Ann Arbor’s office and flex space occupancy rates dropped slightly in 2024. That’s according to the annual report by Swisher Commercial. However, it may be a long time before they reach pre-pandemic levels.
Overall, the vacancy rate dropped from 14.6% in 2023 to 14.3% last year. The results were mixed across Ann Arbor. The study included all non-owner-occupied buildings over 5,000 square feet.
Swisher associate broker Scott Schmunk says many businesses are moving away from renting space.
“If they can afford it, people are buying it. They would prefer to own their space now, as opposed to leasing it. With rents where they’re at, interest rates where they’re at, they’d rather put equity into their own buildings. They don’t want to put it into someone else’s building.”
Schmunk says businesses that are renting are looking for more amenities for their employees, including health and wellness offerings, open spaces and concierge services.
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