1. 100 Grandville Ave SW Suite 100
Grand Rapids, MI 49503
616. 776. 0100 www.naiwwm.com
*Also serving the Kalamazoo & Southwest Michigan
areas from our Kalamazoo office*
Wisinski of
West Michigan
Office • Industrial • Retail • Multi-Family
Industrial Market Report
West Michigan Q3 - 2016
2. Prices Continue to Rise As
Inventory Remains Scarce
* The information contained herein has been given to us by sources we deem reliable. We have
no reason to doubt its accuracy, however, we do not make any guarantees. All information
should be verified before relying thereon.
* Source: NAIWisinskiofWestMI, CoStar Property®
, U.S. Bureau of Labor Statistics
“3Q16 has seen
the lowest vacancy
rates of the year at
2.5%. Landlords
and Sellers are
able to aggressively
negotiate. The
lack of supply
is driving lease
and sale prices
upward and we are
seeing a continued
increase in vacant
land sales.”
GRAND RAPIDS, MI
The Market
- Kurt Kunst, CCIM, SIOR
Principal | NAI Member
The West Michigan Industrial Market remained hot in the 3rd quarter,
characterized by many of the same key indicators we’ve been seeing
all year. After a brief “summer slowdown” at the beginning of the 3rd
quarter, which was propelled by some of the best summer weather
we’ve experienced in recent years, the market picked back up right
where it left off.
Vacancy rates have declined each quarter in 2016 - From 4.1% in
1Q, to 3.32% in 2Q, to now a remarkable low of 2.5% in 3Q. Low
vacancy rates mean that inventory levels are extremely low in the West
Michigan industrial marketplace. With inventory levels low, companies
are forced to consider other options to meet their real estate needs.
Some companies are moving to buildings that are outside of their geo-
graphic preference. Many other companies are choosing to purchase
land so they can construct a building to meet their needs. This is evi-
denced by a sharp increase in vacant land transactions so far in 2016.
The shortage of supply and increasing demand has made it a great
market for Sellers and Landlords. Lease rates and sale prices con-
tinue to escalate. Landlords can be tough in negotiations by limiting
their concessions, and Sellers are able to achieve higher prices than
we have seen in years. Quality listings are moving quickly, despite the
increased lease rates and sales prices. As an example, we recently
listed an aggressively priced industrial building in a sector that has
strong demand. 48 hours after the property was listed, we had a full
price cash offer and interest from several other companies. We proj-
ect the fundamentals of the market to remain strong in the 4th quarter.
3. Industrial
Sales Leases
Q3 2016
4901 Clay Ave. SW
200,732 SF
$31.63- Price Per Square Foot
SOLD
Commercial Real Estate Services, Worldwide.
Wisinski of
West Michigan
320 Hall St. SW
205,030 SF
$16.66- Price Per Square Foot
SOLD
449 Howard Ave.
110,500 SF
$22.58- Price Per Square Foot
SOLD
4053 Brockton Dr. SE
25,176 SF
The Gluten Free Bar
7357 Expressway Dr.
40,000 SF
New West Aldelano Corporation
7994 Clyde Park
5,400 SF
Kent Companies Inc.
LEASED
LEASED
LEASED
4. West Michigan
Industrial Submarket Statistics
Industrial Statistical Changes
CONSTRUCTION
CONSTRUCTION
ASKING RATES
ASKING RATES
VACANCY RATE
VACANCY RATE
NET ABSORPTION
NET ABSORPTION
3Q15vs. 3Q16
2Q16 vs. 3Q16
2016 Q3 Snapshot
Submarket Total RBA Vacant
Available SF
Vacancy
Rate
Total Average
NNN Rate ($/SF/Yr)
Total Net
Absorption (SF)
Lakeshore
Warehouse 9,793,128 147,833 1.5% $4.22 44,751
Manufacturing 24,196,695 766,978 3.2% $2.40 42,732
Hightech Flex 1,002,287 3,093 0.3% $6.07 5,000
Total 34,992,110 917,904 2.6% $3.01 92,483
Northeast
Warehouse 4,859.792 59,590 1.2% $4.04 6
Manufacturing 7,159,112 327,905 4.6% $2.63 15,648
Hightech Flex 565,606 3,690 0.7% $5.31 -3,690
Total 12,584,510 391,185 3.1% $3.29 11,964
Northwest
Warehouse 4,429,108 185,115 4.2% $3.42 45,504
Manufacturing 12,751,134 364,415 2.9% $3.22 1,390
Hightech Flex 1,208,188 - - $7.25 -
Total 18,388,430 549,530 3.0% $3.53 46,894
Southeast
Warehouse 21,904,910 537,954 2.5% $3.43 110,849
Manufacturing 26,017,047 817,446 3.1% $4.05 171,991
Hightech Flex 3,038,832 160,862 5.3% $5.59 -36,971
Total 50,960,789 1,516,262 3.0% $3.88 245,869
Southwest
Warehouse 8,017,889 71,690 0.9% $2.94 5,858
Manufacturing 21,954,488 174,713 0.8% $3.60 39,427
Hightech Flex 763,400 18,680 2.4% $6.99 7,193
Total 30,735,777 265,083 0.8% $3.51 52,478
Total Overall 147,661,616 3,639,962 2.50% $3.50 228,405
Last Quarter vs. This Quarter
Last Year vs. This Year
*Disclaimer: Historical data figures are subject to change
based upon the timing of when CoStar receives market
information. NAIWWM uses the numbers available at the
time each quarterly report is published.
6. Methodology | Definitions | Submarket Map
Rental Rate
The annual costs of occupancy for a particular
space quoted on a per square foot basis.
Under Construction
Buildings in a state of construction, up until they
receive their certificate of occupancy. In order for
CoStar to consider a building under construction, the
site must have a concrete foundation in place.
Existing Inventory
The square footage of buildings that have received a
certificate of occupancy and are able to be occupied
by tenants. It does not include space in buildings
that are either planned,under construction or under
renovation.
Vacancy Rate
All physically unoccupied lease space, either
direct or sublease.
Flex Building
A type of building designed to be versatile, which
may be used in combination with office (corporate
headquarters),research and development, quasi-retail
sales, and including but not limited to industrial,
warehouse, and distribution uses. A typical flex
building will be one or two stories with at least half
of the rentable area being used as office space, have
ceiling heights of 16 feet or less, and have some
type of drive-in door, even though the door may be
glassed in or sealed off.
Industrial Building
A type of building(s) adapted for a combination
of uses such as assemblage, processing, and/
or manufacturing products from raw materials
or fabricated parts. Additional uses include
warehousing, distribution, and maintenance facilities.
Absorption (Net)
The change in occupied space in a given
time period.
Available Square Footage
Net rentable area considered available for lease;
excludes sublease space.
Average Asking Rental Rate
Rental rate as quoted from each building’s owner/
management company. For office space, a full
service rate was requested; for retail, a triple net rate
requested; for industrial, a NN basis.
Net Rental Rate
A rental rate that excludes certain expenses that a
tenant could incur in occupying office space. Such
expenses are expected to be paid directly by the
tenant and may include janitorial costs, electricity,
utilities, taxes, insurance and other related costs.
Price/SF
Calculated by dividing the price of a building (either
sales price or asking sales price) by the Rentable
Building Area (RBA).
Multi-Tenant
Buildings that house more than one tenant at a given
time. Usually, multi-tenant buildings were designed
and built to accommodate many different floor plans
and designs for different needs.
Price/SF
Calculated by dividing the price of a building (either
sales price or asking sales price) by the Rentable
Building Area (RBA).
RBA
Rentable Building Area -Mainly used for office and
industrial
Southwest
Northeast
Southeast
Northwest
Lakeshore
All Industrial building types are included,
including warehouse, flex / research
development,distribution manufacturing,
industrial showroom, and service
buildings, in both single-tenant and
multi-tenant buildings, including
owner-occupied buildings.
Methodology
7. Doug Taatjes, CCIM, SIOR
616 292 1828
dougt@naiwwm.com
Chris Prins
616 242 1107
chrisp@naiwwm.com
Kara Schroer
269 459 0435
karas@naiwwm.com
David Smies, CCIM, SIOR
616 242 1122
daves@naiwwm.com
Jeremy Veenstra
616 242 1105
jeremyv@naiwwm.com
Chadwick Versluis, SIOR
616 242 1125
chadv@naiwwm.com
Stanley Wisinski III, SIOR, CCIM
616 575 7015
sjw@naiwwm.com
Marc Tourangeau, MBA
269 207 3072
marct@naiwwm.com
Cameron Timmer
616 485 4131
cameront@naiwwm.com
Meet Our Team
In the spring of 2011, two successful and reputable companies, The Wisinski Group and NAI West Michigan
merged. The merger represents collaboration, rich traditions, innovative technologies, unique cultures and
diversity of skills and specialties which ultimately benefit our clients. We’re going back to our fundamentals,
strengthening our core and becoming stronger in the services we provide our clients. Our focus is simple, build-
ing client relationships for life by offering market appropriate advice and then executing. Our success is a direct
result of its unwavering commitment to providing the best possible service to each and every client. Our Bro-
kers, with their 590 plus years of combined experience (22 years average), possess the knowledge and exper-
tise to manage the most complex transactions in industrial, office, retail, and multifamily specialities throughout
West Michigan.
Through our affiliation with NAI Global, we can also assist you with your commercial real estate needs
throughout the US globally from right here in West Michigan.
NAI Wisinski of West Michigan
At a Glance
Achieve More.
Local Knowledge. Global Reach.
Industrial Specialists
Jim Badaluco, SIOR
616 450 9428
jimb@naiwwm.com
Dane Davis
269 459 0434
daned@naiwwm.com
Stuart Kingma, SIOR
616 575 7022
skingma@naiwwm.com
Kurt Kunst, SIOR, CCIM
616 242 1116
kurtk@naiwwm.com
8. 100 Grandville Ave SW Suite 100
Grand Rapids, MI 49503
616. 776. 0100 www.naiwwm.com
facebook.com/naiwwm
@naiwwm
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Wisinski of
West Michigan
Office • Industrial • Retail • Multi-Family
