Despite ongoing economic uncertainity industrial is experiencing historically strong rental rates, limited availability of modern space, and continued investment in the region’s manufacturing base.
The industrial sector continues to be supported by historically high rental rates, limited availability of modern facilities, and sustained investment tied to manufacturing, logistics, and energy-related users. Demand for well-located, functional industrial space remains strong, underscoring the region’s competitiveness and long-term growth potential.
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.
The Greater Lansing industrial market remained strong despite a vacancy increase to 11.5% in H2 2024, largely due to specific South-side vacancies. Demand stayed healthy, with major leases like Temperpack Technologies’ swift takeover of 135,000 SF on Snow Road.
Investors and occupiers view the Greater Lansing area as a low-risk option for the long term.
Vacancies Increase though Market Remains Strong
Rental rates continue to rise and concessions are nearly non-existent.