The Detroit industrial market saw a rise in vacancy rates to 4.2% in Q3 2024, with nearly 1 million square feet of new vacancies. Bulk warehouse absorption is slow, with Class A spaces at a 7.6% vacancy rate, signaling an oversupply.
The electric vehicle (EV) industry is driving demand, with major projects like General Motors’ new hydrogen fuel cell plant and Piston Automotive’s 715,012-square-foot logistics center boosting industrial activity. However, leasing has slowed, and speculative developments are on hold through 2025 due to high vacancy.
Rents are stabilizing, with a modest 2.6% year-over-year increase, and more space entering the market may keep them in check. Overall, the Detroit industrial market faces challenges but shows potential for EV-related growth.
