Detroit Industrial Market Keeps Rising

Located at 28101-28201 Schoolcraft Rd. in Livonia, MI, the Livonia Corporate Center, Phase II speculative development has two buildings and 915,000 square feet.

DETROIT—The Metro Detroit industrial market suffered more than most during the Great Recession, but in the past few years it has soared. And 2018 is shaping up to be another great year. New construction starts jumped 30.0% to 5.9 million square feet during the first quarter, according to Newmark Knight Frank. And the addition of so much new space meant vacancy held steady at 5.1%, although tenants absorbed just over 565,000 square feet.

“It’s still a very active market, largely due to increased diversity,” John DeGroot, vice president, research, tells GlobeSt.com. A market once highly dependent on the auto industry has seen the proliferation of bulk warehouses devoted to e-commerce, logistical facilities, and medical supply buildings.