2024 Development Report

INDUSTRIAL – Key Metrics

INDUSTRIAL RENT

$7.00

$6.00

$6.56

$5.00

$3.91

$5.67

$4.00

$3.00

$2.00

$1.00

$0.00

2019

2020

2021

2022

2023

2024

Source: NAI Wisinski of West Michigan

Net absorption rates have trended positive since Q1 2020, however dropped to negative 427,601 square-feet in Q1 2024. That compares to the same period the previous year when the industrial market saw a positive 450,602 square-foot absorption. Industrial rents grew nearly 16% from $5.67 per square-foot in Q1 2023 to $6.56 per square-foot in Q1 2024. Rents have grown 68% since Q1 2019 when they were $3.91 per square-foot.

INDUSTRIAL SPACE UNDER CONSTRUCTION

3.0M

2,676,356 sq/ft

2.5M

2.0M

1.5M

1,119,269 sq/ft

1.0M

500K

349,700 sq/ft

0

2019

2020

2021

2022

2023

2024

Source: NAI Wisinski of West Michigan

Industrial space under construction peaked in Q4 2021 with 2.7 million square-feet in the pipeline. Since then, the industrial pipeline has continued to be whittled down, shrinking 69% from approximately 1.1 million square feet in Q1 2023 to nearly 350,000 square feet in Q1 2024.

07

STATE OF DEVELOPMENT – DIVING DEEPER

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