CBRE|Martin releases MarketView reports on statistics for commercial real estate in mid-Michigan
Tuesday, September 27, 2016
CBRE|Martin announced today the release of its H1 2016 MarketView reports for mid-Michigan (covering the first half of 2016). 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 (Positive absorption within all submarkets):
- Vacancy decreased in all submarkets.
- Absorption exceeded 216,000 sq. ft.
- Speculative construction underway in all submarkets.
- Fast casual and quick-service restaurants lead the way for expansion throughout the market.
- Several mixed-used developments are underway near the MSU campus including SkyVue, East Town Flats and the Gateway project at 300 West Grand River Avenue.
- Several new hotels are planned or under construction in the market.
- Planet Fitness leases 23,000 sq. ft. in the South Submarket
Office (Activity steady despite lack of available options):
- Class A space activity continues to be scarce as a result of limited supply.
- Renewal activity very strong given limited options in the market.
- Rental rates held relatively steady and forecasted to hold firm through 2016.
- Market continues to be reliant on the State of Michigan, Michigan State University, the auto industry and the healthcare, insurance and financial services sectors.
- Speculative space will continue to be non-existent.
- Sales activity relatively active, prices to continue to increase slightly across all Submarkets.
Industrial and Logistics (Steady leasing activity as space options decrease):
- Market continues to tighten; Class A space at historic lows.
- North Submarket vacancy rate tumbles to 1.5 percent.
- Negotiating power favors landlords.
- Lack of available options forcing tenants to become more efficient within their existing spaces.
- Corix Utilities signs long-term lease on 53,000 sq. ft. building in West Submarket.
- Owner-User and Build-to-Suit construction dominates market; no speculative construction in the pipeline.
- TFT Global signs long-term lease; breaks ground on 50,000 sq. ft. industrial building.
- 600,000 sq. ft. major automotive manufacturing stamping plant completed.
- 55,000 sq. ft. Michigan CAT Dealership completed.
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.