Metro Detroit industrial vacancy eases as leasing activity remains uneven
The Detroit industrial market remained in a gradual softening cycle in Q3 2025, with vacancy rising to 5.2%, up from 4.7% one year earlier. While occupier demand had not disappeared, leasing activity was sporadic, with fewer large-scale transactions coming to market. Year-to-date net absorption declined to -0.6 million square feet (msf), with negative quarterly absorption in four of the past five quarters. Despite this, fundamentals held steady by national standards, with Detroit’s vacancy rate still below most peer markets. Market sentiment continued to reflect a wait-and-see approach, particularly among automotive suppliers adjusting to policy uncertainty and shifting production plans.