Over the last year, commercial real estate sectors in the Lansing area continued to show signs of recovery.
Retail growth continued during the first half of 2022 with many new concepts entering the market and existing retailers expanding, especially along primary corridors. The most active retail segments in the Lansing area included fast casual and quick service restaurants, fashion retailers and service retailers.
"With new developments, leases and expansions, the Lansing retail market is still robust,” said Shawn O’Brien, vice president at Colliers Lansing. “We’re seeing a lot of restaurant activity, as well as acquisitions of land for new retail and mixed-use buildings. With this demand for new development primarily focused in new residential growth areas, the challenge going forward will be navigating increased construction costs and rising interest rates.”
While returning to the office remains a moving target for many employers, the first half of 2022 showed signs of recovery within the office sector. Many companies renewed existing leases, some downsized their footprints and others remained in a holding pattern. Businesses are looking to attract and retain talent by enhancing their employees’ office environment with additional amenities.
“It’s been a tumultuous couple of years for the office sector, and many employers are still assessing what the future will look like for their business,” said Nicole Wiseman, senior associate at Colliers Lansing. “We anticipate continued recovery in the second half of 2022 as employers determine their most effective back-to-work model.”
Momentum continued in the industrial sector, with increased demand for space and declining vacancy rates. Asking rates were at all-time highs while supply chain issues and labor shortages remained impactful on business operations and new developments.
“The industrial market remains strong but is hindered by the ongoing lack of supply,” said Julie O’Brien, vice president at Colliers Lansing. “We are seeing constant sale and lease activity and inventory is moving very quickly. Investors continue to scour the market for new opportunities. We expect these trends to continue throughout the second half of 2022.”