DETROIT (WXYZ) — With less people working in Downtown Detroit office space, Manager at Avalon Bakery Genna Morand said their regulars and baked goods, like their carrot-pineapple muffin, keep business flowing.
"It’s really just the foot traffic day-to-day that has become lessened," said Morand.
According to Detroit office research published in the third quarter of 2023 by Avison Young, a commercial real estate company, the total Detroit office leasing volume in 2023 was 513,000. That's 33% less than the third quarter of last year.
The research says between Detroit and The Points, there's 35,321,970 square feet of existing office space, 17% of which is directly available.
Managing Director of Avison Young Detroit, Jim Becker told 7 Action News it all started during the pandemic.
"We developed a lot of momentum pre-pandemic and it was almost like a kick to the shins to really slow down the progress," said Becker.
Becker has referred to the Hudson Site in Downtown Detroit as the "elephant in the room."
As office spaces sit empty downtown, the Hudson is expected to open in 2024, adding about 404,000 square feet of more office space to downtown.
"They’ve got the best, biggest block of space in the marketplace, and they want to lease it, so they’re the ones the focal point is on," said Becker.
The Hudson site is expected to become the standard for high-end downtown office space.
Becker said this aligns with the current trend of businesses who are leasing offices choosing ones that are smaller in size but more high-end.
"I think in the long term, it’s a great investment that they’re making," said Becker. "I think there’s gonna be some short-term struggles because it’s going to take time to lease the space."
With less workers downtown currently, Morrand said Bedrock has given their employees coupon books to spend money downtown.
It's an appreciated incentive when the city is quieter, but Avalon isn't worried.
The bakery originally opened downtown in 1997, they've been there through many changes and say they will still be here when office space eventually starts to fill up again.
"I think you’ll see some recovery in the next year," said Becker. "I think in the next five years you’ll see a return to normal."
