Autos and eCommerce are key drivers in the thriving Detroit industrial market.

1. © 2017 Jones 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 2017
Detroit
Industrial Insight
Detroit’s Industrial market remained strong in the first quarter, building on its
successes from the past few years. The auto industry, which has been running
on all cylinders in recent years, has the Detroit industrial real estate market
rolling. In the first quarter, the Big Three and some auto suppliers announced
significant investments in their facilities. These investments are being made to
retool current facilities for different model assembly and updating outdated
properties, in addition to some new construction projects. Although the auto
industry is the primary driver in the Detroit market, the local industrial market
isn’t going to miss out on the e-commerce wave taking over the country.
Amazon is building a 1,000,000-square-foot fulfillment center in Livonia, and
FedEx has proposed a new facility in Sterling Heights. There are a handful of
large construction projects either already underway, the 575,000-square-foot
Tri-County Commerce Center in Hazel Park is wrapping up construction, or
preparing to break ground, such as the nearly 1.0 million-square-foot Livonia
Corporate Center addition being built by Ashley Capital. A few large leases
were signed in the first quarter, including AM General in Auburn Hills (176,674
s.f.), LKQ Corporation in Romulus (268,800 s.f.) and Penske Logistics in Livonia
(224,358 s.f.).
Outlook
Looking ahead, we can expect even more construction and investment to be
announced. The hundreds of millions of dollars being invested by the big
three in the US will only help the regional economy, as the effects ripple
through the suppliers and even into the auto technology industry where
companies like Uber and Google are expanding. Both companies have
announced the opening of facilities in the area for the advancement of their
vehicle technology. Moving forward, the great market conditions will continue
showing extremely low vacancies and rising rents, as any new speculative
construction that gets delivered will be quickly leased up.
Fundamentals Forecast
YTD net absorption 3,151,509 s.f. ▲
QTD net absorption 3,151,509 s.f. ▶
Under construction 3,790,413 s.f. ▲
Total vacancy 6.6% ▼
Average asking rent (NNN) $4.61 p.s.f. ▶
Tenant improvements Falling ▼
0
5,000,000
10,000,000
2013 2014 2015 2016 YTD
2017
Supply and demand (s.f.) Net absorption
Deliveries
eCommerce and autos driving strong Detroit industrial
11.2%
8.0%
9.3%
7.5% 6.6%
2013 2014 2015 2016 YTD 2017
Total vacancy
$3.00
$3.50
$4.00
$4.50
$5.00
2013 2014 2015 2016 YTD 2017
Average asking rents ($/s.f.)
For more information, contact: Harrison West | harrison.west@am.jll.com
• eCommerce is driving much of the activity in the region as part of the
rapidly growing national trend.
• Automakers and suppliers are making significant investments in
domestic facilities.
• The American Center for Mobility will position metro Detroit as the
epicenter for autonomous vehicle testing.

2. © 2017 Jones 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 2017
Detroit
Industrial Statistics
For more information, contact: Harrison West | harrison.west@am.jll.com
Inventory
(s.f.)
Quarterly
totalnet
absorption
(s.f.)
YTD
totalnet
absorption
(s.f.)
YTD
totalnet
absorption
(% of stock)
Total
availability
(s.f.)
Total
availability
(%)
Average
totalasking
rent
($p.s.f.)
Quarterly
completions
(s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Market Totals
Warehouse&Distribution 240,174,714 1,397,912 1,397,912 0.6% 19,626,588 8.2% $4.53 212,220 212,220 3,561,917
Manufacturing 222,613,583 1,743,597 1,743,597 0.8% 10,783,432 4.8% $4.75 0 0 228,496
Totals 462,788,297 3,141,509 3,141,509 0.7% 30,410,020 6.6% $4.61 212,220 212,220 3,790,413
Flex 50,383,813 140,536 140,536 0.3% 5,994,892 11.9% $7.95 0 0 0
Airport / I-275Corridor
Warehouse&Distribution 56,898,560 106,613 106,613 0.2% 3,918,199 6.9% $4.67 105,000 105,000 1,914,630
Manufacturing 39,359,752 355,611 355,611 0.9% 1,914,261 4.9% $4.41 0 0 70,000
Totals 96,258,312 462,224 462,224 0.5% 5,832,460 6.1% $4.58 105,000 105,000 1,984,630
Flex 7,054,500 53,670 53,670 0.8% 527,054 7.5% $8.63 0 0 0
City of Detroit
Warehouse&Distribution 37,405,518 229,224 229,224 0.6% 6,002,745 16.0% $3.34 0 0 254,000
Manufacturing 37,592,134 679,301 679,301 1.8% 2,855,943 7.6% $4.06 0 0 0
Totals 74,997,652 908,525 908,525 1.2% 8,858,688 11.8% $3.57 0 0 254,000
Flex 1,931,903 -6,789 -6,789 -0.4% 570,882 29.6% $5.63 0 0 0
Downriver
Warehouse&Distribution 19,743,685 245,887 245,887 1.2% 1,483,542 7.5% $4.11 0 0 0
Manufacturing 23,625,825 41,000 41,000 0.2% 1,673,161 7.1% $5.04 0 0 0
Totals 43,369,510 286,887 286,887 0.7% 3,156,703 7.3% $4.60 0 0 0
Flex 5,032,022 -4,746 -4,746 -0.1% 213,981 4.3% $8.43 0 0 0
I-96Corridor
Warehouse&Distribution 27,137,957 266,855 266,855 1.0% 1,822,908 6.7% $6.41 47,220 47,220 253,366
Manufacturing 15,209,743 296,101 296,101 1.9% 701,548 4.6% $6.27 0 0 75,000
Totals 42,347,700 562,956 562,956 1.3% 2,524,456 6.0% $6.37 47,220 47,220 328,366
Flex 8,811,560 -38,688 -38,688 -0.4% 1,285,655 14.6% $9.05 0 0 0
MacombCounty
Warehouse&Distribution 40,604,571 459,922 459,922 1.1% 2,370,309 5.8% $4.64 60,000 60,000 267,966
Manufacturing 57,264,605 123,033 123,033 0.2% 1,722,900 3.0% $5.08 0 0 32,496
Totals 97,869,176 582,955 582,955 0.6% 4,093,209 4.2% $4.83 60,000 60,000 300,462
Flex 4,383,832 9,302 9,302 0.2% 427,004 9.7% $6.63 0 0 0
MonroeCounty
Warehouse&Distribution 5,149,740 67,088 67,088 1.3% 625,750 12.2% $3.28 0 0 0
Manufacturing 8,198,564 15,000 15,000 0.2% 78,720 1.0% $3.50 0 0 0
Totals 13,348,304 82,088 82,088 0.6% 704,470 5.3% $3.30 0 0 0
Flex 257,090 0 0 0.0% 0 0.0% NA 0 0 0
NorthernI-75Corridor
Warehouse&Distribution 43,064,266 -34,123 -34,123 -0.1% 2,630,119 6.1% $5.72 0 0 821,955
Manufacturing 30,012,116 108,551 108,551 0.4% 1,760,949 5.9% $5.11 0 0 51,000
Totals 73,076,382 74,428 74,428 0.1% 4,391,068 6.0% $5.48 0 0 872,955
Flex 14,890,690 68,658 68,658 0.5% 2,596,107 17.4% $7.33 0 0 0
WashtenawCounty
Warehouse&Distribution 10,170,417 56,446 56,446 0.6% 773,016 7.6% $6.08 0 0 50,000
Manufacturing 11,350,844 125,000 125,000 1.1% 75,950 0.7% $3.75 0 0 0
Totals 21,521,261 181,446 181,446 0.8% 848,966 3.9% $5.87 0 0 50,000
Flex 8,022,216 59,129 59,129 0.7% 374,209 4.7% $12.36 0 0 0