Conditions in the West Michigan industrial market continue improving. Vacancy has fallen yet again to 3.7 percent, dropping 1.4 percent year-over-year. Average asking rents are currently $3.42 per square foot, having risen by 19 cents over the same period. Over 1.7 million square feet was absorbed in West Michigan during the first quarter.

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.
Q1 2018
West Michigan
Industrial Insight
Conditions in the West Michigan industrial market continue improving.
Vacancy has fallen yet again to 3.7 percent, dropping 1.4 percent year-over-
year. Average asking rents are currently $3.42 per square foot, having risen by
19 cents over the same period. Over 1.7 million square feet was absorbed in
West Michigan during the first quarter. Advanced Technology Recycling is
moving to 25,000 square feet in Southeast Grand Rapids, and due to iSupply
downsizing, there is a uniquely substantial 98,000-square-foot sublease
available at 6805 Beatrice Drive in Kalamazoo.
On the development front, Viking Group is planning a new global HQ in
Caledonia, near M-6 and M-37, which is set to deliver early next year. Amazon
is rumored to be in the market for a West Michigan distribution center with
over 1.0 million square feet of space and is targeting a 100-acre site in Kent
County. Over 490,000 square feet of new industrial space was delivered this
quarter, including Grooters Development’s speculative project in southeast
Grand Rapids and Magna Mirrors expansion in Holland. In March, Kent County
issued a request for information to seek potential tenants and technologies
for a proposed sustainable business park on 200 acres adjacent to the South
Kent landfill; this will be news to keep an eye on.
Outlook
Construction will continue ramping up in 2018 as overall vacancy gets lower
and lower. Rent growth will be driven by build-to-suit projects and speculative
construction delivering, and we expect these rent trends to continue. Large
companies are merging and consolidating operations, while tax cuts are
invigorating owners and users into spending on new construction and
equipment. 2018 is poised to be another strong year for the West Michigan
industrial market.
Fundamentals Forecast
2018 YTD net absorption 1,706,369 s.f. ▲
Under construction 697,918 s.f. ▲
Total availability 3.7% ▼
Average asking rent (NNN) $3.42 p.s.f. ▲
Tenant improvements Stable ▶
0
2,000,000
4,000,000
2014 2015 2016 2017 YTD
2018
Supply and demand (s.f.) Net absorption
Deliveries
Vacancies continue to drop in the West Michigan
industrial market
8.1%
7.4%
5.7%
4.5%
3.7%
2014 2015 2016 2017 YTD 2018
Total vacancy
For more information, contact: Harrison West | harrison.west@am.jll.com
• Fundamentals keep improving, as vacancies fall below 4.0 percent and
rent growth continues.
• Development activity continues with the pipeline set to grow in the
coming months.
• Owners and users are investing heavily in new construction and
equipment across the region.
$2.00
$3.00
$4.00
2014 2015 2016 2017 YTD 2018
Average asking rents ($/s.f.)
W&D Manufacturing

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.
Q1 2018
West Michigan
Industrial Statistics
For more information, contact: Harrison West | harrison.west@am.jll.com
Inventory
(s.f.)
YTD
total net
absorption
(s.f.)
YTD
total net
absorption
(% of stock)
Total
availability
(s.f.)
Total
availability
(%)
Average
total asking
rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Market Totals
Warehouse & Distribution 105,565,805 952,333 0.9% 5,802,822 5.5% $3.37 441,028 631,918
Manufacturing 130,681,395 754,036 0.6% 2,958,372 2.3% $3.52 51,712 66,000
Totals 236,247,200 1,706,369 0.7% 8,761,194 3.7% $3.42 492,740 697,918
Flex 10,311,260 12,677 0.1% 483,531 4.7% $6.61 0 0
Northeast Grand Rapids
Warehouse & Distribution 6,948,340 103,706 1.5% 30,800 0.4% $2.69 0 0
Manufacturing 7,818,778 0 0.0% 284,522 3.6% $3.24 0 0
Totals 14,767,118 103,706 0.7% 315,322 2.1% $3.19 0 0
Flex 266,671 0 0.0% 0 0.0% NA 0 0
Northwest Grand Rapids
Warehouse & Distribution 8,802,132 117,086 1.3% 324,703 3.7% $3.03 0 36,250
Manufacturing 12,279,943 37,500 0.3% 625,244 5.1% $3.68 0 0
Totals 21,082,075 154,586 0.7% 949,947 4.5% $3.46 0 36,250
Flex 1,169,050 0 0.0% 0 0.0% NA 0 0
Southeast Grand Rapids
Warehouse & Distribution 32,183,709 422,131 1.3% 1,297,238 4.0% $3.39 441,028 0
Manufacturing 28,824,550 375,469 1.3% 445,523 1.5% $3.41 0 0
Totals 61,008,259 797,600 1.3% 1,742,761 2.9% $3.40 441,028 0
Flex 3,571,213 -14,225 -0.4% 38,631 1.1% $8.33 0 0
Southwest Grand Rapids
Warehouse & Distribution 14,322,160 239,753 1.7% 49,940 0.3% $6.42 0 331,000
Manufacturing 28,025,949 33,125 0.1% 267,465 1.0% $4.09 0 0
Totals 42,348,109 272,878 0.6% 317,405 0.7% $4.46 0 331,000
Flex 809,872 0 0.0% 2,294 0.3% $7.00 0 0
Southwest Michigan
Warehouse & Distribution 21,652,010 11,149 0.1% 3,571,709 16.5% $3.30 0 134,668
Manufacturing 24,152,509 357,209 1.5% 857,052 3.5% $3.23 0 36,000
Totals 45,804,519 368,358 0.8% 4,428,761 9.7% $3.29 0 170,668
Flex 2,570,984 -1,305 -0.1% 278,316 10.8% $7.50 0 0
West Shore
Warehouse & Distribution 21,657,454 58,508 0.3% 528,432 2.4% $3.76 0 130,000
Manufacturing 29,579,666 -49,267 -0.2% 478,566 1.6% $3.78 51,712 30,000
Totals 51,237,120 9,241 0.0% 1,006,998 2.0% $3.77 51,712 160,000
Flex 1,923,470 28,207 1.5% 164,290 8.5% $4.69 0 0