DETROIT—Vacancy and net absorption in Detroit's industrial sector have now reached levels not seen in over 20 years, according to a report by Newmark Grubb Knight Frank on fourth quarter industrial trends data. And experts from the firm say the region still has a lot of capacity for growth.
"The metro Detroit market is essentially at full capacity," John DeGroot, vice president of research at NGKF, tells GlobeSt.com, mostly due to the resurgence of the US auto industry, which saw sales reach 17.4 million units in 2015, topping a record set in 2000. "There are ten mega distribution facilities with at least one million square feet in the region, and each is between 95% and 100% occupancy."
The overall vacancy rate fell 10 bps to just 6.6% during the fourth quarter, as just over 2.5 million square feet was absorbed. And net absorption for 2015 reached a historic high of just under 10 million square feet. During the economic recession, vacancy increased to around 16%, but since 2010, the industrial market has absorbed nearly 37 million square feet.
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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.
