The time has come for Detroit to show its industrial prowess again. However, dilemmas exist, there is significant demand for quality space and not enough new supply to satisfy it, case in point, total availability is 9.3 percent.

1. Industrial Outlook
Detroit | Q4 2015

2. Ground up completionsversus average asking rents
Source: JLL Research
Detroit’s geographic advantage
Source: JLL Research, Google Maps
City of Detroit submarket fundamentals
Source: JLL Research
Detroit industrial stagnant but awaiting a boom
Industrial Insight
Detroit | Q4 2015
42,236,414
Total availability (s.f.)
4,434,386
YTD Total net absorption (s.f.)
$4.42
YTD Average Asking Rates
1,864,503
Total under construction (s.f.)
9.3 %
Total Availability
1.0 %
YTD total net absorption
9.5 %
YOY Rent Growth
1,348,000
YTD completions (s.f.)
$2.60
$2.80
$3.00
$3.20
0%
10%
20%
30%
2012 2013 2014 2015
Total Available Asking rents
0
500,000
1,000,000
1,500,000
2,000,000
$3.50
$4.00
$4.50
2012 2013 2014 2015
Completions (s.f.) Average Asking Rents
Industrial market needs a risk taker
The time has come for Detroit to show its industrial prowess again. However,
dilemmas exist, there is significant demand for quality space and not enough
new supply to satisfy it, case in point, total availability is 9.3 percent. What may
be good for tenants in the form of low asking rates, which are $4.42 a square
foot, may be frustrating for the market as a whole. Developers are hesitant to
start speculative construction with rents still below $5.00. Thus, we have an
underserved market with pent up demand. The question is, when will a developer
will see enough upside to take on large scale speculative construction?
Detroit’s strategic advantage is its location
A 144-acre Sterling Heights land development is just one investment fueling
rapid industrial growth in Southeastern Michigan. State and local officials are
researching a $1.6-billion plan that could make Detroit the new logistics capital of
the Midwest. In addition to the major economic growth this would offer, a
potential of 22,000 long-term jobs in Michigan with up to 8,000 right here in
Detroit could be created. The chart to the right highlights Detroit’s location
advantage and company’s ability to reach 50 million plus people in a drive time
of six hours.
Clustering together has economic and innovative advantages
Detroit is seeking to restore manufacturingcapacity and jobs at the I-94
Industrial Park near the junction of I-94 and I-75 and the American Axle &
Manufacturingheadquarters. Manufacturers are interested in the I-94 Industrial
Park because of its proximity to highways and existing infrastructure. Companies
are coming to the realization that clustering together has immeasurable
economic and innovative advantages. Lear Corporation is demonstratingthat it
believes in Detroit, by investing in downtown offices and doubling down on its
investment in Detroit by establishing a new manufacturing plant in the next two
years, thus it is leading by example.
240 miles
120 miles
360 miles
JLL | Detroit | Industrial Outlook | Q4 2015

3. Industrial statistics
Detroit | Q4 2015
JLL | Detroit | Industrial Outlook | Q4 2015
Inventory
(s.f.)
Quarterly
total net
absorption
(s.f.)
YTD
total net
absorption
(s.f.)
YTD
total net
absorption
(% of stock)
Total
availability
(s.f.)
Total
availability
(%)
Average
total asking
rent
($ p.s.f.)
Quarterly
completions
(s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Market Totals
Warehouse & Distribution 237,615,692 3,067,097 3,042,445 1.3% 26,915,812 11.3% $4.42 190,000 793,000 1,789,721
Manufacturing 215,489,840 -148,636 1,391,941 0.6% 15,320,602 7.1% $4.43 0 555,000 480,502
Totals 453,105,532 2,918,461 4,434,386 1.0% 42,236,414 9.3% $4.42 190,000 1,348,000 1,864,503
Flex 50,572,710 390,355 1,281,250 2.5% 7,686,119 15.2% $7.94 0 0 0
Airport / I-275 Corridor
Warehouse & Distribution 56,100,463 848,815 597,228 1.1% 5,876,703 10.5% $4.44 0 52,000 0
Manufacturing 39,251,034 334,208 618,350 1.6% 2,766,609 7.0% $3.90 0 0 58,000
Totals 95,351,497 1,183,023 1,215,578 1.3% 8,643,312 9.1% $4.27 0 52,000 0
Flex 7,332,609 33,006 259,750 3.5% 1,216,190 16.6% $7.77 0 0 0
City of Detroit
Warehouse & Distribution 37,881,117 670,350 1,652,585 4.4% 7,828,193 20.7% $2.83 190,000 531,000 690,000
Manufacturing 33,800,868 12,264 -201,055 -0.6% 4,565,751 13.5% $3.44 0 0 0
Totals 71,681,985 682,614 1,451,530 2.0% 12,393,944 17.3% $3.05 190,000 531,000 690,000
Flex 1,977,136 3,591 72,866 3.7% 397,423 20.1% $6.06 0 0 0
Downriver
Warehouse & Distribution 19,519,498 225,679 471,793 2.4% 3,086,164 15.8% $4.23 0 0 0
Manufacturing 22,546,096 -505,413 -530,779 -2.4% 893,963 4.0% $4.25 0 0 0
Totals 42,065,594 -279,734 -58,986 -0.1% 3,980,127 9.5% $4.23 0 0 0
Flex 5,109,841 -10,000 130,155 2.5% 611,418 12.0% $7.61 0 0 0
I-96 Corridor
Warehouse & Distribution 26,784,678 797,469 680,867 2.5% 1,739,425 6.5% $5.80 0 100,000 185,000
Manufacturing 14,749,575 225,273 242,171 1.6% 1,237,874 8.4% $5.81 0 0 281,502
Totals 41,534,253 1,022,742 923,038 2.2% 2,977,299 7.2% $5.80 0 100,000 466,502
Flex 8,664,912 -29,190 169,036 2.0% 1,239,309 14.3% $8.72 0 0 0
Macomb County
Warehouse & Distribution 39,775,950 213,120 -859,969 -2.2% 3,988,252 10.0% $4.31 0 110,000 30,000
Manufacturing 56,719,399 19,143 1,323,687 2.3% 1,600,624 2.8% $4.51 0 555,000 0
Totals 96,495,349 232,263 463,718 0.5% 5,588,876 5.8% $4.37 0 665,000 30,000
Flex 4,324,240 -16,981 30,169 0.7% 551,477 12.8% $6.92 0 0 0
Monroe County
Warehouse & Distribution 4,862,833 -3,000 -754,746 -15.5% 1,022,362 21.0% $3.25 0 0 0
Manufacturing 7,280,285 0 88,095 1.2% 94,085 1.3% $3.25 0 0 0
Totals 12,143,118 -3,000 -666,651 -5.5% 1,116,447 9.2% $3.25 0 0 0
Flex 281,190 0 107,474 38.2% 0 0.0% $0.00 0 0 0
Northern I-75 Corridor
Warehouse & Distribution 42,685,138 413,316 1,062,862 2.5% 2,898,564 6.8% $5.62 0 0 449,457
Manufacturing 29,611,291 -218,838 -492,536 -1.7% 2,342,546 7.9% $4.81 0 0 141,000
Totals 72,296,429 194,478 570,326 0.8% 5,241,110 7.2% $5.26 0 0 590,457
Flex 14,809,991 389,938 471,989 3.2% 3,040,643 20.5% $7.35 0 0 0
Washtenaw County
Warehouse & Distribution 10,099,162 27,848 188,797 1.9% 588,273 5.8% $6.36 0 0 87,544
Manufacturing 11,542,928 -15,273 344,008 3.0% 662,671 5.7% $4.09 0 0 0
Totals 21,642,090 12,575 532,805 2.5% 1,250,944 5.8% $5.16 0 0 87,544
Flex 8,049,756 -1,651 82,818 1.0% 572,478 7.1% $11.45 0 0 0

4. Industrial Submarket Map
Notable 2015 sales transactions
2800 High Meadow Circle
Sale Price: $40,025,000; $144 p.s.f
Square feet: 278,000
Buyer: Lexington Realty Trust
24358 Groesbeck Highway
Sale Price: $9,584,000; $45.64/SF
Square feet: 210,000
Buyer: Crowne Group, LLC
29265-29285 Airport Drive
Sale Price: $17,800,000; $28 p.s.f
Square feet: 664,645
Buyer: Time Equities
13700 Oakland Avenue
Sale Price: $23,500,000; $63 p.s.f
Square feet: 370,600
Buyer: Brennan Investment
JLL | Detroit | Industrial Outlook | Q4 2015

5. Job growth/loss by sector (12-month change): Detroit
Industrial employment trends (12-month change, 000s): Detroit
Employment vs. unemployment rate: Detroit
Industry employment stratification: Detroit
Job growth (12-month change): United States vs. Detroit
Industrial employment update
Detroit | Q4 2015
5.0%U.S. unemployment
1.2%U.S. 12-month job growth
5.2%Detroit unemployment
1.8%Detroit 12-month job growth
5.1%Michigan unemployment
1.7%Michigan 12-month job growth
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
2010 2011 2012 2013 2014 2015
Detroit United States
0%
4%
8%
12%
16%
20%
1,550,000
1,650,000
1,750,000
1,850,000
1,950,000
2,050,000
2,150,000
2005 2007 2009 2011 2013 2015
Nonfarm employment
Unemployment
Professional &
Business Services,
381,000 , 19%
Trade, Transportation
& Utilities,
367,800 , 19%
Educational & Health
Services,
313,400 , 16%
Manufacturing,
249,000 , 13%
Government,
183,700 , 10%
Leisure & Hospitality,
182,100 , 9%
Financial Activities,
110,400 , 6%
Other Services,
77,500 , 4%
Mining, Logging &
Construction,
73,100 , 4%
Information,
27,200 , 1%
-4,300
-1,500
-400
2,000
3,600
4,400
4,500
5,600
9,100
10,800
-6,000 -2,000 2,000 6,000 10,000
Government
Other Services
Information
Manufacturing
Leisure & Hospitality
Mining, Logging & Construction
Trade, Transportation & Utilities
Financial Activities
Educational & Health Services
Professional & Business Services
JLL | Detroit | Industrial Outlook | Q4 2015
-40.0
-20.0
0.0
20.0
40.0
2010 2011 2012 2013 2014 2015
Trade,Transportation & Utilities
Manufacturing
Other Services
Mining, Logging & Construction

6. For more information, please contact:
Andrew Batson
Manager, Research
+ 1 216 937 4374
Andrew.Batson@am.jll.com
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Executive Vice President, Brokerage
+ 1 248 581 3333
Dave.Macdonald@am.jll.com
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Analyst, Brokerage
+ 1 248 581 3326
AJ.Rich@am.jll.com
About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased
value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $4.7 billion and gross revenue of $5.4
billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000. On behalf of its
clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square
meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment
Management, has $56.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle
Incorporated. For further information, visit www.jll.com.
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