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Market Report

Detroit Office Market Report

4Q 2021

Construction Activity and Subdued Leasing Potentially Extend Motor City’s Recovery

Pandemic continues to restrain office leasing. Detroit’s office market remains encumbered by low office utilization as state-mandated capacity restrictions continue to keep many office-using employees working remote. Vacancy climbed 260 basis points to 17.0 percent over the past five quarters as available space increased by more than 4.4 million square feet. Asking rents managed to stay in positive territory last year but have since declined through the first half of 2021. Rising levels of vacancy will continue to place downward pressure on rents throughout the second half, as competition for tenants will incentivize operators to enhance concessions to attract occupants.
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