Grand Rapids’ office market saw healthy growth in the fourth quarter of 2017 as rents continue to increase and vacancies steadily decline. The average asking rent in the Grand Rapids market is now $17.84 per square foot while overall vacancy sits at 12.9 percent. New construction has begun and other projects continue to fill the pipeline.

1. © 2017 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.
Q4 2017
Grand Rapids
Office Insight
Grand Rapids’ office market saw healthy growth in the fourth quarter of 2017
as rents continue to increase and vacancies steadily decline. The average
asking rent in the Grand Rapids market is now $17.84 per square foot while
overall vacancy sits at 12.9 percent. New construction has begun and other
projects continue to fill the pipeline. Residential brokerage firms ReMax and
Berkshire Hathaway both announced plans to build offices in the market.
Leasing activity was steady in fourth quarter, with a few deals of note - Service
Express Inc. signed a 40,000-square-foot lease at Bridge Pointe Office Park
and Nolan Transport leased 9,000 square feet at 3040 Charlevoix Drive. Both
deals closed in the Southeast Grand Rapids submarket. A new co-working
space, Blueprint Collective, opened on the West Side at 859 Fulton West.
The Blodgett Building at 15 Ionia SW traded, with the new owner planning a
large-scale renovation to reposition the asset. Warner Tower is under
construction, which will bring 118,000 square feet to the downtown office
market and the Meijer Development on the west side will add 56,000 square
feet of space. The 201 Market development has the potential to add more
Class A space to downtown Grand Rapids, while the Studio C! development
south of Van Andel Arena’s office component is looking for a tenant.
Outlook
Looking ahead into 2018, we can expect conditions to remain steady. Rent
growth may slow as vacancies plateau. After seeing a spike in activity earlier
this year, the west side of downtown will see continued increases in leasing
and sales activity due to it’s “up-and-coming” attractiveness. It will be
interesting to keep an eye on the new construction activity, how much office
space will be included in mixed-use developments and how much speculative
construction will begin to take place. After a strong year, the Grand Rapids
office market is set up nicely for continued growth in the new year.
Fundamentals Forecast
2017 net Absorption -73,719 ▲
Under construction 174,000 s.f. ▲
Total vacancy 12.9% ▼
Average asking rent (gross) $17.84 p.s.f. ▲
Concessions Stable ▶
0
200,000
400,000
2013 2014 2015 2016 2017
Supply and demand (s.f.) Net absorption
Deliveries
Market remains steady with construction on horizon
20.8%
16.5% 15.1% 14.8%
12.9%
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
• Rent and vacancy trends continue to improve, as seen throughout 2017
• Building conversions remain common in the CBD, as downtown
vacancies have seen a slight increase and net absorption is negative due
to inventory loss
• Two major developments could provide new Class A space to the
downtown area

2. © 2017 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.
Q4 2017
Grand Rapids
Office Statistics
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
asking rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Downtown Totals 5,487,602 -47,704 -62,251 -1.1% 11.7% 12.2% $20.16 35,000 174,000
Northeast Totals 769,744 5,811 -874 -0.1% 10.9% 10.9% $15.86 0 0
Northwest Totals 411,996 0 0 0.0% 0.0% 7.5% $19.95 0 0
Southeast Totals 3,884,259 47,434 -16,152 -0.4% 13.7% 14.6% $15.77 0 0
Southwest Totals 461,442 -1,208 5,558 1.2% 12.8% 13.7% $13.52 0 0
Suburbs Totals 5,527,441 52,037 -11,468 -0.2% 12.2% 13.5% $15.76 35,000 0
Totals Totals 11,015,043 4,333 -73,719 -0.7% 12.0% 12.9% $17.84 35,000 174,000
Downtown A 1,739,199 490 -20,750 -1.2% 15.2% 15.8% $22.63 35,000 174,000
Northeast A 121,746 0 0 0.0% 0.0% 0.0% NA 0 0
Southeast A 574,983 12,199 -26,323 -4.6% 17.2% 17.2% $18.35 0 0
Southwest A 18,800 0 0 0.0% 0.0% 0.0% NA 0 0
Suburbs A 715,529 12,199 -26,323 -3.7% 13.8% 13.8% $18.35 35,000 0
Totals A 2,454,728 12,689 -47,073 -1.9% 0 15.2% $21.50 35,000 174,000
Downtown B 3,748,403 -48,194 -41,501 -1.1% 10.1% 10.5% $18.44 0 0
Northeast B 647,998 5,811 -874 -0.1% 13.0% 13.0% $15.86 0 0
Northwest B 411,996 0 0 0.0% 0.0% 7.5% $19.95 0 0
Southeast B 3,309,276 35,235 10,171 0.3% 13.1% 14.2% $15.22 0 0
Southwest B 442,642 -1,208 5,558 1.3% 13.3% 14.2% $13.52 0 0
Suburbs B 4,811,912 39,838 14,855 0.3% 12.0% 13.5% $15.37 0 0
Totals B 8,560,315 -8,356 -26,646 -0.3% 11.1% 12.2% $16.53 0 0