The greater Lansing area of Michigan remains a challenging market for office landlords. According to the latest research from CBRE, office vacancies in this slice of Michigan rose from 18 percent in the fourth quarter of 2011 to 18.6 percent in the second quarter of this year.
The CBRE report also said that all submarkets reported no or negative absorption during the quarter.
Of course, the news in the Lansing isn’t bad if you happen to be a tenant. As the CBRE report says, tenants have taken advantage of the area’s low office rents and frequent owner concessions to lease better quality space. It’s a flight to quality, one similar to what is taking place at many Midwest markets.
Surprisingly, the majority of major mid-Michigan companies that CBRE surveyed said that they are bullish on the near future of the U.S. economy. In other words, things aren’t great now, but they seem to be getting better.
That’s actually a pretty good way to sum up life in most Midwest markets today.
— Dan Rafter