Office Vacancies Higher Than Last Year

DETROIT-The Metropolitan Detroit Area has seen a 4% hike in office vacancy in one year, according to a recent Colliers International Office Market Review for the first quarter 2003. The overall vacancy rate stands at 17.95% in the first quarter, the company said. That’s 1% higher than reported by the company in December 2002. Also, the region saw 319,000-sf of negative absorption in the first quarter of this year, according to Colliers.

The absorption trend has twisted, said the company. The suburbs of Detroit saw about 260,000-sf of negative Class A absorption in the first quarter, while downtown Detroit area actually saw positive absorption of about 247,000-sf, said Colliers. The Class B space in both markets is hurting with negative absorption and high vacancy, the company said.

Office leasing continues at the same pace, said Colliers, with companies such as staffing firms and mortgage lenders snapping up space in the northern suburbs.

Finally, the economy has caused a boost in sales for all market types in the Detroit area, including hotels, retail centers and apartment complexes, Colliers said.