Chris Holman welcomes back Thomas Jamieson, SIOR, Senior Vice President, Martin Commercial Properties, who joins to share the latest Office Advisory
Hear Martin Commercial Properties’ Thomas Jamieson discusses Greater Lansing’s office market, hybrid work, vacancy, tenant demand and changing workspace needs with Chris in the YouTube video shared below:
They share the latest Martin Commercial Properties Office Advisory
- Greater Lansing’s office market is adjusting to hybrid work. What does the office market look like from a business tenant’s perspective right now?
- Office vacancy improved slightly to 18.3%, but performance varies significantly by location and building quality. What types of office properties are winning tenants today?
- How are businesses deciding how much office space they actually need as hybrid and flexible work arrangements continue to evolve?
- The State of Michigan is moving from leased office space into state-owned facilities. How is that transition affecting the broader Lansing office market?
- Looking ahead, what should office owners and business leaders consider when making decisions about leasing, relocating, or investing in workspace?
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EAST LANSING, Mich. – Martin Commercial Properties has released its H1 2026 Greater Lansing Market Insights reports, providing an in-depth analysis of the region’s industrial, office, and retail commercial real estate markets. The reports show a commercial real estate market that remains stable despite continued economic uncertainty. While inflation, tariffs, elevated construction costs, higher financing costs, and evolving workplace strategies continue to influence decision-making, leasing activity has remained steady and long-term market fundamentals continue to support investment throughout the region.
“The first half of 2026 was characterized by thoughtful decision-making rather than rapid expansion,” said Van W. Martin, SIOR, CCIM, CRE, President and CEO of Martin Commercial Properties. “Businesses continue to move forward, but they’re taking more time to evaluate space needs, capital investments,
and long-term operating costs. That’s reflected across each property type in different ways.”
The industrial market remained one of Greater Lansing’s strongest sectors, with vacancy declining modestly to 12.3%. However, much of the available inventory remains concentrated within a small number of large vacant facilities, while modern industrial space, particularly in the West Submarket,
continues to be in limited supply. Leasing activity was active but driven primarily by renewals and lease extensions rather than major expansions or relocations.
The office market lease activity was stable but subdued as it continued adjusting to hybrid work patterns, reduced large-user demand, and the State of Michigan’s transition from leased office space into stateowned facilities. Overall vacancies improved slightly to 18.3%, although market performance continues to vary significantly by location and building quality. Modern suburban office properties continue to outperform older and functionally challenged buildings, particularly within downtown Lansing.
Retail fundamentals also remained steady during the first half of the year. Market vacancy held at 17.1%, as new tenant demand largely offset vacancies created by retailer turnover and business closures.
Restaurant, service-oriented, and experiential retailers continue to expand. At the same time, retailers remain selective as elevated construction, tenant improvement, and occupancy costs continue to influence project feasibility and site selection.
“One of the consistent themes across all three reports is that quality matters,” Martin said. “Well-located properties with modern amenities continue to outperform, while older or functionally obsolete buildings face greater leasing challenges. The market isn’t moving uniformly, and understanding those differences has become increasingly important for owners, investors, and occupiers.”
Martin Commercial Properties has published comprehensive Greater Lansing commercial real estate market reports since 1988, providing owners, investors, developers, business leaders, and community stakeholders with trusted data, market trends, significant transactions, and expert analysis to support
informed real estate decisions.
About Martin Commercial Properties:
Martin Commercial Properties is one of Michigan’s leading independent commercial real estate firms, with a legacy spanning over 60 years. Renowned for its unparalleled expertise, influence, and client-centric approach, Martin Commercial Properties offers a complete range of commercial real estate
services, including brokerage, property development, property management, investment services, and corporate solutions. Full reports can be found at https://martincommercial.com/marketinsights/
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