Detroit industrial big box vacancy remains the lowest

Vacancy by building size in the Detroit in market
  • Vacancy in inventory 500,000 sf and up remains the lowest across all building size ranges, recorded at 1.5% at the end of the second quarter 2024. Overall vacancy remains notably low at 3.5%, indicating a tight market.
     
  • This scarcity in big box inventory can largely be attributed to the lack of speculative development for buildings over 500,000 sf. Buildings 500,000 sf and up that delivered to the market since 2021 to 2024 totaled 13.1 msf of which all is spoken for except 717,685 sf in two buildings, representing just 5.4% of new big box inventory.
     
  • The Detroit industrial market has been historically conservative regarding new development which has benefited market fundamentals. There is currently 1.3 msf under development with an average building size of 87,877 sf. The inventory under construction is 71% preleased which will keep vacancy low and new product options limited.

September 25, 2024

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US-MI-DT Detroit