The Detroit retail market experienced a slight improvement in market conditions in the third quarter 2014.
The vacancy rate went from 9.0% in the previous quarter to 8.8% in the current quarter. Net absorption was positive 450,406 square feet, and vacant sublease space decreased by (37,648) square feet. In second quarter 2014, net absorption was positive 473,451 square feet.
Tenants moving into large blocks of space in 2014 include: Life Time Athletic moving into 75,000 square feet at 4106 Telegraph Rd; Dick’s Sporting Goods moving into 53,677 square feet at 13501 Middlebelt Rd; and LA Fitness moving into 50,000 square feet at 17500 Hall Rd.
Quoted rental rates decreased from second quarter 2014 levels, ending at $11.92 per square foot per year.
A total of 3 retail buildings with 41,700 square feet of retail space were delivered to the market in the quarter, with 698,335 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 6.3% from the previous quarter, with net absorption positive 26.48 million square feet in the third quarter. Average rental rates increased to $14.84, and 542 retail buildings delivered to the market totaling more than 13.9 million square feet.
