Commercial Real Estate Market in Ann Arbor, MI
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
394 active listings and 4,059 off-market properties in Ann Arbor, MI. Commercial property asks $177/SF to buy and $23.01/SF/Yr to lease.
Market Trends
Ann Arbor, MI spans 142.0 square miles in Washtenaw County, Michigan. Figures below refresh monthly; last updated 31 August 2026.
Office
Office space in Ann Arbor, MI asks $25.44/SF/Yr to lease. Vacancy runs 21.3% across the Midwest region in 2025, up from 13.7% in 2019.
Average Lease Price $/SF/Yr
Listings
Vacancy Rate % in Midwest region
Retail
Retail space in Ann Arbor, MI asks $399/SF to buy. Vacancy runs 6.3% across the Midwest region in 2025, down from 8% in 2020.
Average Sale Price $/SF
Listings
Vacancy Rate % in Midwest region
Industrial
Industrial vacancy in Ann Arbor, MI runs 4.9% across the Midwest region in 2025, up from 4.4% in 2019. Nearly 1.6x the 2022 low of 3.1%.
Vacancy Rate % in Midwest region
Multifamily
Multifamily space in Ann Arbor, MI asks $198/SF to buy. Vacancy runs 8% across the Midwest region in 2025, up from 6.5% in 2022.
Average Sale Price $/SF
Listings
Vacancy Rate % in Midwest region
Market overview
Demographics & Economy
Ann Arbor, MI has 170,723 residents in 74,060 households. Density runs 1,202 people per square mile. Median household income here is $91,469 and median gross rent $1,596 a month.
170,723
Population
74,060
Households
2.3
Avg Household Size
30
Median Age
76%
College-Educated
98%
High-School Grad
142 sq mi
ZIP Area
1,202
Density / Sq Mi
$91,469
Median Household Income
$43,101
Median Earnings
$1,596
Median Rent
$456,588
Median Home Value
Tools
Lease vs Buy Breakeven
At $23.01/SF/Yr lease vs $177/SF buy → buying wins if held > 0.9 years.
At a 13% gross asking yield the payback reads short relative to leasing. Assumes 30% down at 6.5% fixed, 2% a year in taxes and upkeep, 3% appreciation, 5% opportunity cost, 2% closing plus 5% selling costs, and a 3% annual rent escalator.
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Northville | $74 (county avg) | $36.75 |
| Plymouth | $74 (county avg) | $19.16 |
Commercial property in Ann Arbor, MI asks $177/SF. The 2 bordering markets run from $74/SF in Northville to $74/SF in Northville, and the city sits above their $74/SF median.
Frequently Asked Questions
What is the average price per square foot for commercial property in Ann Arbor?
Commercial property in Ann Arbor, MI asks an average of $177 per square foot. Retail carries the highest asking price at $399/SF.
How much does it cost to lease commercial space in Ann Arbor?
Asking lease rates in Ann Arbor, MI average $23.01 per square foot per year. Office asks $25.44/SF/Yr as of Q1 26, up from $19.97/SF/Yr in Q4 25.
Is it cheaper to lease or buy commercial space in Ann Arbor?
Buying beats leasing in Ann Arbor, MI if the property is held longer than 0.9 years, comparing $23.01/SF/Yr asking rent with $177/SF asking price. The model assumes 30% down at 6.5% fixed, 2% of value per year in taxes and upkeep, 3% appreciation, 5% opportunity cost on the cash and a 3% annual rent escalator.
How does Ann Arbor compare to nearby markets on price?
Ann Arbor, MI asks $177/SF against $74/SF in Northville and $74/SF in Plymouth. Northville is the cheapest entry point at 58% below Ann Arbor pricing, with $36.75/SF/Yr asking rents.
Where does Realmo's Ann Arbor market data come from?
Realmo compiles Ann Arbor, MI figures from 5 recent recorded sales, 221 active sale listings, 173 active lease listings, 4,059 tracked off-market properties. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 221 active for-sale and 173 active for-lease listings in Ann Arbor, MI. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Refresh
- The monthly aggregates close at the end of the previous month, so 31 August 2026 — not today — is the honest last update.
- Known limitations
- office vacancy is reported at Midwest region level, retail vacancy is reported at Midwest region level and industrial vacancy is reported at Midwest region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 31 August 2026 · report a data issue
