The Detroit Commercial Real Estate Market

Shanti Ryle

March 31, 2025

As the largest city in Michigan, Detroit stands as a city of transformation, blending a rich industrial legacy with a future defined by innovation and growth. Once the powerhouse of American manufacturing, Detroit has reemerged as a significant economic hub, attracting investment across multiple industries. The city’s strategic location along the Detroit River and the Canadian border makes it a crucial player in international trade, while its expanding commercial sectors continue to fuel business activity.

Known as the Motor City for its deep-rooted history in the automotive industry, Detroit remains home to the “Big Three” automakers - General Motors, Ford, and Stellantis (Chrysler). Beyond automotive, the city’s economy has diversified, with notable healthcare, finance, and technology expansions. This economic evolution, paired with an affordable cost of living and a skilled workforce, makes Detroit an appealing market for commercial real estate investors, businesses, and entrepreneurs.

Brokers, buyers, sellers, and tenants in Detroit and beyond look to Crexi’s commercial property tech tools to conduct all aspects of CRE transactions. To date, Crexi’s CRE tools have helped brokers facilitate more than $664 billion in commercial property transactions and represented over $7 trillion in listings.

Crexi proudly serves Detroit, Dearborn, Warren, Livonia, Southfield, Taylor, Troy, Farmington Hills, Pontiac, and the surrounding communities as the region's fastest-growing digital CRE platform.

The State of Detroit Commercial Real Estate

Detroit’s commercial real estate market reflects the city’s ongoing revitalization, offering a dynamic mix of investment and development opportunities. As Michigan’s largest city and one of the country’s top metropolitan areas, Detroit serves as a major hub for business, trade, and culture. Its location along key waterways and highway networks enhances its logistical advantages, supporting industries ranging from automotive manufacturing to tech startups and professional services.

The city’s real estate landscape continues to evolve, with significant investment in office, industrial, retail, and multifamily properties. While Detroit’s automotive sector remains a powerful economic driver, the growth of healthcare, logistics, and finance industries has diversified the city’s commercial real estate offerings. With an expanding job market and an increasing focus on urban renewal, Detroit presents promising opportunities for investors and businesses looking to establish a presence in the region.

Whether you’re considering leasing commercial space or investing in Detroit’s expanding property market, the city offers a wealth of opportunities in an environment primed for long-term growth.

Detroit Regional Breakdown

Detroit is part of a dynamic metropolis with a strong economic foundation and an affordable cost of living that appeals to businesses and residents alike. While the city’s population has gradually shifted, the broader metropolitan area is home to nearly 4.4 million people. As Detroit evolves, its diverse community and strategic location reinforce its role as a center of opportunity, resilience, and affordability in the Midwest.

Detroit is home to more than 633,000 people in the city and nearly 4.4 million people living in the metropolitan area.
The Detroit Urban Area is the 14th most populous in the country and includes the cities of Detroit, Pontiac, and Mt. Clemens.
The metro area’s per capita income is $41,287, and the median household income is $72,574, both figures slightly higher than those in Michigan.
The cost of living in Detroit is over 8% less than the US average.
The city’s median age is 35.2, with 39% of residents between 20 and 49.

A view of Ambassador Bridge and its sign in Detroit

Detroit Job Market

Detroit’s job market is a dynamic blend of legacy industries and emerging opportunities, fueled by a strong workforce of over two million people. While the region remains a global leader in automotive and manufacturing, it has expanded into high-growth sectors like technology, logistics, and healthcare. Major employers, including Fortune 500 companies and top healthcare systems, play an important part in shaping the local economy.

Total GDP for Detroit-Warren-Dearborn MSA is over $331 billion, growing by 47% over the past ten years.
Key industry clusters in the Detroit region include automotive and mobility, defense, transportation and distribution, logistics, health care, and information technology.
The Detroit region employs over 2 million people across 11 counties, including Wayne, Oakland, Macomb, and Washtenaw.
The largest employers are Rocket Companies Inc., Stellantis NV, the City of Detroit, Henry Ford Health System, and the US Government.
The fastest-growing job sectors are construction, education and health services, manufacturing, and other services, according to the US Bureau of Labor Statistics (BLS).
The unemployment rate is 5.3% as of March 2025, which is slightly lower than the figures for Michigan as a whole.
The Detroit region is home to several Fortune 500 companies, including Ford Motor Company in Dearborn, General Motors in Detroit, and Penske Automotive Group in Bloomfield Hills.
Based on student enrollment numbers, the three most prominent universities in the Detroit metro area are the University of Michigan-Ann Arbor, Michigan State University, and Wayne State University.
Nearly 35% of metro area residents hold a bachelor’s degree or higher, a rate about 2.5% greater than Michigan overall.
The metro area boasts a well-connected transportation infrastructure, featuring key interstates like I-75 and I-94, the Detroit Metropolitan Wayne County Airport (DTW), one of the busiest airports in the US, and the Port of Detroit, the largest seaport in the state of Michigan, all supported by comprehensive public transit systems.

The inside public transport within Detroit's metro city

Detroit Industrial Market

Detroit’s industrial market is navigating a transition period, with a rise in vacancy driven by new space coming online. While absorption has faced some challenges, leasing activity remains steady, with major tenants securing significant square footage across the region. Construction continues at a healthy pace, adding both speculative and build-to-suit projects to the market. Despite shifting dynamics, the industrial sector remains a key driver of the metro’s economy, supported by its strong manufacturing base and strategic location.

Market Overview (Cushman & Wakefield Q4 2024)

Inventory: 500,521,175 SF
Vacancy rate: 3.6%
Absorption: -1,522,839 SF (YTD)
Key leases by tenant: DTE (349,492 SF), Android Industries LLC (224,589 SF), Wipro Pari, Inc. (104,280 SF)
Completions: 628,000 SF
Under construction: 1,753,950 SF
Largest submarkets: Western Wayne, Detroit, Dearborn/Downriver

Crexi Insights

These are the most recent Detroit industrial lease and sales trends from Crexi Insights (as of March 2025):

For Lease (active)

Asking rate/SqFt (median): $6 per year
Median SqFt/listing: 4,000
Days on market: 325
Total listings on Crexi: 220 spaces

For Sale (active)

Median asking price: $685,000
Price/SqFt: $45
Median sold cap rate: 25%
Days on market: 251
Total listings on Crexi: 155

Sales Comps (past 12 months)

Median sold price: $100,000
Sold price/SqFt: $14
Total sales volume: $41.8 million
Sold cap rate: 21.2%
Median SqFt sold/transaction: 5,992
Total SqFt sold: 1.28 million
Days on market (median): 521

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A mural of a bird in Detroit's cityscape

Detroit Office Market

Detroit’s office market continues to face headwinds, with rising vacancy rates and ongoing negative absorption. While demand for space has been subdued, leasing activity has picked up in some submarkets, signaling potential areas of resilience. New construction remains limited, reflecting a cautious approach from developers amid evolving tenant needs. As businesses adapt to shifting workplace trends, certain areas may see opportunities for repositioning and long-term recovery.

Market Overview (Cushman & Wakefield Q4 2024)

Inventory: 102,656,928 SF
Vacancy rate: 22%
Absorption: -3,056,485 SF (YTD)
Key leases by tenant: Kirk Gibson Foundation (40,668 SF), Better Mortgage (12,000 SF), Amentum Technology Inc. (9,004 SF)
Under construction: 705,600 SF
Largest submarkets: Southfield/Bingham Farms, Central Business District, Troy

Crexi Insights

To stay informed on the most recent trends shaping Detroit's office real estate market as of March 2025, here is a comprehensive view of the latest Crexi data.

For Lease (active)

Asking rate/SqFt (median): $22 per year
Median SqFt/listing: 4,103 SF
Days on market: 347
Total listings on Crexi: 347 spaces

For Sale (active)

Median asking price: $429,900
Price/SqFt: $66
Asking cap rate: 2.6%
Days on market: 136
Total listings on Crexi: 98

Sales Comps (past 12 months)

Median sold price: $92,500
Sold price/SqFt: $40
Total sales volume: $7.5 million
Median SqFt sold/transaction: 3,087 SF
Days on market (median): 443

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Offices and skyrisers with a watertower in the background in Detroit

Detroit Retail Market

Metro Detroit’s retail market is holding steady, with consistent leasing activity and stable rental rates across key submarkets. While some areas have seen slight declines in occupancy, overall demand remains strong, particularly in high-traffic corridors. Investment interest has been active, with new developments and retail expansions - including 40 ongoing projects - adding to the market’s long-term appeal. As consumer spending patterns shift, retail spaces continue to evolve to meet changing tenant and shopper demands.

Market Overview (Colliers Q4 2024)

Inventory: 313,240,699 SF
Vacancy rate: 5.2%
Absorption: -322,490 SF (YTD)
Key leases by tenant: Hobby Lobby (59,000 SF), Burlington (35,000 SF), Whicked Pickle (33,000 SF)
Under construction: 407,107 SF
Largest submarkets: Macomb, West Wayne, Detroit/The Pointes

Crexi Insights

Detroit retail lease and sales trends from Crexi Insights (as of March 2025):

For Lease (active)

Asking rate/SqFt (median): $20 per year
Median SqFt/listing: 3,101 SF
Days on market: 296
Total listings on Crexi: 349 spaces

For Sale (active)

Median asking price: $322,500
Price/SqFt: $78
Asking cap rate: 5.2%
Median sold cap rate: 8.5%
Days on market: 208
Total listings on Crexi: 264

Sales Comps (past 12 months)

Median sold price: $75,000
Sold price/SqFt: $25
Total sales volume: $54 million
Sold cap rate: 8.6%
Median SqFt sold/transaction: 2,886 SF
Days on market (median): 257

Find Detroit retail space for rent.

A large park in Detroit with buildings in the background

Detroit Multifamily Market

Detroit’s multifamily market continues to shift, with steady rent growth and ongoing investment activity driving its momentum. While vacancy rates have fluctuated, demand remains relatively stable across key submarkets, particularly in areas with strong employment hubs. New developments are adding to the metro’s housing inventory, signaling confidence in long-term growth. With a mix of new construction and notable property sales, Detroit’s multifamily sector offers opportunities for investors and renters alike.

Market Overview (Friedman Real Estate 2024 Mid-Year Report)

Multi-unit inventory: 355,900 units
Vacancy rate: 7.1%
Effective rent per unit (overall): $1,265
Annual rent growth: 3.3%
Units under construction: 4,474
Key sales by property: Geddes Hill & Carriage House Apartments ($31.6 million), Glengarry Park Apartments ($31.3 million), The Kensington at Beverly Hills ($25.2 million)
Largest submarkets: Macomb, Outer Detroit, Ann Arbor