Detroit Industrial Market Report
Supply Chain Complications Necessitate Connected Locations,
Draw in Companies
Renewed confidence in Detroit spurs leasing activity. With deep roots in manufacturing , Detroit's industrial sector emerged from pandemic headwinds relatively unscathed. While a net of 2.7 million square feet was relinquished in 2020, vacancy never broke above 5 percent, and demand has improved significantly since. Last year was the third strongest period for net absorption across two decades. Leasing is expected to remain sturdy as companies expand in the metro. Ford and General Motors announced intentions to house their electric vehicle operations in the Detroit area earlier this year. Both companies have allocated billions to their manufacturing facilities in the market, and the metro is expecting a culmination of around 10,000 jobs created as a result. Downstream partnerships in the auto industry support space demand, while job creation boosts retail spending and ultimately the need for storing goods locally.