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2021 Q4 Lansing Market Trends

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The fourth quarter of 2021 showed significant signs of recovery and normalcy in multiple sectors across the Lansing commercial
real estate market.

Demand from retail occupiers remained strong, with absorption of Class A and B outpacing earlier quarters of 2021. Several
companies returned their workforces to the office and the industrial market continued to thrive until omicron, the latest COVID-19
variant, hit Michigan in mid-December. Though numerous companies were operating cautiously, it remained a busy quarter for the
Lansing area.

Governor Gretchen Whitmer signed a $1.48 billion spending plan, with $1 billion dedicated to economic development incentives
and $409 million in assistance for businesses affected by the COVID-19 pandemic.

There was cautious optimism in the office market as signs of business normalcy were on the horizon, which continued throughout
the quarter until the rising outbreak of the omicron variant. While 2021 was not a breakout year for the office sector, the trends
were encouraging.

Velocity in the industrial sector was hampered by a low supply and high demand. Due to issues with the supply chain for building
materials and labor shortages, construction will continue to be impacted and delayed, and not likely be resolved until after 2022.

Amazon’s new construction of a more than 1 million-square-foot distribution facility in Delta Township, at the southwest corner of
Creyts Road and I-496, will be the largest new development since the GM Lansing Delta Assembly Plant was built.

In December, Delta Township approved a $2.5 billion dollar tax exemption for General Motors Co. and LG Energy Solution to develop
a battery cell manufacturing plant offering an encouraging sign for Lansing. This will be a transformational expansion for the
Lansing market if GM announces the project for its adjacent 560 acres of land. The demand for EV technology related companies
and suppliers will result in an increased need for industrial zoned land and buildings in proximity to the GM Lansing Delta Assembly
Plant.


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2021 Q4 Lansing Market Trends

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