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February 2020

Detroit Industrial Real Estate Summary: Leases, Sales, and Construction Stats (Q4 2019)

Detroit Michigan Industrial Commercial Real Estate Report - Ashley Capital

Commercial real estate property value in Detroit is on the rise, as the city, much like the rest of the country, has been in recovery mode since the last economic recession over a decade ago. Crain’s Detroit Business reports that this trend is healthy for the CRE market here, and they expect it to continue to rise with the demand for commercial real estate space in the region. One of the sectors that benefits from all of this is industrial real estate in the area.

Ashley Capital puts together the top lease, sales, and under construction project statistics every quarter for Detroit’s industrial real estate market. These stats and highlights include: latest property deliveries, net absorption, vacancy rates, cap rates, price / square foot for sales, and much more.

Detroit Industrial Real Estate Lease Statistics

Top Detroit Industrial Real Estate Lease Statistics

12 Month Deliveries in Square Feet: 3.5 million
12 Month Net Absorption in Square Feet: 446,000
Vacancy Rate: 3.6%
12 Month Rent Growth: 3.2%

Top Detroit Industrial Leases (Past 12 Months)

1) Property: 1420 E Ten Mile Rd
Submarket:
Royal Oak Area 
Leased SF:
423,271
Quarter:
Q3 2019
Tenant: Dakkota Integrated Systems
Tenant Rep: Signature Associates
Leasing Rep:
Signature Associates

2) Property: 537 Bradford St
Submarket: 
I-75 Corr / N Oakland
Leased SF:
303,077
Quarter:
Q4 2019
Leasing Rep: Newmark Knight Frank

3) Property: 24400 Dequindre Rd
Submarket:
W of Van Dyke / Macomb
Leased SF:
295,510
Quarter:
Q4 2019
Leasing Rep: Colliers International

4) Property: 12723 Telegraph Rd
Submarket: Dearborn Area
Leased SF:
256,100
Quarter:
Q4 2019
Tenant: Piston Automotive
Leasing Rep: Friedman Real Estate

5) Property: 27651 Hildebrandt Rd
Submarket: Airport District
Leased SF: 228,067
Quarter: Q3 2019
Leasing Rep:
Newmark Knight Frank

Detroit Industrial Real Estate Sales Statistics

Top Detroit Industrial Sales Statistics (Past 12 Months)

Sales Comparables: 584
Average Cap Rate:
8.4%
Average Price/ SF: 
$47
Average Vacancy at Sale: 12.5%

Top Detroit Industrial Property Sales

1) Property: Amazon Regional Distribution Center (39000 Amrhein Rd)
*Rating:
3
Year Built: 
2017
Building SF:
1,009,292
Vacancy:
0%
Price (PSF): 
$86,750,000 ($86)
Cap Rate: 
5.3%

2) Property: Maksteel (4343 Wyoming St)
*Rating:
3
Year Built: 
1959
Building SF:
220,000
Vacancy: 
0%
Price (PSF): 
$16,698,000 ($76)
Cap Rate: 
Not Listed

3) Property: Building A & B (3300 University Dr)
*Rating: 2
Year Built: 1986
Building SF: 128,000
Vacancy: 
0%
Price (PSF): $8,350,000 ($65)
Cap Rate: Not Listed

4) Property: Buildings A-C (3950-4100 Pinnacle Ct)
*Rating:
3
Year Built: 
1989
Building SF:
121,570
Vacancy: 
0%
Price (PSF): 
$7,555,000 ($62)
Cap Rate: 
Not Listed

5) Property: 45755 Five Mile
*Rating: 3
Year Built: 1981
Building SF: 78,684
Vacancy: 
0%
Price (PSF): $5,625,000 ($71)
Cap Rate: 7.5%

*Rating is 1-5, 5 being the best

Detroit Industrial Real Estate Construction Statistics

Detroit Industrial Construction Projects Statistics

Properties Currently Under Construction: 51
Total Size: 
5,351,711
Percent of Inventory:
1.0%
Preleased: 63.5%

Top Detroit Industrial Projects Under Construction

1) Property: Building 5 (42000 Ecorse Rd)
Rating*:
4
Building SF:
660,408
Stories:
1
Completion:
Q4 2020
Developer/ Owner:
Not Listed

2) Property: Building 5 (42000 Ecorse Rd)
Rating*:
4
Building SF:
660,408
Stories:
1
Completion:
Q3 2020
Developer/ Owner: Ashley Capital

3) Property: Building 6 (42000 Ecorse Rd)
Rating*:
4
Building SF:
660,408
Stories:
1
Completion:
Q3 2020
Developer/ Owner: Ashley Capital

4) Property: 1100 Entrance Dr
Rating*:
4
Building SF:
461,525
Stories:
1
Completion:
Q1 2020
Developer/ Owner:
General Development Company

5) Property: 14200 N Haggerty Rd
Rating*:
3
Building SF:
300,000
Stories:
1
Completion:
Q4 2020
Developer/ Owner:
Hillside Investments

*Rating is 1-5, 5 being the best

Data Sources: Ashley Capital & CoStar