Detroit’s industrial market ended 2019 on a strong note, as nearly 1.5 million square feet was absorbed in the fourth quarter. Average asking rents have grown by 4.4 percent year-over-year, while vacancies have leveled off over the same period. Leasing activity was healthy in the fourth quarter with some of the more significant deals being Piston Automotive renewing their lease for 256,100 square feet in Redford and Ternes Packaging taking 303,000 square feet in Pontiac.

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.
Q4 2019
Detroit
Industrial Insight
Detroit’s industrial market ended 2019 on a strong note, as nearly 1.5 million
square feet was absorbed in the fourth quarter. Average asking rents have
grown by 4.4 percent year-over-year, while vacancies have leveled off over the
same period. Leasing activity was healthy in the fourth quarter with some of
the more significant deals being Piston Automotive renewing their lease for
256,100 square feet in Redford and Ternes Packaging taking 303,000 square
feet in Pontiac. Dakkota Integrated Systems altered their plans, moving about
half of the previously announced 600,000-square-foot operations on Detroit’s
east side to Tri-County Commerce Center in Hazel Park. Additionally, electric
truck chassis-maker Motiv Power Systems announced their intention to open
an engineering and manufacturing facility in metro Detroit.
The site of the former Stacy’s Golf Center in Warren, across the street from Tri-
County Commerce Center, will be redeveloped by the Sterling Group and
Hillwood into an approximately 296,000-square-foot warehouse leased to
Hollingsworth. In the Airport submarket, the former Pinnacle Race Course site
sold, paving the way for a potential 14-building development totaling over 4.0
million square feet. On the Detroit River, U.S. Steel announced they would idle
operations at their Zug Island Plant in 2020. U.S. Steel will move production to
a Gary, Indiana, steel facility and lay off up approximately 1,500 workers from
the Zug Island facility. In the same area of Detroit, Sakthi Automotive Group
faces liquidation after General Motors parted ways with the supplier.
Outlook
2020 should bring a continuation of the conditions seen in the market over
the past few years. We expect sustained historically low vacancies combined
with steady rent growth. Given the demand for modern bulk warehouse
space, we should see more construction announced, even given the current
healthy construction pipeline.
Fundamentals Forecast
2019 net absorption 2,525,685 s.f. ▲
Under construction 3,264,928 s.f. ▲
Total vacancy 5.4% ▶
Average asking rent (NNN) $5.74 p.s.f. ▲
Tenant improvements Falling ▼
0
5,000,000
10,000,000
2015 2016 2017 2018 2019
Supply and demand (s.f.) Net absorption
Deliveries
Vacancies level off while steady rent growth continues
9.3%
7.5%
5.7% 5.3% 5.4%
2015 2016 2017 2018 YTD 2019
Total vacancy
For more information, contact: Harrison West | harrison.west@am.jll.com
• The Pinnacle Race Course site in Huron Township sold, paving the way
for a potential 14 building development.
• Nearly 1.5 million square feet was absorbed in the fourth quarter, driving
vacancies to the current 5.4 percent market-wide vacancy figure.
• U.S. Steel will idle operations at Zug Island in 2020, moving production
to Gary, Indiana and laying off 1,500.
$0.00
$5.00
$10.00
2015 2016 2017 2018 YTD 2019
Average asking rents ($/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.
Q4 2019
Detroit
Industrial Statistics
For more information, contact: Harrison West | harrison.west@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 248,669,864 1,127,642 2,332,027 0.9% 16,310,234 6.6% $5.91 1,047,723 2,492,835 2,784,528
Manufacturing 224,109,032 363,304 193,657 0.1% 9,166,848 4.1% $5.43 144,437 378,472 480,400
Totals 472,778,896 1,490,946 2,525,685 0.5% 25,477,081 5.4% $5.74 1,164,660 2,871,307 3,264,928
Flex 51,401,459 121,333 40,561 0.1% 4,840,399 9.4% $10.17 165,905 367,697 347,643
Airport / I-275 Corridor
Warehouse & Distribution 58,919,773 316,451 677,658 1.2% 3,172,365 5.4% $5.54 67,313 308,096 1,694,116
Manufacturing 39,434,648 -150,773 -47,187 -0.1% 2,531,257 6.4% $5.12 0 0 300,000
Totals 98,354,421 165,678 630,471 0.6% 5,703,622 5.8% $5.35 67,313 308,096 1,994,116
Flex 7,347,188 110,989 288,153 3.9% 634,071 8.6% $10.47 120,000 120,000 0
City of Detroit
Warehouse & Distribution 39,119,039 -18,585 30,036 0.1% 4,245,015 10.9% $5.83 0 180,000 0
Manufacturing 39,212,112 -2,328 10,845 0.0% 1,769,474 4.5% $4.65 0 0 50,000
Totals 78,331,151 -20,913 40,882 0.1% 6,014,488 7.7% $5.48 0 180,000 50,000
Flex 1,926,231 15,103 67,946 3.5% 112,965 5.9% $17.05 0 0 0
Downriver
Warehouse & Distribution 19,969,350 33,378 46,329 0.2% 886,613 4.4% $4.92 160,393 160,393 0
Manufacturing 23,721,289 -70,584 65,088 0.3% 1,091,452 4.6% $5.17 0 0 0
Totals 43,690,639 -37,206 111,417 0.3% 1,978,065 4.5% $5.06 160,393 160,393 0
Flex 5,042,427 10,732 143,149 2.8% 325,122 6.4% $9.14 0 10,000 0
I-96 Corridor
Warehouse & Distribution 27,731,092 -169,816 57,471 0.2% 1,840,022 6.6% $6.54 36,070 63,570 162,800
Manufacturing 15,487,918 -85,925 -12,073 -0.1% 976,161 6.3% $6.34 92,630 283,265 0
Totals 43,219,010 -255,740 45,398 0.1% 2,816,183 6.5% $6.47 128,700 346,835 162,800
Flex 8,890,649 -50,792 -89,636 -1.0% 1,079,199 12.1% $9.81 28,886 28,886 347,643
Macomb County
Warehouse & Distribution 43,147,507 17,927 364,736 0.8% 2,668,649 6.2% $5.65 104,837 956,706 419,850
Manufacturing 58,083,807 -225,137 -21,641 0.0% 1,106,465 1.9% $5.94 51,807 95,207 30,400
Totals 101,231,314 -207,210 343,095 0.3% 3,775,114 3.7% $5.73 156,644 1,051,913 450,250
Flex 4,446,896 33,941 -63,234 -1.4% 399,508 9.0% $7.26 0 0 0
Monroe County
Warehouse & Distribution 5,151,182 20,343 -45,452 -0.9% 79,680 1.5% $5.39 0 0 0
Manufacturing 8,158,044 118,789 630 0.0% 7,814 0.1% $2.42 0 0 0
Totals 13,309,226 139,132 -44,821 -0.3% 87,493 0.7% $5.12 0 0 0
Flex 238,060 0 0 0.0% 3,500 1.5% NA 0 0 0
Northern I-75 Corridor
Warehouse & Distribution 44,441,129 956,946 1,183,789 2.7% 2,910,863 6.5% $6.40 651,610 769,070 507,762
Manufacturing 29,861,752 200,737 -345,080 -1.2% 1,293,549 4.3% $6.26 0 0 100,000
Totals 74,302,881 1,157,683 838,709 1.1% 4,204,412 5.7% $6.36 651,610 769,070 607,762
Flex 15,435,366 8,849 22,060 0.1% 1,662,989 10.8% $9.73 0 191,792 0
Washtenaw County
Warehouse & Distribution 10,190,792 -29,002 17,460 0.2% 507,027 5.0% $6.92 0 55,000 0
Manufacturing 10,149,462 578,525 543,075 5.4% 390,676 3.8% $5.22 0 0 0
Totals 20,340,254 549,522 560,535 2.8% 897,703 4.4% $6.18 0 55,000 0
Flex 8,074,642 -7,488 -327,877 -4.1% 623,045 7.7% $12.85 17,019 17,019 0