CBRE|Martin recently released its second-quarter MarketView reports for Mid-Michigan. The reports offer insight into the new developments and other economic barometers that affect commercial real estate in the area.
The report is divided by three segments – retail, office and industrial sectors – and provides statistical information on the vacancy rates and market rate trends.
CBRE reported that market fundamentals strengthened, but increased vacancies were imminent. Some of the retail sector spaces in the report include the new 7,000-square-foot Michigan State University Art Lab and AI Fusion Sushi & Grill, the vacated former Kmart building in St. Johns that was sold and repurposed for industrial use, as well as the Everett Plaza, which sold for $1.58 million.
The market sector report on offices indicated that the Lansing-East Lansing Metropolitan Statistical Area has an unemployment rate of 3.4 percent – below the state of Michigan’s rate of 4.3 percent and the U.S. rate of 4 percent – and the overall market vacancy fell 10 basis points to 17.5 percent. State government lease activity remained active and rental rates remained steady with limited landlord concessions.
The Industrial side of the report stated that demand outpaced supply, pushing rents upward. Industrial users were looking for space in nontraditional buildings and lack of inventory also prompted interest in build-to-suit development. That was tempered, however, due to higher costs for labor and materials. Also, notable, the local medical marijuana industry has removed significant blocks of vacancies in several municipalities via property sales and options.
Read all of the second-quarter MarketView reports by visiting CBRE/Martin at www.cbre.us/lansing.