Conditions modestly improve across region as tenants gravitate to best-in-class space options
Following a shaky start to 2024, the Metro Detroit region in the second quarter witnessed more steadied fundamentals. Lease transaction activity increased 6.5% from the first quarter while surpassing the market’s five-year quarterly average. Many of the period’s largest deals involved tenants opting to relocate to best-in-class properties. Among them, General Motors announced plans to relocate from the Renaissance Center - its headquarters for nearly three decades - to Bedrock’s new Hudson’s Detroit development. The automaker opted to lease a minimum of 98,000 square feet (sf) in the building’s two top floors but may ultimately occupy additional space there when it takes possession of its space in 2025. Meanwhile, the Detroit market’s availability rate declined 50 basis points (bps) from the first quarter, with Class A availability falling by 140 bps to 25.8%