Auto Sales, High Demand Lift Industrial Expectations in Detroit
Jul 22, 2016 |
Detroit’s industrial sector has surged right along with the success of the national market, and strong automotive sales and lack of new construction have pushed the city to a new low of 6 percent vacancy in the second quarter.
Motor City is following second quarter national trends. Industrial availability declined to 8.8 percent during the period, dropping for the 25th consecutive quarter, the longest streak on record, according to a CBRE report. E-commerce growth continues to fuel demand for most of the country, and industrial properties, both manufacturing and warehouse, remain one of the best performing asset classes in commercial real estate, said Jeffrey Havsy, CBRE’s chief economist for the Americas, in a recent statement.
“While we’ve had some shocks to the global economy, the U.S. economy still is moving along at a slow and steady pace, and that will sustain industrial demand,” he said.
