Regions Midwest
July 23, 2008
According to the Midyear 2008 National Industrial Report by Marcus & Millichap, industrial property operations in Detroit will be challenged this year, even as restructuring efforts by the Big Three automakers are beginning to ease, and the metro is projected to shed fewer positions than during each of the past two years. Out-of-state buyers may continue to increase their holdings in Detroit if a sufficient number of properties leased to stable companies under medium- to long-term commitments come to market. The report indicates that industrial construction is picking up, with 1.5 million square feet forecast to be added to the market. Vacancy is projected to end the year at 15 percent. Asking rents will hit $5.03 per square foot this year. Effective rents will end the year at $4.75 per square foot. Investors may want to consider traditional industrial strongholds in the Detroit metro area, such as the Interstate 96 corridor.
According to the Midyear 2008 National Industrial Report by Marcus & Millichap, industrial property operations in Detroit will be challenged this year, even as restructuring efforts by the Big Three automakers are beginning to ease, and the metro is projected to shed fewer positions than during each of the past two years. Out-of-state buyers may continue to increase their holdings in Detroit if a sufficient number of properties leased to stable companies under medium- to long-term commitments come to market. The report indicates that industrial construction is picking up, with 1.5 million square feet forecast to be added to the market. Vacancy is projected to end the year at 15 percent. Asking rents will hit $5.03 per square foot this year. Effective rents will end the year at $4.75 per square foot. Investors may want to consider traditional industrial strongholds in the Detroit metro area, such as the Interstate 96 corridor.
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