Detroit Industrial Market Report
Storage Needs Drive Leasing;
Speculative Development Pressures Vacancy, Rents
Shortcomings of on-demand delivery boost space needs. Disrupted supply chains amid a surge in online ordering during the health crisis buoyed industrial demand over the past four quarters. Companies recognized the need to keep more stock on hand, bolstering the demand for additional storage capacity. Vehicle parts distributors and retailers including U.S. Autoforce, Alex Brands and Hawthorne Gardening recently penned leases. Amazon is also rapidly expanding in the metro. During the past year, the company leased 560,000 square feet on Mound Road for a distribution center and 150,000 square feet in Royal Oak. Amazon also has a 1 million-square-foot distribution building underway in Pontiac that is slated for completion in the final quarter of 2021.