The West Michigan industrial market remained strong in the third quarter of 2016, characterized by low vacancy rates and rising lease rates and sale prices. Vacancy rates declined again this quarter to a low of 2.5% due to scarce inventory. The low supply has driven up prices as landlords negotiate aggressively and companies look to purchase land for new construction. The market is expected to remain favorable for sellers and landlords through the fourth quarter due to the fundamentals of low supply and increasing demand.
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) Kesko is a Finnish retail group that operates in eight countries with net sales of €10.8 billion and over 40,000 employees.
2) Kesko's main divisions are grocery trade, home improvement and speciality goods trade, and car trade, which accounted for 54%, 37%, and 9% of net sales respectively in the first quarter of 2016.
3) Kesko is investing in strategic growth areas like increasing its market share in the Finnish grocery trade, expanding its building and home improvement trade in Europe, and growing its B2B sales. The acquisition of Onninen is expected to strengthen Kesko's position in technical trade.
The industrial real estate market in West Michigan remained strong in 2016, characterized by limited available inventory that caused higher lease rates and property values. Demand continued to outpace supply as users sought creative solutions like facility expansions or new construction to meet their needs. Looking ahead to 2017, the market is expected to remain tight due to a robust economy, with continued high occupancy levels driving further rent increases and value appreciation.
The West Michigan industrial market continues to face low inventory levels in the third quarter of 2015, leading to increasing lease rates and property values. Speculative construction has increased due to the lack of available space. Investors are also purchasing buildings with the intent to fill vacant space or increase lease rates. Net absorption was positive 630,959 square feet for the quarter, while the overall vacancy rate slightly decreased to 4.9%. Rental rates increased compared to the previous quarter.
- The West Michigan industrial market continued to show strong activity and demand in 2015, with the vacancy rate falling from 4.8% to 4.1% over the year.
- Demand outpaced supply in some sectors, leading to creative reuse of existing buildings to meet space needs. Both lease and sale prices continued to increase.
- The tight market conditions are expected to continue into 2016, with additional new construction planned to address unmet space demand.
The West Michigan industrial market saw negative absorption of 161,328 square feet in the first quarter of 2016 due to high demand and limited supply. Vacancy rates remained at 4.1% compared to the fourth quarter of 2015. Sale and lease prices continued to rise with further gains expected in the second quarter as landlords and sellers have leverage due to limited options for tenants and buyers.
The document summarizes the West Michigan office market report for Q3 2016. It notes that parking availability is becoming a challenge in downtown Grand Rapids, with existing tenants frustrated by the lack of parking close to their buildings. This could lead some tenants to move to suburban office spaces when their leases expire. Overall the West Michigan office market remains stable, with several notable multi-tenant office building sales in Q3. Demand remains strong for fully leased office buildings throughout 2016 and 2017. Leasing activity was stable in southeast and downtown areas but increased in the southwest submarket in Q3.
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) Kesko is a Finnish retail group that operates in eight countries with net sales of €10.8 billion and over 40,000 employees.
2) Kesko's main divisions are grocery trade, home improvement and speciality goods trade, and car trade, which accounted for 54%, 37%, and 9% of net sales respectively in the first quarter of 2016.
3) Kesko is investing in strategic growth areas like increasing its market share in the Finnish grocery trade, expanding its building and home improvement trade in Europe, and growing its B2B sales. The acquisition of Onninen is expected to strengthen Kesko's position in technical trade.
The industrial real estate market in West Michigan remained strong in 2016, characterized by limited available inventory that caused higher lease rates and property values. Demand continued to outpace supply as users sought creative solutions like facility expansions or new construction to meet their needs. Looking ahead to 2017, the market is expected to remain tight due to a robust economy, with continued high occupancy levels driving further rent increases and value appreciation.
The West Michigan industrial market continues to face low inventory levels in the third quarter of 2015, leading to increasing lease rates and property values. Speculative construction has increased due to the lack of available space. Investors are also purchasing buildings with the intent to fill vacant space or increase lease rates. Net absorption was positive 630,959 square feet for the quarter, while the overall vacancy rate slightly decreased to 4.9%. Rental rates increased compared to the previous quarter.
- The West Michigan industrial market continued to show strong activity and demand in 2015, with the vacancy rate falling from 4.8% to 4.1% over the year.
- Demand outpaced supply in some sectors, leading to creative reuse of existing buildings to meet space needs. Both lease and sale prices continued to increase.
- The tight market conditions are expected to continue into 2016, with additional new construction planned to address unmet space demand.
The West Michigan industrial market saw negative absorption of 161,328 square feet in the first quarter of 2016 due to high demand and limited supply. Vacancy rates remained at 4.1% compared to the fourth quarter of 2015. Sale and lease prices continued to rise with further gains expected in the second quarter as landlords and sellers have leverage due to limited options for tenants and buyers.
The document summarizes the West Michigan office market report for Q3 2016. It notes that parking availability is becoming a challenge in downtown Grand Rapids, with existing tenants frustrated by the lack of parking close to their buildings. This could lead some tenants to move to suburban office spaces when their leases expire. Overall the West Michigan office market remains stable, with several notable multi-tenant office building sales in Q3. Demand remains strong for fully leased office buildings throughout 2016 and 2017. Leasing activity was stable in southeast and downtown areas but increased in the southwest submarket in Q3.
The commercial real estate market in Southwest Michigan saw tight vacancy rates and limited inventory in the industrial and retail sectors in 2015, while the office market had steady but limited activity. The industrial market vacancy rate was 11.2% at year-end, down slightly from the previous quarter. Retail remained strong along primary corridors with limited vacant space. Office sector activity was primarily from existing tenants seeking new or expanded space. Overall, low unemployment, economic expansion, and rising prices created a favorable landscape for commercial real estate, but a lack of quality inventory could constrain growth.
The retail market in Grand Rapids, Michigan is seeing pockets of development and activity. Several areas around Grand Rapids that have traditionally moved slowly, like Knapp's Corner, Rivertown, and downtown Grand Rapids, are starting to see new restaurants, retailers, and mixed-use developments. Vacancy rates remain around 10.5% overall while rental rates have increased slightly from the previous quarter.
The West Michigan office market saw continued growth in 2015, with increased demand for space in and around the downtown Grand Rapids CBD. Vacancy rates decreased across the region over the past year. Rental rates increased in the CBD but remained stable or decreased in suburban markets. The market is forecast to continue improving in 2016, with demand expected to remain high in the CBD and vacancy rates projected to fall further.
The document provides an overview and analysis of the Q4 2017 industrial real estate market in Cincinnati. It finds that the market saw strong activity throughout 2017, with high leasing velocity and steady construction levels keeping vacancy rates at record lows despite new supply coming online. Several large leases of newly constructed buildings were signed in Q4. The outlook for 2018 remains positive, with numerous planned developments in the pipeline and low vacancy indicating continued landlord dominance and rising rental rates.
The West Michigan office market saw solid activity in 2016, with average rental rates up and vacancy rates down from the previous year. New construction projects were completed, including the 120,000 SF Arena Place in downtown Grand Rapids. Several large office buildings in downtown and the suburbs changed hands. Medical office leasing became more active after slowing in 2015. The market is expected to continue seeing demand for downtown office space and new construction in 2017, though limited parking availability may constrain leasing. Rental rates and vacancies are expected to remain favorable for landlords.
This document provides a market report on retail properties in West Michigan for Q3 2016. Several significant retail transactions occurred, including the sale of two malls to REITs. The Class A retail market remains strong with limited inventory and increasing rental rates. Vacancy continues in Class B retail properties. The regional economy remains robust with low unemployment attracting more retailers, restaurants, and hotels to the market.
Austin's industrial market posted positive net absorption of 539,820 square feet in Q4 2018, bringing the annual total to 1,222,219 square feet. Rental rates increased both quarterly and annually, with the average citywide rate reaching $10.98 per square foot. New construction remained active with 11 buildings delivered and 14 new projects commenced, totaling over 861,000 square feet added in the quarter. The industrial market outlook for Q1 2019 includes over 1.3 million square feet of space expected to deliver and over 330,000 square feet of pre-leased space across 10 blocks over 10,000 square feet.
JLL West Michigan Industrial Insight & Statistics - Q2 2018Harrison West
Conditions remain strong in the West Michigan industrial market. Vacancy currently sits at 3.9 percent, as over 1.1 million square feet has been absorbed so far in 2018. We continue to see positive rent growht, driven by compressed vacancies and high demand still in the market. Spaces have been leasing fast, and buildings that are for sale are not on the market for long.
The West Michigan retail market saw strong sales during the 2016 holiday season and steady leasing activity throughout the year. Vacancy rates remained low along prime retail corridors due to high demand and limited availability. Looking ahead to 2017, new development projects and retailers entering the market are expected to continue fueling retail growth, while some older retail properties may be redeveloped to make way for newer spaces. The hotel industry is also rapidly expanding across the region.
- Big-box demand continued in Houston with population-driven users like Costco and Ikea making long-term commitments through major land purchases and planned developments.
- While northern submarkets led leasing activity earlier in the year, the southeast submarket captured over 50% of deals in Q4 2018, including several large expansions by distribution companies.
- New industrial supply slightly outpaced demand in 2018, causing vacancy to rise slightly from 4.9% to 5.1%, but this small increase does not threaten Houston's landlord-favorable market conditions.
- Big-box demand continued in Houston in Q4 2018, with Costco purchasing 150 acres and Ikea acquiring 164 acres for large projects.
- The Southeast submarket captured over 50% of leasing activity in Q4, with several large expansions by distribution companies.
- While demand outpaced supply, new deliveries in 2018 finished ahead of net absorption, causing vacancy to rise slightly from 4.9% to 5.1%.
- Big-box demand continued in Houston in Q4 2018, with Costco purchasing 150 acres and Ikea acquiring 164 acres for large projects.
- The Southeast submarket captured over 50% of leasing activity in Q4, with several large expansions by distribution companies.
- While demand outpaced supply, new deliveries in 2018 finished ahead of net absorption, causing vacancy to rise slightly from 4.9% to 5.1%.
- Big-box demand continued in Houston in Q4 2018, with Costco purchasing 150 acres and Ikea acquiring 164 acres for large projects.
- The Southeast submarket captured over 50% of leasing activity in Q4, with several large expansions by distribution companies.
- While demand outpaced supply, new deliveries in 2018 finished ahead of net absorption, causing vacancy to rise slightly from 4.9% to 5.1%.
Austin's industrial market posted negative net absorption in Q1 2020 due to space coming online, including at NorthTech Business Center and Amazon leasing a large space. Rental rates increased across flex/R&D and warehouse/distribution spaces. Over 1 million square feet of industrial space remains under construction, with over 800,000 square feet scheduled for delivery in Q2 2020. Vacancy increased slightly to 8.6% as large blocks of space came to the market.
The document is an introduction package from Sun Commercial Real Estate that provides information about their company and services. It includes sections on recent transactions, Michael Brazill who is an investment sales associate, and the services they provide such as sales, leasing, property management, and consulting. Their goal is to create value for clients through exceptional service.
Austin's industrial market saw strong leasing activity and positive net absorption in Q3 2020 despite the effects of the COVID-19 pandemic. Net absorption was 887,476 square feet as large tenants occupied significant space. The vacancy rate decreased from 9.8% to 8.2% while average rental rates slightly decreased citywide. Construction activity also remained high with over 2.3 million square feet under construction across six projects.
- Class A vacancy rates in the downtown and northeast submarkets of Grand Rapids decreased substantially in Q1 2016, reaching some of the lowest rates in the last 7 years.
- New construction projects are planned or underway in downtown Grand Rapids, including a 12-story office tower and several new residential buildings.
- Available industrial, office, and retail properties sold during Q1 2016, while several leases were signed, indicating continued strength in the West Michigan commercial real estate market.
The document provides a market report from NAI Wisinski of West Michigan summarizing commercial real estate trends in the West Michigan area for the fourth quarter of 2016. It includes statistics on industrial, office, and retail properties such as construction levels, vacancy rates, asking rental rates, and net absorption. Real estate transactions completed in the fourth quarter of 2016 are also listed.
This document is a holiday greeting from Wisinski of West Michigan, a commercial real estate firm. It thanks clients and the community for a great year and wishes everyone happy holidays from their family to others. Contact information is provided for the Grand Rapids and Kalamazoo offices.
The commercial real estate market in Southwest Michigan saw tight vacancy rates and limited inventory in the industrial and retail sectors in 2015, while the office market had steady but limited activity. The industrial market vacancy rate was 11.2% at year-end, down slightly from the previous quarter. Retail remained strong along primary corridors with limited vacant space. Office sector activity was primarily from existing tenants seeking new or expanded space. Overall, low unemployment, economic expansion, and rising prices created a favorable landscape for commercial real estate, but a lack of quality inventory could constrain growth.
The retail market in Grand Rapids, Michigan is seeing pockets of development and activity. Several areas around Grand Rapids that have traditionally moved slowly, like Knapp's Corner, Rivertown, and downtown Grand Rapids, are starting to see new restaurants, retailers, and mixed-use developments. Vacancy rates remain around 10.5% overall while rental rates have increased slightly from the previous quarter.
The West Michigan office market saw continued growth in 2015, with increased demand for space in and around the downtown Grand Rapids CBD. Vacancy rates decreased across the region over the past year. Rental rates increased in the CBD but remained stable or decreased in suburban markets. The market is forecast to continue improving in 2016, with demand expected to remain high in the CBD and vacancy rates projected to fall further.
The document provides an overview and analysis of the Q4 2017 industrial real estate market in Cincinnati. It finds that the market saw strong activity throughout 2017, with high leasing velocity and steady construction levels keeping vacancy rates at record lows despite new supply coming online. Several large leases of newly constructed buildings were signed in Q4. The outlook for 2018 remains positive, with numerous planned developments in the pipeline and low vacancy indicating continued landlord dominance and rising rental rates.
The West Michigan office market saw solid activity in 2016, with average rental rates up and vacancy rates down from the previous year. New construction projects were completed, including the 120,000 SF Arena Place in downtown Grand Rapids. Several large office buildings in downtown and the suburbs changed hands. Medical office leasing became more active after slowing in 2015. The market is expected to continue seeing demand for downtown office space and new construction in 2017, though limited parking availability may constrain leasing. Rental rates and vacancies are expected to remain favorable for landlords.
This document provides a market report on retail properties in West Michigan for Q3 2016. Several significant retail transactions occurred, including the sale of two malls to REITs. The Class A retail market remains strong with limited inventory and increasing rental rates. Vacancy continues in Class B retail properties. The regional economy remains robust with low unemployment attracting more retailers, restaurants, and hotels to the market.
Austin's industrial market posted positive net absorption of 539,820 square feet in Q4 2018, bringing the annual total to 1,222,219 square feet. Rental rates increased both quarterly and annually, with the average citywide rate reaching $10.98 per square foot. New construction remained active with 11 buildings delivered and 14 new projects commenced, totaling over 861,000 square feet added in the quarter. The industrial market outlook for Q1 2019 includes over 1.3 million square feet of space expected to deliver and over 330,000 square feet of pre-leased space across 10 blocks over 10,000 square feet.
JLL West Michigan Industrial Insight & Statistics - Q2 2018Harrison West
Conditions remain strong in the West Michigan industrial market. Vacancy currently sits at 3.9 percent, as over 1.1 million square feet has been absorbed so far in 2018. We continue to see positive rent growht, driven by compressed vacancies and high demand still in the market. Spaces have been leasing fast, and buildings that are for sale are not on the market for long.
The West Michigan retail market saw strong sales during the 2016 holiday season and steady leasing activity throughout the year. Vacancy rates remained low along prime retail corridors due to high demand and limited availability. Looking ahead to 2017, new development projects and retailers entering the market are expected to continue fueling retail growth, while some older retail properties may be redeveloped to make way for newer spaces. The hotel industry is also rapidly expanding across the region.
- Big-box demand continued in Houston with population-driven users like Costco and Ikea making long-term commitments through major land purchases and planned developments.
- While northern submarkets led leasing activity earlier in the year, the southeast submarket captured over 50% of deals in Q4 2018, including several large expansions by distribution companies.
- New industrial supply slightly outpaced demand in 2018, causing vacancy to rise slightly from 4.9% to 5.1%, but this small increase does not threaten Houston's landlord-favorable market conditions.
- Big-box demand continued in Houston in Q4 2018, with Costco purchasing 150 acres and Ikea acquiring 164 acres for large projects.
- The Southeast submarket captured over 50% of leasing activity in Q4, with several large expansions by distribution companies.
- While demand outpaced supply, new deliveries in 2018 finished ahead of net absorption, causing vacancy to rise slightly from 4.9% to 5.1%.
- Big-box demand continued in Houston in Q4 2018, with Costco purchasing 150 acres and Ikea acquiring 164 acres for large projects.
- The Southeast submarket captured over 50% of leasing activity in Q4, with several large expansions by distribution companies.
- While demand outpaced supply, new deliveries in 2018 finished ahead of net absorption, causing vacancy to rise slightly from 4.9% to 5.1%.
- Big-box demand continued in Houston in Q4 2018, with Costco purchasing 150 acres and Ikea acquiring 164 acres for large projects.
- The Southeast submarket captured over 50% of leasing activity in Q4, with several large expansions by distribution companies.
- While demand outpaced supply, new deliveries in 2018 finished ahead of net absorption, causing vacancy to rise slightly from 4.9% to 5.1%.
Austin's industrial market posted negative net absorption in Q1 2020 due to space coming online, including at NorthTech Business Center and Amazon leasing a large space. Rental rates increased across flex/R&D and warehouse/distribution spaces. Over 1 million square feet of industrial space remains under construction, with over 800,000 square feet scheduled for delivery in Q2 2020. Vacancy increased slightly to 8.6% as large blocks of space came to the market.
The document is an introduction package from Sun Commercial Real Estate that provides information about their company and services. It includes sections on recent transactions, Michael Brazill who is an investment sales associate, and the services they provide such as sales, leasing, property management, and consulting. Their goal is to create value for clients through exceptional service.
Austin's industrial market saw strong leasing activity and positive net absorption in Q3 2020 despite the effects of the COVID-19 pandemic. Net absorption was 887,476 square feet as large tenants occupied significant space. The vacancy rate decreased from 9.8% to 8.2% while average rental rates slightly decreased citywide. Construction activity also remained high with over 2.3 million square feet under construction across six projects.
- Class A vacancy rates in the downtown and northeast submarkets of Grand Rapids decreased substantially in Q1 2016, reaching some of the lowest rates in the last 7 years.
- New construction projects are planned or underway in downtown Grand Rapids, including a 12-story office tower and several new residential buildings.
- Available industrial, office, and retail properties sold during Q1 2016, while several leases were signed, indicating continued strength in the West Michigan commercial real estate market.
The document provides a market report from NAI Wisinski of West Michigan summarizing commercial real estate trends in the West Michigan area for the fourth quarter of 2016. It includes statistics on industrial, office, and retail properties such as construction levels, vacancy rates, asking rental rates, and net absorption. Real estate transactions completed in the fourth quarter of 2016 are also listed.
This document is a holiday greeting from Wisinski of West Michigan, a commercial real estate firm. It thanks clients and the community for a great year and wishes everyone happy holidays from their family to others. Contact information is provided for the Grand Rapids and Kalamazoo offices.
The marketing plan for NAI Wisinski of West Michigan in 2016 focuses on increasing their digital and print presence through expanded advertising in publications like the Grand Rapids Business Journal and MLive. The plan also aims to create more effective marketing through tools like Buildout which will streamline materials creation and boost SEO. New initiatives include redesigning the quarterly magazine insert, introducing property signage and drones for videography, and hosting two educational events. The total budget is around $200,000 with largest allocations to advertising, technology upgrades, and industry sponsorships.
NAI Wisinski is a commercial real estate firm that provides personalized service through collaborative teams. They take a holistic view of clients' businesses to maximize potential and add value. As a global firm with local expertise, NAI Wisinski has professionals in strategic locations around the world to support clients' long-term growth. The firm consists of various specialty groups within industrial, office, retail, investment, multifamily, and property management to meet all client real estate needs.
The document discusses a case study of NAI Wisinski of West Michigan representing Grand Rapids Public Schools in the sale of a large former school building. The 194,580 square foot West Middle School building needed to be sold as it was no longer being fully utilized. Stan and Mary Anne Wisinski developed a strategy to target local developers for a rehab project and conversion to offices or residential units. Within a few weeks, a developer submitted an offer to convert the building to residential condominiums.
This document provides an industrial real estate market snapshot and statistics for West Michigan in Q3 2016. It summarizes vacancy rates, average rental rates, and net absorption for the Lakeshore, Northeast, Northwest, and Southeast submarkets. The Lakeshore submarket had the lowest overall vacancy rate at 2.6% while the Northeast submarket saw the highest net absorption of space leased. Rental rates varied across submarkets and property types.
Our property management team works with a network of vendors that can respond to urgent needs of owners and tenants at any time. They are committed to unprecedented service and value while managing over 4 million square feet of commercial and industrial property in West Michigan.
The West Michigan retail market saw declining vacancy rates and increasing absorption in the second quarter of 2016. Vacancy rates fell below 10% overall, with tight availability of Class A retail space driving growth in secondary markets. With limited prime retail inventory, landlords have regained negotiating leverage and can be more selective about tenants. The challenges around the lack of new Class A construction are expected to continue into the second half unless development picks up.
The West Michigan office market remains strong with declining vacancy rates across all submarkets in Q2 2016. Vacancy rates are at their lowest in years at 8.5% overall. Demand is high in suburban areas like Northeast and Southeast corridors due to factors like parking availability and rental rates. Downtown also sees healthy growth with developments like Arena Place. Demand for office purchases is anticipated to stay robust while supply will be limited, putting upward pressure on prices and rents.
The document provides information about NAI Wisinski, a commercial real estate firm serving West Michigan. It discusses the company's focus on personalized service, collaborative teamwork, and maximizing value for clients. The document also lists several available office properties for lease and provides contact information for brokers associated with those properties.
The document summarizes retail real estate market trends in West Michigan in the fourth quarter of 2015. It notes several new retail developments that opened during the year, including a new Tanger Outlet center in Byron Center and retail projects in Holland and Kalamazoo. Vacancy rates decreased across most submarkets compared to the previous year. Rental rates increased for most property types. The retail market in West Michigan remains strong with more construction planned for 2016 and several new retailers selecting locations in the region.
The document summarizes retail market trends in Grand Rapids, Michigan for the third quarter of 2015. It notes that retail net absorption was positive 121,933 square feet for the quarter. Rental rates increased from $9.37 to $10.00 per square foot from the second to the third quarter. The retail vacancy rate decreased, ending the third quarter at 11.7%. New developments and retailers opening locations in the area are discussed.
The document is an office market report from NAI Wisinski of West Michigan summarizing Q3 2015 real estate trends in the West Michigan area. It finds that downtown Grand Rapids continues to see growth, with positive net absorption, increasing rental rates, and lower vacancy compared to other Midwest markets. Redevelopment of existing properties is another sign of growth, such as a $50,000 renovation of 25 Jefferson Place that exposed original brick walls and increased natural light, allowing the building to be sold to a developer within months. Overall, the West Michigan office market had positive net absorption of 224,768 square feet in Q3 2015 and a vacancy rate of 10.4%, up from 9.6% last quarter.
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 Q3 - 2016
2. Prices Continue to Rise As
Inventory Remains Scarce
* 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
“3Q16 has seen
the lowest vacancy
rates of the year at
2.5%. Landlords
and Sellers are
able to aggressively
negotiate. The
lack of supply
is driving lease
and sale prices
upward and we are
seeing a continued
increase in vacant
land sales.”
GRAND RAPIDS, MI
The Market
- Kurt Kunst, CCIM, SIOR
Principal | NAI Member
The West Michigan Industrial Market remained hot in the 3rd quarter,
characterized by many of the same key indicators we’ve been seeing
all year. After a brief “summer slowdown” at the beginning of the 3rd
quarter, which was propelled by some of the best summer weather
we’ve experienced in recent years, the market picked back up right
where it left off.
Vacancy rates have declined each quarter in 2016 - From 4.1% in
1Q, to 3.32% in 2Q, to now a remarkable low of 2.5% in 3Q. Low
vacancy rates mean that inventory levels are extremely low in the West
Michigan industrial marketplace. With inventory levels low, companies
are forced to consider other options to meet their real estate needs.
Some companies are moving to buildings that are outside of their geo-
graphic preference. Many other companies are choosing to purchase
land so they can construct a building to meet their needs. This is evi-
denced by a sharp increase in vacant land transactions so far in 2016.
The shortage of supply and increasing demand has made it a great
market for Sellers and Landlords. Lease rates and sale prices con-
tinue to escalate. Landlords can be tough in negotiations by limiting
their concessions, and Sellers are able to achieve higher prices than
we have seen in years. Quality listings are moving quickly, despite the
increased lease rates and sales prices. As an example, we recently
listed an aggressively priced industrial building in a sector that has
strong demand. 48 hours after the property was listed, we had a full
price cash offer and interest from several other companies. We proj-
ect the fundamentals of the market to remain strong in the 4th quarter.
3. Industrial
Sales Leases
Q3 2016
4901 Clay Ave. SW
200,732 SF
$31.63- Price Per Square Foot
SOLD
Commercial Real Estate Services, Worldwide.
Wisinski of
West Michigan
320 Hall St. SW
205,030 SF
$16.66- Price Per Square Foot
SOLD
449 Howard Ave.
110,500 SF
$22.58- Price Per Square Foot
SOLD
4053 Brockton Dr. SE
25,176 SF
The Gluten Free Bar
7357 Expressway Dr.
40,000 SF
New West Aldelano Corporation
7994 Clyde Park
5,400 SF
Kent Companies Inc.
LEASED
LEASED
LEASED
4. West Michigan
Industrial Submarket Statistics
Industrial Statistical Changes
CONSTRUCTION
CONSTRUCTION
ASKING RATES
ASKING RATES
VACANCY RATE
VACANCY RATE
NET ABSORPTION
NET ABSORPTION
3Q15vs. 3Q16
2Q16 vs. 3Q16
2016 Q3 Snapshot
Submarket Total RBA Vacant
Available SF
Vacancy
Rate
Total Average
NNN Rate ($/SF/Yr)
Total Net
Absorption (SF)
Lakeshore
Warehouse 9,793,128 147,833 1.5% $4.22 44,751
Manufacturing 24,196,695 766,978 3.2% $2.40 42,732
Hightech Flex 1,002,287 3,093 0.3% $6.07 5,000
Total 34,992,110 917,904 2.6% $3.01 92,483
Northeast
Warehouse 4,859.792 59,590 1.2% $4.04 6
Manufacturing 7,159,112 327,905 4.6% $2.63 15,648
Hightech Flex 565,606 3,690 0.7% $5.31 -3,690
Total 12,584,510 391,185 3.1% $3.29 11,964
Northwest
Warehouse 4,429,108 185,115 4.2% $3.42 45,504
Manufacturing 12,751,134 364,415 2.9% $3.22 1,390
Hightech Flex 1,208,188 - - $7.25 -
Total 18,388,430 549,530 3.0% $3.53 46,894
Southeast
Warehouse 21,904,910 537,954 2.5% $3.43 110,849
Manufacturing 26,017,047 817,446 3.1% $4.05 171,991
Hightech Flex 3,038,832 160,862 5.3% $5.59 -36,971
Total 50,960,789 1,516,262 3.0% $3.88 245,869
Southwest
Warehouse 8,017,889 71,690 0.9% $2.94 5,858
Manufacturing 21,954,488 174,713 0.8% $3.60 39,427
Hightech Flex 763,400 18,680 2.4% $6.99 7,193
Total 30,735,777 265,083 0.8% $3.51 52,478
Total Overall 147,661,616 3,639,962 2.50% $3.50 228,405
Last Quarter vs. This Quarter
Last Year vs. This Year
*Disclaimer: Historical data figures are subject to change
based upon the timing of when CoStar receives market
information. NAIWWM uses the numbers available at the
time each quarterly report is published.
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 590 plus years of combined experience (22 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