1. 100 Grandville Ave SW Suite 100
Grand Rapids, MI 49503
616. 776. 0100 www.naiwwm.com
Wisinski of
West Michigan
Office • Industrial • Retail • Multi-Family
Office Market Report
West Michigan Q3 2016
*Also serving the Kalamazoo & Southwest
Michigan areas from our Kalamazoo office*
2. Parking Remains A Pressing
Issue in Downtown GR
A challenge that the office market is facing in the Downtown
area is the lack of available parking. Existing tenants are start-
ing to get frustrated with the availability of parking close to their
office buildings. Most ramps are at or near capacity. This
is becoming a challenge in attracting new office users to the
downtown market as well. We believe that due to the current
parking constraints some existing tenants in the downtown area
will likely start shopping for space in the suburbs at the end of
their existing lease terms.
Overall the West Michigan Office market remains stable. Three
notable multi-tenant investment transactions that closed in
the 3rd Quarter were the sale of 2504 Ardmore, 436 44th St,
and 7740 Byron Center. Each of these three multi-tenant of-
fice buildings were fully leased at the time of sale. One notable
single-tenant investment transaction was the sale of 3145 Prai-
rie St SW to a local investor. The Seller (Trivalent Group) signed
a new 10- year absolute net lease with the Buyer prior to close.
We believe that the demand for fully leased single tenant and
multi-tenant office buildings will remain strong throughout the
remainder of 2016 and on into 2017.
Leasing activity continues to remain stable in the SE and
Downtown submarkets with the SW submarket experiencing
an uptick in activity during the third quarter. We are still seeing
Landlords giving less concessions, especially in the form of
free rent. Tenants have been willing to sign longer term leases
in exchange for the Landlord giving more in tenant improvement
allowances. Lease rates have stabilized in all segments of the
market.
* 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
GRAND RAPIDS, MI
The Market
- Mary-Anne Wisinski-Rosely,
CCIM,SIOR Principal
“The demand for office
space to purchase con-
tinues to grow with a
limited supply of build-
ings available. There
continues to be a de-
mand for smaller, own-
er occupied properties
in the 4,000-10,000
square foot range.
Sale prices per square
foot are also continu-
ing to increase in the
SE, NE, NW submar-
kets. There was also
strong demand for fully
leased single tenant
and multi-tenant office
buildings.”
3. Office
Sales Leases
Q3 2016
3145 Prairie
9,120 SF
2.32 Acres
SOLD
Commercial Real Estate Services, Worldwide.
Wisinski of
West Michigan
7740 Byron Center Ave. SW
9,717 SF
Sale Price: $1,125,000
SOLD
756 806 Fulton St.
12,000 SF
Sale Price: $870,000
SOLD
77 Monroe Center NW
6,427 SF
Tenant: Independant Bank Corporation
4100 Embassy Dr. SE
5,260 SF
Tenant: Hanover Insurance Company
818 Butterworth St. SW
5,311 SF
Tenant: Auxiliary Inc.
LEASED
LEASED
LEASED
4. West Michigan
Office Submarket Statistics
Methodology:The office market report includes office buildings within each of the
defined submarkets. Excluded are government buildings and institutional properties.
Office Space Statistical Changes Year-over-Year and Quarter-over-Quarter
CONSTRUCTION
CONSTRUCTION
ASKING RATES
ASKING RATES
VACANCY RATE
VACANCY RATE
NET ABSORPTION
NET ABSORPTION
3Q15 vs. 3Q16
2Q16 vs. 3Q16
Q3 Snapshot
Submarket Total RBA Vacant
Available SF
Vacancy
Rate
Total Average
Rate ($/SF/Yr)
Total Net
Absorption (SF)
Total Under
Construction SF
Downtown
Class A 1,496,586 144,888 9.7% $21.57 -6,810 -
Class B C 7,655,504 507,961 6.6% $16.14 51,453 -
Total 9,152,090 652,849 7.1% $17.03 44,643 -
Northeast
Class A 294,197 6,830 2.3% $17.39 - -
Class B C 3,145,260 149,541 4.6% $13.03 9,501 20,000
Total 3,439,457 156,371 4.6% $13.40 9,501 20,000
Northwest
Class B C 2,473,594 148,176 6.0% $11.62 421 -
Southeast
Class A 1,091,208 46,588 4.3% $15.39 15,332 -
Class B C 9,655,222 969,547 10.0% $11.16 37,055 -
Total 10,746,430 1,016,135 9.6% $11.59 52,387 -
Southwest
Class B C 2,916,592 269,156 9.2% $9.68 50,051 -
Overall Total 28,728,163 2,242,687 7.7% $13.35 157,003 20,000
*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.
5. Kent County Statistics
Total Market Report
C
-50000
0
50000
100000
150000
200000
250000
2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q22 015Q32 015Q4 2016Q1 2016Q2
RBA Delivered Class A RBA Delivered Class BC
0.00%
5.00%
10.00%
15.00%
2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q12 016Q2
Vacancy Rate
Vacancy Rates Class A Vacancy Rates Class BC
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q12 016Q2
Triple Net Rental Rate
Rental Rates Class A Rental Rates Class BC
2
2
2 2
2 2
-50,000.00
0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
0.00
100,000.00
200,000.00
300,000.00
2014Q1 2014Q2 2014Q32 014Q42 015Q1 2015Q22 015Q3 2015Q4 2016Q1 2016Q2 2016Q32 2 2
6. Methodology | Definitions | Submarket Map
SF/PSF
Square foot/per square foot, used as a unit of
measurement.
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.
Deliveries
Buildings that have their certificate of occupancy
and are allowed to be moved into by the tenant/
purchaser.
Vacancy Rate
All physically unoccupied lease space, either
direct or sublease.
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.
Building Class
Class A Product is office space of steel and
concrete construction, built after 1980, quality
tenants, excellent amenities premium rates.
Class B product is office space built after 1980,
fair to good finishes wide range of tenants.
RBA
Rentable Building Area - Mainly used for office
and industrial.
NortheastNorthwest
SoutheastSouthwest
Downtown
7. 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 630 plus years of combined experience (20 years average), possess the knowledge and exper-
tise to manage the most complex transactions in industrial, office, retail, and Multi-Family specialities throughout
West Michigan.
Achieve More.
Doug Taatjes
CCIM, SIOR
616 292 1828
dougt@naiwwm.com
Marc Tourangeau
MBA
269 207 3072
marct@naiwwm.com
Jeremy Veenstra
616 242 1105
jeremyv@naiwwm.com
Kara Schroer
269 459 0435
karas@naiwwm.com
Mary Anne Wisinski-Rosely
CCIM, SIOR
616 575 7047
mawr@naiwwm.com
Stanley J. Wisinski, III
CCIM, SIOR
616 575 7015
sjw@naiwwm.com
Russ Bono
616 242 1115
russb@naiwwm.com
Dick Jasinski
616 575 7003
dickj@naiwwm.com
Meet Our Team
Office Specialists
Rod Alderink
616 242 1104
roda@naiwwm.com
Jason Makowski
616 575 7034
jasonm@naiwwm.com
Hillary Taatjes Woznick
616 242 1113
hillary@naiwwm.com
Local Knowledge. Global Reach.
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.
Doug Taatjes
CCIM, SIOR
616 292 1828
dougt@naiwwm.com
Marc Tourangeau
MBA
269 207 3072
marct@naiwwm.com
Jeremy Veenstra
616 242 1105
jeremyv@naiwwm.com
Kara Schroer
269 459 0435
karas@naiwwm.com
Mary Anne Wisinski-Rosely
CCIM, SIOR
616 575 7047
mawr@naiwwm.com
Stanley J. Wisinski, III
CCIM, SIOR
616 575 7015
sjw@naiwwm.com
Russ Bono
616 242 1115
russb@naiwwm.com
Dick Jasinski
616 575 7003
dickj@naiwwm.com
Office Specialists
Rod Alderink
616 242 1104
roda@naiwwm.com
Jason Makowski
616 575 7034
jasonm@naiwwm.com
Hillary Taatjes Woznick
616 242 1113
hillary@naiwwm.com
Cameron Timmer
616 485 4131
cameront@naiwwm.com
8. 100 Grandville Ave SW Suite 100
Grand Rapids, MI 49503
616. 776. 0100 www.naiwwm.com
facebook.com/naiwwm
@naiwwm
nai-wisinski-of-west-michigan
Wisinski of
West Michigan
Office • Industrial • Retail • Multi-Family