Martin Commercial Properties released its biannual Market Insights report detailing the status of mid-Michigan’s real estate market in the industrial, office and retail sectors. The report provides in-depth analysis of vacancy rates, lease renewals, typical lease rates and more.
“We’re seeing an interesting dynamic play out as mid-Michigan businesses continue to adjust to the realities of the post- pandemic environment,” said Martin Commercial Properties CEO Van Martin. “Industrial space remains scarce, which is driving up rates, and the retail sector is showing resiliency with quite a lot of activity in the market. But there continues to be plenty of uncertainty in the market for office space as businesses take a cautious approach to their lease renewals.”
Significantly, the report’s findings for the retail sector show vacancies fell from 17.8% in the first half of 2022 to 16.1% in the last six months of 2022, while absorption remained steady. New national chains and mom-and-pop eateries were in abundance, like Crumbl Cookies in Delta Township and Joe’s on Jolly in Okemos. The Lansing Mall continues to shed vacancies; recent leases include Daily Dealz, The Venue and Zap Zone. Activity is also bustling along Lake Lansing Road. The corridor is slated to welcome Dave & Busters, Panda Express and more, while Wellnow Urgent Care and Chipotle are under construction just east of U.S. 127.
On the industrial side, vacancies of leased space in the Greater Lansing area averaged 3.5% in the second half of 2022, up from 1.7% in the prior six-month span and up from 0.5% from a year ago; however, it remains one of the lowest rates that the Greater Lansing area has historically seen.
The average market vacancy rate remained flat for office space, and stabilizing vacancies and rental rates suggest that the office market is adjusting to the new normal.
For the full report, visit martincommercial.com/files-copy-2/.