Leasing activity increases, return to office picks up across Metro Detroit despite darkening economic clouds
Following a stretch of prolonged uncertainty, hopeful glimmers shone upon the Detroit office market in the third quarter. Among the favorable developments, General Motors announced plans to return to the office in 2023, acknowledging a need for greater collaboration among its corporate staff. Additionally, a handful of sizeable leases this period helped the Detroit office market to snap a streak of three consecutive quarters of declining leasing activity. However, overall demand for space across the market remained weakened due to signs of a potentially severe economic downturn, continued work from home, and companies pondering their future occupancy needs. While average asking rents incrementally ticked up, average effective rents have trended lower as market conditions skew in favor of occupiers.