Reports show commercial real estate health in West Michigan
Posted By: Grand Rapids Business Journal on July 21, 2022. For more information, please click here to read the source article.
A new series of reports showed commercial real estate in West Michigan appears healthy despite recent challenges.
Colliers West Michigan on Tuesday, July 19, released its newest market trend reports on the industrial, retail and office sectors in the region.
Despite complications such as staffing shortages and increasing inflation, the findings indicate stability.
“It’s been a challenging couple of years for our industry, but we’re in a period of stability and experiencing some growth,” said Jon Potvin, managing director of Colliers West Michigan. “Across West Michigan, industrial users are looking for new spaces, retailers are experiencing high sales, and office users are assessing what the future looks like. It may look different, but we’re likely to see positive outcomes.”
For the industrial sector, the quarterly report showed prices remaining firm or increasing as buyers continue to pursue commercial warehousing, distribution, reshoring and advanced manufacturing opportunities.
“Currently there continues to be a strong demand for space, which is causing an active but tight market,” said Chris Vanderband, associate at Colliers.
Retailers have made strides since COVID-19-related shutdowns, according to the report for that sector. Retail space in West Michigan has a low vacancy rate, and popular retail areas are seeing high sales volumes.
The office sector report indicates demand within the office sector has outweighed supply for new spaces as many workers in Grand Rapids have started the return to in-person office work. This is positive, but there still are challenges for office space, according to the Colliers team.
“The office sector has certainly been challenging the (past) couple of years, but the positive demand we’re seeing now is expected to continue,” said Scott Morgan, senior vice president at Colliers West Michigan. “We’re seeing stability and positive rent growth, and the outlook is positive going forward.”
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