What area is your expertise?
West Michigan Industrial
What trends do you see presently in industrial development in your area?
Very little speculative building, some absorption of previous manufacturing into multi-tenant redevelopment.
What type of industrial product is doing well in your area?
Stand alone 35,000 square feet to 75,000 square feet owner occupied.
Who are the active industrial developers in your area?
First Companies – Built-to-Suit
Please name one or two significant industrial developments in your area. What impact will these projects have on the market?
Ashley Capital redevelopment of the former Steelcase campus. Former large manufacturing buildings
that are redeveloped into multi-tenant — 50,000 to 300,000-square-foot users.
Where is the majority of development taking place? Why is this area doing well?
Very little, along the M-6 Caledonia, available land for build to suit users.
What area do you expect to be the next big industrial development market? Why?
Airport area — typical area for growth in most markets.
Please describe the industrial leasing activity in your area.
Lease rates are flat with incentives, one month of free rent for each year of term. Too much inventory.
Please describe the industrial sales activity in your area.
Very little activity less than 4 percent absorption over the past three quarters.
What impact do current interest rates have on the industrial market? What predictions do you have for interest rates and their effect on the industrial market in the next year?
Good percentage of our buildings owners/users are in the automotive business. Until this business
sector improves there will be little investment.
What industries do you expect to expand in the next year to absorb a great deal of industrial space? What areas will be affected?
Life science, movie production. Recent state incentives for movie industry has created interest in
Would you like to make any additional observations about the industrial market in your area?
West Michigan is stronger that East Michigan but overall the state is lagging with the rest of the country.
Submitted by Robert (Bob) Horn, vice president/industrial advisor with the Grand Rapids, Michigan, office of CB Richard Ellis.