The good news from the Colliers Metro Detroit first-quarter retail report? There was plenty, as the retail sector in the Detroit market continues to show growth.
Colliers reported that the Detroit-area retail market saw 597,560 square feet of net absorption during the first quarter of 2024. That’s a solid showing, and one indicative of a sector in demand by tenants.
The Southfield submarket was especially strong, recording 355,174 square feet of absorption during the first quarter, according to Colliers.
These solid absorption numbers were fueled by tenant demand. Colliers said that the Detroit market saw 923,124 square feet of leasing activity in the first quarter from 292 closed leases.
The West Wayne submarket saw the most leasing activity during the quarter with 62 executed leases totaling 168,368 square feet.
Notable retail leases signed during the quarter include Brighton Pickleball signing a 27,000-square-foot lease in Brighton, Michigan; Harbor Freight Tools closing a 14,976-square-foot lease in Oxford, Michigan; and The Salvation Army closing a lease of 13,136 square feet in Novi, Michigan.
As leasing activity rose, vacancy rates fell. Colliers reported that the overall vacancy rate for the retail market stood at 5.1% during the end of the first quarter. That’s a drop of 10 basis points from the fourth quarter of 2023, another sign that the Detroit-area retail sector is still in steady growth mode.
The Troy submarket had the lowest retail vacancy rate at 2.9%, while the Monroe submarket ranked second with a vacancy rate of just 3.2%. The Birmingham/Farmington Hills submarket had the highest retail vacancy rate in the first quarter, clocking in at 8.6%.
The average asking rent for retail space in the Detroit market fell to $14.63 in the first quarter. That’s a drop of 22 cents on a year-over-year basis.
