Detroit Office Market
Average Asking Rent (Price/SF) | $21.08 |
Vacancy Rate (%) | 21.8% |
Net Absorption (SF) | (101,764) |
The metro Detroit office market vacancy rate fell 50 basis points to 21.8% during the fourth quarter of 2025 as the market absorbed 722,241 SF of space. In 2025, the metro office market added a net 101,764 of vacant space, compared to 91,858 SF of vacant space in 2024. The Detroit CBD vacancy rate fell 30 basis points to 20.5% during the fourth quarter of 2025. The completion of Bedrock’s 100% pre-leased 404,000 SF Hudson Tower is a major attraction for the downtown office market. In the Suburban market, at least five major office complexes—representing nearly 900,000 square feet—are in the planning stages of conversion to residential use. These prospective redevelopments will substantially reduce total office inventory at a time when many occupiers are downsizing and utilizing less space.
Download Detroit Office Market Report 4Q25Detroit Industrial Market
Average Asking Rent (Price/SF) | $7.50 |
Vacancy Rate (%) | 5.0% |
Net Absorption (SF) | 427,990 |
During the fourth quarter of 2025, the Metro Detroit industrial market vacancy rate climbed 20 basis points to 5.0.%. Three completed build-to-suits totaling 824,000 SF helped put absorption in positive territory at a net 427,990 SF for the quarter. In 2025, total absorption totaled negative 1.08 MSF, compared to 957,339 SF in 2024. Overall leasing activity in terms of total square feet, remained subdued during the fourth quarter, down 50% compared to the 20-year average. 2025 was a downturn year for the Metro Detroit industrial market. That said, major energy sector activity, including DTE Energy’s lease of about 1.5 million square feet of warehouse space in 2025, helped offset weaker overall demand. Momentum is likely to build as the Big Three ramp up production and investments to retool facilities and expand ICE vehicle production.
