Detroit Office Market
The Metro Detroit office market vacancy rate climbed 10 basis points to 22.0% during the fourth quarter of 2023 as just over 124,000 SF in net vacancies were added to the market. For the year, just over 2.1 million SF in net vacancies were added to the market. Overall leasing activity continues to decline in Detroit Metro. Tenant demand for space declined sharply in 2023 as office users continue to cut occupancy cost by reducing space. Available sublease space decreased by 6% during the fourth quarter of 2023 to 2.6 million SF. The decline is mostly due to expiring subleases that have turned into direct available space.
Download Detroit Office Market Report 4Q23
Detroit Industrial Market
Metro Detroit’s industrial vacancy rate climbed 20 basis points to 3.3% during the fourth quarter of 2023 as just over 113,000 SF were absorbed. New speculative construction totaling 668,973 SF which was 65% leased and added 239,600 SF of vacant inventory to the market during the quarter. Bulk warehouse accounted for nearly all spec development completions during the quarter. Leasing activity in the industrial market showed a decline in volume, and industrial users are vacating buildings at an increased rate. The trend is most prevalent in midsized general industrial buildings ranging from 20,000 SF to 80,000 SF.