Detroit Office Market
The Detroit Metro office vacancy rate climbed 30 basis points to 22.3% during the first quarter of 2024 as 267,953 SF in net vacant space were added to the market. Negative absorption increased as available space with remaining lease term expired. The office market is producing fewer vacancies compared with the first quarter of 2023 which saw 963,165 SF added to the market. Direct available space declined by 1.78% during the first quarter of 2024. This was the first decline since the first quarter of 2021. Available sublease continued to subside for the second consecutive quarter. During the first quarter of 2024, total levels fell by just over 66,000 SF to 2,010,870 SF. Over the past two quarters, sublease space has fallen by just over 244,000 SF.
Download Detroit Office Market Report 1Q24
Detroit Industrial Market
The Metro Detroit industrial vacancy rate climbed 70 basis points to 3.9% during the first quarter of 2024, as just over 351,000 SF in net vacancies were added to the market. Most submarkets continue to see an increased number of existing buildings coming on the market. Meanwhile, developers completed 2 million square feet of unleased speculative bulk warehouse construction during the quarter. Current construction pipeline includes five build-to-suits totaling 1.6 million SF. Four speculative developments for general industrial users under 70,000 SF are currently under construction. In addition, the partially pre-leased Crossroads Distribution Center 11, a bulk warehouse facility, is nearing completion.