POSITIVE OUTLOOK FOR METRO DETROIT’S INDUSTRIAL MARKET
In Metro Detroit, the industrial sector closed with an overall 3% vacancy rate in the first quarter. Vacancies are at historic lows both nationally and locally. The industrial sector is especially strong in our region due to investments from the Big Three and technology related companies. Most notably, Fiat Chrysler announced plans to invest $4.5 billion in five Michigan plants. Part of the plan includes building a new assembly plant within the City of Detroit, this plant will be the first within Detroit city limits since the nearby Jefferson North Assembly Plant opened in 1992. The proposed projects would create nearly 6,500 new jobs and 4,000 of those jobs will be in Detroit. Technology impacts virtually every industry and aspect of our lives and with the region’s deep automotive roots and engineering know how, it’s becoming common place for manufacturing and technology companies to coincide. Waymo, a sister company to Google, plans to invest $13.6 million and hire up to 400 to grow its self-driving technology operations in Southeast Michigan. While in Auburn Hills, Samsung SDI America Inc., opened the doors to their brand new, built-to-suit headquarters. Samsung’s invested $62.7 million in the US North American Headquarters which will be the center of research and development and high-volume battery pack manufacturing facility.
A healthy U.S. economy as well as high demand in the e-commerce and manufacturing sectors will continue to drive new activity in Metro Detroit and around the country in 2019. The issues causing greatest concern are the availability of labor and potentially negative effects of trade policies.