DETROIT—In some ways, the Detroit industrial market has mirrored the rise also seen in Chicago's industrial market. Both have performed very well in the post-recession era and continue to show resilience and an ability to expand. But while Chicago has been heavily dependent on bursts of activity from companies involved in e-commerce, Detroit has an additional source of energy.
“The auto industry is the main driver for the Detroit metro economy,” John DeGroot, vice president of research for Newmark Grubb Knight Frank, tells GlobeSt.com. “There is a direct relationship between the level of auto production and the vacancy rate for industrial properties.”
In 2010, just as the worst effects of the recession had begun to dissipate, annual auto production was less than 10 million vehicles and the vacancy rate stood at more than 16%. “After 2010, auto production took off like we've never seen it before,” says DeGroot. And the vacancy rate now stands at just 5.3%, according to a year-end report just issued by NGKF.
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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.
