E-Commerce Diversifying the Industrial Base
DETROIT—The last few years have been stellar ones for the Detroit region’s industrial market, and robust demand should continue fueling expansion throughout 2018, according to a new report from Newmark Knight Frank. What makes this forecast remarkable is that the automotive industry, the economic backbone of the region, has hit a plateau after a period of staggering growth. But new sources of strength, such as e-commerce, should keep the overall vacancy rate at a historic low, and sustain record-breaking levels of new construction.
“Our market is getting more diverse,” John DeGroot, research director of NKF’s Detroit office, tells GlobeSt.com. “The automotive industry has slowed down a little bit, but we’re seeing the e-commerce sector, along with the medical supply industry, filling in and creating additional demand.”