, recognizing qualified tenants are fewand far between. They have responded by offering more amenities andshorter lease terms, Fenster says. Developers were completingspeculative office developments started before the market softenedbut the stream of new project announcements dwindled in the firsthalf.
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