Industrial Takes a Short Break
For tenants in Detroit’s low-vacancy industrial market, there were some signs of relief in the first quarter of 2017. The market’s vacancy rate increased from 3.4% to 3.6%. This vacancy rate is still enough to make tenants cry in their beer and landlords crack open champagne. For landlords, rents increased by $.14, and the market for quality buildings in top submarkets remains tight.
Moving into the middle of 2017, we believe that rents, absorption, and vacancy will continue to move a positive direction. Although new product is hitting the market, demand for shop space and warehouse space remains strong. Expect this demand to drive growth in rents and sale prices into the summer and fall of 2017.