Conditions in the Grand Rapids office market continue to improve steadily. While overall vacancy has steadily across the metro, downtown Class A space has seen an uptick in vacancy due to consolidation, most notably Fifth Third Bank, who vacated approximately 70,000 feet at 200 Monroe to 111 Lyon St NW.

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
Grand Rapids
Office Insight
Conditions in the Grand Rapids office market continue to improve steadily.
While overall vacancy has declined steadily across the metro, downtown Class
A space has seen an uptick in vacancy due to consolidation, most notably
Fifth Third Bank, who vacated approximately 70,000 feet at 200 Monroe to 111
Lyon St NW. 50 Monroe is under renovation - the western portion of the
building will become AC Hotel, while the eastern portion of the building will
be approximately 70,000 square feet of office space on the market.
Advantage Sales and Marketing is consolidating two locations into one,
vacating 30,000 square feet at 56 Grandville. They are taking about 100,000
square feet at the former Rogers department store on 28th Street SW in the
Southwest submarket, where Hinman has converted the former retail space
into office space for them with an additional 30,000 square feet to be leased
up. On the other side of town, First Companies closed on more land on the
East Paris corridor, as more development is planned.
Outlook
Looking forward through the end of the year, we can expect the steadily
declining vacancy and increasing rent trends to continue. After that, as
renovations, conversions and new construction begin to deliver, particularly
downtown, vacancy will tick up with the new inventory. As vacancy increases,
rent growth will slow a bit until this new inventory has been absorbed. A
slowdownin investment sales activity speaks to the strength of the market
and the lack of inventory for sale, and this lack of inventory on the market is
driving up the price for the few that are for sale. On the construction front,
First Companies’ new suburban inventory along the East Paris Corridorwill be
something to keep an eye on, as tenants will now have the ability to choose
between high quality new spaces in the suburbs and downtown. It will be
interesting to see whichthey prefer.
Fundamentals Forecast
Under construction 174,000 s.f. ▲
Total vacancy 13.0% ▼
Average asking rent (gross) $17.42 p.s.f. ▲
Concessions Stable ▶
0
200,000
400,000
2013 2014 2015 2016 YTD
2017
Supply and demand (s.f.) Net absorption
Deliveries
Moves, consolidation increase downtown vacancy
20.8%
16.5% 15.1% 14.8% 13.0%
2013 2014 2015 2016 2017
Total vacancy
$0.00
$10.00
$20.00
2013 2014 2015 2016 2017
Average asking rents ($/s.f.) Class A
Class B
For more information, contact: Harrison West | harrison.west@am.jll.com
• Vacancies continue to steadily decline as rents keep climbing
• Large blocks downtown have become available due to consolidation
and conversions, pushing up downtown Class A vacancy quarter-over-
quarter
• Investment sales activity remains quiet due to lack of properties on the
market

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
Grand Rapids
Office Statistics
For more information, contact: Harrison West | harrison.west@am.jll.com
Class
Inventory
(s.f.)
Total
vacancy
(s.f.)
Total
vacancy
(%)
Average
asking rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Downtown Totals 5,478,746 621,388 11.3% $19.84 35,000 174,000
Northeast Totals 769,744 89,952 11.7% $15.77 0 0
Northwest Totals 411,996 31,000 7.5% $19.95 0 0
Southeast Totals 3,837,702 616,206 16.1% $15.55 0 0
Southwest Totals 461,442 61,837 13.4% $12.97 0 0
Suburbs Totals 5,480,884 798,995 14.6% $15.54 35,000 0
Totals Totals 10,959,630 1,420,383 13.0% $17.42 35,000 174,000
Downtown A 1,739,199 276,097 15.9% $21.68 35,000 174,000
Northeast A 121,746 0 0.0% NA 0 0
Southeast A 574,983 110,901 19.3% $18.67 0 0
Southwest A 18,800 0 0.0% NA 0 0
Suburbs A 715,529 110,901 15.5% $18.67 35,000 0
Totals A 2,454,728 386,998 15.8% $20.81 35,000 174,000
Downtown B 3,739,547 345,291 9.2% $18.37 0 0
Northeast B 647,998 89,952 13.9% $15.77 0 0
Northwest B 411,996 31,000 7.5% $19.95 0 0
Southeast B 3,262,719 505,305 15.5% $14.86 0 0
Southwest B 442,642 61,837 14.0% $12.97 0 0
Suburbs B 4,765,355 688,094 14.4% $15.04 0 0
Totals B 8,504,902 1,033,385 12.2% $16.15 0 0