Detroit Office Market
Average Asking Rent (Price/SF) | $20.90 |
Vacancy Rate (%) | 21.9% |
Net Absorption (SF) | (37,821) |
Metro Detroit office market vacancy rate climbed 10 basis points to 21.9% during the first quarter of 2025 as 37,821 SF in net vacancies were added to the market. Leasing activity remains well below the 20-year average. The rate of which net vacancies are added to the market has settled. 2023 saw 2 million SF of negative absorption while 2024 saw just over 217,000 SF net added to the market. In the first quarter of 2025, available sublease space increased by 5.0% to 1.7 million SF, while direct available space grew by a modest 0.13% during the same period. Class A asking rates increased by $.12 PSF during the first quarter of 2025, reaching $23.65 PSF gross. Conversely, Class B rates declined by $.10 PSF to $19.57 PSF gross.
Detroit Industrial Market
Average Asking Rent (Price/SF) | $7.44 |
Vacancy Rate (%) | 4.6% |
Net Absorption (SF) | (300,976) |
The Metro Detroit industrial vacancy rate climbed 20 basis points to 4.6% during the first quarter of 2025 as 300,976 SF in net vacant space was added to the market.
Uncertainty on the implementation of tariffs on Canada and Mexico had contributed to a stalemate in Detroit’s industrial real estate market during the first quarter, as a large portion of Michigan’s imports are tied to the automotive industry. The industrial market saw declines in both the number of transactions and total square feet.
Build-to-suits constitute 87% of the overall active construction activity. New developments are driven by General Motors, Piston Automotive, Reyes Coca-Cola Bottling, and LuxWall Inc., who require modern facilities not available in the current market. Just over two million SF will be delivered in 2025.
