Colliers Lansing releases market trend report on industrial, retail, and office sectors
LANSING, Mich. – Over the last year, commercial real estate sectors in the Lansing area continued to show signs of recovery.
Colliers Lansing released its market trend report Friday for the first half of 2022, which covers activity, significant deals, and trends in the industrial, retail, and office sectors in the Lansing area.
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.”
The H1 2022 market trend report with more information on significant deals and trends can be found on the Colliers website.
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Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 62 countries, our 17,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 27 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of 20% for shareholders. With annual revenues of $4.3 billion and $77 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.
