CALL ON ➥8923113531 🔝Call Girls Saharaganj Lucknow best Female service 🦺
Industrial q4 2011
1. Q4 2011 | INDUSTRIAL
METRO DETROIT & WASHTENAW MARKET
RESEARCH REPORT
Detroit Industrial Market Reports
Fourth Consecutive Quarter of Vacancy
Decrease
MARKET OVERVIEW
The Metro Detroit industrial market is comprised of 493.7 million square feet of industrial
and R&D/flex space as of year-end 2011, making it the seventh largest industrial real estate
market in the United States. In addition to being the traditional home of the American
automotive industry, Detroit remains an important transportation hub for the region and
also has significant industrial clusters for biomedical research and hi-tech manufacturing.
MARKET INDICATORS
Q4 2010 Q4 2011 At year-end 2011, industrial vacancy decreased from the previous quarter to 13.2%, of
which the direct vacancy rate was 13.0%. The direct weighted average asking rental rate
VACANCY
decreased to $4.18 per square foot, per year Triple Net (NNN). With total industrial vacancy
NET ABSORPTION decreasing for the fourth consecutive quarter since peaking at 14.8% at year-end 2010,
expected vacancy decreases in 2012 may result in a flattening of direct average asking
CONSTRUCTION rental rates.
RENTAL RATE
Arrows compare current quarter to the previous
year quarters historically adjusted figures. 4,000,000 16.0%
3,000,000 15.5%
2,000,000 15.0%
Million Square Feet
1,000,000
14.5%
Vacancy (^)
0
14.0%
-1,000,000
13.5%
-2,000,000
-3,000,000 13.0%
-4,000,000 12.5%
-5,000,000 12.0%
4Q 1Q 2Q Q3 Q4 Q1 Q2 Q3 Q4
2009 2010 2010 2010 2010 2011 2011 2011 2011
Completions Absorption Vacancy Rate (%)
www.colliers.com/detroit
2. RESEARCH REPORT | Q4 2011 | INDUSTRIAL | DETROIT
INVENTORY geographic market sectors. Rates range as high
as $12.02 per square foot in the Airport I-275
Total industrial inventory in the Detroit market Total industrial inventory amounted to
market to as low as $4.89 per square foot in the
area amounted to 493,731,685 square feet in 493,731,685 square feet in 9,823 buildings in the
9,823 buildings in the fourth quarter 2011. Detroit submarket. Most of the rental rates range
fourth quarter 2011. The flex sector consisted of
from $7.00 to $9 per square foot; with the
41,614,041 square feet and the Warehouse/
Fourth quarter reports a positive absorption average settling at $7.90 per square foot in the
Distribution sector, accounting for the majority of
compromised of 2,860,775 square feet, with overall market. This is the same as it was last
the highest absorption this quarter found in industrial space, consisted of 452,117,644 square
quarter.
the Livonia I-275 submarket. feet.
Asking warehouse/distribution rates are
RENTAL RATES
averaging $3.83 per square foot. Effective rental
This quarter the average overall asking rental rates are usually up to 20% less than asking
rate slightly decreased $0.03 and currently rates, due to concessions and face rate reductions
stands at $4.18 per square foot. used as incentives for tenants to commit to a
lease.
R &D and flex rates are double that of warehouse
& distribution in almost all submarkets and
continued on page 4
continue to fluctuate significantly among the
SIGNIFICANT LEASE AND SALE ACTIVITY
SALES ACTIVITY
PROPERTY ADDRESS CITY SALE DATE SALE PRICE SIZE SF PRICE PER SF
7261 Commerce Blvd Canton 11/22/2011 2,800,000 115,525 24.24
17500 23 Mile Rd Macomb Township 12/29/2011 2,200,000 309,922 7.10
48400 West Rd Wixom 12/22/2011 1,862,000 34,200 54.44
101 Premier Dr Orion Township 12/22/2011 1,800,000 42,343 42.51
1421 Piedmont Dr Troy 10/31/2011 1,600,000 34,131 46.88
1700 Harmon Rd Auburn Hills 10/11/2011 1,500,000 24,027 62.43
8225 Jackson Rd Ann Arbor 12/14/2011 1,474,000 39,157 37.64
38777 Schoolcraft Rd Livonia 11/1/2011 1,186,190 53,512 22.17
16730 Enterprise Macomb Township 11/14/2011 1,120,000 27,080 41.36
44850 Centre Ct E Clinton Township 11/4/2011 1,100,000 29,345 37.49
14105 Rocco Ct Shelby Township 12/16/2011 1,040,000 24,573 42.32
26980 Trolley Industrial Dr Taylor 9/30/2011 1,000,000 102,400 9.77
5055 Hannan Rd Wayne 10/27/2011 862,500 15,000 57.50
18673 Dix Toledo Brownstown Township 11/3/2011 840,000 11,800 71.19
2212 Grand Commerce Dr Howell Township 11/15/2011 820,000 24,000 34.17
26532 Groesbeck Hwy Warren 10/31/2011 800,000 33,181 24.11
28025 Oakland Oaks Ct Wixom 9/30/2011 725,000 32,500 22.31
LEASE ACTIVITY
PROPERTY ADDRESS SUBMARKET TENANT SIZE SF
24450 Glendale Ave Dearborn Chrysler 393,940
19661 Brownstown Center Dr Downriver C*MAC Transportation LLC 109,474
36310 Eureka Rd Airport World Tek Industries 103,994
31293-31301 Mally Dr Troy NA 53,150
P. 2 | COLLIERS INTERNATIONAL