The office leasing conversation has shifted. For most of the post-pandemic period, the dominant question was whether companies would use office space at all. That question has largely been answered. Most companies are using office space, and many are actively leasing more of it. The question that drives decisions in 2026 is different: which buildings are worth committing to, and which are not.
We see this play out directly in how tenants approach the leasing process. The evaluation criteria have changed meaningfully. Understanding what tenants are actually looking for, and why, matters both for companies making real estate decisions and for owners trying to compete for leases.
The Flight to Quality Is Structural, Not Cyclical
New office construction is projected to hit its lowest level in 25 years in 2026, according to industry reporting from CNBC. That constrained supply pipeline, paired with recovering demand, is tightening the available inventory of high-quality space faster than the overall vacancy number suggests. The gap between prime vacancy and overall vacancy in major markets has widened significantly, and that gap reflects a fundamental tenant preference for the best-positioned product, not just a short-term trend.
What makes a building “prime” in the current market? From what we see in leasing activity across our portfolio, it comes down to a consistent set of characteristics: modern mechanical and HVAC systems that tenants do not have to worry about, flexible floor plates that can be adapted as headcount and work patterns change, technology infrastructure that is current and well-maintained, and amenity packages that make coming to the office genuinely easier for employees. Buildings with all of those elements are leasing. Buildings that are short on one or more of them are competing harder for a smaller pool of tenants.
Flexibility Has Become the Standard, Not the Exception
The tenants we work with today approach lease negotiations with a degree of caution about long-term commitments that was not common five years ago. Headcount projections are less certain. Workplace models are still evolving. Business conditions are harder to forecast. The result is a strong preference for shorter initial terms, expansion and contraction rights, and spec suite availability, options that reduce the long-term exposure of a real estate decision made under uncertainty.
Landlords who have built flexibility into their leasing approach, including pre-built spec suites, phased buildout options, and right-sizing provisions, are closing deals that would otherwise extend into prolonged negotiation. The buildings that treat flexibility as a concession rather than a feature are losing those tenants to product that has made flexibility a core part of its offering.
Location Has Evolved
Location still matters, but the definition of a good location has shifted. Proximity to transit, walkable amenities, and easy commute access from across the metro area has become more important than a specific address or zip code. In Metro Detroit, well-positioned suburban campuses with strong nearby infrastructure and services are competing effectively with downtown space for tenants who prioritize their employees’ daily experience over prestige address considerations.
The Southfield corridor is a good example of this. Tenants who might have defaulted to a downtown Detroit address five years ago are making serious evaluations of well-managed suburban product that offers lower cost, easier parking, and a commute that works better for a distributed workforce. That calculus is playing out in leasing activity.
What This Means for Companies Evaluating Space Now
Metro Detroit asking rents remain among the most accessible in the Midwest, approximately $20.81 per square foot as of spring 2026. The combination of available high-quality suburban product, favorable pricing relative to other Midwest markets, and a limited new construction pipeline creates a window that is real but not unlimited.
As demand continues to recover and the best-positioned spaces absorb, the inventory of quality available options will shrink. The tenants who are decisive about their real estate decisions in the second half of 2026 will secure better spaces at better terms than those who wait for the market to give them a clearer signal. In our experience, by the time the signal is unmistakable, the best options are already off the table.
How Friedman Can Help
Our brokerage team works with tenants across Metro Detroit and the Midwest every day. We know which buildings are leasing, which landlords are flexible, and which spaces are going to move before they hit the open market. Whether you are a company evaluating your first commercial lease or an established tenant thinking about your next renewal or relocation, we can help you navigate the process and secure the right outcome.
We also represent landlords across the region, so we see both sides of every negotiation. That perspective makes our tenant clients better informed and better positioned at the table. If you are looking for office space in Metro Detroit heading into the second half of 2026, start the conversation now at friedmanrealestate.com or call us direct at 888.848.1671.
