While West Michigan market has seen historically low vacancy figures and impressive rent growth the past few years, we should expect things to slow in Q2 as the effects of the COVID-19 pandemic begin to take hold. Market fundamentals remain stable; however, given the current uncertainty, we expect leasing and sales activity to slow considerably in the near term as occupiers evaluate their current and future space needs.

1. © 2020 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 2020
West Michigan
Industrial Insight
On the heels of a strong 2019, the West Michigan industrial market saw
929,431 square feet of positive net absorption in the first quarter. A large share
of this absorption figure was due to the delivery of Amazon's new distribution
center in Gaines Township. In early March, after investing $150 million,
Amazon opened its 855,000-square-foot distribution center, owned by
Seefried Industrial Properties. Market-wide average asking rents were $3.79
per-square-foot in Q1, an increase of 10.8 percent year-over-year. On the
leasing front, Pratt & Whitney, an aerospace manufacturer, signed a 62,500-
square foot lease at 7010-7062 Grand Haven Road in Norton Shores, while
Keystone Manufacturing signed a lease for 28,500 square feet in Kalamazoo.
A consistent theme of the past 12 months has been expansion and
improvement activity in the industrial space. This continued in the first
quarter with auto supplier Gentex announcing a $9.5 million, 36,000-square-
foot expansion set to complete in October, Hudsonville Ice Cream
announcing a 9.8 million, 40,000-square-foot warehouse upgrade, and
pharmaceutical giant Perrigo expanding in Holland with a $13.6 million,
66,000-square-foot warehousing facility. A few notable sales in the first quarter
include 14444 168th Avenue in Grand Haven, which sold for $5.0 million, or
approximately $175-per-square-foot, and 3470 Roger B. Chaffee Memorial
Drive Southeast, which sold for $3.2 million, or $29-per-square foot.
Outlook
While West Michigan market has seen historically low vacancy figures and
impressive rent growth the past few years, we should expect things to slow in
Q2 as the effects of the COVID-19 pandemic begin to take hold. Market
fundamentals remain stable; however, given the current uncertainty, we
expect leasing and sales activity to slow considerably in the near term as
occupiers evaluate their current and future space needs.
Fundamentals Forecast
YTD net absorption 929,431 s.f. ▲
Under construction 522,324 s.f. ▲
Total vacancy 3.9% ▼
Sublease vacancy 811,742 s.f. ▶
Direct asking rent $3.79 p.s.f. ▲
Sublease asking rent $4.28 p.s.f. ▶
Concessions Falling ▼
0
2,000,000
4,000,000
6,000,000
2016 2017 2018 2019 YTD 2020
Supply and demand (s.f.) Net absorption
Deliveries
New construction and expansion activity highlight Q1
0%
5%
10%
15%
2006 2008 2010 2012 2014 2016 2018 2020
Total vacancy
For more information, contact: Harrison West| harrison.west@am.jll.com
• Amazon opened its 855,000-square-foot distribution center, owned by
Seefried Industrial Properties.
• Expansion and improvement activity in the industrial space remained a
consistent theme across west Michigan in Q1.
• Market-wide average asking rents were $3.79 per-square-foot in Q1, an
increase of 10.8 percent year-over-year.
$0
$5
2006 2008 2010 2012 2014 2016 2018 2020
Average asking rent ($ p.s.f.) Direct
Sublease
Given the health, policy, economic and financial disruption unfolding from the COVID-19
outbreak, resulting real estate market shifts will not be fully reflected in Q1 2020 statistical
indicators. It is too early to provide a quantitative assessment or forecast of the ultimate market
impact of COVID-19. Our analysis focusses on Q1 market activity and how the market is
positioned moving forward. We will be continually monitoring market movements as the
situation evolves. Please feel free to contact us if we can assist.
The property set was updated to reflect the latest market dynamics, including the removal of functionally obsolete properties and the addition of recently completed developments.

2. © 2020 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 2020
West Michigan
Industrial Statistics
For more information, contact: Harrison West| harrison.west@am.jll.com
The property set was updated to reflect the latest market dynamics, including the removal of functionally obsolete properties and the addition of recently completed developments.
Inventory (s.f.)
Quarterly total
net absorption
(s.f.)
YTD total net
absorption (s.f.)
YTD total net
absorption (%
of stock)
Total
availability
(%)
Average
total asking
rent ($
p.s.f.)
Quarterly
Completions
(s.f.)
YTD
Completions
(s.f.)
Under
construction (s.f.)
Market Totals
Warehouse & Distribution 108,941,866 913,200 913,200 0.8% 4.8% $4.01 1,025,000 1,025,000 142,324
Manufacturing 131,218,878 16,231 16,231 0.0% 3.2% $3.58 0 0 380,000
Totals 240,160,744 929,431 929,431 0.4% 3.9% $3.79 1,025,000 1,025,000 522,324
Flex/R&D 11,638,043 37,372 37,372 0.3% 10.6% $7.33 0 0 485,000
Northeast Grand Rapids
Warehouse & Distribution 7,011,332 0 0 0.0% 0.0% $0.00 0 0 0
Manufacturing 7,955,299 0 0 0.0% 0.2% $5.24 0 0 0
Totals 14,966,631 0 0 0.0% 0.1% $5.24 0 0 0
Flex/R&D 296,671 4,165 4,165 1.4% 0.0% NA 0 0 0
Northwest Grand Rapids
Warehouse & Distribution 9,198,576 57,852 57,852 0.6% 3.8% $4.30 0 0 0
Manufacturing 12,444,775 72,351 72,351 0.6% 5.3% $2.55 0 0 300,000
Totals 21,643,351 130,203 130,203 0.6% 4.7% $3.27 0 0 300,000
Flex/R&D 1,237,570 0 0 0.0% 2.7% NA 0 0 0
Southeast Grand Rapids
Warehouse & Distribution 33,490,968 844,174 844,174 2.5% 3.7% $4.07 850,000 850,000 0
Manufacturing 28,820,151 8,674 8,674 0.0% 6.3% $3.28 0 0 0
Totals 62,311,119 852,848 852,848 1.4% 4.9% $3.67 850,000 850,000 0
Flex/R&D 3,528,847 -23,229 -23,229 -0.7% 7.8% $8.87 0 0 0
Southwest Grand Rapids
Warehouse & Distribution 14,533,323 -38,978 -38,978 -0.3% 7.2% $3.36 0 0 119,000
Manufacturing 28,278,821 40,606 40,606 0.1% 1.2% $4.14 0 0 0
Totals 42,812,144 1,628 1,628 0.0% 3.2% $3.61 0 0 119,000
Flex/R&D 888,834 -650 -650 -0.1% 4.1% $7.63 0 0 0
Southwest Michigan
Warehouse & Distribution 22,165,884 -99,858 -99,858 -0.5% 5.3% $4.09 0 0 0
Manufacturing 24,121,321 -105,400 -105,400 -0.4% 1.2% $6.94 0 0 0
Totals 46,287,205 -205,258 -205,258 -0.4% 3.2% $5.07 0 0 0
Flex/R&D 3,562,445 -42,958 -42,958 -1.2% 10.9% $7.24 0 0 485,000
West Shore
Warehouse & Distribution 22,541,783 150,010 150,010 0.7% 6.4% $4.06 175,000 175,000 23,324
Manufacturing 29,598,511 0 0 0.0% 3.7% $3.61 0 0 80,000
Totals 52,140,294 150,010 150,010 0.3% 4.9% $3.81 175,000 175,000 103,324
Flex/R&D 2,123,676 100,044 100,044 4.7% 23.6% $7.56 0 0 0