Market conditions remain resilient against a potential slowdown while demand holds strong
While other North American markets began to exhibit initial signs of a slowdown, the Detroit market continued to showcase solid fundamentals in the second quarter. Among the topline metrics tracked, absorption remained positive for the fourth consecutive quarter, up nearly 2.3 million square feet (msf). Vacancy declined 30 basis points (bps) from the previous quarter as supply remained comparatively tight. Developers appear to have responded to a recent slowdown in the regional and national economies by trimming levels of construction. Both deliveries and ongoing construction have declined from peak levels witnessed over the past two years. In the near term, a competitive environment is expected to persist for tenants and buyers looking for quality options in the most desirable locations.