Detroit Industrial Investment Forecast
Detroit Maintains Reputation as a Stable Market,
Attracting Outside Buyers to Local Industrial Hubs
Expanding users respond to second straight year of heightened development. Since 2015 vacancy in Detroit has held below 5 percent signaling consistent demand for industrial space. Last year leasing velocity outpaced the surge in construction activity as logistics and e-commerce-related demand strengthened. Offering lower costs than some other Midwest markets demand for 100000-square-foot-plus floorplans was particularly robust. Larger commitments were most frequent in the Airport-I-275 submarket where nearly 2.4 million square feet was absorbed last year. Additionally the Detroit and East Area submarkets the metro's second and third largest locales by stock each recorded vacancy compression. Improving fundamentals across major submarkets have prompted additional project starts that will translate to another year of elevated development. Still vacancy is poised to hold below the 5 percent mark as user demand for modern distribution and warehouse facilities coupled with an expanding manufacturing sector foster lease executions near major interstates and the Detroit Metro Airport.