Bulk warehouse demand wanes across Metro Detroit, but fundamentals remain solid on balance
Slackened conditions continued to be felt across the Detroit industrial market at the close of the third quarter. Decreased leasing activity and diminished net absorption were a consequence of lowered demand for bulk warehouse product. As market conditions have eased and demand remains unpredictable, landlords have adopted more assertive lease terms to secure tenants. Furthermore, spec construction largely remained on hold due to wavering demand and development costs. Construction activity continued its downward trajectory to its lowest level since 2019. Despite this, market vacancy (4.7%) remained at a healthy level and demand held firm for occupiers seeking smaller to mid-sized industrial facilities.