Detroit Office Figures Q4 2023
January 2, 2024 10 Minute Read
‒Q4 experienced a lower volume of leasing activity compared to Q3. Despite this, Q4 saw some significant sublease deals with Rocket Mortgage signing a sublease at 1 Campus Martius and General Dynamics Land Systems securing a sublease in Troy at 1414 E Maple Rd.
‒Average asking lease rates saw a hike of $0.09, reaching $19.18 in Q4.
‒Despite a negative overall absorption in Q4 for the Detroit market, Class A buildings exhibited a flight to quality, recording a positive net absorption of 101,934 sq. ft.
‒During Q4, the Troy submarket faced the most substantial negative absorption in the market, with a total of -210,424 sq. ft. Bank of America vacated space across various divisions at the Bank of America Plaza, along with the expiration of CareTech Solutions lease.
‒The construction pipeline is comprised of 4 buildings totaling 1,776,376 sq. ft.. 3 of these buildings, including Michigan Central Station adding 501,376 sq. ft., are expected to be completed in the first half of 2024.