DETROIT, June 27, 2008 — The Detroit retail market is going through a period of transition this year as local employers continue to streamline payrolls and the housing market struggles through a correction, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm. The manufacturing sector is anticipated to get a boost next year.
“The single-tenant investment climate will continue to push through a period of transition in 2008, attracting buyers to mostly national-credit tenants in growing parts of the metro,” says Steven Chaben, regional manager of the Detroit office of Marcus & Millichap.
Following are some of the most significant aspects of the Detroit Retail Research Report:
Builders are slated to add 1.4 million square feet of retail space to the metro in 2008, a 0.8 percent increase to stock.
Vacancy is forecast to end the year at 11.4 percent.
Asking rents are expected to end the year at $17.46 per square foot.
Effective rents will hit $15.79 per square foot this year.
The educational and health services sector expanded payrolls 2.4 percent year over year, adding 6,500 positions.
For a copy of the complete Detroit Retail Research Report, as well as reports on other markets nationwide, visit our website at www.MarcusMillichap.com.
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