X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DETROIT-Detroit dropped six spots in the rankings of the recently released itsNational Retail Index, because, according to Marcus & Millichap RealEstate Investment Brokerage Co., the Motor City retail showed only marginalimprovement in market fundamentals compared to the other markets surveyed.

The index is a snapshot analysis that ranks 38 retail markets based on aseries of 12-month forward-looking supply and demand indicators.Detroit ranked No. 36 in the NRI standings, down six places from theprevious year. Although the Detroit retail market is near the bottom of thesurvey, the area’s vacancy rate is one of the lowest among major Midwesternmarkets, keeping investor interest high and elevating sales prices.

The Washington, D.C., market topped the NRI for the second year in a row.The top-ranked markets are typically characterized by low vacancies,prospects for rental growth, limited new development, and solid employmentand household growth.

High vacancy rates and a lackluster economic outlook contributed toCleveland’s ranking (No. 38) at the bottom of the index.

Detroit’s poor retail showing rank was because of a number of reasons, saidMarcus & Millichap officials, including higher unemployment, a vacancyincrease to 8.4% and rent increasing 1% to $15.55 per sf. However, the company said investor demand for Detroit retailproperties remains strong, driving prices up and pushing cap rates toall-time lows.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.