Office availability elevated, but deal volumes signal renewed occupier demand amid hybrid work
The Metro Detroit office market saw softened but relatively stable fundamentals in the third quarter. Overall market availability rose by 70 basis points (bps) from a year ago to 25.1%, while Class A availability increased by 110 bps to 26.7%. Since its low of 18.8% in Q3 2019, office availability has climbed by 630 bps. This increase has been driven by a slower return to office and preferences for hybrid work, leading many tenants to downsize. However, deal volumes over the past four quarters met or exceeded the long-term average, signaling a potential shift in occupier demand as more companies reaffirm their commitment to bringing employees back to the office.