Sure, Detroit’s industrial market has faced the pressure of high interest rates and increasing construction costs. And while industrial sales might have slowed, leasing activity remains robust in this sector, something that was evident during the Detroit Industrial Summit held Sept. 20 by Michigan Real Estate Journal and Midwest Real Estate News.
This meant there was plenty of optimism on display during the event, which attracted a full house of more than 180 Detroit-area industrial professionals to the Community House in Birmingham, Michigan, all eager to hear the thoughts of the industry’s top sector experts throughout the morning.
The summit focused on a wide range of topics, everything from predictions on how the industrial sector will perform next year to the impact of higher interest rates, the challenges of supply chain disruptions, economic development opportunities for investors and an overview of new industrial projects planned for the Detroit region.
Speakers said that while sales activity in the industrial sector is down — not surprising, as this has happened in nearly ever market thanks to higher interest rates — demand for warehouse and distribution space remains high throughout the Detroit market.
The region is benefitting, too, from a rising demand for electric vehicles, with many manufacturers opening new plants in the region dedicating to providing the parts needed for EVs.
On the whole? Despite the economy’s challenges, the mood during the summit was a positive one, with speakers looking for stability and a return to a more normalized market in 2024.
Speakers on the Industrial Real Estate Market Update panel focused on the strong demand that still exists for industrial properties in the Detroit market. Speakers included Brian Fineran, the panel’s moderator, with CoStar Group; Eugene Agnone, CBRE; Jared Friedman, Friedman Real Estate; Nathan Casey, NAI Farbman; Greg Hudas, Signature Associates; and Sean Cavanaugh, JLL.
Participants in the Capital Markets and Industrial Investment panel shared their hopes for a stronger 2024. Speaking on this panel were Joshua Bernard, Bernard Financial Group; Anne Galbraith Kohn, CBRE; Steven Sallen, the panel’s moderator, Maddin Hauser; Paul Kerber, Marcus & Millichap; Daniel Labes, Newmark; and Griffin Pitcher, Signature Associates.
The speakers on the Industrial Development, Design and Construction panel highlighted the challenges, and success stories, of the Detroit area’s industrial construction and development industries. Participants included Marc Werner, NorthPoint Development; Kyle Morton, Ashley Capital; Jeffrey Schostak, Schostak Development; Scott Stowitts, Oliver/Hatcher Construction; Stephen White, Albert Kahn Associates; Danny Samson, Sterling Group; and moderator Christopher Martella, Dawda Mann..
The partnership between economic development organizations and commercial developers has always been important. With today’s economic challenges, it might be even more crucial. Speaking on the event’s Regional Economic Development panel were Kurt Brauer, panel moderator, with Warner Norcross + Judd; Elizabeth Masserang, SME; Khalil Rahal, DTE Energy; Todd Drouillard, HED; Michael Abdallah, Oakland County; and Shannon Selby, Detroit Regional Partnership.
