Industrial

By Tony Avendt, Cushman & Wakefield At first glance, Detroit’s industrial real estate market appears to be entering a period of moderation. Vacancy has crept upward, new supply continues to trickle online and recent quarters have posted negative absorption. Yet beneath these headline indicators lies a more complex — and arguably more resilient — story. The numbers alone do not fully capture how tenant behavior, shifting supply dynamics and a growing pool of “shadow space” are reshaping the market in subtle but meaningful ways. As of the first quarter of 2026, metro Detroit’s industrial vacancy rate stood at 4.1 percent, marking the 11th consecutive quarterly increase and the highest level since 2015. Even so, the market remains significantly tighter than the national average of approximately 7 percent, reinforcing Detroit’s position as one of the more supply-constrained industrial markets in the U.S. Rental performance tells a similarly stable story. Net average asking rents reached $7.40 per square foot in the first quarter — a 2.1 percent year-over-year increase and the highest level since late 2023. While rent growth has moderated from earlier peaks, landlords have largely maintained pricing power, particularly for well-located, modern distribution facilities. Still, the market is recalibrating after …