2026 Development Report

OFFICE

Office Space Under Construction

With no new supply coming online, increased construction expenses requiring rents in the mid-to-upper $20s per sq ft, 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.

COVID-19 Q1 2020 - Q3 2023

0 SQ FT

Q1 26

2019 2020 2021

2022 2023 2024 2025

Source: JLL

Office Vacancy

Direct Vacancy (%)

Sublease Vacancy (%)

Total Vacancy (%)

13.0%

COVID-19 Q1 2020 - Q3 2023

Office vacancy rates remained stable through 2025, with direct rates averaging 13.2%, a slight decline from 13.5% the previous year. Q1 2026 saw vacancy at 13.0%, compared to 13.8% the same quarter the previous year. With national vacancy averaging 19%, Greater Grand Rapids continues to be a comparatively strong market.

Q1 26

2019 2020 2021

2022 2023 2024 2025

Source: JLL

Average Office Rent

$20.85 / SQ FT

Average rents continue to trend upwards on an annual basis, reaching $21.39/sq ft in 2025, a 2.1% increase over $20.95/sq ft in 2024. In Q1 2026, rents slipped to $20.85/sq ft, down 5.4% from the same quarter the previous year. Despite the recent 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.

COVID-19 Q1 2020 - Q3 2023

Trendline

Q1 26

2019 2020 2021

2022 2023 2024 2025

Source: JLL

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