Vacancies are up slightly but so are rents. That’s the takeaway from Marcus & Millichap’s fourth-quarter Detroit metropolitan retail report.
The retail market has faced challenges across the country. But this sector has also proven to be resilient. While some retailers have shuttered stores, others have been creative in using both their bricks-and-mortar and online presences to grow their customer bases and boost their sales.
That’s evident in the metropolitan Detroit market, according to Marcus & Millichap’s latest research report.
Marcus & Millichap said that while the vacancy rate in the metropolitan Detroit retail sector will rise this quarter, the increase will only be a slight one. Marcus & Millichap predicts that the retail vacancy rate here will increase by just 10 basis points, hitting a still low 5.5% during the fourth quarter.
In more positive news, Marcus & Millichap predicts that the sector’s average rent will increase 1.8% in the fourth quarter, rising to $15.20 a square foot.
New construction activity has slowed this year, though. Marcus & Millichap said that 470,000 square feet of new retail construction will be completed in the fourth quarter of this year in the Detroit metro market. That’s down from previous years.
