Lear Corporation

Highlights:

• New 8-year lease with Lear Corporation (NYSE: LEA), an investment-grade (BBB- S&P) global automotive supplier, providing stable and reliable income through February 2033.
• Lear Corporation is a Fortune 500 company generating approximately $23.3 billion in annual revenue, with long-standing relationships with major OEMs including Ford, General Motors, and BMW, reinforcing tenant strength and long term viability.
• Attractive 7.25% cap rate offering above-market yield for an investment-grade tenant, presenting a compelling risk-adjusted return relative to other net lease opportunities.
• Directly Supports Nearby Lear Manufacturing Facility - The property serves as a critical extension of Lear’s Farwell operations, supporting a combination of light manufacturing, sequencing, and warehousing functions. On-site processes include wire bending for seat cushions and foam work utilizing high-tension wire, directly tied to Lear’s Seating division, which produces foam seating components for major automotive OEMs. This integration reinforces the asset’s mission-critical role within Lear’s supply chain and enhances long-term tenancy stability.
• Double net (NN) lease structure with tenant responsible for taxes, insurance, and CAM, minimizing landlord responsibilities while maintaining control over roof and structure.
• Built-in rent escalations with income growing from $569,424 to $628,520 in 2027 and $659,925 in 2030, providing steady NOI growth and inflation hedge.
• No renewal options remaining, creating future upside through mark-to-market leasing or repositioning at lease expiration.
• 125,704 square foot Class A industrial facility featuring 34’ clear height, heavy power (2,000A currently available with capacity to upgrade to 4,000A / 480V 3phase), 10 dock doors, 3 grade-level doors, and approximately 5,900 square feet of office space.
• Situated on a 7.6-acre site with ample parking, trailer storage, and a secure, fenced-in yard, ideal for manufacturing, distribution, and logistics users.
• Strategically located in Central Michigan with immediate access to US-10, US127, and M-115, allowing efficient connectivity to major markets including Detroit, Grand Rapids, and Lansing.
• Proximity to rail access and within one hour of MBS International Airport enhances logistics capabilities and distribution efficiency.
• Supported by a strong regional labor base and proximity to major manufacturing corridors, making this a highly functional and desirable industrial location.

Description:

1250 Commerce Drive presents a rare opportunity to occupy a 125,704-square-foot modern industrial facility in a strategic Central Michigan location. Designed to support manufacturing, distribution, and warehouse operations, the property is well-suited for users seeking a Class A facility with efficient access to both Central and Northern Michigan markets.

The building features a 34-foot clear eave height, 10 dock doors, three grade-level overhead doors, and approximately 5,800 square feet of dedicated office space. The facility is fully serviced with city water and sewer, natural gas, and substantial electrical infrastructure, including 4,000 amps of 480V three-phase switchgear installed, with 2,000 amps currently delivered by the utility provider. An upgrade to the exterior transformer would allow a user to achieve the full 4,000-amp capacity.

Situated on a 7.6-acre site, the property offers ample parking along with generous space for trailer storage and maneuverability. Its location near the intersection of US-10, US-127, and M-115 provides strong regional connectivity in all directions. The site is also in close proximity to rail infrastructure and is less than one hour from MBS International Airport in Freeland, offering convenient access for both air cargo and passenger travel.

The facility supports a combination of sequencing warehouse and light manufacturing uses. The current operation includes manufacturing processes such as wire bending for seat cushions and foam work utilizing high-tension wire, servicing Lear Corporation, demonstrating the building’s capability to accommodate more intensive industrial applications.


Farwell, Michigan is located in Clare County in the heart of Central Michigan, approximately 75 miles north of Lansing and within close proximity to key regional markets including Midland, Mount Pleasant, and Saginaw. Positioned along US-10 and near major north-south corridors such as US-127, the area offers strong logistical connectivity throughout the state, making it an attractive location for industrial and distribution users.

The Central Michigan region is supported by a diversified economic base anchored by manufacturing, healthcare, education, and logistics. Manufacturing remains a dominant driver of employment in the area, with a significant portion of the local workforce engaged in production, material handling, and transportation-related occupations. This workforce profile aligns well with industrial users, particularly those tied to the automotive supply chain and related manufacturing sectors.

Farwell itself is a stable, small-town community supported by a broader regional labor pool across Clare County and surrounding municipalities. The area offers a cost-effective operating environment, with lower occupancy and labor costs compared to larger metropolitan markets, while still maintaining access to a workforce experienced in manufacturing and distribution operations.

The region benefits from its proximity to Michigan’s core automotive corridor, with strong connectivity to major OEM hubs in Detroit and supplier networks throughout the Midwest. Industrial demand in the area is largely driven by automotive suppliers, warehousing, and logistics users supporting just-in-time inventory and regional distribution networks.

Overall, Farwell and the surrounding Central Michigan market provide a strategic and cost-efficient location for industrial operations, supported by strong transportation infrastructure, a manufacturing-oriented workforce, and direct access to key Midwest markets. This positioning continues to attract tenants seeking functional space with logistical advantages and long-term operational viability.

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