Detroit Industrial Market Report
2023 Investment Forecast
Nearby EV Developments and Increased Traffic from
Canada Bolster Detroit’s Industrial Sector
Heightened North American trade highlights Detroit’s functionality. Freight between the U.S. and Canada was up 22.3 percent year-over-year in September of last year, as international supply chain complications emphasized the importance of trade within North America. Detroit was the top truck port for U.S.-Canada trade and Port Huron on the north end of the market was the top rail port, with Detroit proper following in a close second. Increased trade activity necessitates industrial inventory expansion, particularly warehouses and distribution centers. These property types account for nearly 85 percent of this year’s expected completions. By the end of 2023, Detroit will have added nearly 20 million square feet of industrial space in a three-year span. While the market will note a slight uptick in vacancy by December, following this wave of supply additions, the year-end rate remains 300 basis points below the long-term average of 7.0 percent. Leasing activity by companies like Renaissance Global Logistics, Wayfair and Advanced Nutrients show persisting demand, specifically for bulk warehouse products.