The Detroit retail market experienced a slight improvement in market conditions in the first quarter 2014.
The vacancy rate went from 9.6% in the previous quarter to 9.3% in the current quarter. Net absorption was positive 638,762 square feet, and vacant sublease space increased by 5,529 square feet.
Tenants moving into large blocks of space in 2014 include: LA Fitness moving into 50,000 square feet at 17500 Hall Rd; LA Fitness moving into 31,240 square feet at 19181 Mack Ave; and Ollie’s Bargain Outlet moving into 29,974 square feet at 45230-45280 Northpointe Blvd.
Quoted rental rates decreased from fourth quarter 2013 levels, ending at $11.87 per square foot per year.
A total of 4 retail buildings with 7,693 square feet of retail space were delivered to the market in the quarter, with 115,751 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Retail vacancy rate, which decreased to 6.5% from the previous quarter, with net absorption positive 24.41 million square feet in the first quarter. Average rental rates increased to $14.63, and 779 buildings delivered to the market totaling more than 12.5 million square feet.
