Detroit Industrial Market Recalibrates, Not Retreats

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The Metro Detroit industrial market ended 2025 on solid footing, with vacancy holding at 5% and rents remaining resilient, despite a slowdown in leasing activity. While net absorption finished the year in negative territory, developers remain disciplined, with 2.6 million square feet still under construction. Investors also remain selective, focusing on well-located assets with strong fundamentals.

Why it matters

The Detroit industrial market's ability to maintain stability amid a broader slowdown signals the region's continued appeal for cost-conscious occupiers and investors. This recalibration, rather than retreat, underscores the market's fundamental strength and the ongoing demand for modern, well-connected industrial space.

The details

Colliers' fourth-quarter 2025 report shows Metro Detroit's industrial vacancy rate held firm at 5%, well below the national average of 7.4%. While net absorption finished the year in negative territory, the slowdown reflects a drop in leasing velocity rather than a collapse in demand. New supply also reemerged, with over 1.2 million square feet delivered in Q4, concentrated in high-demand corridors. Rental rates remained resilient, averaging $7.59 per square foot on a triple-net basis. On the investment side, buyers focused on well-located assets, with several notable transactions in the quarter.

• The Metro Detroit industrial market wrapped up the fourth quarter of 2025.
• Leasing activity fell sharply in the final quarter of 2025, with 122 deals totaling 1.82 million square feet.
• Deliveries exceeded 1.2 million square feet in the fourth quarter of 2025, a sharp jump from the 92,800 square feet delivered in the third quarter.