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Market Report

Detroit Industrial Market Report

2024 Investment Forecast

Motor City Weathered 2023 Labor Disputes and Enters the
Year With Balanced Industrial Outlook


Detroit continues streak of stability. While many markets have seen recent dramatic swings in vacancy, Detroit’s rate has stayed in the low-3 to low-4 percent range since 2015. Nearly 48 million square feet of space came online during this nine-year span, exhibiting the metro’s ability to absorb new supply with a minimal impact to vacancy. Consistently low available space in the Detroit Airport-Interstate 275 area and northeast Detroit — the metro’s two largest submarkets by inventory — has been a contributing factor to this stability. These areas also host roughly half of 2024’s delivery slate, most of which is pre-leased. While autoworker labor disputes significantly slowed net absorption in the fourth quarter of 2023, the strike was resolved entering this year with a four-year contract. Together, these dynamics are poised to facilitate one of the only overall vacancy compressions among major markets in 2024. This may encourage industry-related firms to follow through on planned moves or expansions. Automotive parts suppliers like Autokiniton and MSC Industrial Supply have already signed leases for 2024 move-ins.

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