LANSING, Mich. – After opening two and a half years ago, Colliers Lansing has experienced tremendous growth, and multiple deals marked a very busy end of 2021 for the Lansing team.
“Our growing Lansing team has exceeded our expectations after an unpredictable 2020 due to the COVID-19 pandemic,” said Shawn O’Brien, CCIM vice president at Colliers Lansing. “The end of this year has been defined by strong retail activity, which is good news considering the effects the pandemic has had on the retail sector. We’re excited for even more growth next year.”
Multiple deals around the state made for a strong Q3 and early Q4, and there’s no sign of activity slowing down.
LaFontaine Auto Group took a major step in expanding in the mid-Michigan market with the acquisition of 3362 and 3382 Hulett Road in Okemos for a new Stellantis-Chrysler brand dealership. LaFontaine will have over 2,000 feet of frontage along I-69. LaFontaine also acquired the 31,000-square-foot former Story Body Shop at 2727 Prospect St. to restore it into a state-of-the-art body shop to service overflow vehicles from multiple LaFontaine dealerships in the area.
Developers looking to build a new Skymint location, a Michigan-based marijuana dispensary, have acquired space at 2755 Grand River Ave. and 4972-4988 Northwind Dr. in Meridian Township. They also are expected to build a new ground-up location for Trader Joe’s specialty grocer at the current Golden Wok site and adjacent retail center where Capital Lighting is currently located.
In northern Michigan, Skymint developers plan to redevelop a former La Senorita’s restaurant and Fifth-Third Bank location into a marijuana dispensary and high-end retail at 737 & 719 W. Main St. in Gaylord, a busy section of M-32 and the I-75 interchange.
Retail has bounced back from pre-pandemic levels, with strong absorption in Q3 and early Q4 both nationally and across Michigan. Delta Crossings in Delta Township exemplifies the fact that retailers want to expand in highly accessible regional destinations. With 600,000 square feet of new retail space under development, the first 160,000 square feet delivered during Q3 included new retailers to the area: Bob’s Discount Furniture and Sierra Trading Post, along with TJ Maxx and Hobby Lobby relocations.
A new BJ’s Wholesale and Texas Roadhouse will be finished in early 2022 at Delta Crossings. A 90,000-square-foot @Home location is likely to be finished in the second quarter. Also in the third quarter of 2021, Consumers Credit Union purchased a 1.2-acre site at the northwest corner of Marketplace Boulevard and Saginaw Highway. Olive Garden will be adjacent to the credit union. Both businesses are expected to start construction in early 2022. Joining them will be another 200,000 square feet of new retailers that are committed to joining the approximately 90 acres of commercial development in late 2022 or early 2023.
A 344-unit multifamily development will also absorb 40 acres of the adjacent land at the same location. Later, single-family housing will be constructed. In total, this complete project will encompass more than 200 acres, making it one of the largest retail-driven developments under construction in the Midwest.
O’Brien predicts continued strong demand for retail space to close out 2021 and continue throughout 2022.
“Retailers lost a year of new store development due to the COVID-19 pandemic, and now they are trying to make up for the delay in their expansion plans,” O’Brien said.
Both tenants and investors are gravitating toward the best-available Class A and B centers with vacancies or value-add opportunities. Colliers Lansing is also seeing absorption of a significant amount of older Class C retail space from tenants looking to repurpose those spaces for small businesses or quasi-wholesale distribution, or online sales/marketing with less of a traditional retail focus.
Q3-Q4 leasing results included absorption of several vacant suites along Grand River Avenue, including Sleep Number, IvyRehab Physical Therapy, Premier Martial Arts and in downtown East Lansing including Focus Brands, Auntie Ann’s, Jamba Juice, Playa Bowls and more.
“We expect 2022 to begin with the same level of vigor and activity as the end of this year,” said Amy Richer Perkins, associate vice president of retail at Colliers Lansing. “Clients are energized and looking for non-traditional ways to use retail spaces that support e-commerce and small business. There’s a lot to look forward to.”
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