In the first half of 2025, Greater Lansing’s office real estate market demonstrated encouraging signs of balance and resilience. During a recent episode of Michigan Business Beat, Eric Rosekrans, CCIM, CPM (Executive Vice President) and Tom Jamieson, SIOR (Senior Vice President, Office Advisor) joined Chris Holman to dissect the latest trends shaping office space dynamics.

Key Highlights:

• Vacancy Holds Steady at 22.4%
  Market-wide vacancy remained unchanged at 22.4%, as modest gains in the East, North, South, and West submarkets successfully offset larger departures in the central business district (CBD).
• Absorption Nears Neutral
  Overall net absorption was nearly flat, clocking in at approximately –1,088 SF, indicating stabilization rather than sharp decline.
• Notable Lease Activity
  Key lease renewals and expansions included Deloitte with approximately 25,000 SF, and Spicer Group at around 16,000 SF—demonstrating sustained interest from established tenants.
• Flexibility Is Paramount
  With hybrid and remote work models firmly entrenched, landlords are adapting with more flexible lease terms—shorter commitments and tailored spaces—to retain tenants and attract new prospects. These shifts are reshaping how both tenants and investors approach office space. Network

Why It Matters:

• Emerging Stability: A steady vacancy rate and neutral absorption suggest that Lansing’s office market is heading toward equilibrium—even amid shifting work norms.
• Tenant-Centric Evolution: By offering flexibility and smaller footprints, landlords are aligning better with today’s evolving tenant needs.
• Investor Caution and Strategy: As the market rebalances, repositioning and risk assessment become increasingly critical for office investors.

📺 Watch the full interview here:

Is the Office Market Shift an Opportunity for You?

For some businesses and investors, Lansing’s stabilizing office market offers reassurance and renewed potential. For others, it highlights the need to adapt—whether that means rethinking space needs, renegotiating lease terms, or exploring new investment strategies.

At Martin Commercial Properties, our office advisors have decades of experience helping tenants, landlords, and investors navigate changing market dynamics. If you’re evaluating your options in this evolving landscape, our team can guide you toward strategies aligned with your goals.