Detroit Office Market Report

Local office market to see improvements this year, spurred by construction. The Hudson project, a 560,000-square-foot development, leads the metro’s 1.4 million square feet of deliveries this year, marking the largest pipeline in the Midwest. Yet renewed urban interest has lowered CBD vacancy to just under 13 percent, which is among the lowest in the nation. General Motors and Ford anchor major downtown commitments, while local leaders actively court technology-oriented firms. Meanwhile, Class B and C properties ended 2024 at around 14 percent vacancy after gradually improving all last year, aided by capital improvements and flexible lease terms. Suburban areas like North Oakland and Macomb counties attract tenants with expanding residential bases and municipal initiatives toward innovation, while Southfield and Troy face higher availability, prompting concessions. Overall, the market holds tenant-favorable as Detroit diversifies beyond automotive, creating opportunities to reposition or redevelop aging assets.