Demand for office space in Detroit's Skyline district has increased over the last five years, absorbing 1.4 million square feet and reducing the vacancy rate from 26% to under 12% currently. Projections estimate that continued demand growth combined with planned expansions will lower the Skyline vacancy rate to around 8.9% by the end of 2016, surpassing the 10% threshold that often spurs new commercial construction in downtown areas.

1. Increase demand compresses Skyline vacancy
Detroit
• The Detroit Skyline has experienced an upsurge in demand over the last five years. Since 2010, net
absorption has topped 1.4 million square feet, reducing vacancy from 26.0 percent to 11.9 percent at the
start of 2015. Planned expansions and additional demand growth will place the Detroit’s Skyline vacancy
rate near 8.9 percent by the end of 2016. With vacancy dipping below 10.0 percent, a common threshold
for development, talk of new office construction in downtown Detroit may become a reality in the near
future.
Source: JLL Research
Chart of the week: June 1, 2015
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5.0%
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15.0%
20.0%
25.0%
30.0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Skyline Vacancy
Forecast