Demand holds strong across Metro Detroit despite growing prospects of economic slowdown
Asking rents across the Detroit industrial market reached record heights in the third quarter, the seventh consecutive quarter in which rates increased. Averaging $6.17 per square foot (psf) this period, asking rents have risen 8.8% year over year and are up 16% since the start of the pandemic. New development, which has been plentiful over the past two years, has had a significant impact on rental rate growth. Despite more than 5.5 million square feet (msf) of new product delivered across Southeast Michigan this year, vacancy is relatively steady. While options exist across the region for both large and small users seeking space, Metro Detroit remains a competitive market. Tenants and purchasers are typically competing against one another for the best-quality spaces, especially in the most in-demand submarkets.