H1 2025 Market Insights: Industrial Market Tightens, Office Stabilizes, and Retail Rebounds Amid Big Shifts
The highly anticipated “Market Insights” report from Martin Commercial Properties provides an in-depth analysis of the region’s retail, industrial, and office real estate sectors.
EAST LANSING, Mich. – As the trusted leader in commercial real estate for 62 years, Martin Commercial Properties continues to provide the market intelligence businesses rely on to navigate Greater Lansing’s evolving landscape. The firm’s latest biannual Market Insights Reports deliver expert analysis on key trends, major transactions, and market forecasts across the industrial, office, and retail sectors—offering valuable guidance for investors, tenants, and property owners.
Industrial Sector: Demand Surges as Availability Shrinks
The industrial market continued to tighten in H1 2025, with vacancy declining to 10.1% and all submarkets posting positive absorption. Leasing activity remains strong, led by major commitments from Lanter Delivery Systems (49,000 SF) and Priority Express (33,000 SF). With space scarce, especially in the West Submarket (vacancy just 1.6%), new speculative developments are on the horizon. Major investments such as the Ultium Cells battery plant and Neogen’s research campus are helping to anchor long-term industrial growth.
Office Sector Highlights: Signs of Stability Amid an Evolving Landscape
Vacancy in the office market held steady at 22.4%, as small gains in the East, North, South, and West Submarkets helped offset larger move-outs in the CBD. Total absorption landed near zero (-1,088 SF), but key leases—including Deloitte (25,000 SF) and Spicer Group (16,000 SF)—signaled renewed activity. As hybrid work stabilizes, flexible lease terms and shorter commitments are redefining how landlords engage with tenants and investors assess assets.
Retail Sector Highlights: National Turnover Creates Room for Growth
Retail vacancy edged down to 17.9%, while absorption improved from -24,996 SF in H2 2024 to just -6,449 SF in H1 2025. National brand closures (Jo-Ann, Big Lots, Rite Aid) opened the door for new tenants, including Shake Shack, Dollar Tree, and Barnes & Noble, to backfill space quickly—especially in the East Submarket. Redevelopment and re-tenanting of aging centers continue to unlock value and drive momentum, with West Lansing’s Delta Crossings leading as a hub for retail expansion.
“Greater Lansing is showing tremendous resilience and adaptability,” said Van Martin, President and CEO of Martin Commercial Properties (left). “From national retailers re-entering the market to industrial users competing for limited space, the first half of 2025 has laid a strong foundation for the growth and reinvestment we expect to see in the months ahead.”
About Martin Commercial Properties: Martin Commercial Properties is the premier commercial real estate firm in Mid-Michigan, 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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