WORKING DRAFT 2026 Development Report

OFFICE

Office Space Under Construction

With no new supply coming online, increased construction expenses require rents in the mid-to-upper $20s per square foot, and office rents remaining relatively flat, there hasn’t been the financial incentive to invest in new construction. Capital is rotating away from ground-up development toward renovation and repositioning.

0 SQ FT

Source: JLL

Office Vacancy

Direct Vacancy (%)

Sublease Vacancy (%)

Total Vacancy (%)

13.0%

Office vacancy rates remained stable through 2025, decreasing slightly from 13.8% in Q1 2025 to 13% in Q1 2026. However, with national vacancy rates averaging 19%, Greater Grand Rapids continues to be a comparatively strong market.

Source: JLL

Average Office Rent

$20.85 / SQ FT

Average office rent slipped to $20.85/sq ft in Q1 2026, down 5.4% year-over-year from $22.03. Despite the pullback, rents remain above the long-term trendline, reflecting a slight shift in the market where owners are focusing on occupant retention and stability given moderate demand.

Trendline

08

Source: JLL

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