JLL Research Shows Low Office Vacancies Continue Across Metro Grand Rapids
2018 Q2 research shows low vacancies continue across metro Grand Rapids office market
GRAND RAPIDS, MICHIGAN, July 27, 2018 — New JLL research shows the Grand Rapids office sector continues to trend positively. Total vacancy fell to 11.1 percent as nearly 100,000 square feet of space has been absorbed so far in 2018. Rent growth has slowed this year with current average asking rents coming in at $17.76.
The East Paris corridor and the West Side of downtown continue to be hot submarkets, causing continued parking issues for downtown buildings and tenants.
“The trend we’re seeing nationwide is businesses moving to downtown urban environments, where you can attract young talent from universities,” said JLL’s Senior Research Analyst Harrison West.
However, some tenants are considering moving to the suburbs where parking is free and more readily available.
“Tenants are weighing the benefits of being downtown and being in the suburbs where they have lower rates and parking right out front,” West said. “I don’t think it would threaten the downtown market, what it might be doing is pendulum swinging to the suburbs for a short amount of time until parking solutions come.”
Renovations and construction are well underway downtown, as developers look to lock up tenants. 614 First Street is nearing completion, and renovations are well underway at 37 Ottawa. The Studio Park development downtown has begun site work but will not break ground until a tenant is secured.
Looking ahead, conditions are not likely to change dramatically until new office inventory is delivered.
For more information, please visit www.us.jll.com/en/locations/midwest.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 90,000 as of December 31, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.