Metro Detroit’s industrial market vacancy rate fell 50 basis points to 10.6% during the second quarter of 2013 as just over 1.6 million square feet was absorbed bringing the year-to-date total net absorption to just over 3.8 million square feet. Continued momentum in the automotive industry and the manufacturing sector is driving demand for industrial space at a greater pace, as reported in Newmark Grubb Knight Frank’s Detroit Industrial Market Trends Report - 2nd Quarter 2013. In comparison, the first half of 2012 saw roughly 1.7 million square feet of positive absorption. The expansion of the manufacturing sector is not only driving metro Detroit vacancies down but also spurring new construction in areas of southeastern Oakland County.
Key statistics for the metro Detroit industrial market during the second quarter of 2013 are as follows:
• Southern Wayne County’s industrial vacancy rate fell 150 basis points to 10.5% during the second quarter of 2013 with just over 817,000 square feet of absorption. Significant leasing activity in Romulus accounted for the bulk of this space.
• Southeastern Oakland County’s industrial vacancy rate fell 20 basis points to 9.1% with absorption of more than 181,000 square feet. Construction activity continues to heat up in Southeast Oakland. Ralco Industries started construction on a new 125,000-square-foot facility in Auburn Hills on 18.8 acres.
• The Western Wayne County submarket’s vacancy rate fell 80 basis points to 9.5% as 478,000 square feet was absorbed. This marks the first time the Western Wayne industrial vacancy rate has been below 10% since the fourth quarter of 2004.
• The Macomb County industrial vacancy rate fell 30 basis points to 5.9% with positive absorption of just over 345,000 square feet. One of the biggest deals during the second quarter was Kwang Jin America Inc.’s 131,000-square-foot lease on Eleven Mile Road in Warren.
• Southwest Oakland County’s vacancy rate fell 20 basis points to 10.5% during the quarter as just over 64,000 square feet was absorbed. American Expedition Vehicles’ purchase of an 80,000-square-foot facility on Ladd Road in Commerce Township was one of the submarket’s largest deals during the quarter.
To access the full Metro Detroit industrial report, visit www.ngkf.com/research. To speak with one of the company’s local market experts, please contact Mira Matic at firstname.lastname@example.org.
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