Overall vacancy in the Grand Rapids metro is currently 10.2 percent, down 2.1 percent year-over-year. Asking rents downtown seem to have leveled off this year, consistently hovering around $20.00 per-square-foot each quarter and currently sitting at $20.45 per-square-foot. There are 174,000 square feet of office space under construction, most of which is in the Warner Building development, set to deliver in early 2019.

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.
Q3 2018
Grand Rapids
Office Insight
Overall vacancy in the Grand Rapids metro is currently 10.2 percent, down 2.1
percent year-over-year. Asking rents downtown seem to have leveled off this
year, consistently hovering around $20.00 per-square-foot each quarter and
currently sitting at $20.45 per-square-foot. There are 174,000 square feet of
office space under construction, most of which is in the Warner Building
development, set to deliver in early 2019. The $55.0 million project will be
home to Warner Norcross & Judd, Chemical Bank, and others.
Third quarter leasing activity was highlighted by West Michigan Center for the
Arts and Technology taking 22,000 square feet on the third floor of the 614
First Street development on the West Side. Other leases of note include
Rodolfo Gonzales Interior Design’s move into a 4,200-square-foot space at 40
Monroe Center downtown, GMB taking 7,000 feet at 648 Monroe Ave NW and
Henn Lesperance PLC inking a 4,500-square-foot lease at 32 Market Ave SW.
Sales activity was sluggish yet again this quarter, with one deal of note being
2905 Lucerne Dr. SE, which sold for $2,295,000, or $76.00 per square foot.
There are just not enough properties available for sale to account for an
increase in capital markets activity.
Outlook
Looking ahead to the remainder of 2018, we expect to see rents hold steady.
The downtown market will likely remain relatively unchanged until new
deliveries hit the market. The delivery of Warner Tower could create a vacuum
in the downtown market, as Warner Norcross & Judd vacates their current
spaces downtown consisting of 90,000 square feet to consolidate at the new
building. It will be interesting to keep an eye on the Studio Park development
and when they break ground on the office component. This project will add
more Class A space to the market in the coming years and likely drive rents up
as well.
Fundamentals Forecast
YTD net absorption 255,622 s.f. ▲
Under construction 178,000 s.f. ▲
Total vacancy 10.2% ▶
Average asking rent (gross) $18.44 p.s.f. ▶
Concessions Stable ▶
-200,000
0
200,000
400,000
2015 2016 2017 YTD 2018
Supply and demand (s.f.) Net absorption
Deliveries
Rent growth slows in downtown Grand Rapids
15.1% 14.8%
12.9%
10.2%
2015 2016 2017 YTD 2018
Total vacancy
$0.00
$10.00
$20.00
$30.00
2015 2016 2017 YTD 2018
Average asking rents ($/s.f.) Class A
Class B
For more information, contact: Harrison West | harrison.west@am.jll.com
• Rent growth has slowed in the downtown submarket, having leveled off
around $20.00 per-square-foot.
• Construction on Warner Tower nears completion, as does development
on the West Side at 614 First Street.
• Minimal sales activity occurred in the third quarter, as there is a dearth of
available office product on the market for sale.

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.
Q3 2018
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 5,272,368 14,374 55,755 1.1% 9.8% 10.5% $20.45 0 178,000
Downtown Totals 5,272,368 14,374 55,755 1.1% 9.8% 10.5% $20.45 0 178,000
Northeast Totals 764,896 11,156 47,956 6.3% 5.4% 5.4% $16.88 0 0
Northwest Totals 411,996 0 0 0.0% 0.0% 7.5% N/A 0 0
Southeast Totals 3,884,259 -13,136 152,038 3.9% 10.4% 10.7% $16.32 0 0
Southwest Totals 461,442 -5,936 -127 0.0% 13.7% 13.7% $14.03 0 0
Suburbs Totals 5,522,593 -7,916 199,867 3.6% 9.2% 10.0% $15.98 0 0
West Michigan Totals 10,794,961 6,458 255,622 2.4% 9.5% 10.2% $18.44 0 178,000
Downtown A 1,739,199 29,396 83,686 4.8% 10.4% 11.0% $22.38 0 178,000
Downtown A 1,739,199 29,396 83,686 4.8% 10.4% 11.0% $22.38 0 178,000
Northeast A 121,746 0 0 0.0% 0.0% 0.0% N/A 0 0
Southeast A 574,983 -11,060 -6,488 -1.1% 18.3% 18.3% $18.39 0 0
Southwest A 18,800 0 0 0.0% 0.0% 0.0% N/A 0 0
Suburbs A 715,529 -11,060 -6,488 -0.9% 14.7% 14.7% $18.39 0 0
West Michigan A 2,454,728 18,336 77,198 3.1% 11.6% 12.1% $21.17 0 178,000
Downtown B 3,533,169 -15,022 -27,931 -0.8% 9.6% 10.2% $19.22 0 0
Downtown B 3,533,169 -15,022 -27,931 -0.8% 9.6% 10.2% $19.22 0 0
Northeast B 643,150 11,156 47,956 7.5% 6.4% 6.4% $16.88 0 0
Northwest B 411,996 0 0 0.0% 0.0% 7.5% N/A 0 0
Southeast B 3,309,276 -2,076 158,526 4.8% 9.0% 9.4% $15.51 0 0
Southwest B 442,642 -5,936 -127 0.0% 14.3% 14.3% $14.03 0 0
Suburbs B 4,807,064 3,144 206,355 4.3% 8.4% 9.3% $15.35 0 0
West Michigan B 8,340,233 -11,878 178,424 2.1% 8.9% 9.7% $17.23 0 0