Lease rates for office space in Michigan have climbed over last month and vacancy rates have started to drop. Vacancy rates for office space in Michigan for June, 2011 were 61% while the previous month was 65%. The three month average is 66% and the 12 month average is at 66.3%.
There was slightly less property available for sale in June, 2011 than the previous month. June, 2011 had 17.8 million SF for sale while the previous month was reported at 18.3 million square feet of office space.
There was also slightly less property available for lease in Michigan in June, 2011 with 39.2 million square feet compared to 39.8 million the previous month.
June had 39 million square feet of available office properties occupied in Michigan with only 32.8 million square feet the previous month.
Lease rates climbed in June, 2011 over the previous month and the three month average but are down from the 12-month average. Average lease rates for office properties in Michigan were $12.36 per square foot which is higher than last month’s average of only $8.80 per square foot. The three month average is $11.05 per square foot and the 12-month average is higher at $13.66 per square foot.
Overall, the trends seem to be heading in the right direction still. It’s still too early to make any determinations about the future state of the commercial real estate market and particularly office spaces.
As office space vacancy rates decrease it shows that employment rates are rising and new space is being leased to accommodate the space needed for the new workers. As the demand for office space increases and the supply decreases, the lease rates begin to rise just as we have been seeing over the past couple of months.
This information was derived from office properties listed on the Commercial Property Information Exchange. This information does not reflect market conditions throughout other parts of the United States or throughout other parts of the world. » Read more: Michigan Office Space Statistics for July, 2011