The third quarter of 2017 saw the steady improvement of market conditions for the West Michigan industrial market. Asking rental rates continued their rise due to high demand and low vacancy. Asking rents rose three basis points quarter-over-quarter, while vacancy fell 50 basis points quarter-over-quarter.

1. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemedreliable; however, no representation or warranty is made to the accuracy thereof.
Q3 2017
West Michigan
Industrial Insight
The third quarter of 2017 saw the steady improvement of market conditions
for the West Michigan industrial market. Asking rental rates continued their
rise due to high demand and low vacancy. Asking rents rose three basis points
quarter-over-quarter, while vacancy fell 50 basis points quarter-over-quarter.
Warehousing demand is up due partially to manufacturers adding inventory.
Expansions and additions to existing facilities have become more prevalent,
such as MOVE Systems investing $13.3 million into their Walker facility, and
Plascore expanding their Zeeland facility by 73,500 square feet.
Over 1.5 million square feet has delivered so far this year, though the
construction pipeline has somewhat dwindled, with only 518,436 square feet
currently under construction on the west side of the state. Nearly all of the
construction activity has been build-to-suitprojects, as building costs remain
too high for speculative development. First Companies completed two build-
to-suit developments, including an 82,000-square-footbuilding for ETO
Magnetic Corp and a 124,000-square-footbuilding for Gourmet International,
both in the Southeast Grand Rapids submarket.
Outlook
Looking ahead, following the national trend, we can expect mergers and
acquisitions to pick up in the West Michigan region, resulting in the
consolidationor elimination of redundant assets such as warehouses and
manufacturing facilities. Look for organic corporate growth to lead leasing
activity moving forward, and some manufacturers are beginning to look into
the option of expanding their real estate capabilities in-house. As the regional
economy continues to pick up steam, with the unemployment rate lower than
the overall state figure, West Michigan will become a more desirable region for
out of state investors looking to invest in industrial assets.
Fundamentals Forecast
YTD net absorption 3,872,967 s.f. ▶
Under construction 518,436 s.f. ▲
Total availability 4.6% ▼
Average asking rent (NNN) $3.24 p.s.f. ▶
Tenant improvements Stable ▶
0
2,000,000
4,000,000
2013 2014 2015 2016 YTD
2017
Supply and demand (s.f.) Net absorption
Deliveries
West Michigan industrial sees continued improvement
10.1%
8.1% 7.4%
5.7%
4.6%
2013 2014 2015 2016 YTD 2017
Total vacancy
For more information, contact: Harrison West | harrison.west@am.jll.com
• Continued decreases in vacancy and positive rent growth illustrate the
health of the West Michigan industrial market
• Build-to-suit projects deliver while speculative development remains too
costly
• Merger and acquisitionactivity may lead to consolidationor elimination
of redundant assets
$2.00
$2.50
$3.00
$3.50
2013 2014 2015 2016 YTD 2017
Average asking rents ($/s.f.)
W&D Manufacturing

2. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemedreliable; however, no representation or warranty is made to the accuracy thereof.
Q3 2017
West Michigan
Industrial Statistics
For more information, contact: Harrison West | harrison.west@am.jll.com
Inventory
(s.f.)
YTD
total net
absorption
(s.f.)
YTD
total net
absorption
(% of stock)
Total
availability
(s.f.)
Total
availability
(%)
Average
total asking
rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Market Totals
Warehouse & Distribution 97,895,241 2,143,904 2.2% 5,697,883 5.8% $3.35 1,171,512 438,000
Manufacturing 130,834,990 1,729,063 1.3% 4,745,719 3.6% $3.11 390,000 80,436
Totals 228,730,231 3,872,967 1.7% 10,443,602 4.6% $3.24 1,561,512 518,436
Flex 10,645,240 13,734 0.1% 577,970 5.4% $5.08 46,300 0
Northeast Grand Rapids
Warehouse & Distribution 6,365,435 347,824 5.5% 116,186 1.8% $3.04 0 0
Manufacturing 7,955,299 37,121 0.5% 48,122 0.6% $3.49 0 0
Totals 14,320,734 384,945 2.7% 164,308 1.1% $3.17 0 0
Flex 266,671 4,169 1.6% 0 0.0% NA 0 0
Northwest Grand Rapids
Warehouse & Distribution 8,422,513 599,744 7.1% 550,683 6.5% $3.39 343,483 0
Manufacturing 12,426,324 639,273 5.1% 362,025 2.9% $3.55 0 0
Totals 20,848,837 1,239,017 5.9% 912,708 4.4% $3.45 343,483 0
Flex 1,169,050 0 0.0% 0 0.0% NA 0 0
Southeast Grand Rapids
Warehouse & Distribution 30,967,328 -210 0.0% 1,746,409 5.6% $3.37 391,490 357,000
Manufacturing 28,688,224 1,114,722 3.9% 660,472 2.3% $3.55 240,000 0
Totals 59,655,552 1,114,512 1.9% 2,406,881 4.0% $3.42 631,490 357,000
Flex 3,571,213 149,637 4.2% 45,365 1.3% $6.75 0 0
Southwest Grand Rapids
Warehouse & Distribution 13,262,529 408,966 3.1% 144,370 1.1% $4.82 116,680 81,000
Manufacturing 28,001,012 227,103 0.8% 144,370 0.5% $3.66 0 0
Totals 41,263,541 636,069 1.5% 288,740 0.7% $4.24 116,680 81,000
Flex 809,872 15,000 1.9% 800 0.1% $4.75 0 0
Southwest Michigan
Warehouse & Distribution 18,223,949 560,898 3.1% 2,615,306 14.4% $3.14 85,742 0
Manufacturing 24,154,440 -187,677 -0.8% 2,008,497 8.3% $3.44 0 0
Totals 42,378,389 373,221 0.9% 4,623,803 10.9% $3.27 85,742 0
Flex 2,904,964 -33,773 -1.2% 339,308 11.7% $4.06 46,300 0
West Shore
Warehouse & Distribution 20,653,487 226,682 1.1% 524,929 2.5% $3.94 234,117 0
Manufacturing 29,609,691 -101,479 -0.3% 1,522,233 5.1% $2.32 150,000 80,436
Totals 50,263,178 125,203 0.2% 2,047,162 4.1% $2.74 384,117 80,436
Flex 1,923,470 -121,299 -6.3% 192,497 10.0% $6.50 0 0