Move-outs, economic uncertainty contribute to gradually weakened market dynamics
The Detroit industrial market entered 2025 navigating an evolving landscape marked by uncertainty in trade and macroeconomic policy. Overall market vacancy was up 90 basis points (bps) from a year ago to 5.2%. While it reached its highest level in more than five years, Detroit’s vacancy nevertheless stood lower than comparable markets in the United States. Leasing activity was lower, with momentum hindered by shifting priorities among automakers and resulting uncertainty from industry suppliers. Meanwhile, space givebacks were comparatively elevated this period. At -1.1 million square feet (msf), absorption remained in negative territory for the third consecutive quarter.