Detroit Office Market Report
General Motors Commits to Future In-Person Work;
Class A Sector Aided by Encouraging Pre-Leasing
Return-to-office policies aid CBD vacancy. Entering the second half of 2022, Detroit's CBD is showing early signs of recovery. Here, vacancy dropped 70 basis points year-over-year to 13.7 percent in June. The CBD’s Class B/C segment, which accounts for nearly 75 percent of the core’s total inventory, noted vacancy falling 130 basis points over the past year, facilitating the overall vacancy compression. Further aiding the CBD’s recovery, General Motors has confirmed its plans for a more regular in-person work cycle at its downtown office, likely requiring employees to be present at least three days a week. While this schedule will not be implemented until 2023, the company’s decision has the potential to motivate local firms that support them, and office-using companies in general, to re-evaluate their remote or hybrid work policies.