Detroit Office Investment Report
Detroit Metro Area, Second Quarter 2017
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Strong Office-Using Hiring Tightens Vacancy Further

Robust office-using employment generates space demand. Job gains in office-using firms have outpaced the percentage gains in overall employment growth in six of the last seven years, as more than 110,000 white-collar positions were created. The trend will continue this year as another 15,000 office-using workers are forecast to be added. Increased space demand has produced six consecutive years of vacancy cuts, dropping the rate to the lowest level in more than 10 years and pushing asking rents within 5 percent of the cyclical high. Although rents in most areas are not yet high enough to support speculative projects, companies vacating older space for new offices will hamper a more significant improvement in the overall vacancy rate this year.