DETROIT—Newmark Grubb Knight Frank has just completed 10 industrial leases totaling 215,102 square feet in suburban Sterling Heights, all within a 13-day period. The quick series of deals will help the region continue a solid run of activity that has pushed vacancy rates in several submarkets to historic lows.    

 “The vacancy rate in Sterling Heights, part of Macomb County, is currently extremely low at about 3.7%,” says Chris Dowell, a senior managing director in the company's Detroit office. Dowell and Jack Coury, also senior managing director, along with three other NGKF brokers represented both the landlords and the tenants in transactions. “Jack and I used our resources and relationships within NGKF, along with our familiarity with the market, and we were able to consummate these 10 deals quickly for our clients.”

The overall vacancy rate in the Detroit region sank to just 7.6% in the first quarter, according to a just-released report by NGKF. Users absorbed just over 3 million square feet of space in the quarter, and 1.2 million square feet was absorbed in Macomb County alone. This activity comes on the heels of a solid 2014. Users absorbed 6.1 million square feet over the course of the year, up from 5.7 million square feet in the previous year.   

And NGKF also found that the increasing demand has started to have an impact on rents and new construction. Developers completed more than 600,000 square feet of new construction in the past two quarters and have about 2 million square feet currently under construction, the highest rate since 2006. And rents have soared in submarkets with low vacancy rates such as Macomb and Southeast Oakland County, with the latter seeing a 13% rise in asking rents.  

The new leses by NGKF include:

  • A 108,000 square-foot lease for Sodecia North America, Inc. at 42600 Merrill Rd. The manufacturing facility features a 6,000 square-foot mezzanine area, four overhead doors, six exterior truck wells and a 10-ton crane. Robert Pagano, a senior managing director in NGKF's Detroit office, also represented the landlord.
  • Central Irrigation leased6,450 square feet at 42730 Merrill Rd. Built in 1985, this industrial property features 1,200 square feet of office space and 14' clear height.
  • A supplier of specialized manufacturing equipment for the automotive industry, HTI Cybernetics,leased 24,829 square feet at 6855 19 Mile Rd.
  • A 13,727 square-foot lease was signed with Fraza Forklifts at 6430 19 Mile Road. Built in 1984, this property features a mezzanine, sealed shop floor, exhaust fans as well as main road exposure. Mike Davidson, senior managing director at NGKF, represented the tenant.
  • A supplier of factory automation and conveyor systems, Bleichert, Inc., leased 13,629 square feet at 6545 19 Mile Rd.
  • A local defense contractor leased 16,295 square feet at 6615 19 Mile Rd. as well as 3,760 square feet of industrial space at 7657 19 Mile Rd. Geoffrey Hill, senior managing director in NGKF's Detroit office, represented the tenant.
  • A leading undercar and under hood auto parts warehouse in southern Michigan, Motown Automotive, leased 5,050 square feet at 7625 19 Mile Rd.
  • A 9,127 square-foot lease was signed by Superior Warehousing & Distribution, Inc. at 36715 Metro Court. Davidson represented the tenant.
  • Rapidfit, Inc., a provider of 3D-printed fixture solutions for the automotive industry, leased 14,235 square feet at 35660 Beattie Dr.
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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.