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Detroit, MI

Apartment
The 216,125-unit Detroit market-rate, investment grade apartment market fourth quarter 2016 vacancy rate was just 2.3%, down 20 basis points over the year on nearly 1,700 units of net absorption and despite nearly 1,500 units of new supply. The rate was essentially unchanged in the fourth quarter and was still 2.3% in January 2017. Rents are rising faster than incomes here. In 2016, the average asking rent increased 4.2% to $963 per month, with the average effective rent up 5.0% to $913 per month. The fourth quarter gains were 0.8% and 0.7%, respectively. Rents edged up 0.2% by both measures in January 2017. VIEW APARTMENT LISTINGS >
Industrial
The 211-million-square-foot metro Detroit warehouse/distribution space market had a strong year in 2016, as all the new space added was owner-occupied and the rental market benefited from 1.34 million square feet of net absorption. The vacancy rate fell 60 basis points over the year to 11.0%, and it was down 30 in the fourth quarter alone. The average asking rent increased 2.3% over the year to $4.03 psf, with the average effective rent up 2.5% to $3.67 psf. The fourth quarter gains were 0.5% and 0.8%, respectively. Occupancy and rents were flat in January. The 37.8-million-square-foot Flex/R&D market had 680,000 square feet of net absorption for 2016, including 357,000 during the fourth quarter, and the only new space that completed construction was owner-occupied. The vacancy rate plunged 180 basis points over the year and 90 during the fourth quarter to 15.4%. The average asking rent increased 1.9% over the year to $6.87 psf, with the average effective rent up 2.2% to $6.14 psf. The fourth quarter gain was 0.3% by both measures. For January 2017, Reis reports a vacancy rate of 15.1% and rent gains of 0.1% asking and 0.2% effective. VIEW INDUSTRIAL LISTINGS >
Office
The 74.3-million-square-foot general purpose, multi-tenant Detroit office market is gradually eating away at an ocean of empty space. The fourth quarter 2016 vacancy was 24.6%, down 120 basis points over the year on 923,000 square feet of net absorption and down 20 for the fourth quarter alone with 189,000 square feet absorbed. The metrowide vacancy rate edged down to 24.4% in January 2017. The average asking rent increased 1.2% in 2016 to $19.70 psf, with the average effective rent up 1.4% to $14.73 psf. The fourth quarter gains were 0.4% and 0.3%, respectively. Metrowide rents edged up 0.1% by both measures in January 2017. VIEW OFFICE LISTINGS >
Retail
The 34.5-million-square-foot Detroit area community-neighborhood shopping center market vacancy rate increased 20 basis points over 2016 and 10 basis points during the fourth quarter to 11.6%. Rents increased just 0.9% by both measures during 2016, following gains of just 0.2% asking and 0.3% effective in 2015. During the fourth quarter of 2016, the average asking rent increased 0.3% to $17.60 psf with the average effective rent up 0.2% to $15.40 psf. The market got off to a mixed start to 2017, with the vacancy rate falling to 11.3% and rents edging down 0.1% by both measures. VIEW RETAIL LISTINGS >

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Source: Data provided by Reis, inc.

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