Market Insights

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.

Vacancy in the office market held steady at 22.4%, as small gains in the East, North, South, and West Submarkets helped offset larger move-outs in the CBD. Total absorption landed near zero (-1,088 SF), but key leases—including Deloitte (25,000 SF) and Spicer Group (16,000 SF)—signaled renewed activity. As hybrid work stabilizes, flexible lease terms and shorter commitments are redefining how landlords engage with tenants and investors assess assets.

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.