Detroit has always been a city of reinvention. Once defined by its auto industry roots, it has emerged in recent years as a hub for innovation, small business growth, and urban revitalization. This momentum is fueling strong opportunities in commercial real estate (CRE), making 2025 a pivotal year for investors, business owners, and developers alike.
At SunByrnes Properties & Construction, we don’t just follow these trends, we’re building them. From office build-outs to mixed-use developments, we help clients buy, sell, lease, build, and manage commercial properties across Metro Detroit. Here’s what you need to know about where the market is heading.
The Current State and Key Trends Shaping Detroit’s CRE Market
The Metro Detroit commercial real estate market is being shaped by several key forces:
- Business Growth: Local businesses, healthcare providers, and professional service firms continue to expand, fueling demand for office and medical office space.
- Retail Evolution: While big-box retail is shrinking, neighborhood retail and service-based businesses are thriving in high-traffic suburban areas.
- Mixed-Use Development: Communities like Royal Oak, Troy, and Ferndale are embracing developments that combine residential, retail, and office, appealing to today’s live-work-play lifestyle.
- Industrial Strength: With its central location and logistics network, Metro Detroit remains a stronghold for industrial and warehouse real estate, though rising land costs are pushing developers to think creatively.
- Adaptive Reuse & Redevelopment: Office-to-residential and mixed-use conversions remain a core strategy.
- Sustainability & Efficiency: Tenants increasingly prefer properties with lower operating costs and eco-friendly design.
- Technology Integration: Smart building systems, security, and access control are becoming standard expectations.
- Out-of-State Investment: Detroit’s relative affordability compared to coastal cities continues to attract national investors looking for yield. According to PwC and the Urban Land Institute’s Emerging Trends in Real Estate 2026 report, investors continue to target Midwest and secondary markets that offer stronger value relative to coastal cities, reinforcing Detroit’s appeal.
- Suburban Market Strength: Communities like Sterling Heights, Rochester Hills, and Troy are experiencing sustained growth, making them attractive for both office and retail investment.
Office Market: Stabilization Creates Value-Add Opportunity
According to Cushman & Wakefield’s Detroit MarketBeat reports, Metro Detroit’s office vacancy rate stabilized around 20% through 2024–2025, signaling market adjustment rather than continued decline. This environment favors investors focused on renovation, tenant improvements, and office-to-mixed-use conversions, particularly in well-located suburban submarkets.
Industrial & Logistics: Continued Strength
Industrial real estate remains one of Metro Detroit’s most resilient sectors. According to CBRE’s Detroit Industrial Figures, industrial vacancy has remained in the low-to-mid single digits, supported by manufacturing, warehousing, and regional logistics demand. Limited land availability and rising construction costs are pushing developers toward efficient site selection and redevelopment strategies, reinforcing the sector’s long-term investment appeal.
Retail: Service-Based and Neighborhood-Focused
Retail demand has shifted away from big-box formats toward neighborhood retail and service-oriented tenants. Industry commentary from the Detroit Suburban State of the Market Summit, hosted by REjournals, highlights continued strength in suburban retail corridors where restaurants, healthcare, fitness, and personal services anchor tenant mixes, particularly in communities such as Royal Oak, Troy, and Ferndale.
Investment Opportunities in Detroit Commercial Real Estate (2026+)
1. Office Conversions & Flexible Workspaces
Traditional office demand has shifted, but businesses still need modern, flexible spaces that can adapt to hybrid work models. Renovations and conversions of existing office buildings represent a strong value-add opportunity.
2. Medical Office Buildings (MOBs)
Healthcare is expanding rapidly across Oakland and Macomb counties. Investors who own or develop medical office buildings (MOBs) are well-positioned for long-term stability.
3. Neighborhood Retail Centers
From coffee shops to boutique fitness studios, retail that provides experiences and services (rather than just goods) is in high demand. Well-located suburban strip centers and standalone sites are strong performers.
4. Multifamily & Mixed-Use Development
Residential demand is fueling mixed-use projects that combine apartments with retail or office space. According to the Michigan Economic Development Corporation (MEDC), the state’s Revitalization and Placemaking (RAP) program has supported nearly 240 redevelopment projects statewide, accelerating adaptive reuse and mixed-use investment opportunities across Michigan, including Metro Detroit.
5. Build-to-Suit & Tenant Improvements
Businesses want spaces that reflect their brand and operational needs. Developers and landlords willing to customize build-outs will have a competitive edge.
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Why Investors Choose SunByrnes Properties & Construction
SunByrnes offers a full-lifecycle commercial real estate platform, reducing friction and improving outcomes:
- Brokerage Services: We help you buy, sell, and lease commercial properties with local expertise and investor insight.
- Construction Services: Our award-winning construction team handles build-outs, renovations, and ground-up developments, keeping projects on budget and on schedule.
- Property Management Services: Once the deal is done, we continue to protect your investment with hands-on commercial property management, including tenant relations, maintenance, and financial reporting.
This integrated approach helps investors protect assets, control costs, and maximize long-term ROI.
Let’s Grow Detroit, Together
Detroit commercial real estate is no longer a turnaround story; it is a selective, opportunity-driven market defined by adaptive reuse, suburban strength, and disciplined investment. As we move into 2026 and beyond, the strongest opportunities lie with investors who understand where demand is shifting and how to reposition assets accordingly.
At SunByrnes Properties & Construction, we combine market knowledge, construction expertise, and property management services to deliver more than transactions, we help build lasting investments.
Contact us today to discuss Detroit commercial real estate opportunities.
