Several Midwest markets shine with industrial vacancy rates below national average
- Across four of the Midwest’s key industrial markets, Detroit stands out with a vacancy rate that’s 4% below the national average. Minneapolis and Chicago’s vacancy rates are tracking closely in the mid-5% range, indicating continued landlord-favorable conditions.
- Indianapolis’ vacancy rate has more than doubled since 2021, primarily driven by new supply growth that was more pronounced than its peer markets. While the U.S. total vacancy rate has also doubled over the last three years, the average climb in vacancy rates since 2021 across Chicago, Detroit, and Minneapolis has been less steep at 29%.
- Multi-state logistics and manufacturing requirements may want to focus their search further south in the Indianapolis market, where tenants will have more options, especially in new speculative spaces. Investors in Chicago, Detroit, and Minneapolis will continue to see balanced supply growth keeping vacancies in check for the foreseeable future.
March 18, 2025
