After a few years of steady growth, rents seems to have plateaued, while vacancies have stabilized. Conditions are likely to remain steady until the new Class A supply begins to deliver. The west side remains a hot market for both leasing and development activity, and we expect to see some tenants leaving downtown to explore opportunities in cheaper, trendier submarkets.

1. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q1 2018
Grand Rapids
Office Insight
The Grand Rapids office market has continued its positive trend into the first
quarter of 2018. Overall market vacancy is at 11.1 percent and the average
asking rent is currently $17.76 per square foot, a 7.6 percent increase year-
over-year. Leasing activity was a little slower than seen in previous quarters,
with no major deals taking place. A few moves of note include Honigman
expanding their space at 300 Ottawa by moving to the fourth floor to occupy
10,000 square feet and Bodman moving into 99 Monroe after previously
occupying Regus space. There is significant sublease availability in the
downtown submarket compared to recent years, driven mostly by the
increase in rents seen over the past few years, as well as a lack of parking,
sending some tenants packing.
On the construction front, major renovations at the Blodgett Building at 15
Ionia are underway. Consumers Energy is planning to build a new $20 million
40,000-square-foot headquarters set to deliver in 2020 at 501 Alabama Ave NW
on the burgeoning west side of downtown. First Companies has picked up
more land along the East Paris corridor for a potential medical office
development. Site work has begun on the Studio Park development
downtown, which is set to include 40,000 square feet of Class A office space,
with groundbreaking expected next quarter.
Outlook
After a few years of steady growth, rents seems to have plateaued, while
vacancies have stabilized. Conditions are likely to remain steady until the new
Class A supply begins to deliver. With Warner Tower, the Meijer Development
and now Studio Park, there is significant office development underway. The
west side remains a hot market for both leasing and development activity,
and we expect to see some tenants leaving downtown to explore
opportunities in cheaper, trendier submarkets.
Fundamentals Forecast
YTD net absorption 99,317 s.f. ▲
Under construction 174,000 s.f. ▲
Total vacancy 11.1% ▶
Average asking rent (gross) $17.76 p.s.f. ▶
Concessions Stable ▶
-200,000
0
200,000
400,000
2015 2016 2017 Q1 2018
Supply and demand (s.f.) Net absorption
Deliveries
Rent growth plateaus as Grand Rapids office market
stabilizes and awaits new supply
15.1% 14.8%
12.9%
11.1%
2015 2016 2017 Q1 2018
Total vacancy
$0.00
$10.00
$20.00
$30.00
2015 2016 2017 Q1 2018
Average asking rents ($/s.f.) Class A
Class B
For more information, contact: Harrison West | harrison.west@am.jll.com
• Rent growth has slowed and low vacancies across the metro continue,
as the market awaits new office deliveries.
• The burgeoning West Side of downtown remains a hot spot for tenants
and development, offering an attractive alternative to downtown.
• New construction and renovations continue to ramp up, with multiple
major developments underway downtown.

2. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q1 2018
Office Statistics
Grand Rapids
Class
Inventory
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption
(% of stock)
Direct
vacancy
(%)
Total
vacancy
(s.f.)
Total
vacancy
(%)
Average
asking rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Downtown Totals 5,426,240 -16,858 -0.3% 10.9% 610,851 11.3% $20.44 0 174,000
Northeast Totals 764,896 37,048 4.8% 5.5% 42,245 5.5% $10.28 0 0
Northwest Totals 411,996 0 0.0% 0.0% 31,000 7.5% $19.95 0 0
Southeast Totals 3,884,259 63,162 1.6% 11.8% 482,417 12.4% $15.37 0 0
Southwest Totals 461,442 15,965 3.5% 10.2% 47,080 10.2% $12.73 0 0
Suburbs Totals 5,522,593 116,175 2.1% 9.9% 602,742 10.9% $15.04 0 0
Totals Totals 10,948,833 99,317 0.9% 10.4% 1,213,593 11.1% $17.76 0 174,000
Downtown A 1,739,199 6,803 0.4% 14.8% 268,804 15.5% $22.61 0 174,000
Northeast A 121,746 0 0.0% 0.0% 0 0.0% NA 0 0
Southeast A 574,983 506 0.1% 17.1% 98,196 17.1% $16.24 0 0
Southwest A 18,800 0 0.0% 0.0% 0 0.0% NA 0 0
Suburbs A 715,529 506 0.1% 13.7% 98,196 13.7% $16.24 0 0
Totals A 2,454,728 7,309 0.3% 14.5% 367,000 15.0% $20.91 0 174,000
Downtown B 3,687,041 -23,661 -0.6% 9.0% 342,047 9.3% $18.73 0 0
Northeast B 643,150 37,048 5.8% 6.6% 42,245 6.6% $10.28 0 0
Northwest B 411,996 0 0.0% 0.0% 31,000 7.5% $19.95 0 0
Southeast B 3,309,276 62,656 1.9% 10.9% 384,221 11.6% $15.15 0 0
Southwest B 442,642 15,965 3.6% 10.6% 47,080 10.6% $12.73 0 0
Suburbs B 4,807,064 115,669 2.4% 9.4% 504,546 10.5% $14.81 0 0
Totals B 8,494,105 92,008 1.1% 9.2% 846,593 10.0% $16.39 0 0
For more information, contact: Harrison West | harrison.west@am.jll.com