Conditions remain tight as demand is mostly unwavering, but growing headwinds give pause
While regional and national economic conditions remained in a diminished state, the Detroit market had yet to show significant signs of weakening in the first quarter. Among the topline metrics tracked, absorption remained positive for the third consecutive quarter, up more than 0.6 million square feet (msf). Vacancy ticked up by 20 basis points (bps), but overall supply remained comparatively low at 4.1%. Tight conditions persisted despite another 1.5 msfof new deliveries in the first quarter, while 8.2 msfof construction was ongoing. Although there are options available throughout the region for both large and small users looking for space, a competitive environment remains for tenants and buyers looking for high-quality product in the most sought-after locations.