Detroit industrial market continues to reset amid tepid occupier demand
The Detroit industrial market remained in a period of recalibration in the second quarter. Vacancy inched higher to 5.1%, marking an 80- basis-point (bps) increase from a year ago, as occupier demand continues to soften. Net absorption remained in negative territory year to date, totaling -0.6 million square feet (msf), well below the total for the first half of 2024. With move-outs still outweighing new activity, leasing has slowed, underscored by fewer large-scale transactions. The quarter’s largest lease came from Korex, which committed to 191,000 square feet (sf) in Novi, showcasing the subdued tenant pipeline that has emerged in recent months.