Detroit industrial market report

Q4 2022

The Detroit industrial market ended 2022 with overall low vacancy and a decrease in leasing activity as companies have a “wait and see” attitude with concerns around a potential recession.  Construction activity also decreased with only 3.7 msf currently under development, down 52% when compared to 2021.   Companies currently looking for space in the Detroit market now have large requirements for water, power, labor, and more complex infrastructure which is often not found in existing assets.  Delivering these components are often dependent on the delivery of federal and state incentives which are routed through local municipalities and utility companies causing extended timelines for the delivery of projects.
3.7%

Vacancy

Overall vacancy remains low, ending 2022 with 3.7% vacancy.  The Detroit market is especially limited in big-box availabilities over 100,000 sf which could lead to an increase in construction activity in the coming quarters.
13.5 msf

Leasing activity

Leasing activity decreased in 2022 compared to the year prior with a total of 13.5 msf leased, slightly lagging the 10-year average of 15.4 msf.
6.3% msf

Net absorption

A total of 6.3 msf of positive net absorption was recorded at the end of 2022, down from 9.1 msf that was recorded in 2021.
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