The industrial real estate market in West Michigan continues to see strong demand that outstrips supply, keeping vacancy rates low and pushing up rental rates. Available inventory levels remain constrained, fueling both new construction and land sales to meet market needs. While conditions remain tight for buyers and tenants, those who are proactive in finding space are most likely to have their real estate needs met.

1. 100 Grandville Ave SW Suite 100
Grand Rapids, MI 49503
616. 776. 0100 www.naiwwm.com
*Also serving the Kalamazoo & Southwest Michigan
areas from our Kalamazoo office*
Wisinski of
West Michigan
Office • Industrial • Retail • Multi-Family
Industrial Market Report
West Michigan Q2 - 2016

2. IndustrialRealEstateDemand
ContinuestoOutweighSupply
* The information contained herein has been given to us by sources we deem reliable. We have
no reason to doubt its accuracy, however, we do not make any guarantees. All information
should be verified before relying thereon.
* Source: NAIWisinskiofWestMI, CoStar Property®
, U.S. Bureau of Labor Statistics
“The current
inventory levels and
vacancy rates will
continue to push both
new construction
and land sales to
the forefront of
future activity and
will continue to put
upward pressure on
both sales price and
lease rates.”
GRAND RAPIDS, MI
The Market
- Stu Kingma, SIOR
Principal | NAI Member
The 2016 Quarter 2 Snapshot will sound to many like a broken re-
cord. The absorption continues to be positive, rental rates remain
strong, current inventory levels continue to drop, and satisfying Buyer
and Tenant needs continue to be a market challenge. As in the most
recent quarters, both land sales and new construction continue to gain
momentum to satisfy market demands that can no longer be met by
existing product and inventory. Many of the transactions that are now
taking place are doing so in an “off market” condition without them
hitting the formal status of being actually listed for sale or lease. Build-
ings that were not for sale, but only for lease in the past are selling, as
well as buildings that are soon to be vacated but not yet on the mar-
ket. Buyers and Tenants who are out in front of the availability curve
are most likely to be successful with having their real estate needs
met. The common practice of web surfing and sign calling in an effort
to locate a suitable real estate solution is simply not effective when
market conditions are as active and tight as they are today.
Landlords continue to hold the upper hand in lease negotiations and
are holding firm or increasing their rental rates and are offering little
concessions or incentives to attract Tenants to their spaces. Vacancy
rates on the lease side of the market have swung dramatically from
even 18 to 24 months ago with less options now being available. It
is anticipated that this direction will continue forward given the limited
availability of existing product on the market that can be purchased.
The First Quarter Snapshot calculated an overall vacancy rate of 4.1%
on a total market size of approximately 146,000,000 square feet. This
has dropped to an overall vacancy rate of 3.32% during the second
quarter. While less than a 1% swing, this remains significant in that it
approached a 25% change in the vacancy rate itself.

3. Industrial
Sales Leases
Q2 2016
4710 44th St. SE
$1,400,000- Final Sale Price
$31.37- Price Per Square Foot
SOLD
Commercial Real Estate Services, Worldwide.
Wisinski of
West Michigan
3677 Sysco Ct. SE
$840,000- Final Sale Price
$37.73- Price Per Square Foot
SOLD
900 Brooks Ave
307,000 SF
14.33 Acres
SOLD
1010 Front St. NW
18,610 SF
Intralox
7357 Expressway Dr.
72,700 SF
Jeld-Wen
4480 44th St. SE
135,000 SF
Family Christian Stores
LEASED
LEASED
LEASED

4. West Michigan
Industrial Submarket Statistics
Industrial Statistical Changes
CONSTRUCTION
CONSTRUCTION
ASKING RATES
ASKING RATES
VACANCY RATE
VACANCY RATE
NET ABSORPTION
NET ABSORPTION
2Q15vs. 2Q16
1Q16 vs. 2Q16
2016 Q2 Snapshot
Submarket Total RBA Vacant
Available SF
Vacancy
Rate
Total Average
NNN Rate ($/SF/Yr)
Total Net
Absorption (SF)
Lakeshore
Warehouse 9,813,571 186,084 1.9% $4.21 106,331
Manufacturing 23,903,159 809,710 3.4% $2.46 50,867
Hightech Flex 1,002,287 12,523 1.3% $5.35 1,464
Total 34,719,017 1,008,317 2.9% $4.00 158,662
Northeast
Warehouse 4,848,453 98,840 2.0% $4.04 2,220
Manufacturing 7,149,256 333,697 4.7% $2.63 97,244
Hightech Flex 565,606 - - $5.31 31,154
Total 12,563,315 432,537 3.4% $4.00 130,618
Northwest
Warehouse 4,429,108 185,115 4.2% $3.42 7,222
Manufacturing 12,732,790 438,330 3.4% $3.20 29,689
Hightech Flex 1,208,188 - - - -
Total 18,370,086 623,445 3.4% $3.31 36,911
Southeast
Warehouse 22,031,241 656,529 2.9% $3.39 78,942
Manufacturing 25,815,696 1,706,870 6.6% $4.02 -395,173
Hightech Flex 3,038,832 123,891 4.1% $5.70 -
Total 50,885,769 2,487,290 4.9% $4.37 -316,231
Southwest
Warehouse 8,031,949 72,748 9.1% $2.94 -23,150
Manufacturing 21,944,325 239,143 10.9% $3.38 65,983
Hightech Flex 763,400 25,873 3.4% $4.79 -3,680
Total 30,739,674 337,764 11.0% $3.70 39,153
Total Overall 147,277,861 4,889,353 3.32% $3.88 49,113
Last Quarter vs. This Quarter
Last Year vs. This Year

5. Industrial Total Market Report
-100,000
150,000
400,000
650,000
2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q32 015Q4 2016Q1 2016Q2
RBA Delivered Warehouse RBA Delivered Manufacturing
RBA Delivered Hightech Flex
0.00%
2.00%
4.00%
6.00%
8.00%
2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q22 015Q3 2015Q4 2016Q12 016 Q2
Vacancy Rate
Vacancy Rates- Warehouse Vacancy Rates- Manufacturing Vacancy Rates- Hightech Flex
0
2
4
6
8
2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q22 015Q32 015Q42 016Q12 016Q2
Triple Net Rental Rates
Triple Net Rental Rates- Warehouse Triple Net Rental Rates- Manufacturing Triple Net Rental Rates- Hightech Flex
0
100000
200000
300000
400000
2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q22 015Q32 015Q42 016Q1 2016Q2
2
22
22 2 2
22 2

6. Methodology | Definitions | Submarket Map
Rental Rate
The annual costs of occupancy for a particular
space quoted on a per square foot basis.
Under Construction
Buildings in a state of construction, up until they
receive their certificate of occupancy. In order for
CoStar to consider a building under construction, the
site must have a concrete foundation in place.
Existing Inventory
The square footage of buildings that have received a
certificate of occupancy and are able to be occupied
by tenants. It does not include space in buildings
that are either planned,under construction or under
renovation.
Vacancy Rate
All physically unoccupied lease space, either
direct or sublease.
Flex Building
A type of building designed to be versatile, which
may be used in combination with office (corporate
headquarters),research and development, quasi-retail
sales, and including but not limited to industrial,
warehouse, and distribution uses. A typical flex
building will be one or two stories with at least half
of the rentable area being used as office space, have
ceiling heights of 16 feet or less, and have some
type of drive-in door, even though the door may be
glassed in or sealed off.
Industrial Building
A type of building(s) adapted for a combination
of uses such as assemblage, processing, and/
or manufacturing products from raw materials
or fabricated parts. Additional uses include
warehousing, distribution, and maintenance facilities.
Absorption (Net)
The change in occupied space in a given
time period.
Available Square Footage
Net rentable area considered available for lease;
excludes sublease space.
Average Asking Rental Rate
Rental rate as quoted from each building’s owner/
management company. For office space, a full
service rate was requested; for retail, a triple net rate
requested; for industrial, a NN basis.
Net Rental Rate
A rental rate that excludes certain expenses that a
tenant could incur in occupying office space. Such
expenses are expected to be paid directly by the
tenant and may include janitorial costs, electricity,
utilities, taxes, insurance and other related costs.
Price/SF
Calculated by dividing the price of a building (either
sales price or asking sales price) by the Rentable
Building Area (RBA).
Multi-Tenant
Buildings that house more than one tenant at a given
time. Usually, multi-tenant buildings were designed
and built to accommodate many different floor plans
and designs for different needs.
Price/SF
Calculated by dividing the price of a building (either
sales price or asking sales price) by the Rentable
Building Area (RBA).
RBA
Rentable Building Area -Mainly used for office and
industrial
Southwest
Northeast
Southeast
Northwest
Lakeshore
All Industrial building types are included,
including warehouse, flex / research
development,distribution manufacturing,
industrial showroom, and service
buildings, in both single-tenant and
multi-tenant buildings, including
owner-occupied buildings.
Methodology

7. Doug Taatjes, CCIM, SIOR
616 292 1828
dougt@naiwwm.com
Chris Prins
616 242 1107
chrisp@naiwwm.com
Kara Schroer
269 459 0435
karas@naiwwm.com
David Smies, CCIM, SIOR
616 242 1122
daves@naiwwm.com
Jeremy Veenstra
616 242 1105
jeremyv@naiwwm.com
Chadwick Versluis, SIOR
616 242 1125
chadv@naiwwm.com
Stanley Wisinski III, SIOR, CCIM
616 575 7015
sjw@naiwwm.com
Marc Tourangeau, MBA
269 207 3072
marct@naiwwm.com
Cameron Timmer
616 485 4131
cameront@naiwwm.com
Meet Our Team
In the spring of 2011, two successful and reputable companies, The Wisinski Group and NAI West Michigan
merged. The merger represents collaboration, rich traditions, innovative technologies, unique cultures and
diversity of skills and specialties which ultimately benefit our clients. We’re going back to our fundamentals,
strengthening our core and becoming stronger in the services we provide our clients. Our focus is simple, build-
ing client relationships for life by offering market appropriate advice and then executing. Our success is a direct
result of its unwavering commitment to providing the best possible service to each and every client. Our Bro-
kers, with their 630 plus years of combined experience (20 years average), possess the knowledge and exper-
tise to manage the most complex transactions in industrial, office, retail, and multifamily specialities throughout
West Michigan.
Through our affiliation with NAI Global, we can also assist you with your commercial real estate needs
throughout the US globally from right here in West Michigan.
NAI Wisinski of West Michigan
At a Glance
Achieve More.
Local Knowledge. Global Reach.
Industrial Specialists
Jim Badaluco, SIOR
616 450 9428
jimb@naiwwm.com
Dane Davis
269 459 0434
daned@naiwwm.com
Stuart Kingma, SIOR
616 575 7022
skingma@naiwwm.com
Kurt Kunst, SIOR, CCIM
616 242 1116
kurtk@naiwwm.com

8. 100 Grandville Ave SW Suite 100
Grand Rapids, MI 49503
616. 776. 0100 www.naiwwm.com
facebook.com/naiwwm
@naiwwm
nai-wisinski-of-west-michigan
Wisinski of
West Michigan
Office • Industrial • Retail • Multi-Family