The Detroit industrial market is showing no signs of a slowdown, according to the latest research from CBRE.
According to CBRE’s third quarter Industrial MarketView report, the Detroit industrial market recorded 966,732 square feet of positive absorption during the third quarter of the year. That brought the market’s vacancy rate down to 2.1 percent.
How strong was the third quarter? CBRE says that net absorption in the quarter more than doubled the amount recorded in the previous two quarters combined.
The only negative in the the market were industrial lease rates that fell from $6.65 a square foot in the second quarter to $6.55 in the third.
Don’t expect industrial activity to slow in the Detroit market anytime soon, either. According to CBRE’s research, Detroit has more than 3.75 million square feet of industrial construction in the pipeline.
“We have seen much-needed new supply enter the market in the last year,” said Lauren Scarpace, senior vice president with CBRE. “Strong leasing activity is reflective of more available product. We should see strong leasing through the remainder of the year.”
The largest industrial transaction in the Detroit market during the third quarter was DSV’s lease of 227,067 square feet in nearby Romulus, Michigan. Four industrial construction projects were completed in the quarter, accounting for 323,727 square feet. A total of 2 million square feet of spec industrial projects isnow under construction.