Third quarter 2025 closed with a direct vacancy rate of 5.09%, an overall vacancy rate of 6.0%, and an average asking direct rental rate reported at $7.65 per sq. ft. In September, the Michigan unemployment rate was recorded at 5.2%, an increase of 0.1 percentage point compared to one year ago. In July, preliminary state-level data indicated Michigan added 64,000 jobs over the past year. Three sectors driving growth included construction, government, in addition to private education and health services. While manufacturing, retail trade, and professional business services saw a decline. In CNBC’s annual ranking of top states to do business in, Michigan ranked 6th overall. Recently formed by local economic leaders was the Southeast Michigan Development Coalition designed to focus on attracting jobs, investments and building stronger communities. U.S. jobless benefits have risen slightly while holding steady at reasonable levels. U.S. job openings reached 7.23 million in August, almost unchanged from 7.21 million openings reports in July. Consumer confidence showed signs of improvement early in the third quarter, while declining in September as concerns elevated regarding inflation and the job market. After nearly a year of holding rates steady, the Federal Reserve lowered the short-term interest rate by a quarter-point at the close of the quarter. There has been discussion of another rate reduction before year end.
