Detroit Commercial Office Space for Rent

Q3 2026

Q3 2026 Detroit Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Metro Detroit's office market has absorbed 454,889 SF year to date, led by Downtown, while industrial demand cooled with a fourth straight quarter of negative absorption. Retail occupancy remains near 95%. Tenant demand on TenantBase shifted sharply toward office in Q3: office space accounted for 63.0% of all Detroit tenant searches, about four times its 15.4% share in Q2.

Sector Snapshot

  • Office: Downtown-led. Overall vacancy was 18.5% in Q2, down 20 basis points year over year.
  • Industrial: Cooling. Vacancy rose to 4.3%, still well below the 6.9% U.S. average.
  • Retail: Stable. Vacancy was 5.1% at midyear, with asking rent at $17.53/SF NNN.
  • Multifamily: Steady. Occupancy was 94.4%, with rents up 1.6% year over year.

Detroit Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across Metro Detroit are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Office: 63.0%
  • Retail/Storefront: 35.8%
  • Warehouse/Industrial: 1.2%

Three-Quarter Trend

  • Office: 17.2% in Q1, 15.4% in Q2, 63.0% in Q3
  • Retail/Storefront: 63.1% in Q1, 60.4% in Q2, 35.8% in Q3
  • Warehouse/Industrial: 20.3% in Q1, 25.6% in Q2, 1.2% in Q3

Key Takeaways

  • Office overtook retail as Detroit's top search category, rising from 15.4% to 63.0% of searches.
  • Office tenants are committing longer. 2 to 3 year terms rose from 20.0% of office searches in Q2 to 31.4% in Q3, while terms under one year fell from 52.5% to 41.2%.
  • Office requirements are sizable. Office tenants seeking terms under one year and 3 to 5 years averaged about 3,500 to 7,000 SF.
  • Detroit and Macomb County lead location interest. The City of Detroit, including Downtown and Midtown, was the most requested area, followed by Macomb County, Farmington Hills/West Bloomfield, Auburn Hills, Troy, Rochester, Birmingham/Bloomfield, and Dearborn.

Office Market

Key Metrics (Q2 2026)

  • Vacancy: 18.5%, down 20 basis points year over year (Cushman & Wakefield)
  • Net absorption: positive 454,889 SF year to date, with Downtown accounting for 441,370 SF (Cushman & Wakefield)
  • Average asking rent: $19.78/SF, with Class A at $25.00/SF (Cushman & Wakefield)
  • Downtown Detroit: 19.6% vacancy at $28.59/SF (Cushman & Wakefield)
  • Submarkets: Macomb County at 6.0%, Birmingham at 9.7%, Dearborn/Downriver at 12.2%, Farmington Hills/Novi/West Bloomfield at 16.4%, Auburn Hills/Rochester Hills at 17.7%, Troy at 25.2%, and Southfield at 30.3% (Cushman & Wakefield)
  • Notable leases: AT&T, 135,144 SF at 26533 Evergreen Rd in Southfield, and Urban Science, 35,000 SF at One Campus Martius (Cushman & Wakefield)

TenantBase Office Activity

Demand share: 63.0% of Detroit tenant searches, up from 15.4% in Q2 and 17.2% in Q1.

Lease term preferences:

  • Less than one year: 41.2%
  • 2 to 3 years: 31.4%
  • 3 to 5 years: 23.5%
  • 5+ years: 3.9%

Space requirements by term:

  • Less than one year: 3,500 to 7,000 SF
  • 2 to 3 years: 1,400 to 2,900 SF
  • 3 to 5 years: 3,500 to 7,091 SF
  • 5+ years: 2,500 to 5,000 SF

TenantBase data vs. the market: Macomb County, the second most searched area on TenantBase, is also Metro Detroit's tightest office submarket at 6.0% vacancy, so tenants there should start early. Tenants open to Troy or Southfield, where vacancy runs above 25%, will find far more options and stronger negotiating leverage.

Industrial & Warehouse Market

Key Metrics (Q2 2026)

  • Vacancy: 4.3%, up 80 basis points year over year (Cushman & Wakefield)
  • Net absorption: negative 1,074,089 SF in Q2 (Cushman & Wakefield)
  • Average asking rent: $7.46/SF net, up 4.2% year over year (Cushman & Wakefield)
  • Under construction: about 2.3 million SF, with about 1.0 million SF expected by year-end (Cushman & Wakefield)
  • Tightest submarkets: Macomb Central and Macomb South, both at 2.2% (Cushman & Wakefield)
  • Notable lease: Lear Corporation, more than 345,000 SF at 3600 Giddings Rd in Oakland North (Cushman & Wakefield)

TenantBase Industrial Activity

Demand share: 1.2% of Detroit tenant searches, down from 25.6% in Q2 and 20.3% in Q1.

TenantBase data vs. the market: Even with demand cooling, Metro Detroit industrial vacancy remains well below the national average and rents are rising. Tenants targeting Macomb County, where vacancy is near 2%, should expect limited options.

Retail Market

Key Metrics (Midyear 2026)

  • Vacancy: 5.1%, with occupancy at 94.9% (Friedman Real Estate)
  • Average asking rent: $17.53/SF NNN, up from $17.17 at year-end 2025 (Friedman Real Estate)
  • Under construction: about 1.3 million SF (Friedman Real Estate)
  • Submarkets: Ann Arbor tightest at 3.2%, Southfield highest rent at $29.84/SF, and Farmington Hills highest vacancy at 9.1% (Friedman Real Estate)
  • Notable leases: Gardner White, 102,600 SF in Novi, and Meijer, 75,466 SF in Detroit (Friedman Real Estate)

TenantBase Retail Activity

Demand share: 35.8% of Detroit tenant searches, down from 60.4% in Q2.

Lease term preferences:

  • 2 to 3 years: 36.0%
  • Less than one year: 28.0%
  • 5+ years: 20.0%
  • 3 to 5 years: 16.0%

Space requirements by term:

  • Less than one year and 2 to 3 years: 500 to 1,000 SF
  • 5+ years: 2,500 to 5,000 SF

TenantBase data vs. the market: Most Detroit retail tenants on TenantBase need small storefronts under 1,000 SF. Farmington Hills, at 9.1% vacancy and $16.76/SF, offers the most options among the suburbs TenantBase tenants are searching.

Multifamily Market

Detroit stabilized apartment occupancy was 94.4% as of June 2026, above the national rate, according to Yardi Matrix. Average asking rent was $1,363, up 1.6% year over year compared with 0.2% nationally. More than 4,600 units were under construction.

Q4 2026 Outlook

  • Office: Expect Downtown and Birmingham to lead, with tenant leverage in Troy and Southfield.
  • Industrial: Expect vacancy to edge up as about 1.0 million SF delivers by year-end.
  • Retail: Expect occupancy near 95% and stable rents.
  • Multifamily: Expect rent growth to continue outpacing the national average.

Frequently Asked Questions

What type of commercial space are Detroit tenants searching for in 2026?

In Q3 2026, office space made up 63.0% of Detroit tenant searches on TenantBase and retail/storefront made up 35.8%. Office share rose from 15.4% in Q2.

Which Metro Detroit areas are tenants searching most?

The City of Detroit, including Downtown and Midtown, was the most requested area on TenantBase in Q3 2026, followed by Macomb County and Farmington Hills/West Bloomfield.

What lease terms do Detroit office tenants want?

41.2% of Detroit office tenants on TenantBase sought terms under one year in Q3 2026, and 31.4% sought 2 to 3 year terms.

What is the office vacancy rate in Detroit?

Metro Detroit office vacancy was 18.5% in Q2 2026, with Downtown at 19.6%, according to Cushman & Wakefield.

What is the industrial vacancy rate in Detroit?

Metro Detroit industrial vacancy was 4.3% in Q2 2026, below the 6.9% U.S. average, according to Cushman & Wakefield.

How can I find commercial space in Detroit at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across Metro Detroit at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Detroit, July 1 to September 30, 2026
  2. TenantBase, Detroit Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Detroit Commercial Real Estate Market Report, Q1 2026
  4. Cushman & Wakefield, Detroit Office MarketBeat, Q2 2026
  5. Cushman & Wakefield, Detroit Industrial MarketBeat, Q2 2026
  6. Friedman Real Estate, Metro Detroit 2026 Mid-Year Retail Report
  7. Multi-Housing News, Detroit Multifamily Report (Yardi Matrix), August 2026

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.