Michigan Real Estate News

Timely  |  Relevant  |  Informative

Downtown Lansing

Downtown Lansing Struggles With Fewer Customers

All Michigan downtowns have been hit by the pandemic. With decreased foot traffic and former customers continuing to work from home, business is slow. But downtown Lansing has been hit especially hard as its businesses rely on the State of Michigan office hub. Struggling businesses have lost up to 90% of their sales while waiting for state employees to return to work. Unfortunately, even once the pandemic fades, far fewer state employees will return to work on a daily basis.

Dead Malls Repurposed In Surprising Ways

Dead malls are the ghost of retail pasts, but they’re being repurposed in creative ways. Amazon is using old mall space as new fulfillment centers. One dead mall has become the new headquarters for Fortnite creator Epic Games. To survive, malls are bringing in non-traditional tenants like bowling alleys, gyms, and grocery stores. Turnover and vacancy are high in mall real estate right now.

Mall Vacancies Set New Record

The vacancy rate for regional malls in the United States hit a record 11.4% in the first quarter of 2021 from 10.5% in the fourth quarter of 2020, according to Moody’s Analytics’ commercial real estate division. Shopping traffic to enclosed malls has been steadily decreasing for years due to Americans spending more online. In it’s latest quarterly report, Moody’s finds that other commercial real estate sectors are showing better progress, retail is still in crisis.