For the remainder of 2019, we expect the excellent fundamentals to remain. Rent growth should continue albeit at a slower pace than seen in previous quarters. The construction pipeline is healthy with over 3.1 million in development.

1. © 2019Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q1 2019
Detroit
Industrial Insight
On the heels of a solid 2018, the Detroit industrial market has maintained
momentum in the first quarter. Vacancies held steady, sitting at 5.3 percent,
as just under 484,000 square feet of space was absorbed, while rent growth
was flat quarter-over-quarter, with average asking rents at $5.44 per square
foot. Samsung SDI signed a 137,560-square-foot lease at 50 Continental Drive
for its new $62.7 million battery plant, while Delphi Automotive renewed their
44,000-square-foot lease at 1624 Meijer Drive. Global Net Lease remained an
active buyer in the market, purchasing 5288 Shelby Parkway, a 360,000-
square-foot manufacturing facility in Shelby Township, for $48.5 million after
acquiring a 606,000-square-foot cold storage building at 15520 Wayne Road in
Romulus for $126.6 million late last year. Broadstone Real Estate purchased
46200 W 12 Mile Road in Novi, a 65,500-square-foot warehouse, for
approximately $10.0 million at a 7.2 percent cap rate.
The big three automakers each made headlines this quarter with large-scale
announcements, led by FCA’s plans to invest $4.5 billion in southeast
Michigan including a new plant in Detroit. General Motors will invest $300.0
million into its Orion Assembly Plant to manufacture a new electric vehicle,
and Ford announced plans to create an autonomous vehicle manufacturing
center in southeast Michigan but has not yet disclosed the location.
Outlook
For the remainder of 2019, we expect the excellent fundamentals to remain.
Rent growth should continue albeit at a slower pace than seen in previous
quarters. The construction pipeline is healthy with over 3.1 million in
development. However, any increase in the pipeline will be based on
developers’ ability to fill the projects currently under construction. Sales
activity should remain robust with high per-square-foot sale prices being
achieved.
Fundamentals Forecast
2019 YTD net absorption 483,978 s.f. ▲
Under construction 3,112,245 s.f. ▲
Total vacancy 5.3% ▼
Average asking rent (NNN) $5.44 p.s.f. ▶
Tenant improvements Falling ▼
0
5,000,000
10,000,000
2015 2016 2017 2018 YTD
2019
Supply and demand (s.f.) Net absorption
Deliveries
Rent growth slows as vacancies hold steady
9.3%
7.5%
5.7% 5.3% 5.3%
2015 2016 2017 2018 YTD 2019
Total vacancy
For more information, contact: Harrison West | harrison.west@am.jll.com
• Samsung SDI signed a 137,560-square-foot lease at 50 Continental Drive
in Auburn Hills for its new $62.7 million battery plant.
• The big three automakers each made headlines this quarter with large-
scale announcements of investment in the market.
• Sales activity should remain robust across the market with high per-
square-foot sale prices being achieved.
$0.00
$2.00
$4.00
$6.00
2015 2016 2017 2018 YTD 2019
Average asking rents ($/s.f.)
W&D Manufacturing

2. © 2019Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q1 2019
Detroit
Industrial Statistics
For more information, contact: Harrison West | harrison.west@am.jll.com
Inventory
(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.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Market Totals
Warehouse & Distribution 246,533,634 796,869 0.3% 15,630,476 6.3% $5.47 219,247 2,813,159
Manufacturing 223,964,595 -312,891 -0.1% 9,485,959 4.2% $5.40 198,635 299,086
Totals 470,498,229 483,978 0.1% 25,116,435 5.3% $5.44 417,882 3,112,245
Flex 51,004,546 322,617 0.6% 4,105,200 8.0% $9.88 190,000 541,786
Airport / I-275 Corridor
Warehouse & Distribution 58,761,677 190,476 0.3% 3,501,451 6.0% $5.69 0 354,444
Manufacturing 39,434,648 -135,190 -0.3% 2,619,260 6.6% $5.30 0 0
Totals 98,196,325 55,286 0.1% 6,120,711 6.2% $5.52 0 354,444
Flex 7,127,188 86,463 1.2% 615,761 8.6% $11.04 0 178,785
City of Detroit
Warehouse & Distribution 38,939,039 141,999 0.4% 3,953,052 10.2% $4.36 0 180,000
Manufacturing 39,212,112 243,230 0.6% 1,537,089 3.9% $5.45 0 0
Totals 78,151,151 385,229 0.5% 5,490,141 7.0% $4.67 0 180,000
Flex 1,926,231 28,894 1.5% 152,017 7.9% $9.90 0 0
Downriver
Warehouse & Distribution 19,808,957 -171,372 -0.9% 943,921 4.8% $4.83 0 90,000
Manufacturing 23,721,289 2,027 0.0% 1,154,513 4.9% $4.80 0 0
Totals 43,530,246 -169,345 -0.4% 2,098,434 4.8% $4.81 0 90,000
Flex 5,042,427 4,833 0.1% 463,438 9.2% $9.54 10,000 0
I-96 Corridor
Warehouse & Distribution 27,695,022 177,879 0.6% 1,683,544 6.1% $6.17 128,561 82,800
Manufacturing 15,395,288 153,969 1.0% 717,489 4.7% $6.41 155,635 220,630
Totals 43,090,310 331,847 0.8% 2,401,034 5.6% $6.24 284,196 303,430
Flex 8,730,755 52,775 0.6% 900,626 10.3% $10.27 0 207,782
Macomb County
Warehouse & Distribution 42,197,446 79,784 0.2% 2,003,540 4.7% $5.56 12,000 829,269
Manufacturing 58,032,000 135,482 0.2% 854,535 1.5% $5.38 43,000 78,456
Totals 100,229,446 215,266 0.2% 2,858,075 2.9% $5.51 55,000 907,725
Flex 4,446,896 -11,532 -0.3% 347,806 7.8% $7.24 0 0
Monroe County
Warehouse & Distribution 5,151,182 -33,605 -0.7% 67,833 1.3% $5.27 0 0
Manufacturing 8,158,044 -108,246 -1.3% 116,690 1.4% $3.95 0 0
Totals 13,309,226 -141,852 -1.1% 184,524 1.4% $4.44 0 0
Flex 238,060 -14,962 -6.3% 18,500 7.8% N/A 0 0
Northern I-75 Corridor
Warehouse & Distribution 43,789,519 270,808 0.6% 3,143,548 7.2% $6.24 28,686 1,276,646
Manufacturing 29,861,752 -591,924 -2.0% 1,540,393 5.2% $5.91 0 0
Totals 73,651,271 -321,116 -0.4% 4,683,941 6.4% $6.13 28,686 1,276,646
Flex 15,435,366 202,125 1.3% 1,302,924 8.4% $9.43 180,000 138,200
Washtenaw County
Warehouse & Distribution 10,190,792 140,900 1.4% 333,587 3.3% $6.79 50,000 0
Manufacturing 10,149,462 -12,238 -0.1% 945,989 9.3% $4.96 0 0
Totals 20,340,254 128,662 0.6% 1,279,576 6.3% $5.44 50,000 0
Flex 8,057,623 -25,979 -0.3% 304,128 3.8% $12.40 0 17,019