The key, of course, to building a building is finding a user – speculative office building is very rare, although not extinctas I recently noticed in this space.
Finding a tenant may be difficult for the foreseeable future.
The Detroit metro office market is still struggling with overdevelopment in the 1980s during the construction boom, and the COVID-19 pandemic has dampened any forward momentum it has seen as the economy improves in the past few years.
However, some new office space – especially in downtown Detroit – is still under construction, including by Illitch’s Olympia Development of Michigan, Dan Gilbert’s Bedrock LLC and Chemical bank/TCF Bank/Huntington Bank/ As you call it these days.
Many still work from home, at least in part, although the number of people returning to the office has increased as COVID-19 vaccinations become more widespread and restrictions related to the pandemic have been lifted.
According to brokerage office JLL, the office market was 21.1% full in the first quarter and has an area of approximately 68.2 million square feet.
In the Farmington / Farmington Hills area, the market area is 4.66 million square feet and the vacancy rate is 17.7 percent.