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Market Report

Detroit Retail Market Report

2024 Investment Forecast

Detroit Holds One of the Lowest Multi-Tenant Vacancy
Rates in the Country, Emboldening Sector Investors

Mixed-use space draws tenants. Detroit entered 2024 with the second-lowest multi-tenant vacancy rate among major U.S. markets. Retailers continue to display a preference for multi-tenant and mixed-use spaces as redevelopments like the former Northland Shopping Center in Southfield attract big leases, even years before opening. Costco is developing a business center here, joining 1,500 apartment units, along with additional underway retail, office and medical space. Growing outer suburbs like Southfield with more available square footage may continue to benefit from tighter conditions in traditional retail neighborhoods like Novi and along the Interstate 96 Corridor. While single-tenant vacancy was much more elevated entering 2024 at around 6 percent, several areas along travel routes kept sub-5 percent rates exiting 2023. This includes Troy along Interstate 75, Royal Oak along I-75 and Interstate 696, and Downriver, where the Gordie Howe Bridge is underway, offering an additional connection to Canada.
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