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CBRE|MARTIN RELEASES MARKETVIEW REPORTS ON STATISTICS FOR COMMERCIAL REAL ESTATE IN MID-MICHIGAN

Friday, September 11, 2015   (0 Comments)
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CBRE|MARTIN RELEASES MARKETVIEW REPORTS ON STATISTICS FOR COMMERCIAL REAL ESTATE IN MID-MICHIGAN

EAST LANSING, MI – Sept. 11, 2015 – CBRE|Martin announced today its release of its H1 2015 MarketView reports for mid-Michigan. The reports are divided by office, retail and industrial commercial sectors. The reports provide information on new developments, vacancy rates, market rate trends and many other economic real estate barometers.

Below are a few highlights from the MarketView reports:
Retail (Consistent market growth, build-to-suits and new construction increase):
 Over the past six months, the average vacancy for leasable space within the Greater Lansing area increased slightly from 16.2 percent to 16.4 percent.
 Both the east and west sectors outperformed the balance of the market with vacancy rates of 10.6 percent and 11.0 percent respectively.
 Given steady market activity and low availability of premium space in high-traffic areas, new speculative development and owner-occupant projects will continue throughout the market.
 Consumer spending is fluctuating, but the overall trend is upward despite negative overall absorption.
Office (Vacancies continue to drop; new demand for Class A space):
 Greater Lansing vacancies dipped from 18.0 percent in H2 2014 to 17.2 percent in H1 2015, wrapping up a moderate year.
 The CBD continues to outperform the suburbs in terms of occupancy, as urban vacancy averages 13.0 percent, while that of the suburbs averages 19.3 percent.
 A flight towards high-end space continues to fuel the Greater Lansing area office market, while the delivery of new Class A office space is proposed primarily within the East Submarket.
 New speculative and build-to-suit construction remains at a standstill.
 Vacancy rates have fallen in every Submarket except the North.
 The South Submarket continues to have significant vacancy with 26.5 percent of available office product currently vacant.
Industrial (User-owner activity continues to trump leasing activity):
 Greater Lansing industrial vacancies remained flat at 6.8 percent during H1 2015 when compared with H2 2014. This is a result of moderate leasing activity, a shortage of Class A warehouse and manufacturing space and the trend towards owner-user activity in the market.
 Currently, the majority of market vacancy is within obsolete buildings and the supply line of speculative construction remains stalled. H1 2015 demand did not outweigh supply; however, activity of new and existing users is expected to increase.
 With few Class A buildings able to accommodate a 50,000 SF industrial user, CBRE anticipates a resurgence of build-to-suit projects to satisfy larger demand.
 From a geographic perspective, the West and North Submarkets are experiencing the lowest average vacancy rates, while the CUA and South Submarkets are experiencing the highest averages.
 There is a wide gap between Class A and B/C vacancy, and the Submarkets with higher vacancy possess a higher percentage of outdated facilities.
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 cbrelansing.com.

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 (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at cbre.com.


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