The Detroit Industrial market ended the fourth quarter 2014 with a vacancy rate of 7.2%.
The vacancy rate was down over the previous quarter, with net absorption totaling positive 2,401,154 square feet in the fourth quarter. That compares to positive 465,073 square feet in the third quarter 2014. Vacant sublease space decreased in the quarter, ending the quarter at 203,687 square feet.
Tenants moving into large blocks of space in 2014 include: Faurecia moving into 278,000 square feet at 2800 High Meadows Cir, KUKA Systems North America moving into 200,000 square feet at 7408 Metro Pky, and Victory Packaging moving into 200,000 square feet at 31740 Enterprise Dr.
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Rental rates ended the fourth quarter at $4.79, an increase over the previous quarter.
A total of three buildings delivered to the market in the quarter totaling 233,892 square feet, with 1,278,840 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 7.2% from the previous quarter, with net absorption positive 81.04 million square feet in the fourth quarter. Average rental rates increased to $5.50, and 240 buildings delivered to the market totaling almost 41.8 million square feet.
