Ann Arbor Commercial Real Estate Market Snapshot – Q3 2025

Thursday, October 9th, 2025

📊 Ann Arbor Commercial Real Estate Market Snapshot – Q3 2025

Ann Arbor remains one of the most resilient and high-performing submarkets in Southeast Michigan, with strong fundamentals across office, industrial, and retail sectors. Here’s what stood out in the latest Q3 2025 market reports:

🏢 Office Market

Vacancy: 10.4% (lower than Metro Detroit’s 12.5%)
Absorption: +166,363 SF in Q3; +324,472 SF year-to-date
Asking Rents: $25.56/SF (FSG), among the region’s highest
Key Activity:
- 27,510 SF sublease at 401–407 E Liberty Street
- 617 E Huron Street sold for $480/SF – the highest per-SF sale in Metro Detroit this quarter

🏭 Industrial Market

Vacancy: 4.6% (below regional 5.0%)
Absorption: +262,022 SF in Q3
Asking Rents: $9.07/SF NNN, with flex space at $12.71/SF
Notable Sale: 4743 Venture Drive, a 19,600 SF flex building, sold for $118/SF
Ann Arbor continues to command premium rates thanks to limited supply of modern, high-quality space

🛍️ Retail Market

Vacancy: 4.0%, one of the lowest in Metro Detroit (market average 5.5%)
Absorption: +50,145 SF in Q3
Asking Rents: $20.42/SF NNN – among the highest in the region
Development: 19,588 SF under construction, largely service- and lifestyle-oriented retail
Supported by a university-driven economy and affluent consumer base, Ann Arbor retail continues to outperform

✅ Key Takeaway

Ann Arbor’s commercial real estate market is defined by low vacancies, strong absorption, and premium rents across all sectors. Investors and tenants alike continue to show confidence in Ann Arbor’s diverse, stable economy—anchored by the University of Michigan, a robust talent base, and strong consumer demand.

Ann Arbor is not just holding steady—it’s setting the pace for the broader Metro Detroit market.

👉 For more insights and opportunities in Ann Arbor and Southeast Michigan commercial real estate, visit WickfieldCRE.com or follow us here on LinkedIn.