New report: Industrial rents still rising in Detroit, but at a slower pace
Posted By: REjournals on May 31, 2024. For more information, please click here to read the source article.
The average rent for industrial space in Detroit did increase in April. But that increase was a small one.
According to the latest research from CommercialEdge, the average industrial rent in Detroit rose to $6.90 a square foot in April. That is up 3% from a year earlier.
That rate of growth, though, means that Detroit lags many of its Midwest neighbors, including Columbus, Ohio, where average industrial rents rose by 6.7% in April when compared to the same month a year earlier, and Cincinnati, where average industrial rents increased by 6.1%.
CommercialEdge reported that Minneapolis-St. Paul, with a jump in average industrial rents of 5.5%, and Chicago, with an increase of 5%, also outpaced Detroit.
In better news, though, Detroit’s average industrial rent remained one of the higher in the Midwest in April, according to CommercialEdge. That rate of $6.90 a square foot is higher than in St. Louis ($4.83 a square foot), Kansas City ($4.83), Chicago ($6.09), Indianapolis ($4.69) and Cincinnati ($4.86.)
CommercialEdge said that Detroit’s industrial vacancy rate stood at 5% in April. That is lower than many other Midwest markets. For instance, CommercialEdge reported that St. Louis’ industrial vacancy rate was 6.4% in April, while Minneapolis-St. Paul’s was 5.4% and Memphis’ was 6.8%.
Across the nation, 401.6 million square feet of industrial space was under construction as of April, according to CommercialEdge. New industrial starts are slowing, though, with CommercialEdge reporting that only 49.2 million square feet of new industrial construction broke ground through April of this year.
CommercialEdge reported that in Detroit 7.36 million square feet of new industrial construction was underway as of April.
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