Retail performance remains strongest in established corridors, where consistent leasing activity, redevelopment of formerly vacant spaces, and targeted new construction continue to reinforce neighborhood and necessity-based retail demand. Prime locations are outperforming the broader market, reflecting disciplined expansion by retailers and continued consumer engagement.
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.
The Greater Lansing retail market saw vacancy rise to 16.4% in H2 2024, with closures like Rite Aid and Big Lots creating small-box opportunities. Delta Crossings continues to attract top retailers, with Best Buy and Bass Pro Shops joining Burlington.
Despite inflated debt, land & construction costs, development activity extends to every sector of the market
Market Activity Escalates; Regional Malls Shed Major Vacancies
Average vacancies rose from 15.8% in H2 2022 to 16.5%; however, retail interest is up and deals are getting done.