Metro Detroit industrial market fundamentals relatively stable as vacancy reaches cycle high
The Detroit industrial market closed 2025 in a period of stabilization, even as vacancy rose to 5.4%, the highest level recorded in more than five years. While vacancy increased 60 basis points (bps) year over year, Detroit remained comparatively tight relative to most major U.S. industrial markets. Leasing activity slowed further in the fourth quarter, with few large transactions announced, contributing to moderately negative net absorption for the year. Much of the softness reflected occupiers delaying decisions rather than exiting the market altogether, as many users continued to reassess space needs amid shifting economic and industry conditions.