Detroit office market continues to normalize amid slower leasing conditions
The third quarter marked a pause in momentum for the Metro Detroit office market, with total leasing activity falling to 0.6 million square feet (sf). This represents a drop from 1.1 million sf in Q3 2024 and is slightly below levels recorded earlier in the year. Most leasing activity was tied to upcoming expirations, and few large-block transactions were completed during the quarter. Despite this slowdown, market fundamentals continued their gradual rebalancing. Occupiers remained focused on rightsizing, flexibility and capital efficiency. Sublease space continued its downward trend, declining to 2.1 million sf, a 16.0% reduction compared to one year ago, suggesting ongoing absorption of pandemic-era shadow space.