Detroit Industrial Market Report

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.