JULY 2018 MARKETVIEW GRAND RAPIDS Q2 2018 CBRE Research
GRAND RAPIDS, MI – August 1, 2018 CBRE|Grand Rapids announces the release of its Q2 2018 MarketView reports for Kent County (covering the second-quarter of 2018). Divided by retail, office and industrial commercial sectors, the reports provide statistical information on vacancy rates and market rate trends. In addition, the MarketViews offer insight on new developments and other economic barometers that affect commercial real estate in the area.
Below are a few high-level takeaways from each MarketView sector report:
Grand Rapids Retail Q2 2018
Vacancies continue to decline, creating another record-breaking quarter.
Over 23.4 million sq. ft. of retail space was surveyed in Kent County. Nearly 14 million sq. ft. of this space is categorized as leasable strip center and single-user space, with the balance owner occupied and regional mall space. Retail construction continues to occur throughout the market. This quarter, the Northeast Submarket welcomed the market’s only completed strip center construction: 30,396 sq. ft. as part of an on-going expansion of Village at Knapp’s Crossings. Read the full report for more insights.
• The overall availability rate decreased from 6.4% in Q1 2018 to 6.1% in Q2 2018.
• High demand for prime retail locations continues to drive rent growth.
• Consumer confidence and new tax rulings support positive outlook for brick-andmortar retailers
Grand Rapids Office, Q2 2018
Market continues to stabilize with strong fundamentals.
The overall Grand Rapids office market comprises over 15.8 million sq. ft. of leasable office space divided into five submarkets (CBD, Northeast, Northwest, Southeast and Southwest). The largest concentrations of leasable office space are found in the CBD and Southeast Submarkets, which together represent approximately 77% of the office space surveyed. Read the full report for more insights.
• 8,210 sq. ft. of executive office suites completed as part of new mixed-use project at 1430 Robinson Road SE (Southeast Submarket)
• Market vacancy drops 80 basis points.
• Confidential user relocates from Kenmoor Avenue office space to 34,520 sq. ft. at 5300 Patterson Avenue SE (Southeast Submarket).
Grand Rapids Industrial & Logistics, Q2 2018
Construction activity heats up as vacancy rates reach historic lows.
The Kent County industrial market comprises over 100.6 Million sq. ft. of gross warehouse and manufacturing space,* of which nearly 53 Million sq. ft. is categorized as “leasable space,” with the balance “owner occupied.” Read the full report for more insights.
• 436,500 sq. ft. of new industrial space was delivered to the market in Q2 2018.
• Another 1.5 Million sq. ft. of industrial space is under construction.
• Construction has commenced on the 855,000 sq. ft. Amazon distribution facility in Gaines Township (Southeast Submarket).
Learn more about the CBRE|Grand Rapids advantage at www.cbre.us/grandrapids.
About CBRE|Grand Rapids CBRE|Grand Rapids is a CBRE affiliate office serving West Michigan. CBRE|Grand Rapids offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at cbre.us/grandrapids.
About CBRE Group, Inc. CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates) and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at http://www.cbre.us/.