Market sentiment remains positive, yet leasing activity was somewhat muted in the second quarter. Low market availability for quality space has encouraged build-to-suit projects as well as speculative construction.

1. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemedreliable; however, no representation or warranty is made to the accuracy thereof.
Q2 2017
Detroit
Industrial Insight
Market sentiment remains positive, yet leasing activity was slow in the second
quarter. Low market availability for quality space has encouraged build-to-
suit projects as well as speculative construction. Automotive supplier Flex-N-
Gate broke ground on a $95.0 million, 600,000-square-footmanufacturing
facility on the east side of Detroit. Speculative warehousing and distribution
centers are popping up in the suburbs, primarily fueled by Ashley Capital’s
investments in Livonia and Hazel Park. Their current construction portfolio
totals nearly 2.5 million square feet and includes the newly delivered Tri-
County Commerce Center. The Airportsubmarket has five major projects set
to deliver by the end of the year, highlighted by Amazon’s distributioncenter.
In the automotive sector, manufacturers and suppliers are rolling out new
plants and expansions. Ford announced in May a $350.0 million expansion of
its Livonia TransmissionPlant, expected to deliver in 2019. Toyota and Roush
Industries invested in research and development facilities for autonomous
vehicle testing, in York Township and Troy, respectively. Responding to tight
market conditions, companies, including HollingsworthLogistics Group, have
entered the capital markets arena by purchasing properties to occupy and
leasing out remaining space.
Outlook
Looking ahead, we expect automotive companies to continue to lead
industrial leasing activity in Detroit. As automakers and suppliers focus on
autonomous technologies, look for R&D facilities and testing sites to be in
demand. The Palace of Auburn Hills, former home of the Detroit Pistons, was
recently rezoned to a technology research districtand will be a site to keep an
eye on. A wave of new deliveries, upwards of 2.5 million square feet, is set to
hit by the end of the year, providing much-needed manufacturing and
distribution space for tenants in the market.
Fundamentals Forecast
YTD net absorption 3,791,536 s.f. ▲
QTD net absorption 1,091,928 s.f. ▲
Under construction 4,007,515 s.f. ▲
Total vacancy 6.4% ▼
Average asking rent (NNN) $4.81 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
Upcoming deliveries set to strengthen market
11.2%
8.0%
9.3%
7.5%
6.4%
2013 2014 2015 2016 YTD 2017
Total vacancy
For more information, contact: Harrison West | harrison.west@am.jll.com
• Development activity has picked up, with over 4.0 million square feet
under construction and 1.1 million square feet already delivered in 2017
• Tenants seek superior grade space, holding off from current on-market
properties and anticipating upcoming inventory
• Autonomous vehicle technology is driving industrial leasing activity
among all stakeholders in the automotive supply chain
$0.00
$2.00
$4.00
$6.00
2013 2014 2015 2016 2017
Average asking rents ($/s.f.)
W&D Manufacturing
Robert Goldstein | robert.goldstein@am.jll.com

2. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemedreliable; however, no representation or warranty is made to the accuracy thereof.
Q2 2017
Detroit
Industrial Statistics
For more information, contact: Harrison West | harrison.west@am.jll.com
Robert Goldstein | robert.goldstein@am.jll.com
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 240,743,777 269,810 1,325,985 0.6% 19,379,217 8.0% $4.88 813,627 1,025,847 3,104,895
Manufacturing 222,505,266 822,118 2,465,551 1.1% 10,054,662 4.5% $4.67 109,395 109,395 902,620
Totals 463,249,043 1,091,928 3,791,536 0.8% 29,433,879 6.4% $4.81 923,022 1,135,242 4,007,515
Flex 50,383,813 140,536 140,536 0.3% 5,994,892 11.9% $7.95 0 0 44,000
Airport / I-275 Corridor
Warehouse & Distribution 56,898,560 106,613 106,613 0.2% 3,918,199 6.9% $4.67 0 105,000 2,414,630
Manufacturing 39,359,752 355,611 355,611 0.9% 1,914,261 4.9% $4.41 0 0 120,346
Totals 96,258,312 462,224 462,224 0.5% 5,832,460 6.1% $4.58 0 105,000 2,534,976
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 0 600,000
Totals 74,997,652 908,525 908,525 1.2% 8,858,688 11.8% $3.57 0 0 854,000
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-96 Corridor
Warehouse & Distribution 27,137,957 266,855 266,855 1.0% 1,822,908 6.7% $6.41 126,761 173,981 127,105
Manufacturing 15,209,743 296,101 296,101 1.9% 701,548 4.6% $6.27 0 0 106,778
Totals 42,347,700 562,956 562,956 1.3% 2,524,456 6.0% $6.37 126,761 173,981 233,883
Flex 8,811,560 -38,688 -38,688 -0.4% 1,285,655 14.6% $9.05 0 0 0
Macomb County
Warehouse & Distribution 40,604,571 459,922 459,922 1.1% 2,370,309 5.8% $4.64 111,866 171,866 121,600
Manufacturing 57,264,605 123,033 123,033 0.2% 1,722,900 3.0% $5.08 0 0 75,496
Totals 97,869,176 582,955 582,955 0.6% 4,093,209 4.2% $4.83 111,866 171,866 197,096
Flex 4,383,832 9,302 9,302 0.2% 427,004 9.7% $6.63 0 0 0
Monroe County
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
Northern I-75 Corridor
Warehouse & Distribution 43,064,266 -34,123 -34,123 -0.1% 2,630,119 6.1% $5.72 575,000 575,000 137,560
Manufacturing 30,012,116 108,551 108,551 0.4% 1,760,949 5.9% $5.11 109,395 109,395 0
Totals 73,076,382 74,428 74,428 0.1% 4,391,068 6.0% $5.48 684,395 684,395 137,560
Flex 14,890,690 68,658 68,658 0.5% 2,596,107 17.4% $7.33 0 0 0
Washtenaw County
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 44,000