The Greater Lansing industrial real estate market is off to a strong start in 2025, according to Chris Miller, Senior Vice President and Industrial / Investment Advisor at Martin Commercial Properties, in a recent interview with Michigan Business Beat.

Vacancy is down to 10.1%, with every submarket seeing positive absorption in the first half of the year. The West submarket is especially tight at just 1.6% vacancy, underscoring the growing need for new industrial space.

Key transactions included:

• Lanter Delivery Systems leasing 49,000 SF
• Priority Express leasing 33,000 SF

With demand outpacing available inventory, speculative development is beginning to take shape—positioning Greater Lansing to capture continued growth. Large-scale projects like the Ultium Cells battery plant and Neogen’s research campus are also fueling long-term momentum for the region’s industrial economy.

Watch the full interview here:

How Can You Benefit from Lansing’s Industrial Growth?

With vacancies at historic lows and demand continuing to outpace supply, Lansing’s industrial market is creating both challenges and opportunities. Tenants face increasing competition for space, while landlords and investors are seeing strong leasing activity and the potential for new development. For those considering expansion, relocation, or investment, timing and strategy are critical in this fast-moving sector.

At Martin Commercial Properties, our industrial advisors bring decades of experience helping tenants, landlords, and investors navigate Lansing’s evolving industrial landscape. Whether you’re evaluating space needs, weighing build-to-suit opportunities, or exploring investment options, our team can help position you for success.

The post Lansing’s Industrial Sector Shows Strong Momentum in 2025 first appeared on Martin Commercial.

Despite national retail headwinds, Greater Lansing’s retail market demonstrated strength in H1 2025, with slight improvements in vacancy and absorption.

Retail vacancy dipped to 17.9%, while absorption improved to -6,449 SF, recovering from a sharper decline in late 2024. The East Submarket continues to lead the region, with strong lease-up activity following national chain closures.

Key highlights:

• Notable closures: Jo-Ann, Party City, Big Lots, Rite Aid
• Fast backfills: Dollar Tree, Barnes & Noble, Shake Shack, Wingstop, Smoothie King
• Ashley Furniture signed for 95,000 SF in Meridian Mall (East Submarket)
• Dining and fitness concepts dominate new tenant entries across all submarkets
• Redevelopment strategies are unlocking value in vintage centers
• Delta Crossings remains a regional growth hub with major new construction underway

? With experiential retail, restaurant growth, and adaptive reuse on the rise, the local retail sector is finding new ways to thrive despite national shakeups.

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Read the full report here

The post H1 2025 Lansing Retail Market: Closures Create New Opportunities in a Resilient Landscape first appeared on Martin Commercial.

Greater Lansing’s office market showed signs of stabilization in H1 2025, as vacancy held at 22.4% and net absorption was nearly flat.

While move-outs in the CBD dragged down performance, other submarkets—including East Lansing, North, and West—recorded modest positive absorption. Employers continue to fine-tune hybrid work policies, creating steady demand for smaller, flexible office spaces and short-term lease options.

Key highlights:

• Absorption: -1,088 SF (a notable improvement from -64,140 SF in H2 2024)
• Largest leases: Deloitte (25,000 SF), Michigan Beer & Wine Wholesalers (11,000 SF), Spicer Group (16,000 SF)
• No new construction amid high rates and cautious demand
• Landlords remain competitive with concessions and flexibility on lease terms
• Hybrid work has stabilized, with some employers increasing in-office expectations

The office sector’s recovery is proceeding at an uneven but steady pace, shaped by evolving workplace strategies and growing demand for agile space solutions.

Read the full report here

The post H1 2025 Office Market: Stabilization and Flexibility Define the First Half of the Year first appeared on Martin Commercial.

The Greater Lansing industrial sector tightened significantly in the first half of 2025, signaling continued strength despite limited new construction.

Industrial vacancy dropped to 10.1%, down from 11.0% in late 2024. Positive absorption reached 129,730 SF, with all submarkets posting gains. The West Submarket continues to lead the region, boasting a remarkably low 1.6% vacancy rate—fueled by demand from logistics, advanced manufacturing, and medical technology users.

Key highlights:

• Major leases: Lanter Delivery Systems (49,000 SF), Priority Express (33,000 SF), Bay Logistics (26,000 SF), Herc Rentals (18,000 SF)
• Notable investments: $2.6B Ultium Cells battery plant, $208M Neogen research & manufacturing facility
• Strong investment activity with key asset sales across South, East, and West Submarkets
• Speculative construction planned in response to lack of quality inventory
• The One Big Beautiful Bill Act is expected to further accelerate activity with new tax incentives and deregulation

? With infrastructure improvements, strategic land availability, and a growing base of advanced industries, Greater Lansing is well positioned for continued industrial growth.

Read the full report here

The post H1 2025 Industrial Market: Vacancy Shrinks, Investment Surges in Greater Lansing first appeared on Martin Commercial.

Current Market Headwinds in CRE

• Labor and material costs remain elevated, affecting both new development and renovation projects. Delays and unpredictability in supply chains continue to stall delivery timelines.
• Workplace Strategy Evolution: The hybrid work model is here to stay. Companies are still defining their ideal work setups, which influences how much and what kind of office space they need.
• Rising Cap Rates: Higher capitalization rates are leading to declining asset values, putting downward pressure on investment appeal.
• Interest Rates & Borrowing Costs: Despite expectations, the Fed has held interest rates steady in 2025. This keeps borrowing costs high, impacting deal flow and development activity.
• Insurance Premium Spikes: Property insurance has increased up to 3x from just a few years ago. This shift has direct consequences on clauses in purchase agreements and risk management strategies.
• Recession Fears: Although the U.S. economy has avoided a full-blown recession, uncertainty persists. It’s influencing everything from investor behavior to tenant decisions.

From lease rollover issues to AI-driven disruption, high vacancy concerns, and refinancing risks, the ripple effects are significant across all asset types.

Signs of Stabilization

Despite the challenges, signs of recovery are emerging. Trophy assets in major markets like Manhattan are seeing over 90% physical occupancy. Office attendance is up, and the sector has posted three consecutive quarters of positive absorption—a strong signal that demand is stabilizing.

Flight to Quality and Right-Sizing Strategies

Tenants are optimizing their footprints while upgrading their environments. It’s a dual trend: reduce total space while increasing the quality and amenities of the space they occupy.

Key Local Examples:

• Michigan Beer and Wine downsized to 11,500 sq ft in a modern CBD facility.
• Independent Bank moved from 18,000 sq ft to 10,000 sq ft.
• Aetna relocated from a 30,000 sq ft suburban office to just 9,500 sq ft in a more strategic location.

Tenants are investing in high-amenity buildings, even if they pay more per square foot. The outcome is a flight to quality with right-sizing of space.

Owner-Occupier Market: Property Values Under Pressure

CRE values are under scrutiny in 2025. Even high-profile buildings are seeing massive devaluations:

These are not distressed buildings—they’re facing the hard math of a new economic reality.

What Lies Ahead for CRE

The CRE sector is in a period of redefinition. The shift from panic to planning is underway. Companies are developing real estate strategies that align with workforce evolution, economic constraints, and long-term goals.

Whether you’re a landlord, tenant, developer, or investor, success in 2025 hinges on flexibility and forward thinking. Yesterday’s benchmarks don’t define tomorrow’s opportunities.

Stay tuned as we continue tracking these shifts and supporting your commercial real estate strategy with data-driven insight and boots-on-the-ground expertise.

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Van W. Martin CCIM, SIOR, CRE Holds Prestigious CRE® Designation

Van W. Martin, President and CEO of Martin Commercial Properties, holds the prestigious Counselor of Real Estate® designation, a mark of distinction reserved for only the most accomplished real estate professionals. As one of fewer than 1,000 Counselors of Real Estate® worldwide, Martin exemplifies a deep commitment to delivering exceptional insights and innovative solutions to clients.

Mr. Martin is 1 of only 74 commercial real estate professionals with both CRE and SIOR designations in the nation.

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The post Navigating Commercial Real Estate in 2025: Challenges, Stabilization, and Strategic Shifts first appeared on Martin Commercial.

With office vacancy rates at a 20-year high, landlords and tenants are navigating evolving work models and excess space. In this discussion, the Martin Commercial Properties team explores how businesses are adapting, what types of companies are driving leasing activity, and the trends emerging in office property sales.

Insights from Martin’s Office ’24 Market Insights report highlight shifting tenant demand, steady leasing activity, and declining transaction values as companies opt for smaller footprints and shorter-term leases. While the market remains tenant-friendly, landlords are carefully evaluating deals amid high renovation costs and rising interest rates.

? Get the full market report here: martincommercial.com/marketinsights

? Watch the full discussion below!

The post Adapting to Change: Office Market Trends in Greater Lansing first appeared on Martin Commercial.

With industrial vacancy rates holding steady, demand in the Greater Lansing market remains strong. In this discussion, Christopher Miller explores key drivers shaping industrial real estate, how companies are adapting to supply chain challenges, and the impact of major corporate investments from GM, Neogen, and Gestamp on industrial development and investor confidence.

Insights from Martin’s Industrial ’24 Market Insights report highlight significant leasing activity, strategic investments, and shifting vacancy rates across the region. While some submarkets are experiencing increased vacancies, others—like the West Submarket—continue to thrive, showcasing ongoing demand and long-term growth potential in industrial real estate.

? Get the full market report here: martincommercial.com/marketinsights

? Watch the full discussion below!

The post Industrial Growth and Investment Trends in Greater Lansing first appeared on Martin Commercial.

Retail vacancy rates have only slightly increased despite economic pressures, signaling resilience in certain business categories. In this discussion, the Martin Commercial Properties team explores which retailers are thriving and why, the growing build-to-suit development trend, and the delicate balance between new openings and store closures in the coming year.

This conversation builds on insights from Martin’s Retail ’24 Market Insights report, which highlights key market shifts, including notable retailer expansions, major store consolidations, and emerging retail hotspots across Greater Lansing.

? Get the full market report here: martincommercial.com/marketinsights

? Watch the full discussion below!

The post Navigating the Shifting Retail Landscape in Greater Lansing first appeared on Martin Commercial.

Industrial Sector: Strong Demand Despite Vacancy Uptick

• Vacancy rates increased from 8.9% in H1 2024 to 11.5% in H2 2024, primarily due to specific vacancies in the South Submarket.
• Demand remains strong, highlighted by Temperpack Technologies leasing 135,000 SF at 2510 Snow Road just days after it was vacated.
• Major investments continue to drive growth, including GM’s $500 million grant for EV production, Gestamp’s $400 million expansion in Mason.
• Ultium Cells’ 2.8 million SF battery plant nearing completion

Office Sector Highlights:

• Vacancy rates rose slightly to 21.9%, from 21.2% charted in H1 2024.
• Tenant-friendly conditions are expected to continue, as leasing volume held steady but transaction values dipped by 30% due to downsizing and shorter-term leases.
• Notable leases include HNTB (20,000 SF), Thrun Law Firm (17,000 SF renewal), and Cedar Creek Hospital (12,000 SF).

Retail Sector Highlights:

• Vacancy rose from 13.8% in H1 2024 to 16.4% in H2 2024, driven by store closures like Rite Aid and Big Lots, though new tenants are stepping in.
• Delta Crossings continues attracting major retailers, welcoming Burlington and announcing Best Buy and Bass Pro Shops.
• The South Submarket is experiencing a retail revival, with Dunkin’, Wingstop, and Chick-fil-A joining the corridor near Meijer on South Cedar St.

Meet the Martin Commercial Properties Brokerage Team

Behind the data and market insights stands a team of experienced professionals dedicated to driving results in the office, industrial, and retail sectors. Our brokerage experts provide strategic guidance and in-depth market knowledge to help clients navigate the evolving commercial real estate landscape.

Office Brokerage Team

The office sector is undergoing significant shifts, and our dedicated team – Executive Vice President, Eric Rosekrans, CCIM and Senior Vice President, Thomas Jamieson, SIOR – is at the forefront of market trends. Whether securing new leases, managing property transitions, or identifying investment opportunities, our office brokerage experts specialize in connecting clients with spaces that align with their business goals.

View Office Properties

Industrial Brokerage Team

With industrial demand remaining strong, our industrial brokerage professional – Senior Vice President, Christopher Miller, SIOR – excels at identifying prime locations, negotiating deals, and managing complex transactions. From logistics hubs to manufacturing spaces, we help clients capitalize on emerging opportunities in a competitive market.

View Industrial Properties

Retail Brokerage Team

Retail is evolving, and our retail brokerage team – Vice President, Carson Patten and Senior Associate, Samantha Le – understands how to navigate shifting consumer trends and property dynamics. Whether assisting national brands, local entrepreneurs, or developers, we provide expert guidance in site selection, leasing, and investment strategies.

View Retail Properties

At Martin Commercial Properties, our brokerage team’s deep expertise and commitment to client success drive real estate solutions that create long-term value.

For more information on how our team can assist with your commercial real estate needs, visit www.martincommercial.com.

The post Greater Lansing Market Insights: Key Trends & Expert Analysis first appeared on Martin Commercial.

Navigating the Shifting Landscape of Commercial Real Estate in 2024

The commercial real estate landscape in 2024 is marked by several challenges, shifts, and emerging trends. As the market continues to adjust from the pandemic’s impact, key factors like housing affordability, AI in real estate, office space dynamics, and evolving sustainability requirements are shaping the industry’s future. Here’s a closer look at the top ten issues CRE professionals should be aware of this year:

1. Global & U.S. Elections: A Key Influence on CRE

The 2024 elections are set to shape the global and U.S. economy, potentially influencing the commercial real estate market. Election results could lead to changes in tax policy, infrastructure spending, and regulations that directly impact CRE. With candidates taking varying positions on issues like sustainability, housing, and economic growth, the outcome of these elections will play a significant role in determining the direction of real estate investment and development.

2. Cost of Financing: Investors Caught Between High Rates and Market Uncertainty

The commercial real estate market continues to struggle with the effects of rising interest rates, which have disrupted financing and deal-making. The era of low-cost capital, which has dominated since 2009, has ended, leaving many investors with high refinancing costs and uncertain market conditions. Despite some signs of stabilization in transaction volume, uncertainty remains, particularly as investors remain cautious about paying high prices in a market where forced sales could lead to distressed assets. While rate cuts in other regions offer some hope, many buyers are holding off, with the full effects of these higher rates expected to continue for at least another year or two.

3. Loan Maturities & Debt Repricing: The Looming Debt Cliff and Market Impact

The commercial real estate industry faces a significant challenge as nearly $1.8 trillion in loans are set to mature before 2026. While many lenders have been extending these maturities in hopes that market conditions will improve, this strategy can only go so far. Banks, already limited by regulatory oversight, are unable to continue pushing back loan maturities without adequate capital reserves.

As interest rates remain high, refinancing becomes increasingly difficult, especially for borrowers who financed properties when rates were near zero. For those facing near-term maturities, debt service payments could increase by as much as 100%, creating serious financial strain. The market’s ability to absorb these challenges will depend on how quickly these loans are resolved. If debt maturities result in discounted sales or defaults, it could trigger a wave of distress that further impacts property values and market stability. However, a methodical unwinding process, aided by opportunistic investors on the sidelines, could mitigate the worst effects of this looming debt crisis.

4. Geopolitics & Regional Wars: Managing Risk in a Turbulent World

In today’s volatile geopolitical climate, risks from global conflicts—such as the wars in Ukraine and Gaza—are creating ripple effects across real estate markets. These conflicts disrupt supply chains, increase inflation, and exacerbate labor and housing affordability issues, all of which ultimately impact property prices and market stability.

During times of heightened global risk, international capital tends to seek safe haven in U.S. dollar-denominated assets, providing support for U.S. commercial real estate. However, this influx is counterbalanced by the challenges facing key property sectors. Office spaces are grappling with the slow return to the workplace, retail is strained by e-commerce and weak consumer confidence, and industrial properties are affected by ongoing supply chain disruptions.

Investors must recognize that, in the current environment, cap rates and pricing are likely to rise. A “higher-for-longer” risk-free rate means investors should factor in a higher risk premium when pricing assets. Even as the Fed may reduce rates, these adjustments won’t necessarily lead to equivalent reductions in cap rates. Real estate cycles, traditionally used to guide investment decisions, are being disrupted by the ongoing pandemic recovery and global conflicts. The future cannot be predicted based on recent trends, and investment strategies must consider the specific risks and conditions of individual markets and property types. The key takeaway for savvy investors: good investments are still possible in challenging markets, but those decisions must be made with careful judgment in an era defined by uncertainty.

5. Insurance Costs: Managing Rising Premiums and Exploring Cost-Saving Strategies

Soaring insurance costs have left property owners facing double- and triple-digit premium hikes, driven by inflation, extreme weather events, and insurers recovering losses. Last year, global natural disasters caused $380 billion in damages, with only 31% covered by insurance.

To manage rising costs, owners are working with brokers to ensure accurate property valuations and considering cost-saving strategies like aggregate deductibles. Alternative risk transfer solutions, including multi-year policies, offer another way to manage financial risk.

As losses increase, owners must find new ways to balance risk, possibly by self-insuring or rethinking insurance structures to improve efficiency over the long term.

6. Housing Affordability & Attainability: Addressing the Growing Crisis of Rising Costs

The lack of affordable housing continues to worsen. Nationally, multifamily rents have increased by 45% from 2009 to 2023, while the housing shortage is estimated at 4.4 million units. Although multifamily construction has increased, development is concentrated in just a few major metros, leaving many areas underserved.

To tackle this issue, both new construction and the preservation of existing affordable housing are needed. More affordable housing is required across all income levels, not just for low-income households. According to the 2022 American Community Survey, nearly 54% of renters are now cost-burdened, a sharp increase since the Great Recession.

The outlook is challenging, with a projected decline in new construction starts and growing demand from younger renters. This will likely intensify affordability pressures by 2025. Solving this problem will require both private sector involvement and government support through tax incentives, subsidies, and zoning reforms to increase housing density.

7. Artifical Intelligence: Advancement & Challenges in Real Estate

AI’s rise, fueled by ChatGPT, has brought significant attention to its applications, but challenges remain in commercial real estate. The effectiveness of AI relies heavily on three factors: accuracy, granularity, and timeliness. Accurate data inputs are essential, as algorithms cannot work around inaccurate information. Additionally, real estate faces issues in AI’s understanding of location nuances and market conditions due to lagging data collection and the algorithm’s lack of context.

While AI can optimize multifamily rents, challenges remain in refining data quality. Real estate data is fragmented, and without accurate, granular, and timely inputs, algorithms won’t yield optimal results. Moreover, AI’s reliance on vast computing power has fueled a boom in data center development, although there’s still work ahead in making these systems more efficient and scalable.

8. Sustainability: Preparing Commercial Real Estate for the Future

Sustainability is a long-standing focus in real estate, but extreme weather events and evolving regulations are pushing it higher on the agenda. With disasters like hurricanes, wildfires, and floods becoming more frequent and severe, property owners face increasing pressure to understand their carbon footprints and engage in decarbonization efforts.

New regulations are also on the horizon. Europe is leading with stricter sustainability requirements, such as the Corporate Sustainability Reporting Directive and Minimum Energy Efficiency Standards, while the U.S. is seeing growing state-level mandates on building performance and emissions. These changes create both challenges and opportunities for real estate owners to future-proof their properties by enhancing energy efficiency and resiliency against extreme weather.

Building a business case for sustainability and investing in long-term resiliency will help protect property values and meet evolving regulatory demands.

9. Office Vacancies, The Tax Base & The Health of Urban Cores: Navigating Post-Pandemic Shifts

The office market continues to struggle with lasting changes in work habits, particularly remote work. The U.S. vacancy rate is expected to peak at 19.7% by the end of 2024, with cities like New York experiencing only about 50% office attendance.

These shifts are having significant ripple effects, especially on central business districts (CBDs), which rely heavily on office buildings for tax revenue and economic activity. Lower occupancies are impacting owners, lenders, and investors, with office property values and rents dropping in major metros like New York, San Francisco, and Chicago. Capital for office buildings is harder to secure, and necessary renovations to attract tenants require more investment.

Cities face tough decisions on how to adapt. While converting office space into housing could help address urban housing shortages, it’s often costly and impractical. Creative solutions, like repurposing buildings for residential, healthcare, or education uses, are emerging in cities like New York. Revitalizing CBDs will require a diversified mix of uses and collaboration between the private and public sectors to ensure long-term viability.

10. Price Expectations Gap: Loan Maturities May Bridge the Divide

The divide between buyers and sellers persists, but the gap is no longer widening. Prices fell sharply in 2023 across all sectors, with the most significant drop in CBD office properties, though declines are now slowing. As of Q2 2024, the year-over-year decline for CBD office assets improved to -29.4%, offering a hopeful sign.

Most sectors are seeing pricing trends stabilize, with industrial properties showing an 8.6% price increase in Q2, according to RCA CPPI. The worst of the pricing shock appears to be over, though uncertainty remains due to factors like economic slowdowns or falling consumer spending.

Buyers and sellers are holding firm, but the upcoming wave of loan maturities may push both sides closer. Owners facing expensive refinancing could be motivated to sell, and the capital on the sidelines may start moving more aggressively. A decline in interest rates or renewed rent growth could further help close the gap. Though buyers remain cautious, they may be more willing to take risks now than a year ago.

Conclusion

As we head into 2025, commercial real estate professionals face a range of challenges—from rising costs and shifting office demand to evolving AI applications and sustainability pressures. While the market is still navigating uncertainty, opportunities exist for those willing to adapt, innovate, and think creatively. Whether it’s reimagining office space, embracing AI advancements, or preparing for stricter sustainability regulations, the future of real estate will be shaped by those who are proactive in addressing these key issues.

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Van W. Martin Holds Prestigious CRE® Designation

Van W. Martin, President and CEO of Martin Commercial Properties, holds the prestigious Counselor of Real Estate® designation, a mark of distinction reserved for only the most accomplished real estate professionals. As one of fewer than 1,000 Counselors of Real Estate® worldwide, Martin exemplifies a deep commitment to delivering exceptional insights and innovative solutions to clients.

Martin emphasized the value of staying ahead of industry trends, saying,

“The CRE’s Top Ten Issues report is a powerful tool for understanding the forces shaping real estate today. At Martin Commercial Properties, we bring unparalleled expertise to help our clients address these challenges and uncover opportunities in a rapidly evolving market.”

– Van W. Martin

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The Counselors of Real Estate® and its 1,000 credentialed real estate advisors have identified the current and emerging issues expected to have the most significant impact on all sectors of real estate. The Top Ten Issues Affecting Real Estate® are determined through broad membership polling, discussion, and debate. Now in its 13th year, this signature thought leadership initiative is an invaluable resource to clients of Counselors worldwide and to the real estate industry in general.

The post Top 10 Issues Affecting Commercial Real Estate® first appeared on Martin Commercial.