Industrial demand holds strong in Detroit, bucking softening trend observed in most large markets
The steady Detroit industrial market continued to stand in contrast to most other North American markets which have generally seen a shift to pre-Covid fundamentals. Detroit’s topline metrics held relatively firm this period, notably its 3.8% overall vacancy rate that was unchanged from Q2 2023 and decreased by 90 basis points(bps) from a year ago. Net absorption remained positive for the fifth consecutive quarter, up nearly 1.2 million square feet(msf).Construction levels had trended lower for four straight quarters, but volumes increased this period due to an uptick of new spec and build to suit projects as demand remained elevated for quality options in the most desirable locations. Meanwhile, the nearly 1.2 msf of deliveries this quarter provided some relief to generally tight conditions.