It noted "healthy increases" in Comerica Bank's Detroit Area Business Activity Index. According to Grubb & Ellis, the Detroit region has an 11.1% vacancy rate in its industrial space, which is higher than the national average of 9.7%.
"The industrial leasing market is revving up, but it is unclear how much horsepower is under the hood. Some economic indicators tied to demand for industrial space have throttled back recently, including factory orders, durable goods orders and industrial production," according to the report. "Other indicators, however, suggest a green light ahead, such as the ISM Index and several of the regional manufacturing surveys."
Research and development/flex space in the Detroit area is going for an average $9.70 per sf, according to Grubb & Ellis, while warehouse space has an average asking rate of $4.36.
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