OFFICE – Key Metrics
INVENTORY & VACANCY
Office Inventory & Vacancy
14M
15%
Office inventory has remained relatively flat historically. From 1Q19 to 1Q23, inventory rose 9 percent with 5 percent of that growth occurring over the past year as large developments, including the new downtown headquarters of Perrigo and Acrisure, and Michigan State University Grand Rapids Innovation Park, came online. Meanwhile, vacancy rates in the office sector continue to climb moderately. SQ. FT. UNDER CONSTRUCTION The backlog of office space under construction that had built up between 2Q21 and early 2022 was largely exhausted by 2Q22. ASKING RENTS Rents for office space continue to increase, reaching $21.57/sq-ft in 1Q23 from $18.43/sq-ft during the same quarter of 2019, representing a 17 percent increase, driven largely by the addition of new Class A space.
12M
10%
10M
5%
Inventory Vacancy
8M
0%
2019
2020
2021
2022
2023
Source: JLL
Office Space Under Construction (Sq Ft)
500k
400k
300k
200k
100k
0
2019
2020
2021
2022
2023
Source: JLL
Office Average Direct Asking Rent
$22.00
$21.50
$20.00
$19.50
$18.00
$17.00
2019
2020
2021
2022
2023
Source: JLL
05
STATE OF DEVELOPMENT – DIVING DEEPER
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