Detroit Industrial Figures Q4 2022

Market Summary

‒The Detroit market was steady in Q4 2022 with modest change to availability and vacancy, positive net absorption overall,  and 1 million sq. ft. of completed construction with an additional 3.3 million sq. f. under construction.

‒Industrial availability dropped to 2.5%, quarter over quarter, representing the fourth quarter since 2017 to post under 3.0% availability.

‒Overall industrial vacancy increased 10 basis points (bps), quarter over quarter, moving to 1.8%.

During Q4 2022, the Metro Detroit industrial market experienced a decrease in vacancy and net absorption and an increase in vacancy and average asking lease rates. Net absorption for the quarter was 398,134 sq. ft. Over the trailing 12 months, total absorption was just over 5.0 million sq. ft. During that same time period, the average asking lease rate decreased $0.01, moving to $7.06 per sq. ft. NNN. By the end of 2022, Michigan had won $15 billion in electric vehicle projects across five companies. The state of Michigan spent $2 billion funding the incentives. See Fig. 7 for market statistics by submarket.