Direct availability continues to mount as Detroit office market observes moderate leasing activity
Following a strong close to 2023, the Metro Detroit region in the first quarter witnessed a notable retreat in activity as measured by transaction volume. The nearly 0.8 million square feet (msf) transacted this quarter denoted a 33.5% decline from the fourth quarter, but nevertheless matched the market's five-year quarterly average. Only two of the 10 largest leases this quarter were by tenants renewing in place, a positive signal that transaction activity was less sustained by lease expirations. Direct space options continued to mount across Detroit, and overall Q1 market availability jumped to 25.4%, rising by 120 basis points (bps) from a year ago. The City of Detroit exhibited more markedly softened conditions, with availability increasing 320 bps, to 22.4%.