Industrial Property Identification

Detroit's industrial stock is shaped heavily by the automotive-supplier ecosystem strung along the I-94, I-75, and I-96 corridors, and that history shows up directly in what a replacement building can actually do: clear height, dock configuration, power capacity, and column spacing built for a specific manufacturing or logistics use decades ago. Identifying a fit inside a 45-day window means reading a building's spec sheet as carefully as its price, since the wrong function behind an attractive price is a much harder problem to fix after closing than a price that is a little high.

An investor pricing purely off dollars per square foot without checking whether the building can actually serve a modern logistics tenant, or a light manufacturing operation with different power needs than the prior occupant, risks buying a building that looks like a bargain on the identification notice and turns into a leasing problem a year later.

Reading the Corridor Map Before Touring

The three corridors do not behave the same way. Buildings near I-94 and I-75 skew toward legacy manufacturing and supplier logistics with older clear-height specs that may not suit modern distribution tenants, while product closer to I-96 and the western suburbs tends to run newer with higher clear heights and better trailer courts. We screen the corridor first, then the specific building, so touring time goes to properties that already fit the intended use rather than buildings that only fit on paper.

The Spec Sheet Items That Actually Matter

A handful of physical specifications determine whether a building can serve its intended replacement use, and we check these before underwriting the price:

• Clear height and column spacing relative to the intended racking or equipment layout
• Number and configuration of dock doors versus drive-in grade-level access
• Trailer parking and truck-court turning radius for the tenant type being planned
• Power capacity and any heavy-equipment infrastructure left from prior manufacturing use
• Sprinkler and fire-code classification relative to intended storage or production use

Tenant Credit Behind the Lease, Not Just the Rent Number

For an income-producing industrial replacement, the lease rate matters less than who is actually paying it and how the corridor's automotive-supplier dependence affects that tenant's durability. A building leased to a single-source supplier tied to one automaker's production schedule carries different risk than a multi-tenant flex building serving a broader logistics base, and we underwrite that difference explicitly rather than treating all industrial income the same way.

We also look at how the tenant's lease term lines up against the automaker's own model-cycle and platform timelines where that information is publicly available, since a supplier's lease renewal decision is frequently tied to whether it retains that production contract.

Identifying Against a Moving Inventory

Good industrial product in the tighter corridor segments does not sit long, which means the identification list sometimes needs a realistic second or third option named alongside the top choice, not because the top choice is weak but because a 45-day window can close faster than a single deal. We keep a live shortlist through the identification period rather than locking in on day 10 and hoping the preferred building is still available at day 44.

Handing the Building Off to Closing Diligence

Once an industrial building is identified, its prior manufacturing use often means environmental review takes longer than a standard commercial closing, which is a fact the 180-day closing schedule needs to account for from day one rather than discover in week ten. We flag Phase I timing expectations at identification, not after the purchase agreement is signed, so the closing coordination team is not caught short on runway. If the Phase I report recommends a follow-up Phase II, that additional step needs its own line on the closing calendar rather than being treated as a surprise mid-schedule.

Common 1031 Exchange Questions

Why does clear height matter so much for a Detroit industrial replacement property?

Modern logistics and distribution tenants generally require higher clear heights to use vertical racking efficiently, and a lot of legacy supplier-built product in the older corridor segments was built to lower specifications. A mismatch here can significantly limit which tenants the building can serve after acquisition.

Does a building's prior automotive-supplier use affect closing timing?

Often yes. Former manufacturing sites frequently need Phase I, and sometimes Phase II, environmental review before a lender will finalize financing, which can extend the closing timeline compared to a building with no industrial history.

Should I identify more than one industrial property given how fast the market moves?

Naming a realistic second option is common practice specifically because well-specified industrial buildings in the tighter corridor segments can go under contract quickly, and having a backup protects the exchange if the top choice is no longer available.

How do you evaluate tenant risk on a single-tenant industrial building?

We look at how dependent the tenant is on a specific automaker's production volume, the length and structure of the remaining lease, and whether the building's specifications would suit a replacement tenant if the current one left, rather than relying on the headline rent figure alone.

Is newer industrial product near I-96 always a better choice than older product near I-94?

Not necessarily; it depends on the intended use and budget. Newer product typically commands a higher price and may not be needed if the reinvestment plan does not require higher clear heights or modern trailer courts, so the fit question comes before the age question.

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