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Martin Commercial Properties | 2023 Ended With an Escalation in Retail Activity, A Strong Industrial Market Despite A Rise in Vacancies and Office Vacancies Reaching a 20-year High

Michigan Business Network
February 13, 2024 10:00 AM


The highly anticipated “Market Insights” report from Martin Commercial Properties provides an in-depth analysis of the region’s retail, industrial, and office real estate sectors.

EAST LANSING, Mich. – Martin Commercial Properties, the leading authority in Mid-Michigan's
commercial real estate landscape, has unveiled its highly anticipated biannual Market Insights Report.
This comprehensive dossier delves into the industrial, office, and retail sectors, providing invaluable insights into the region's real estate dynamics for the second half of 2023 (July through December). The report, meticulously compiled by Martin Commercial Properties' team of experts, offers a detailed analysis of key metrics including vacancy rates, lease renewals, typical lease rates, sale activity, and more. Here are a few pivotal findings:

Industrial Sector Highlights:
• Despite a rise in vacancy rates to 10.2% in Greater Lansing, up from 5.4% in H1 2023, the market remains strong, with limited quality options for users.
• Anticipated timely absorption of large vacancies is expected to drive vacancy rates back to low levels.
• High demand and scarce available space are driving rental rates to unprecedented heights.
• Notable new leases include significant commitments from the State of Michigan and Herc Rentals in key submarkets.
• Two major developments, including Amazon's 1.1 million SF distribution center and Ultium Cells' 2.8 million SF battery plant, are set for completion this year, further bolstering the industrial landscape.

Office Sector Insights:
• The shift to remote and hybrid work has reshaped office demand, with vacancy rates stabilizing at a new post-COVID normal.
• Vacancy rates have surged by 42% in the suburbs and 92% in the Central Business District compared to pre-pandemic levels.
• Notable new leases include Jackon at Corporate Center, Health Management Associates’ in the Woodlands and Butzel Long P.C. at The Louie.

Retail Sector Overview:
• Average market vacancies saw a decline from 16.1% in H1 2023 to 14.4% by year-end, signaling a positive trend.
• Major malls in the area have shed vacancies with Best Furniture Outlet leasing the 103,000 SF
former Macy’s, Zap Zone now occupying 125,000 SF Younker’s space and the Meridian Mall
welcomed GymKind Academy (20,000 SF) and Schinn Taekwondo.
• A new retail building on W. Saginaw Hwy offers prime leasing opportunities, while construction will soon be underway on the $65 Million dollar Haslett Village mixed-use development project.

About Martin Commercial Properties:
Martin Commercial Properties is the premier commercial real estate firm in Mid-Michigan, with a legacy spanning over 60 years. Renowned for its unparalleled expertise, influence, and client-centric approach, Martin Commercial Properties offers a complete range of commercial real estate services, including brokerage, property development, property management, investment services, and corporate solutions.


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