Demand for lease space in all industrial product types continues to remainflat throughout Metropolitan Detroit, according to the report. Although the automotive industry is optimistic about the latter half 2003, the first half will likely remain sluggish, the company said. Given an unlikely turn around in the economy in the coming quarters, construction of proposed and planned properties will likely be delayed, the market report said.
However, sales remained strong because of attractive interest rates, said the company. And though it's unlikely there will be increases in lease activity for industrial space in the first half of 2003, demand will grow during the latter half of the year as corporations make profits and accumulate capital to investin newer or larger facilities.
"We expect users to purchase industrial buildings at an increasing rent.Industrial users have determined that the low interest rate environment hascreated a once-in-a-lifetime opportunity to gain equity in real estate,"said Mike Gerard, EVP and managing director for Grubb & Ellis.
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