Q3 Market Report for Detroit, MI (Airport/I-275 Submarket) Industrial Market

Overview:

Detroit is making rapid progress in the autonomous vehicle sector. Investment took place in the American Center for Mobility, an autonomous vehicle testing facility, with Subaru
getting involved in the same. Furthermore, Waymo, a Google affiliate is planning to purchase up to 62,000 Chrysler minivans for autonomous driving research. Ford purchased the Michigan Central Station in Corktown, with intentions of redeveloping it for future mobility R&D. Finally, May Mobility put together a fleet of autonomous vehicles to transport workers in downtown Detroit.

The Detroit industrial market had a strong Q2 2018, with absorption and asking lease rates remaining
high and vacancy rates lowering. According to the Bureau of Labor Statistics, unemployment in the month of April was 4.7%; aside from 2016 data, the last time Michigan saw unemployment below 5.0% was in June 2001. Part of this economic health may be attributed to several recently completed or under construction developments in Q2, with each creating a predicted 700-1,000 jobs. The industrial market will continue to tighten and therefore, the need for warehousing and distribution space shows no signs of diminishing.

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