Newmark announces 710,066 square feet of industrial leasing activity on behalf of STAG Industrial, Inc. (NYSE: STAG) in metro Detroit since the beginning of 2021.
Newmark Executive Managing Director Dan Labes represented the landlord, STAG, in the five lease renewals across five different warehouse distribution facilities. The leases represented a 20 percent increase in rental income on average with annual rent escalations averaging over 3 percent. Tenant industries ranged from 3PLs to e-commerce companies to auto suppliers.
“These transactions demonstrate the strength of the industrial market in metro Detroit, which continues to be an incredibly attractive area metro for industrial businesses to operate,” said Labes. “With few vacancies and a very tight market, industrial tenants who are looking for space are often limited when it comes to relocation options, so structuring renewals becomes paramount.”
According to Newmark Research’s Q3 2021 Metro Detroit Industrial Market report, the metro Detroit vacancy rate fell 20 basis points to 4.2 percent during the third quarter, as just over 956,000 square feet were absorbed.