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E-Commerce Diversifying the Industrial Base

Regions like Detroit may rely heavily on auto manufacturing, but big distribution buildings tied to e-commerce have begun driving absorption numbers.

det-livonia2 (3) Amazon’s new distribution center in Livonia, MI, recently opened.

DETROIT—The last few years have been stellar ones for the Detroit region’s industrial market, and robust demand should continue fueling expansion throughout 2018, according to a new report from Newmark Knight Frank. What makes this forecast remarkable is that the automotive industry, the economic backbone of the region, has hit a plateau after a period of staggering growth. But new sources of strength should keep the overall vacancy rate at a historic low and sustain record-breaking levels of new construction.

“Our market is getting more diverse,” John DeGroot, research director of NKF’s Detroit office, tells GlobeSt.com. “The automotive industry has slowed down a little bit, but we’re seeing the e-commerce sector, along with the medical supply industry, filling in and creating additional demand.”

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Brian J. Rogal

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.

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