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Market Report

Detroit Office Market Report

2024 Investment Forecast

Local Office Trends Become Increasingly
Bifurcated Amid Shifting Demand Flows

North Oakland and Macomb counties boast resilience. On the surface, Detroit’s office sector continues to face immense headwinds. Metrowide vacant stock has expanded by nearly 5 million square feet over the past two years, and is expected to rise by another 3-plus million square feet in 2024 as more pre-pandemic leases expire. This shaky performance is not uniform across the metro, however. Two of the seven largest submarkets by inventory — Macomb and North Oakland — entered the year with sub-12 percent vacancy after posting notable declines in 2023, while two other locations, Southfield and Troy, had rates that were over twice as high. Among the submarkets that are outperforming, Macomb benefits from an average asking rent that trails the urban core by more than $6 per square foot, helping attract cost-sensitive firms to smaller floor plans in the area. A handful of 2,000- to 10,000-square-foot move-ins are planned here for 2024. North Oakland, meanwhile, has a smaller relative rent discount, but offers proximity to northern residential hubs, helping companies offer in-person workers shorter commutes.

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