Detroit Office Figures Q4 2022

Market Summary

‒Vacancy held steady at 17.1% while availability rose 10 basis points (bps), quarter over quarter, moving to 23.4%.

‒The office market posted 193,192 square feet (sq. ft.) of negative net absorption in Q4 2022, driven by 115,651 sq. ft. of negative net absorption downtown and smaller tenant move-outs across the suburbs.

‒At the end of Q4 2022, office space under construction totaled just over 1.1 million sq. ft.

‒Available sublease space decreased 2.9% from last quarter, moving to 1.6 million sq. ft.

Detroit posted 193,192 sq. ft. of negative net absorption this quarter, bringing the 12-month trailing absorption to negative 689,826 sq. ft. Notable move-outs from the past year include Meridian in Q3 and Siemens in Q4. Vacancy is expected to rise slightly in Q1 2023 as Bank of America plans to vacate 144,000 sq. ft. at 2600 W Big Beaver Rd. In Q4 2022, vacancy stayed constant at 17.1% and availability increased to 23.4%. The average asking lease rate across the market dropped $.05 to $19.33 per sq. ft., which is in line with rates seen in Q4 2019. Available sublease space dropped nearly 3.0% from last quarter. From Q4 2020 through Q4 2022, available sublease space has increased 31.5%.