Metro Detroit’s industrial/flex market began 2008’s third quarter with positive net absorption while the vacancy rate lowered from the previous quarter. Rental rates only decreased $0.01 in the third quarter of 2008.

The Michigan real estate market has taken a hard hit over the last couple of years due to low unemployment rates mainly pertaining to the loss of manufacturing positions. Unfortunately, it may be on a downward spiral for some time to come as the area feels the wrath of the credit crisis with financial lenders tightening up on financing. The possibility of a merger occurring between GM and Chrsyler could further damage the local market.

The uncertainty surrounding the auto industry is causing manufacturing companies to demand shorter lease terms and renewals, as well as forcing building owners to comply with lease concessions and lease rate reductions. At the local and state levels, retaining existing and attracting new industry to the area has become a major priority expressed through government incentives.

Contact Michelle McGuckin at 248.540.1000 for more information.

Detroit_Ind_3Q08.pdf

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