Industrial Sector: Strong Demand Despite Vacancy Uptick

• Vacancy rates increased from 8.9% in H1 2024 to 11.5% in H2 2024, primarily due to specific vacancies in the South Submarket.
• Demand remains strong, highlighted by Temperpack Technologies leasing 135,000 SF at 2510 Snow Road just days after it was vacated.
• Major investments continue to drive growth, including GM’s $500 million grant for EV production, Gestamp’s $400 million expansion in Mason.
• Ultium Cells’ 2.8 million SF battery plant nearing completion

Office Sector Highlights:

• Vacancy rates rose slightly to 21.9%, from 21.2% charted in H1 2024.
• Tenant-friendly conditions are expected to continue, as leasing volume held steady but transaction values dipped by 30% due to downsizing and shorter-term leases.
• Notable leases include HNTB (20,000 SF), Thrun Law Firm (17,000 SF renewal), and Cedar Creek Hospital (12,000 SF).

Retail Sector Highlights:

• Vacancy rose from 13.8% in H1 2024 to 16.4% in H2 2024, driven by store closures like Rite Aid and Big Lots, though new tenants are stepping in.
• Delta Crossings continues attracting major retailers, welcoming Burlington and announcing Best Buy and Bass Pro Shops.
• The South Submarket is experiencing a retail revival, with Dunkin’, Wingstop, and Chick-fil-A joining the corridor near Meijer on South Cedar St.

Meet the Martin Commercial Properties Brokerage Team

Behind the data and market insights stands a team of experienced professionals dedicated to driving results in the office, industrial, and retail sectors. Our brokerage experts provide strategic guidance and in-depth market knowledge to help clients navigate the evolving commercial real estate landscape.

Office Brokerage Team

The office sector is undergoing significant shifts, and our dedicated team – Executive Vice President, Eric Rosekrans, CCIM and Senior Vice President, Thomas Jamieson, SIOR – is at the forefront of market trends. Whether securing new leases, managing property transitions, or identifying investment opportunities, our office brokerage experts specialize in connecting clients with spaces that align with their business goals.

View Office Properties

Industrial Brokerage Team

With industrial demand remaining strong, our industrial brokerage professional – Senior Vice President, Christopher Miller, SIOR – excels at identifying prime locations, negotiating deals, and managing complex transactions. From logistics hubs to manufacturing spaces, we help clients capitalize on emerging opportunities in a competitive market.

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Retail Brokerage Team

Retail is evolving, and our retail brokerage team – Vice President, Carson Patten and Senior Associate, Samantha Le – understands how to navigate shifting consumer trends and property dynamics. Whether assisting national brands, local entrepreneurs, or developers, we provide expert guidance in site selection, leasing, and investment strategies.

View Retail Properties

At Martin Commercial Properties, our brokerage team’s deep expertise and commitment to client success drive real estate solutions that create long-term value.

For more information on how our team can assist with your commercial real estate needs, visit www.martincommercial.com.

The post Greater Lansing Market Insights: Key Trends & Expert Analysis first appeared on Martin Commercial.

Known for its expertise in general contracting, design-build, project management, and development services, Martin Commercial Properties continues to meet the evolving needs of the commercial real estate market. This expansion strengthens the firm’s commitment to delivering high-quality, customized construction services, ensuring every project is completed with precision and on time.

“Our team is excited to broaden our construction capabilities,” said Cutler Martin, Managing Director of Martin Commercial Properties. “We provide an innovative approach and can bring our client-focused services to a wider market, ensuring that our clients benefit from our expertise and commitment to excellence.”

The general contracting and construction services provided by Martin are built on a foundation of attention to detail, budget adherence, and hands-on management from start to finish. This allows the company to further showcase its capability in delivering solutions tailored to client needs, all while upholding the company’s culture of excellence and client satisfaction.

“Our focus has always been on quality, innovation, and efficiency in every project we undertake,” added Cutler Martin. “This will further elevate our construction services and continue our mission to be a trusted partner in the commercial real estate industry.”

The post Martin Commercial Properties Expands Construction Services to Tampa, FL first appeared on Martin Commercial.

Industrial Sector Highlights: A Beacon of Stability

The industrial sector in Greater Lansing showcased remarkable stability in the first half of 2024. The average vacancy rate for leased industrial buildings larger than 20,000 square feet decreased from 10.0% to 9.0%, reversing the trend of escalating inventory observed since the second half of 2022. This decrease in vacancy rates positions Greater Lansing as a low-risk option for investors and occupiers, with the West Submarket standing out as the strongest in tenant demand.

Noteworthy market activities include significant investments by major players: GM’s $500 million federal grant-supported funding to bolster hybrid and electric vehicle production at its Lansing Grand River plant, Neogen’s $200+ million expansion project in the Central Urban Area, and Gestamp’s $400 million commitment to renovate and expand their facility in Mason.

Office Sector Highlights: A Tenant’s Market Amid High Vacancy Rates

The office sector in Greater Lansing continues to face challenges, with the overall market vacancy remaining unchanged from the second half of 2023 and sitting at a 20-year high. This tenant-friendly market condition is expected to persist throughout 2024, providing smaller occupiers with ample leasing opportunities.

Despite the high vacancy rates, there have been notable large leases, including the Michigan Fitness Foundation (10,700 SF – East submarket), TIC International (9,400 SF – West submarket), and Creative Wellness (7,500 SF – East submarket). Major sales transactions include 415 W. Kalamazoo/400 S. Walnut ($1.875 million – CBD), 310 W. Lake Lansing ($1.167 million – East), and 431 W. Kalamazoo ($1.1 million – CBD).

Retail Sector Highlights: Surge in Build-to-Suit Development

The retail sector experienced a decline in average market vacancies, dropping from 14.3% in the first half of 2023 to 13.8% in the first half of 2024. Despite challenges such as inflated debt, land, and construction costs, development activity has been robust across all sectors of the market. The region’s vibrant and evolving dining scene is reflected in the emergence of numerous new eateries throughout the market.

While several closures impacted the market, the overall outlook remains positive, with expectations of a moderate uptick in vacancies in the coming months.

The post 1st Half of 2024 Mid-Michigan Real Estate Market Insights: Industrial Stability, Office Vacancy, and Retail Build-to-Suit Surge first appeared on Martin Commercial.

A Vision for Sustainable Manufacturing

Van Martin, President/CEO of Martin Commercial Properties, expressed enthusiasm for this development, stating, “This significant investment by GM not only enhances the value of our industrial real estate market but also signifies a transformative step towards a sustainable and innovative manufacturing landscape. We are proud to support such progressive ventures that drive economic growth and technological advancement.”

Economic and Employment Boost for Lansing

The impact of this expansion is substantial for the Lansing community. The investment will not only bolster the local economy but also create numerous job opportunities, reinforcing the city’s status as a vital hub for automotive manufacturing. The electrification of the Lansing Grand River plant promises to attract further investments and development in the region, enhancing the local industrial real estate market.

“Martin Commercial Properties is proud to be at the forefront of commercial real estate transactions for automotive suppliers supporting the local auto industry. Our team’s direct involvement in facilitating a number of these crucial deals underscores our dedication to advancing the region’s role in the growing electric vehicle industry.,” stated Mr. Martin.

Strengthening Lansing’s Industrial Market

Lansing’s industrial market continues to demonstrate remarkable strength, experiencing historically low vacancy rates, (10.2% market wide H2 2023), low inventory, and strong rental rates. This development by GM further solidifies the area’s industrial sector, attracting additional businesses and investment. The strategic move by GM positions Lansing as a key player in the future of automotive manufacturing, ensuring a vibrant and resilient industrial market.

Expanding GM’s EV Manufacturing Footprint

This investment is part of a broader initiative to strengthen GM’s North American EV manufacturing and supply chain development, with over $12 billion announced since 2020. The Lansing Grand River plant will now join other pivotal GM facilities on the EV journey, including Factory ZERO Detroit-Hamtramck Assembly Center and Orion Assembly, enhancing Michigan’s position as a leader in automotive innovation.

Explore Martin’s Industrial Real Estate Expertise

To learn more about our brokerage services for industrial properties in Michigan and how we can support your business’s real estate needs, explore our Industrial Brokerage Services page. You can also view our current listings of industrial properties available for sale or lease on our Industrial Properties Listings. With our deep expertise and dedicated approach, we are committed to helping you achieve your real estate goals in this dynamic sector.

The post Martin Commercial Properties Celebrates GM’s $500 Million Investment in Lansing Grand River Assembly Plant first appeared on Martin Commercial.