1. Market Report
Kalamazoo | Q4 2015 Year End
Office • Industrial • Retail • Multi-Family
1803 Whites Rd. Suite 2
Kalamazoo, Michigan 49008
269.353.0311 naiwwm.com
Wisinski of
West Michigan

2. * 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
SOUTHWEST MICHIGAN
OVERV IEW
In 2015 a combination of low unemployment rates, expanding industry across a variety of sectors, and rising sale
prices/lease rates has created a favorable landscape for the Commercial Real Estate Market in Southwest Michigan.
The Retail and Industrial Markets continued to exhibit tight vacancy rates, limited inventory and increased rent
rates during the year. While the Office Market did not have many notable transactions in 2015, certain market fac-
tors are indicating a more positive trend in 2016.
Southwest Michigan’s Industrial Market showcased an 11.2% vacancy rate at year end 2015, down from 11.5%
from the previous quarter. While some larger blocks of quality space opened up in the market in 2015, a percent-
age were quickly absorbed by expanding manufacturers already in the marketplace. Interest in industrial product
is very active in the Southwest Michigan market; however, a lack of quality product has been one of the issues
facing this particular sector of the industry for several years now. This lack of inventory alongside steady demand
and an absence of speculative development will keep vacancy rates low and rental rates appreciating over the
next 12-18 months.
The Retail Market in Southwest Michigan, and particularly in Kalamazoo County, remains strong with the pri-
mary corridors exhibiting very limited vacancy and rising rents. Limited vacant land in the primary corridors is
forcing developers and occupiers to consider redevelopment opportunities of older product, particularly along
the Westnedge corridor. Several national retailers have been looking for space along Westnedge and have been
unsuccessful in locating viable sites. The Costco Development at Stadium Drive and US-131 is nearly full just 13
months from the grand opening.
Activity in the Office Sector was steady in 2015, primarily from existing tenants within the marketplace look-
ing to expand or relocate to more attractive space. The new owner of the Mall Plaza in Downtown Kalamazoo
announced a redevelopment to multi-family in 2016. This will lead to a displacement of tenants downtown and
should translate to positive absorption in the 1st half of the year for the submarket.
These trends point to a continued lack of quality inventory in 2016, which will drive-up pricing hopefully lead
to new development. Yet, the memories of the Great Recession still linger in this market, and it seems developers
remain cautious when it comes to speculative development.
2016
Total Employment Growth Economic Trends
12-monthPercentChangesinEmployment OfficeSquareFootageperEmployeeByIndustry
Based Upon All Tenants
The Unemployment Rate in West
Michigan has decreased to 4.2%
Annual GDP growth of 2.5-3.5%
in West Michigan has increased
Rent Rates have increased
since the beginning of 2015

3. West Michigan
Industrial Submarket Statistics
Q4 Snapshot
Submarket Total RBA
Total
Available
SF
Vacancy
Rate
Total Average
NNN Rate
($/SF/Yr)
Total Net
Absorption
(SF)
Total Under
Construction
SF
Kalamazoo County
Warehouse 5,234,108 860,982 16.45% $3.83/SF 47,201 102,000
Manufacturing 16,335,284 1,108,993 6.79% $3.47/SF 200,800 -
Flex 1,628,939 228,997 14.05% $9.79/SF 10,559 -
Total 23,198,331 2,198,972 9.48% $5.69/SF 258,560 102,000
Calhoun County
Warehouse 2,595,832 720,836 27.77% $2.89/SF 26,620 -
Manufacturing 15,378,145 654,764 4.26% $3.01/SF -158,066 300,000
Flex 1,016,885 - - - - -
Total 18,990,862 1,375,600 7.24% $2.95/SF -131,446 300,000
Lakeshore
Warehouse 7,389,941 1,605,913 21.73% $2.63/SF 25,150 -
Manufacturing 17,979,123 1,854,760 10.32% $2.28/SF 200,594 -
Flex 1,126,729 346,605 30.76% $6.38/SF 8,000 -
Total 26,495,793 3,807,278 14.37% $3.76/SF 226,544 -
Michiana
Warehouse 4,176,253 1,055,508 25.27% $2.29/SF - -
Manufacturing 4,834,346 325,543 6.73% $3.35/SF - 100,000
Flex 455,864 9,864 2.16% $6.50/SF - -
Total 9,466,463 1,390,915 11.38% $4.04/SF - 100,000
Methodology: 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.
Kalamazoo
County
Calhoun
County
Michiana
Lakeshore

4. West Michigan
Retail Submarket Statistics
Q4 Snapshot
Submarket Total RBA
Total
Available SF
Vacancy
Rate
Total Average
NNN Rate ($/SF/Yr)
Total Net
Absorption (SF)
Westnedge Ave.
Community 453,604 62,161 13.70% $12.10/SF -2,000
Neighborhood 557,230 24,748 4.44% $14.47/SF 6,487
Strip 182,477 21,062 11.54% $18.04/SF 5,170
Total 1,193,311 107,971 9.05% $14.87/SF 9,657
Gull Rd.
Community - - - - -
Neighborhood - - - - -
Strip 78,111 5,700 7.29% $13.50/SF -
Total 78,111 5,700 7.29% $13.50/SF -
West Main
Community - - - - -
Neighborhood 24,302 - - - -
Strip 65,026 7,750 11.91% $15.06/SF -
Total 89,328 7,750 8.67% $15.06/SF -
Stadium Dr.
Community 21,256 - - $19.00/SF -
Neighborhood 5,869 - - - -
Strip 59,459 4,480 7.53% $12.00/SF -
Total 86,584 4,480 5.17% $15.50/SF -
Methodology: The retail market report includes community, neighborhood, and strip retail buildings within
each of the defined submarkets. For definition of product type, please see below.
Westnedge Ave.
Stadium Dr.
West Main.
Gull Rd.

5. Kalamazoo
Office Submarket Statistics
Methodology: The office market report includes office buildings within each of the defined submarkets.
Excluded are government buildings and institutional properties.
Q4 Snapshot
Submarket Total
RBA
Total
Available
SF
Vacancy
Rate
Total
Average Rate
($/SF/Yr)
Total Net
Absorption
(SF)
Total Under
Construction
(SF)
Downtown
Class A 177,000 32,086 18.13% $18.00/SF - -
Class B C 2,918,977 128,693 4.52% $13.09/SF -1,900 -
Total 3,095,977 160,779 5.19% $15.54/SF -1,900 -
Suburban Kalamazoo
Class A 677,706 41,906 6.18% $17.13/SF -6,194 -
Class B C 5,574,751 980,798 17.59% $9.90/SF 9,620 -
Total 6,252,457 1,022,704 16.35% $13.51/SF 3,426 -
Source: CoStar
Downtown
Suburban Kalamazoo

6. By The Numbers
$-
$3.00
$6.00
$9.00
$12.00
$15.00
$18.00
$21.00
$24.00
$27.00
$30.00
2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4
Average Triple Net Rental Rates by Sector
Triple Net Rental Rates Office Triple Net Rental Rates Retail Triple Net Rental Rates Industrial
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4
Average Vacancy Rates by Sector
Vacancy Rates Office Vacancy Rates Retail Vacancy Rates Industrial
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000
2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4
Average Absorption Delivery by Sector
Office Retail Industrial RBA Office RBA Retail RBA Industrial

7. Neighborhood Center
Provides for the sale of convenience goods (food, drugs, etc)
and personal services (laundry, dry cleaning, etc.)
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).
RBA
The total square footage of a building that can be occupied
by, or assigned to a tenant for the purpose of determining a
tenant’s rental obligation.
Rental Rate
The annual costs of occupancy for a particular space quoted
on a per square foot basis.
SF/PSF
Square foot/per square foot, used as a unit of measurement.
Strip Center
A strip center is an attached row of stores or service outlets
managed as a coherent retail entity, with on-site parking
usually located in front of the stores. Open canopies may
connect the storefronts, but a strip center does not have
enclosed walkways linking the stores.
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.
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 retail, a triple net rate is requested.
Community Center
A shopping center development that has a total square footage
between 10,000 - 350,000 SF. Generally will have 2-3 large
anchored tenants, but not department store anchors. Community
Center typically offers a wider range of apparel and other soft goofs
than the Neighborhood Center. Among the more common anchors
are supermarkets and super drugstores.
Deliveries
Buildings that have their certificate of occupancy and are allowed to
be moved into by the tenant/purchaser.
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.
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.
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.
Definitions

8. facebook.com/naiwwm
@naiwwm
nai-wisinski-of-west-michigan
1803 Whites Rd. Suite 2
Kalamazoo, Michigan 49008
269.353.0311 naiwwm.com
Wisinski of
West Michigan
Office • Industrial • Retail • Multi-Family
Kalamazoo Team
Marc Tourangeau, MBA, Associate Broker
269 207 3072
marct@naiwwm.com
Dane Davis, Associate Broker
269 217 4498
daned@naiwwm.com
Kara Schroer, Realtor Associate
704 526 7574
karas@naiwwm.com
Jeremy Veenstra, Real Estate Advisor
616 242 1105
jeremyv@naiwwm.com
Joshua Jacobs, Associate Broker
914 374 2694
joshuaj@naiwwm.com