Minimal Change This Quarter
Metro Detroit’s industrial sector closed with an overall 3.3% vacancy rate in the third quarter; exactly where we were in the third quarter 2016. The exciting news is that vacancy rates in Metro Detroit’s industrial sector have been steadily declining year-over-year for a decade now. With rates at a record low, we don’t expect much movement in either direction in the next year.
The perception of the Metro Detroit region remains high. Our geographic appeal, long-standing ties to the automotive industry, advancements in research and technology, and economic development efforts continue to draw companies to our market creating today’s stable economy. In Romulus, Penske Logistics plans to invest $98.6 million in a 606,000-square-foot refrigerated and frozen warehouse distribution center, the warehouse will service the Midwest and is expected to create over 400 new jobs. Auto supplier Tenneco Inc. plans to build a $23 million sales center in Northville. LG Electronics USA Inc, plans to invest $25 Million in Oakland county by building a new 250,000-square-foot facility in Hazel Park and expanding their operations in Troy. In September, Amazon confirmed its third distribution facility in southeastern Michigan, a 1 million square-foot fulfillment center in Shelby Township which is expected to open in 2018 and require 1,000 new employees. Amazon’s two other fulfillment centers, located in the Airport / I-275 submarket, are expected to open next quarter and sometime in 2018.