Deal volumes dip as demand for space in Metro Detroit remains weakened
The Metro Detroit office market continued to exhibit subdued conditions in Q2 2023. Leasing activity remained slowed with most transactions driven by upcoming lease expirations. Market availability inched up 20 basis points (bps) from the 24.2% reported in Q1 2023 and was up a modest 50 bps since Q2 2022. Class A availability accelerated at a faster pace, rising 130 bps over the year to 26.2%. The Detroit region has recently witnessed a less marked flight to quality than other major U.S. markets, although the market’s highest caliber properties still typically witness tighter conditions and command the highest rents. As the market’s lull eventually wanes and more employers bring employees back into the office, the best located and most amenitized assets are likely to benefit versus older, less desirable properties.