HEARTLAND SNAPSHOT, MARCH 2010

Grand Rapids & Western Michigan Industrial Market

Grand Rapids and Western Michigan, like most of the country, is continuing to face the challenges of the economic downturn and awaiting the opportunities for recovery.

The market continues to experience stalled development in the industrial sector, with no new development anticipated until existing space is occupied and the credit crunch loosens. Of the recent development, flex and medical space in Michigan Hill has been the most significant. Property and building values in the Michigan Hill area are on the rise and will continue to increase.

The majority of the market’s industrial development is occurring along the M-6 Corridor, which runs along U.S. 131. Western Michigan has not experienced an influx of new developers to the area, due, in part, to the decline in development opportunities.

Vacancy rates remain very high at approximately 10 percent, while owners continue to try to attract manufacturing and distribution companies. Current rental rates range between $2.50 to $3.50 per square foot, triple net.

For future expansion and development, investors should keep an eye on the U.S. 131/M-6 area and Michigan Hill.

— Chad Versluis is an associate broker with Grand Rapids, Michigan-based NAI West Michigan.

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