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