In the fourth quarter, total vacancy fell ten basis points to 3.4 percent, while average asking rents grew by 3.6 percent and currently come in at $3.73 per square foot across the region. Average asking rents have increased 13.7 percent year-over-year, illustrating just how big of a spike there has been in asking rents over the past twelve months.

1. © 2019 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 2018
West Michigan
Industrial Insight
The West Michigan industrial market ended 2018 on a high note. In the fourth
quarter, total vacancy fell ten basis points to 3.4 percent, while average asking
rents grew by 3.6 percent and currently come in at $3.73 per square foot
across the region. Average asking rents have increased 13.7 percent year-over-
year, illustrating just how big of a spike there has been in asking rents over the
past twelve months. The theme of expansions and investment in facilities
continued in the fourth quarter, as West Michigan Compounding announced a
$6.0 million, 44,600-square-foot expansion, while Schupan & Sons plan their
own $10.1 million, 40,000-square-foot expansion. Also of note is Magna
Mirrors’ announcement of a $45.0 million, 175,000-square-foot expansion in
Newaygo to improve workflow and efficiency.
Arcanum Alloys announced they are moving their headquarters and R&D
center from Silicon Valley to 4460 44th St. SE in Kentwood and California-
based Shaw Properties sold the FedEx warehouse in Kalamazoo for $7.4
million, or about $61 per square foot. Johnson Controls plans to sell their
Power Solutions business unit to Brookfield Business Partners in a $13.2
billion deal set to close in the summer of 2019 and have executed a sale-
leaseback on their facility in Holland.
Outlook
2019 is poised to be another strong year for the West Michigan market. Large
expansions will continue moving forward after being a top trend of 2018,
while build-to-suit activity has increased as well. We can expect to see the
rental and vacancy trends continue into the new year so long as there is not
any unforeseen political disruption that impacts the industrial sector. As rents
continue to increase, speculative construction has become more viable, and
will likely lead to an increase in future deliveries.
Fundamentals Forecast
2018 YTD net absorption 1,881,853 s.f. ▲
Under construction 1,140,000 s.f. ▲
Total availability 3.4% ▼
Average asking rent (NNN) $3.73 p.s.f. ▲
Tenant improvements Stable ▶
0
2,000,000
4,000,000
2014 2015 2016 2017 2018
Supply and demand (s.f.) Net absorption
Deliveries
Low vacancies continue while asking rents spike
8.1%
7.4%
5.7%
4.5%
3.4%
2014 2015 2016 2017 2018
Total vacancy
For more information, contact: Harrison West | harrison.west@am.jll.com
• Vacancies continue to fall, coming in at 3.4 percent across the region at
the end of the year.
• Over 1.1 million square feet of space is under construction across the
region, with more on the way as conditions keep improving.
• Expansions and investment in facilities remains commonplace across
West Michigan.
$2.00
$3.00
$4.00
2014 2015 2016 2017 2018
Average asking rents ($/s.f.)
W&D Manufacturing

2. © 2019 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 2018
West Michigan
Industrial Statistics
For more information, contact: Harrison West | harrison.west@am.jll.com
Inventory
(s.f.)
Quarterly
total net
absorption
(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.)
Quarterly
completions
(s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Market Totals
Warehouse & Distribution 106,556,806 -312,496 843,910 0.8% 5,445,568 5.1% $3.79 146,668 894,341 1,140,000
Manufacturing 130,965,095 214,425 1,037,943 0.8% 2,638,250 2.0% $3.59 0 117,712 0
Totals 237,521,901 -98,071 1,881,853 0.8% 8,083,818 3.4% $3.73 146,668 1,012,053 1,140,000
Flex 10,319,609 -199,259 -205,312 -2.0% 683,983 6.6% $8.38 0 0 0
Northeast Grand Rapids
Warehouse & Distribution 6,941,239 0 80,628 1.2% 54,778 0.8% $2.66 0 12,000 0
Manufacturing 7,447,133 0 6,952 0.1% 27,570 0.4% $2.22 0 0 0
Totals 14,388,372 0 87,580 0.6% 82,348 0.6% $2.51 0 12,000 0
Flex 266,671 -8,392 -12,557 -4.7% 12,557 4.7% N/A 0 0 0
Northwest Grand Rapids
Warehouse & Distribution 8,835,782 -72,443 -124,459 -1.4% 323,130 3.7% $3.49 0 36,250 0
Manufacturing 12,271,082 4,482 66,855 0.5% 595,889 4.9% $3.74 0 0 0
Totals 21,106,864 -67,961 -57,604 -0.3% 919,019 4.4% $3.65 0 36,250 0
Flex 1,179,861 0 -12,904 -1.1% 12,904 1.1% N/A 0 0 0
Southeast Grand Rapids
Warehouse & Distribution 32,500,181 -70,860 180,897 0.6% 1,274,422 3.9% $3.57 0 441,028 850,000
Manufacturing 29,084,447 254,924 624,389 2.1% 252,823 0.9% $3.48 0 0 0
Totals 61,584,628 184,064 805,286 1.3% 1,527,245 2.5% $3.56 0 441,028 850,000
Flex 3,473,529 -212,476 -219,602 -6.3% 232,408 6.7% $9.25 0 0 0
Southwest Grand Rapids
Warehouse & Distribution 14,411,602 -18,186 -74,793 -0.5% 469,486 3.3% $4.69 12,000 111,720 250,000
Manufacturing 28,394,787 -52,022 189,357 0.7% 265,653 0.9% $4.08 0 0 0
Totals 42,806,389 -70,208 114,564 0.3% 735,139 1.7% $4.47 12,000 111,720 250,000
Flex 789,977 0 1,809 0.2% 485 0.1% N/A 0 0 0
Southwest Michigan
Warehouse & Distribution 22,086,101 31,820 924,999 4.2% 2,666,085 12.1% $3.88 134,668 163,343 0
Manufacturing 24,231,715 22,150 700,888 2.9% 535,233 2.2% $3.54 0 36,000 0
Totals 46,317,816 53,970 1,625,887 3.5% 3,201,318 6.9% $3.82 134,668 199,343 0
Flex 2,686,101 11,440 9,735 0.4% 261,339 9.7% $9.55 0 0 0
West Shore
Warehouse & Distribution 21,781,901 -182,827 -143,362 -0.7% 657,667 3.0% $3.47 0 130,000 40,000
Manufacturing 29,535,931 -15,109 -550,498 -1.9% 961,082 3.3% $3.46 0 81,712 0
Totals 51,317,832 -197,936 -693,860 -1.4% 1,618,749 3.2% $3.46 0 211,712 40,000
Flex 1,923,470 10,169 28,207 1.5% 164,290 8.5% $6.61 0 0 0