February 27, 2025
Overall, while macroeconomic uncertainties stemming from a new administration, including tariff changes, may create unpredictability, the industrial market in Metro Detroit remains fundamentally strong, according to the latest reports from Friedman Real Estate. Improving office demand fundamentals, a limited development pipeline and looming return-to-office mandates suggest a more optimistic outlook for that sector this year in Metro Detroit.
In 2024, the Metro Detroit industrial market showed signs of softening, with declines in occupancy, net absorption, leasing activity, deliveries, and sales volume. Key demand indicators are returning to historical levels following the record-setting figures from 2021 to 2023. Overall, while macroeconomic uncertainties stemming from a new administration, including tariff changes and immigration policies may create unpredictability, the market remains fundamentally strong.
In 2024, the Metro Detroit office market remained soft, marked by declining occupancy and sales volume. However, improving demand fundamentals, a limited development pipeline, and looming return-to-office mandates suggest a more optimistic outlook for 2025.
In 2024, the Metro Detroit multifamily market return strengthened with increased occupancy, sales volume, and a return to historic year-over-year (YOY) rent growth. The market posted record high net absorption to meet record deliveries. Despite this, recently delivered communities are struggling to stabilize occupancy and Class A rents are effectively flat, which will likely stabilize as the construction pipeline retreats from records levels.
In 2024, the Metro Detroit retail market remained stable, with occupancy near all-time highs and increased rental rates and sales volume. However, the challenging high-interest-rate environment and broader economic slowdown led to select retailer bankruptcies and subsequent vacancies. Despite this, limited new retail development and sustained demand have helped preserve Metro Detroit's strong market fundamentals.