JULY 2018 MARKETVIEW GREATER LANSING Q2 2018 CBRE|MARTIN Research
LANSING, MI – August 9, 2018 – CBRE|Martin announced today the release of its Q2 2018 MarketView reports for Mid-Michigan (covering the second-quarter of 2018). Divided by retail, office and industrial commercial sectors, the reports provide statistical information on vacancy rates and market rate trends. In addition, the MarketViews offer insight on new developments and other economic barometers that affect commercial real estate in the area.
Below are a few high-level takeaways from each MarketView sector report:
Retail (Market fundamentals strengthen, yet increased vacancies imminent):
- Greater Lansing welcomes new 7,000 sq. ft. MSU Art Lab and 7,500 sq. ft. AI Fusion Sushi & Grill (East Submarket).
- Vacated former K-Mart building in St. Johns (North Submarket) sold and repurposed for industrial use.
- Everett Plaza sells for $1.58 Million (South Submarket).
- Toys R Us closes 32,000 sq. ft. store on Newman Road (East Submarket).
- Gift & Bible closes 23,500 sq. ft. store in Delta Center (West Submarket).
- Younker’s two regional mall locations (East Submarket and West Submarket) slated to close late summer.
Office (Market continues to improve while new construction remains stalled):
- Lansing-East Lansing MSA has an unemployment rate of 3.4%, below the State of Michigan rate of 4.3% and the U.S. rate of 4.0%.
- Overall market vacancy falls 10 basis points to 17.5%.
- The 91,710 sq. ft. MSHDA building at 735 East Michigan Avenue (CBD) sold for $21 Million.
- State government lease activity continues to be active.
- Rental rates steady with limited landlord concessions.
- New speculative construction remains non-existent.
Industrial (Demand outpaces supply, pushing rents upward):
- Supply is not keeping up with demand, pushing up rental rates and causing users to become more efficient in their space.
- Vacancies remain below national average.
- Industrial users are seeking space in non-traditional buildings.
- Continued demand and insufficient inventory of space has prompted interest in build-to-suit development; however, it is tempered due to high labor and material costs.
- The local medical marijuana industry has removed significant blocks of vacancies in several municipalities via property sales and options.
Read the entire Q2 2018 MarketViews by visiting CBRE|Martin at www.cbre.us/lansing.
The CBRE Global Research team provides strategic investment services and market-related data, analysis and econometric forecasts. Their website, cbre.com/researchgateway, archives all of CBRE’s MarketViews as well as reports from all of their offices around the world.
About CBRE|Martin CBRE|Martin is a CBRE affiliate office serving Mid-Michigan. CBRE|Martin offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; appraisal and valuation; and research and consulting. Please visit our website at cbre.us/lansing.
About CBRE Group, Inc. CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates) and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at http://www.cbre.us/.