BY THE NUMBERS
DETROIT—The Detroit industrial market continued to tighten in the third quarter, as tenants absorbed another 2.6 million square feet, driving up asking rates to $6.04 per square foot, the first time that rates have topped $6 in the region, according to CBRE's Industrial MarketView. The average asking rate for the quarter is $0.75 higher year-over-year, and more than $1.50 higher than it was just two years ago. Overall, the vacancy dropped to 2.29% as the market recorded its 26th consecutive quarter of positive absorption. And construction continues at a swift pace. Developers delivered 2.2 million square feet in five buildings during the third quarter. Builders currently have 20 projects under construction for a total of 4.8 million square feet. Build-to-suit projects account for 72% of this activity. “As asking rates continue to rise towards pre-recession highs, we could see developers consider more speculative projects as the demand for occupants and the economics align,” says Peter Rogers, vice president, CBRE.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
