- The Grand Rapids office market continued to see strong fundamentals in Q2 2019, with market-wide vacancies falling to 9.3% and average asking rents increasing 6.4% year-over-year to $19.18 per square foot. Renovations of 37 Ottawa were completed, providing 90,000 square feet of new Class A space downtown. Spectrum Health announced plans to consolidate several leases into a new building by 2022, while other companies made moves within the market.

1. © 2019 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.
Q2 2019
Grand Rapids
Office Insight
The second quarter marked another period of sound fundamentals in the
greater Grand Rapids office market. Market-wide vacancies fell to 9.3 percent,
as just over 81,000 square feet of space was absorbed. Average asking rents
came in at $19.18 per-square-foot, a 6.4 percent increase year-over-year, with
Downtown’s Class A market leading all submarkets with an average asking
rent of $22.80 per-square-foot. After two years of renovation work, 37 Ottawa
has reopened with 90,000 square feet of office space and an adjacent 130-
room AC Hotel by Marriott Hotel.
Spectrum Health announced plans to consolidate 26 of their office leases into
one new construction building in Grand Rapids on Leffingwell Avenue and
Bradford Street with occupancy to begin in 2022. Accounting firm BDO
relocated its service center to the newly renovated building at 5300 Patterson
Avenue in Cascade where they inked a 35,000 square foot lease, while
Springstead Bartish Borgula & Lynch PLLC purchased the 6,000 square foot
sixth floor at 60 Monroe Center for $1.0 million with plans to move their
headquarters from 15 Ionia.
Outlook
The market will remain stable as we move forward into the summer. Rent
growth has slowed over the past few quarters although vacancies continue to
compress. Completion of Warner Tower is near; this project will provide
118,000 square feet of Class A space downtown in the third quarter. It will be
interesting to keep an eye on preleasing activity at the Studio Park office
component, which restarted earlier this year after a development partner had
dropped out and the office component appeared dead. The mixed-use
project currently calls for about 90,000 square feet of office space along with
retail and residential units. Look for more renovation activity to occur, with
buildings both downtown and in the suburbs seeing upgrades.
Fundamentals Forecast
YTD net absorption 104,698 s.f. ▲
Under construction 141,448 s.f. ▲
Total vacancy 9.3% ▶
Average asking rent (gross) $19.18 p.s.f. ▶
Concessions Stable ▶
-200,000
0
200,000
400,000
2016 2017 2018 YTD
Supply and demand (s.f.) Net absorption
Deliveries
Sound fundamentals remain in Grand Rapids market
14.8%
12.9%
10.0% 9.3%
2016 2017 2018 YTD
Total vacancy
$12.00
$17.00
$22.00
2016 2017 2018 YTD
Average asking rents ($/s.f.) Class A
Class B
For more information, contact: Harrison West | harrison.west@am.jll.com
• Market-wide vacancies fell to 9.3 percent, while rents came in at $19.18
per-square-foot, marking a 6.4 percent year-over-year increase.
• Renovation work on 37 Ottawa has completed, providing 90,000 square
feet of new Class A space downtown.
• Spectrum Health announced plans to consolidate 26 leases into one
new construction building by 2022.

2. © 2019 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.
Q2 2019
Office Statistics
Grand Rapids
For more information, contact: Harrison West | harrison.west@am.jll.com
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption (%
of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ p.s.f.)
YTD
Completions
(s.f.)
Under
Development
(s.f.)
Downtown Totals 5,266,868 28,530 63,613 1.2% 7.8% 8.3% $22.23 0 118,000
Downtown Totals 5,266,868 28,530 63,613 1.2% 7.8% 8.3% $22.23 0 118,000
Northeast Totals 764,896 -2,511 -18,620 -2.4% 7.5% 7.5% $17.04 0 0
Northwest Totals 411,996 0 20,474 5.0% 0.0% 0.0% $0.00 0 0
Southeast Totals 3,884,259 53,464 34,141 0.9% 11.1% 11.8% $16.92 0 23,448
Southwest Totals 461,442 1,981 5,090 1.1% 10.9% 11.3% $13.99 0 0
Suburbs Totals 5,522,593 52,934 41,085 0.7% 9.8% 10.3% $16.65 0 0
Grand Rapids Totals 10,789,461 81,464 104,698 1.0% 8.8% 9.3% $19.18 0 141,448
Downtown A 1,799,199 1,102 12,543 0.7% 8.6% 9.0% $22.80 0 118,000
Downtown A 1,799,199 1,102 12,543 0.7% 8.6% 9.0% $22.80 0 118,000
Northeast A 121,746 0 0 0.0% 0.0% 0.0% $0.00 0 0
Southeast A 574,983 8,264 2,538 0.4% 21.0% 23.0% $17.29 0 23,448
Southwest A 18,800 0 0 0.0% 0.0% 0.0% $0.00 0 0
Suburbs A 715,529 8,264 2,538 0.4% 16.9% 18.5% $17.29 0 0
Grand Rapids A 2,514,728 9,366 15,081 0.6% 11.0% 11.7% $20.39 0 141,448
Downtown B 3,467,669 27,428 51,070 1.5% 7.4% 7.9% $21.88 0 0
Downtown B 3,467,669 27,428 51,070 1.5% 7.4% 7.9% $21.88 0 0
Northeast B 643,150 -2,511 -18,620 -2.9% 9.0% 9.0% $17.04 0 0
Northwest B 411,996 0 20,474 5.0% 0.0% 0.0% $0.00 0 0
Southeast B 3,309,276 45,200 31,603 1.0% 9.4% 9.8% $16.76 0 0
Southwest B 442,642 1,981 5,090 1.2% 11.3% 11.8% $13.99 0 0
Suburbs B 4,807,064 44,670 38,547 0.8% 8.7% 9.1% $16.44 0 0
Grand Rapids B 8,274,733 72,098 89,617 1.1% 8.2% 8.6% $18.65 0 0