Detroit Office Market Report

Limited speculative development helps hold vacancy steady. After a slow start to 2025, demand dynamics in Detroit’s office market improved in the second half amid a notable increase in move-ins across spaces over 50,000 square feet. Still, the square footage signed during that period trailed the semiannual average between 2015 and 2019 by more than 50 percent, suggesting demand will likely remain tempered in early 2026. Persistent softness across traditionally office-using employment sectors, such as professional, business, and financial services, underpins the metro’s extended stretch of subdued absorption. Nonetheless, vacancy should hold relatively stable in 2026 due to limited speculative development in the pipeline, with more than 80 percent of new space set to deliver in 2026 already pre-leased, including 400,000 square feet at Hudson’s Detroit. Submarkets that have recently shown steady demand across all quality tiers, such as the urban core and Troy, are likely to see some additional vacancy tightening ahead.