The Detroit CBD accounts for only
22.5 percent of available inventory.
In Minneapolis, Cleveland and
Pittsburgh, the CBD accounts for
a respective 47.2, 53.3, and 53.7
percent of available inventory.
The vacancy rate in Detroit for
CBD properties is comparable to
other cities. Average asking rent
is lower for Detroit than other cit-
ies. Cleveland, Minneapolis and
Pittsburgh have average asking rent
of $19.27, $25.37 and $23.26 per
square foot, respectively, compared
with Detroit at $19.08.
In the suburban market, vacancy
rates have increased to 27 percent
in Q4 2014 from 23.1 percent in
Q2 2009, and the average rent has
declined to $18.18 from $20.42.
Compared with other cities, the
suburban Detroit market has a high
vacancy rate and low average ask-
ing rent.
Suburban vacancy rates for Q4
2014 in Atlanta, Chicago, Cleveland,
Minneapolis and Pittsburgh are
20.2, 22.6, 14.8, 15.9, and 18 per-
cent respectively, compared with
27 percent in Detroit. The average
asking rent in the same suburban
markets is $20.97, compared with
$17.30 for Detroit.
Industrial Grade: B
Substantial improvement in vacan-
cy rates and average asking price
are comparable to other cities.
Average asking price is on the
rise.
Industrial vacancy rates declined
to 7.9 percent in Q4 2014 from
12.9 percent in Q2 2009. The peak
of vacancy rates was in Q3 2010
at 14.2 percent. Over this period
of time, average asking rent also
declined to $4.19 from $4.39. The
year-over-year increase in average
asking rent is 3.8 percent.
Compared with other cities,
Metro Detroit's industrial vacancy
rate of 7.9 percent and average ask-
ing rent of $4.19 are in the medium
range. By comparison, the vacancy
rate and average asking rent for
Cleveland, Milwaukee, Minneapolis
and Pittsburgh are a respective 10.8
percent and $3.48, 6.4 percent and
$3.99, 9.3 percent and $4.71, and
7.3 percent and $4.96. ❑
Jonathan Silberman is a professor
of economics at Oakland University.
He writes a monthly column on the
economy for the JN. You can contact
him at silberma@oakland.edu. The
Royal Oak Office of Jones Lang LaSalle
provided the office and industrial real
estate data.
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