Detroit Office Figures Q4 2025

-The Detroit office market experienced a net absorption of (100,444) sq. ft. in Q4, marking the first quarter of negative absorption in 2025. Year-to-date, the Detroit market has absorbed 161,326 sq. ft., marking the first year of positive absorption over a span of five years.

-The vacancy rate ticked up by 10 bps at 19.9% in Q4, remaining under the year-to-date peak in Q2 of 20.1%. Class A vacancy remained stable at 18.2%, consistent with the previous quarter. Downtown vacancy ticked up 80 bps at 17.7% for Q4.

-In Q4 there was 486,114 sq. ft. of total leasing activity completed, inclusive of all sizes. Driven by leases under 10,000 square feet in size, year-to-date leasing activity ended 2025 with a total of 2.6 million square feet.

-Construction activity in the Detroit market remained stable in Q4. There are currently 5 buildings underway for a total of 677,706 sq. ft. Hudson’s Detroit is set to be delivered in Q1 2026 and 3 other projects will be delivered in Q2 2026. The last project is expected in Q2 of 2027.

-Asking rents slightly increased from the previous quarter, ending Q4 at $20.67. Class A rents maintained a 11.65% higher rate than the market average.