The Detroit Industrial market ended the first quarter 2014 with a vacancy rate of 9.0%.
The vacancy rate was down over the previous quarter, with net absorption totaling positive 904,897 square feet in the first quarter. That compares to positive 1,646,988 square feet in the fourth quarter 2013. Vacant sublease space increased in the quarter, ending the quarter at 259,873 square feet.
Tenants moving into large blocks of space in 2014 include: Faurecia moving into 277,998 square feet at 2800 High Meadow Cir and Victory Packaging moving into 200,000 square feet at 31740-31768 Enterprise Dr,
Rental rates ended the first quarter at $4.63, an increase over the previous quarter.
A total of two buildings delivered to the market in the quarter totaling 303,996 square feet, with 834,323 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.5% from the previous quarter, with net absorption positive 21.68 million square feet in the first quarter. Average rental rates increased to $22.17, and 321 buildings delivered to the market totaling more than 16.1 million square feet.
