Detroit Retail Market Report

Net absorption rapidly improving. Detroit retail continues to navigate a challenging environment in 2026, as population growth ranked among the slowest of major U.S. markets last year. At the same time, some tenants hesitated to sign leases due to declining consumer confidence and a relatively price-sensitive consumer base. That last trait is exacerbated by the metro’s low median household income and consumer prices growing faster than incomes since at least 2020. While these underlying factors remain headwinds, the metro enters 2026 on the back of rapidly improving net absorption in late 2025. This is in part due to backfilling of big-box spaces, which faced elevated relinquishments through the first half of 2025. However, smaller-format spaces are also seeing stronger leasing activity. Much of this momentum is concentrated in single-tenant spaces and community and strip centers, while lifestyle, neighborhood, and power centers continue to face weaker demand entering 2026.