2023 Ended With an Escalation in Retail Activity, A Strong Industrial Market Despite A Rise in Vacancies and Office Vacancies Reaching a 20-Year High

By Jayme Taylor / 02.27.24 / 3 min read

Martin’s research and associate teams offer in-depth views of industrial, office, and retail markets, providing key insights into economic trends and transactions.

Industrial Sector

  • Despite a rise in vacancy rates to 10.2% in Greater Lansing, up from 5.4% in H1 2023, the market remains strong, with limited quality options for users.
  • Anticipated timely absorption of large vacancies is expected to drive vacancy rates back to low levels.
  • High demand and scarce available space are driving rental rates to unprecedented heights.
  • Notable new leases include significant commitments from the State of Michigan and Herc Rentals in key submarkets.
  • Two major developments, including Amazon’s 1.1 million SF distribution center and Ultium Cells’ 2.8 million SF battery plant, are set for completion this year, further bolstering the industrial landscape.

Office Sector

  • The shift to remote and hybrid work has reshaped office demand, with vacancy rates stabilizing at a new post-COVID normal.
  • Vacancy rates have surged by 42% in the suburbs and 92% in the Central Business District compared to pre-pandemic levels.
  • Notable new leases include Jackson at Corporate Center, Health Management Associates’ in the Woodlands and Butzel Long P.C. at The Louie.

Retail Sector

  • Average market vacancies saw a decline from 16.1% in H1 2023 to 14.4% by year-end, signaling a positive trend.
  • Major malls in the area have shed vacancies with Best Furniture Outlet leasing the 103,000 SF former Macy’s, Zap Zone now occupying 125,000 SF Younker’s space and the Meridian Mall welcomed GymKind Academy (20,000 SF) and Schinn Taekwondo.
  • A new retail building on W. Saginaw Hwy offers prime leasing opportunities, while construction will soon be underway on the $65 Million dollar Haslett Village mixed-use development project.

Access Fulll Reports at Martin Commercial Properties