Despite waning office demand close of year, optimism grows for 2025 resurgence
The Metro Detroit office market experienced weakened occupier demand during the fourth quarter, with quarterly leasing activity reaching its lowest point in nearly three years. Full-year leasing activity across the market totaled 3.1 million square feet (msf) in 2024, a 3.3% decrease from the 3.2 msf reported in 2023. However, 2024 leasing was nearly identical to the 3.1 msf transacted in 2019, the last full year before the pandemic. While leasing activity in 2025 is anticipated to be primarily expiration-driven, there is cautious optimism for increased occupier demand due to steadied economic conditions and companies increasingly seeking to entice employees back to the workplace.