H1 2025 Office Market: Stabilization and Flexibility Define the First Half of the Year
Greater Lansing’s office market showed signs of stabilization in H1 2025, as vacancy held at 22.4% and net absorption was nearly flat.
While move-outs in the CBD dragged down performance, other submarkets—including East Lansing, North, and West—recorded modest positive absorption. Employers continue to fine-tune hybrid work policies, creating steady demand for smaller, flexible office spaces and short-term lease options.
Key highlights:
- Absorption: -1,088 SF (a notable improvement from -64,140 SF in H2 2024)
- Largest leases: Deloitte (25,000 SF), Michigan Beer & Wine Wholesalers (11,000 SF), Spicer Group (16,000 SF)
- No new construction amid high rates and cautious demand
- Landlords remain competitive with concessions and flexibility on lease terms
- Hybrid work has stabilized, with some employers increasing in-office expectations
⚖️ The office sector’s recovery is proceeding at an uneven but steady pace, shaped by evolving workplace strategies and growing demand for agile space solutions.
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