Detroit office leasing momentum limited at start of 2025
The Metro Detroit office market observed muted transaction activity at the start of 2025, with quarterly leasing activity slightly below the five-year average, and well below typical pre-pandemic volumes. Leasing across the market totaled 0.7 million square feet (msf), marking a slight improvement over the previous quarter, but falling below the 0.8 msf observed a year ago. Across the market companies continued to recommit to and make investments in the workplace, while exhibiting a decided preference for quality space in well-located assets. However, conditions remained soft as the Detroit office market has been reshaped by the hybrid work era. Current economic uncertainty is likely to result in status quo fundamentals in the near term, with leasing primarily expiration-driven.