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DETROIT-Metro Detroit’s office market appears to have bottomed out after nearly three years of negative absorption and increased vacancy rates, says Colliers International. During the second quarter, the overall vacancy rate decreased slightly over the previous two quarters and stands at 16.2%.

Year-to-date statistics reflect significant positive absorption–251,442 sf–for the first time in nearly three years, Colliers International adds. While things have improved somewhat, Colliers says it does not expect the overall vacancy rate in the Detroit region to decrease significantly during the remainder of the year, but does say the rate should stay about where it is.

Colliers International says asking rates for class-A space average $22.38 per sf. The average asking rate when all space is considered is $20.34 per sf.

Construction activity for office space has increased over the past half year, Colliers says. It reports that some half-million sf of space, in 25 buildings, have been added to the region’s inventory and another 1.3 million sf is under construction. Colliers says more than 500,000 sf is in Washtenaw County and 52% is pre-leased.

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