Market decelerating at year’s halfway point as demand ebbs, fewer large leases executed
A mild but increasingly protracted slowdown was observed across the Detroit industrial market at the midpoint of 2024. Bulk warehouse continued to experience stymied demand, reflected in the market’s decreased leasing activity and diminished net absorption. With conditions softened and demand uncertain, landlords have become more aggressive with their lease terms in the hopes of attracting and retaining tenants. Furthermore, developers continued to apply the brakes on new spec builds, with construction activity falling to its lowest level since 2019. Meanwhile, at 5.2% the region’s unemployment measure in May reached its highest level in more than two years and was considerably above the 4.0% U.S. unemployment rate.