Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
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46 S C T / J U L Y 2 0 1 6 A nyone who thinks Detroit is dying needs to think again. The metro Detroit retail market has largely recovered from the recession, sup- ported by a steady amount of job growth in the area. Payroll employment last year grew by nearly 2 percent, and 2016 could see about that same amount of growth. Developers are on track to complete roughly 1 mil- lion square feet of retail space there this year, a 0.4 percent expansion, on par with last year's deliveries, according to Marcus & Millichap. Moreover, strong tenant demand will drive the market's vacancy rate to its lowest level in almost 10 years. The firm is predicting that retail vacancies will ease to 8.7 percent by the end of this year, down 50 basis points from a year ago, and this follows a similar 50-basis- point easing for 2014. Major retailers are betting on the market. The Kroger Co. boosted its presence in Greater Detroit with the ac- quisition last year of Hiller's Markets. Other expanding grocers here include Fresh Thyme Farmer's Market, Meijer and Save-A-Lot. For decades, the focus of retail development and leasing has been largely in suburban Detroit, as depopulation and a shrinking tax base have devastated the city. But recently, the city itself has drawn the attention of several retail brands. After the conclusion of the city's bankruptcy — the S I T E S & C I T I E S Tighter occupancy levels are driving up Motor City rents DETROIT REFUELS MARKET PROFILE By Dees Stribling A n underground m A l l opens in A ne w york cit y subwAy stAtion 48 t he h AwAiiA n isl A nds h Ave cAugh t A wAve of ne w de velopmen t 49 st einer + As sociAt es is h A ndling const ruction of l A k e non A tow n cen t er 50 T HE PL AC E S W HE RE RE TA IL D E V E LO PME N T I S H OT 4.7 percent retail sales growth 1 million square feet of new retail due in 2016 $59,000 average household income Asking rents to grow 1.4 percent in 2016