Detroit office market report

Q3 2022

The Detroit office market has started to see an increase in companies formalizing decisions on office requirements, specifically Law firms and Banks are leading the charge. Overall vacancy was recorded at 17% at the end of the third quarter 2022, up 30 basis points (bps) from the prior quarter.  Rental rates within Detroit have been on the rise due to the lack of available high-end space and pushing escalations up to 2.5%-3% annually. Companies have begun to incorporate flight to quality as part of the return to office efforts. This trend typically provides less space, charging premium rents and offering diverse work environments.
855,037 sf

Inventory

There is currently 855,037 sf under development, most notably the Hudson’s site located in the CBD which is being developed by Bedrock.
-71,763 sf

Net absorption

71,763 of negative absorption was witnessed in the third quarter of 2022 as several companies recently announced reduction of footprint and consolidation of space.

Direct asking rent

Office rental rates within the Detroit market have been on the rise due to the lack of available high-end space and pushing annual escalations up to 2.5%-3%.
1.8 msf

Availabilities

The market has 1.8 msf of sublet space on that market as several companies have recently announced a reduction of space after reevaluating true real estate needs.
17%

Vacancy

Overall vacancy was recorded at 17% at the end of the third quarter 2022, up 30 basis points (bps) from the prior quarter.
$122M

Investment sales

Remained stable throughout the third quarter of 2022 with a total of $122 million invested within the Detroit Office sector. 
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Get in-depth office market reports and insights from commercial real estate experts in the Greater Detroit area. Avison Young advisors look at Detroit commercial real estate activities and the latest Detroit statistics to provide you expert market research on Detroit's office properties.

Explore different topics like the latest office market pricing trends and analysis of Detroit's current office real estate market conditions. Gain a better understanding of Detroit’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Detroit's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Detroit.

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