CBRE

FIGURES|DETROITOFFICE|Q42025

Marketfundamentalsstabilizeaheadofanticipated

newconstruction

19.9%

VacancyRate

Note:Arrowsindicatechangefrom

previousquarter.

(100,444)

Q4SFNetAbsorption

161,326

YTDSFNetAbsorption

MARKETOVERVIEW

-TheDetroitofficemarketexperiencedanetabsorptionof(100,444)sq.ft.inQ4,markingthefirstquarterofnegativeabsorptionin2025.Year-to-date,theDetroitmarkethasabsorbed

161,326sq.ft.,markingthefirstyearofpositiveabsorptionoveraspanoffiveyears.

-Thevacancyratetickedupby10bpsat19.9%inQ4,remainingundertheyear-to-datepeakinQ2of20.1%.ClassAvacancyremainedstableat18.2%,consistentwiththepreviousquarter.Downtownvacancytickedup80bpsat17.7%forQ4.

-InQ4therewas486,114sq.ft.oftotalleasingactivitycompleted,inclusiveofallsizes.Drivenbyleasesunder10,000squarefeetinsize,year-to-dateleasingactivityended2025withatotalof

2.6millionsquarefeet.

-ConstructionactivityintheDetroitmarketremainedstableinQ4.Therearecurrently5buildingsunderwayforatotalof677,706sq.ft.Hudson’sDetroitissettobedeliveredinQ12026and3

otherprojectswillbedeliveredinQ22026.ThelastprojectisexpectedinQ2of2027.

-Askingrentsslightlyincreasedfromthepreviousquarter,endingQ4at$20.67.ClassArentsmaintaineda11.65%higherratethanthemarketaverage.

0677,706$20.67

SFConstructionDeliveredSFUnderConstructionFSG/YRDirectLeaseRate

FIGURE1:HistoricalAbsorption,Deliveries,andVacancy

Sq.Ft.millionsVacancy%

0.8

0.6

0.4

0.2

0.0

(0.2)

(0.4)

(0.6)

(0.8)

(1.0)

(1.2)

25

20

15

10

5

0

NetAbsorptionDeliveriesVacancyRate

Source:CBREResearch,Q42025

1CBRERESEARCH?2025CBRE,INC.

FIGURES|DETROITOFFICE|Q42025

2CBRERESEARCH?2025CBRE,INC.

Vacancy

InQ425theoverallofficevacancyratefinishedat19.9%,up10bpsfromQ3.Thisrateis40bpsdownfromtheall-timemarketpeakof20.3%inQ42024.Vacantsq.ft.increasedby100k

quarterover-quarteranddecreasedby222kyear-over-year.

ClassAofficevacancywas170bpsbelowthemarketaverageat18.2%whileClassBreached22.6%,270bpshigherthanthemarketaverage.ClassAvacancyhasdecreased50bpsyear-over-year.TheClassBrateroseby30bpsfromthepreviousquarter.

Thedowntownvacancyratestoodat17.7%,whichis220basispointsbelowthemarketaverage,butincreasedby80basispointsfromthepreviousquarter.Thesuburbanvacancyrate

remainedrelativelystableat20.6%,whichis70basispointsabovethemarketaverageand10basispointslowerthanthepreviousquarter.

AskingRent

TheDetroitofficemarketrentsmovedslightlyhigherinQ4withanaveragedirectaskingrateof$20.67persq.ft.Thisrepresentsa0.9%increasequarter-over-quarteranda0.5%decreaseyear-over-year.

InQ3,ClassAproductaveragedaskingratesthatwere11.65%higherthanthefullmarketrateat$23.08thiswasa$0.02increasefromthepreviousquarter.Similarly,downtownofficerentsheldat$27.07whichwas31%higherthanthemarketaverage.TheDetroitClassACBDofficebuildingsheldanaveragerateof$33.16whichdrivesthedowntownrents.

Thesuburbanmarketratesaveraged$19.03inQ4,anincreaseof1%fromthepreviousquarter.AnnArborcontinuestohavethehighestratesinthesuburbanmarketwithaQ4rentof$25persq.ft.CloselyfollowedbyBirmingham/Bloomfieldatrentof$20.04.Dearborncontinuestohavethelowestrateat$16.17.However,FarmingtonHills/WestBloomfieldandRochesterhavebothdippeddownintothe$16persq.ft.range.

FIGURE2:VacancyRatesbyClass

VacancyRate(%)

25

20

15

10

5

0

OverallClassAClassB

Source:CBREResearch,Q42025

FIGURE3:Avg.DirectAskingRate(FSG/YR)byClass

26.0025.0024.0023.0022.0021.0020.0019.0018.0017.00

16.00

$persq.ft.

OverallClassAClassB

Source:CBREResearch,Q42025

FIGURES|DETROITOFFICE|Q42025

3CBRERESEARCH?2025CBRE,INC.

NetAbsorption

Netabsorptionwas(100,444)sq.ft.inQ425.Thisquarteristhefirstquarterofnegative

absorptionin2025fortheDetroitmarket.Year-to-date,themarkethasabsorbed161,326sq.ft.,markingthefirstyearofpositiveabsorptionoveraspanoffiveyears.Thisnumbersitswell

abovethe3-yearaverageof(236,345)sq.ft.inabsorptionperquarter.

ThesuburbanmarketsledthewayinQ4withapositive53ksq.ft.absorbed.Theyhavepostedastrongyear-to-dateperformanceof323,387sq.ft.inpositiveabsorption.Thedowntown

marketpresented(153,518)sq.ft.inQ4.Thisisthelargestquarterofnegativeabsorptionfordowntown,year-to-date.

MostofthepositiveabsorptioninQ4comesfromtheTroysubmarket.Troyabsorbed149ksq.ft.,thesecondclosestsubmarketwastheI-275corridorwith32ksq.ft.TheDetroitsubmarketledthenegativeabsorptionwith(153k)sq.ft.

OverthelastfourquartersClassAnetabsorptiontotaled126,220sq.ft.Overthelast5yearscumulativeClassAnetabsorptionwas(1.3)millionsq.ft.

ConstructionActivity

InQ4therewasatotalof677,706sq.ft.intheconstructionpipeline.ThepipelinehasremainedconsistentsinceQ12024.

Hudson’sDetroitremains8.4%availablewithnonewactivityinQ4.Tecovas,thesecondretailtenant,hasopentheirdoorsinQ4.MapleOfficeParkII,22ksq.ft.,and479OldWoodwardAve,32ksq.ft.,bothremain100%available.

Thedeliverydateofthe380ksq.ft.officeportionofHudson’sDetroithasbeenpushedbacktoQ126.A200ksq.ft.Detroitproject,theUofMInnovationCenter,issettobedeliveredQ227.

TheotherthreeprojectsaresettobedeliveredinQ226andamounttoacombined96ksq.ft.

SinceQ42020therehasbeena60.3%decreaseinthetotalvolumeofconstructionunderway.Q4markstheseventhquarterofunchangingactivityintheconstructionpipeline.

FIGURE4:NetAbsorptionTrend

Sq.Ft.millions

0.4

0.2

0.0(0.2)

(0.4)

(0.6)

(0.8)

(1.0)

(1.2)

ClassAClassBRolling4QAvg.

Source:CBREResearch,Q42025

FIGURE5:ConstructionActivity

Sq.Ft.millions

1.6

1.4

1.2

1.0

0.8

0.6

0.4

0.2

0.0

1.8

UnderConstructionDeliveries

Source:CBREResearch,Q42025

FIGURES|DETROITOFFICE|Q42025

4CBRERESEARCH?2025CBRE,INC.

LeasingActivity

InQ4therewas486,114sq.ft.oftotalleasingactivitycompleted,inclusiveofallsizes.Theyear-to-dateleasingvolumeamountedto2.6millionsq.ft.total.Ofallleasingactivitycompletedthisquarter,78.7%oftheactivitywasfromnewleases.

Theaverageleasesizethisquarterwas5,284sq.ft.,up219sq.ft.fromthepreviousquarter.Theaveragetermlengthwas51months,5monthslessthanthepreviousquarter.Dealsunder

10,000sq.ft.continuetobethelargestdemanddriverresponsiblefor50.7%ofleasingvolumethisquarter.22.1%ofthevolumewasfromdeals10-20ksq.ft.

Fortransactionsover10,000sq.ft.,leasingonClassApropertiesaccountsfor45%ofQ4

volume.TheDetroitsubmarketsawthehighestvolumeofleasingactivityover10,000sq.ft.,representing45.4%ofthemarket’stotalvolumethisquarter.Troyheldthesecondhighestvolumeat43ksq.ft.

Thepastthree-yearaverageleasingvolume,from2022to2024,was2.1millionsq.ft.The2025officeleasingvolumewas20.5%higherthanthataverage.

Birmingham/Bloomfield

FarmingtonHills/WestBloomfield

AuburnHills

Southfield

Troy

98,691

Detroit

FIGURE6:LeasingbySubmarket–10,000sq.ft.andup

10,159

12,182

13,055

39,299

43,713

Source:CBREResearch,Q42025

FIGURE6:LeasingActivityTrend–10,000sq.ft.andup

Sq.Ft.millions

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0.0

ClassAClassB

Source:CBREResearch,Q42025

FIGURE8:KeyLeaseTransactions

Tenant

Sq.Ft.Leased

TransactionType

Address

Submarket

MillerCanfield

50,573

Renewal

150WJeffersonAve

Detroit

UrbanScience

34,923

NewLease

1CampusMartiusAve

Detroit

Elia&Ponto

22,517

NewLease

26300NorthwesternHwy

Southfield

Birdstop

20,000

NewLease

200WalkerSt

Detroit

SegalMcCambridge

11,811

Renewal

29100NorthwesternHwy

Southfield

RobertBaird

10,159

Renewal

300ParkSt

Birm./Bloomfield

Source:CBREResearch,Q42025

FIGURES|DETROITOFFICE|Q42025

5CBRERESEARCH?2025CBRE,INC.

MarketStatisticsbyIndex

Avg.DirectAskingCurrentQuarterNet

NetRentableArea

TotalVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Rate(FSG/YR)

AbsorptionYTDNetAbsorption

Deliveries

UnderConstruction

SUBURBAN

ClassA

22,359,437

19.6

25.7

22.7

3.0

21.02

17,02386,873

0

96,885

ClassB

33,089,863

22.9

24.8

22.7

2.1

17.97

2,216

348,773

0

0

ClassC

5,256,366

10.7

13.4

13.4

0.0

14.73

33,835

(112,259)

0

0

Total

60,705,666

20.6

24.1

21.9

2.2

19.03

53,074

323,387

0

96,885

NetRentableArea

TotalVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Avg.DirectAsking

Rate(FSG/YR)

YTD

CurrentQuarterNet

Absorption

NetAbsorption

Deliveries

UnderConstruction

DOWNTOWN

ClassA

10,482,943

15.1

14.9

13.6

1.3

30.91

(23,385)

39,347

0

580,821

ClassB

7,237,840

21.2

23.8

23.3

0.5

24.86

(124,740)

(171,252)

0

0

ClassC

2,294,973

18.3

20.9

20.6

0.4

22.97

(5,393)

(30,156)

0

0

Total

20,015,756

17.7

18.8

17.9

0.9

27.07

(153,518)

(162,061)

0

580,821

NetRentableArea

TotalVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Avg.DirectAsking

Rate(FSG/YR)

YTD

CurrentQuarterNet

Absorption

NetAbsorption

Deliveries

UnderConstruction

METRO

ClassA

32,842,380

18.2

22.3

19.8

2.5

23.08

(6,362)

126,220

0

677,706

ClassB

40,327,703

22.6

24.6

22.8

1.8

19.20

(122,524)

177,521

0

0

ClassC

7,551,339

13.0

15.7

15.6

0.1

18.01

28,442

(142,415)

0

0

Total

80,721,422

19.9

22.8

20.9

1.9

20.67

(100,444)

161,326

0

677,706

FIGURES|DETROITOFFICE|Q42025

6CBRERESEARCH?2025CBRE,INC.

MarketStatisticsbySubmarket

NetRentableArea

TotalVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Avg.DirectAsking

Rate(FSG/YR)

CurrentQuarterNet

Absorption

YTDNetAbsorption

Deliveries

UnderConstruction

AnnArbor

5,801,708

17.0

20.6

15.7

4.9

25.0

(95,544)

(55,025)

0

0

AuburnHills

2,152,118

29.6

30.2

27.9

2.3

20.75

(32,417)

(74,424)

0

0

Birmingham/Bloomfield

5,904,303

14.3

15.9

14.9

1.0

24.04

7,858

27,993

0

96,885

Dearborn

3,018,033

18.9

19.6

19.6

0.0

16.17

23,485

55,545

0

0

Detroit

20,015,756

17.7

18.8

17.9

0.9

27.07

(153,518)

(162,061)

0

580,821

FarmingtonHills/WestBloomfield

6,599,419

16.3

21.4

19.7

1.7

16.95

(40,325)

24,878

0

0

I-275Corridor

5,599,518

16.8

22.7

20.9

1.8

18.04

32,582

66,190

0

0

Macomb

1,315,563

9.9

11.2

10.0

1.2

17.07

(10,896)

(10,819)

0

0

Rochester

536,653

5.0

5.3

5.0

0.3

16.75

(5,969)

668

0

0

Southfield

16,926,005

28.9

32.2

29.2

3.0

18.22

24,555

70,031

0

0

Troy

12,852,346

18.9

23.0

21.3

1.7

18.4

149,745

218,350

0

0

Total

80,721,422

19.9

22.8

20.9

1.9

20.67

(100,444)

161,326

0

677,706

FIGURES|DETROITOFFICE|Q42025

7CBRERESEARCH?2025CBRE,INC.

NationalEconomicOverview

TheU.S.economyissendingsomemixedsignals.Financialmarketsarefocused

ontheupside,particularlyAI’ssizablecontributiontogrowthinrecentquarters.

Someindicatorsofbusinessactivity,suchascapitalgoodsorders,areimproving,andstrengtheningcreditmarketsarehelpingtousherrealestateintoanewcycle.Thepicturegetsmoremelancholywhenlookingathouseholds.Consumer

confidenceremainsweak,withspendingreportedlydrivenbyasmallersegmentofaffluenthouseholds.

ThismosaicofdatasuggeststhatannualaverageGDPgrowthwillbesteadyin

2026,at2%,butatouchsofterthanin2025.Akeycatalystisasofterlabor

market,ascompaniesare‘slowtohire,slowtofire’—atrendthatislikelytolastafewquarters.Aconsequenceofthisoutlookissofterinflationandlong-termbondyieldstrendingjustbelow4%byH22026.

DetroitEmploymentUpdate

4.8%

UnemploymentRate

2.2M

LaborForce

537.6k

OfficeUsingJobs

631.9k

IndustrialUsingJobs

281.8k

RetailUsingJobs

EmploymentChangebySector–Yearly+MonthlyBarsindicateyearlytrend,arrowsindicatemonthlytrend

Note:Arrowsindicatemonth-over-monthchange.

DetroitUnemploymentRateandLaborForceTrends

Source:USBLS,September2025

Source:USBLS,September2025

FIGURES|DETROITOFFICE|Q42025

MarketAreaOverview

Definitions

?AvailableSq.Ft.:Spaceinabuilding,readyforoccupancywithinsixmonths;canbeoccupiedorvacant.

?AvailabilityRate:TotalAvailableSq.Ft.dividedbythetotalbuildingArea.

?AverageAskingLeaseRate:Acalculatedaveragethatincludesnetandgrossleaserate,weightedbytheircorrespondingavailablesquarefootage.

?BuildingArea:Thetotalfloorareasq.ft.ofthebuilding,typicallytakenatthe“dripline”ofthebuilding.

?GrossActivity:Allsaleandleasetransactionscompletedwithinaspecifiedtimeperiod.Excludesinvestmentsaletransactions.

?GrossLeaseRate:Renttypicallyincludesrealpropertytaxes,buildinginsurance,andmajormaintenance.

?NetAbsorption:ThechangeinOccupiedSq.Ft.fromoneperiodtothenext.

?NetLeaseRate:Rentexcludesoneormoreofthe”net”costs(realpropertytaxes,buildinginsurance,andmajormaintenance)typicallyincludedinaGrossLeaseRate.

?OccupiedSq.Ft.:BuildingAreanotconsideredvacant.

?VacancyRate:TotalVacantSq.Ft.dividedbythetotalBuildingArea.

?VacantSq.Ft.:Spacethatcanbeoccupiedwithin30days.

SurveyCriteria

Includesallofficebuildings10,000sq.ft.andgreaterinsize.Buildingswhichhavebegunconstructionasevidencedbysiteexcavationorfoundationwork.

Contacts

AdamStapletonMaggieParraPaulVanDevender

FieldResearchAnalystResearchManagerManagingDirector

CBRE|Michig