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CBRE|Martin Releases MarketView Reports on Statistics for Commercial Real Estate in Greater Lansing

Tuesday, February 6, 2018  
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CBRE|Martin announced today the release of its H2 2017 MarketView reports for Greater Lansing (covering the second half of 2017). 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.

Retail (Mixed-use development & restaurant activity dominate market):

  • New mixed-use construction surges throughout the market.
  • Average retail vacancy held steady during 2017.
  • Food/beverage sector flourishes, with The Crafted Bean, Batter Up Bistro, La Cocina Cubana, Kingston Kitchen and Flour Child Bakery new to the market.
  • Costco opens 156,170 sq. ft. store in the East Submarket.
  • Gander Mountain shutters its 52,000 sq. ft. store in Delta Township (West Submarket).
  • Investment sales of single-user NNN property are steady.
  • McLaren to build $450 Million hospital adjacent to MSU in the East Submarket.
  • The $730 Million Facility for Rare Isotope Beams, under construction through 2020 in the East Submarket, promises to make Greater Lansing the “Silicon Valley” of particle acceleration

Office (Market tightens with no speculative construction in pipeline):

  • Lansing-East Lansing MSA has an unemployment rate of 3.7%, below the State of Michigan and U.S. unemployment rates of 4.7% and 4.1%, respectively.
  • Overall market vacancy drops 50 basis points to 17.6%.
  • No new space deliveries.
  • Build-to-suit construction to become more active in 2018.
  • Rental rates steady with limited landlord concessions.
  • State government lease activity increases.
  • Major insurance company relocates from East Submarket to West Submarket.
  • Major healthcare organization vacates 45,000 sq. ft. in West Submarket and relocates to East Submarket.

Industrial and Logistics (Medical marijuana hopefuls tie-up buildings throughout Lansing):

  • Several local municipalities have passed ordinances allowing medical marijuana uses; most have not.
  • Medical marijuana hopefuls tie-up properties throughout the area via options to purchase and lease, awaiting license approval.
  • Sale prices of single-user buildings soar to accommodate medical marijuana use.
  • Leasable market shrinks as buildings sell; no speculative construction underway to date.
  • Viable options for new and expanding industrial users continues to shrink, driving up asking rental rates and forcing users to become more efficient in their space.
  • Continued demand and insufficient inventory of space has prompted land sales for build-to-suit development.

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.


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