Office Market Picks Up
The West Michigan office market showed “slow but steady improvement” in the first quarter according to the latest data from commercial real estate firm Grubb & Ellis|Paramount Commerce.
Released May 7, the report showed improved occupancy rates in the Grand Rapids area. Class A office buildings in downtown Grand Rapids are at their highest occupancy in years, and the Michigan Street medical corridor is expanding at a brisk pace. The new Metro Health campus in Wyoming is the “bright spot of the suburban market.”
Also, the report suggested that developers could break ground on a new, state-of-the-art office building in downtown Grand Rapids as early as this year.
- The overall vacancy rate for office space stands at 16.2 percent, a steady improvement over the past nine quarters.
- More than 203,000 square feet of new office space is under construction throughout the region, with more than 55 percent being built in Cascade. Nearly 82 percent is being built in the suburbs.
- Office rental and lease rates are “still competitive,” although speculative development is almost non-existent.