Detroit industrial market dynamics remain resilient in wake of pandemic; 2021 outlook for sector is solid in comparison to other real estate asset types
Michigan’s economy remained challenged overall at the close of 2020, with the state’s 7.5% unemployment rate hovering well above the 6.7% national average. While the workforces of service industries were decimated by the pandemic, job losses in auto manufacturing and construction were largely recovered by the end of the year, helping to sustain Detroit’s regional economy. As some real estate sectors recently began to exhibit some fundamental weaknesses, the region’s industrial market has shown resilience throughout the pandemic, even with incremental softening observed this quarter.