H1 2025 Industrial Market: Vacancy Shrinks, Investment Surges in Greater Lansing
Posted on July 15, 2025 in Industry Trends, Market Insights
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.