DEVELOPMENT THE RIGHT PLACE REPORT 2025
STATE OF DEVELOPMENT AT A GLANCE
EXECUTIVE SUMMARY
Retail Market: Stable Through Shifting Dynamics
2025 marks a transformative year for Greater Grand Rapids, with major projects reshaping the region and fueling new momentum. Construction on the Acrisure Amphitheater and Amway Soccer Sta- dium is activating nearby investment, while new multi-family housing aims to ease market pressure. Industrial growth continues with new tenants at the long-dormant Site 36, and the Gerald R. Ford International Airport is expanding to support rising demand. Together, these efforts signal a region that is connected, competitive, and ready for the future. Office: Stabilizing Amidst Challenges The office sector faced ongoing challenges, with the overall vacancy rate increasing to 13.8% by Q1 2025. Negative net absorption of 36,000 square feet was recorded in the same quarter, indicating a return of space to the market. Average asking lease rates experienced a slight drop, settling to $21.37 per square foot. No new office space was delivered during the year, and construction remained stagnant. Industrial: Exceptionally Tight and In Demand Grand Rapids maintained one of the lowest industrial vacancy rates in the nation, standing at 2.4% by the end of 2024—significantly below the national average of 6.8%. This tight market was driven by robust demand in key submarkets, particularly the Southeast and Southwest regions. Rising capital costs, a limited construction pipeline, and economic shifts have kept the region’s industrial market extremely tight, with strong demand persisting for the few available opportunities.
INDUSTRIAL
OFFICE
The retail sector in Grand Rapids remained stable in 2024, navigating online and in-person experiences with a mix of stability and growth. The vacancy rate stood at 4.2% by Q1 2025, on par with the national average of 4.1%. Despite this, leasing activity remained robust, with strong net absorption year over year. Average asking rents experienced a marginal decrease, settling at $15.52 per square foot NNN. Multifamily Housing: Steady Demand with Slower Investment The multifamily sector demonstrated continued demand. Although vacancy rates experienced a slight uptick to 5.6%, average asking rents increased to $1,466 per unit in Q1 2025. Year-over-year rent growth stood at 2.8%, surpassing the national average. However, development investment in new units under construction were cut in half. This pullback may be attributed to investors seeking stabilization on existing investments, while anticipating a more favorable lending environment in the near future. Outlook for 2025: Anticipated Growth and Investment Looking ahead, the Greater Grand Rapids commercial real estate market is poised for growth. The industrial sector is expected to remain strong, supported by the region’s diverse economy and talented workforce. The office market may continue to stabilize as businesses adapt to evolving workplace dynamics. In the multifamily sector, anticipated interest rate adjustments could reinvigorate investment activity. Overall, Grand Rapids’ strategic developments and economic prosperity position it favorably for continued investment and growth in 2025.
Key Metrics
Q1 2025 Q1 2024 Change
Key Metrics
Q1 2025 Q1 2024 Change
Inventory
Inventory
13,518,693 sq ft
13,518,693 sq ft
124,960,065 sq ft 122,821,029 sq ft
Vacancy
Vacancy
13.8%
12.7%
2.9%
1.9%
Asking Rent
Asking Rent
$21.37 / sq ft
$21.65 / sq ft
$6.88 / sq ft
$6.56 / sq ft
Net Absorption
Net Absorption
-36,473 sq ft
95,412 sq ft
-368,122 sq ft
-427,601 sq ft
Under Construction
Under Construction
0 sq ft
0 sq ft
774,766 sq ft
224,765 sq ft
Source: JLL
Source: NAI Wisinski of West Michigan
SINGLE-FAMILY HOUSING
RETAIL
Key Metrics
Q1 2025 Q1 2024 Change
Key Metrics
Q1 2025 Q1 2024 Change
Inventory
Home Sales
20,970,511 sq ft
20,787,800 sq ft
1,807
1,658
Average Listings Per Quarter
Vacancy
4.2%
4.8%
1,116
665
Asking Rent
$15.52 / sq ft
$15.69 / sq ft
Average Days on Market
42
34
Net Absorption
79,873 sq ft
14,900 sq ft
Median Listing Price
$338,000
$327,000
Under Construction
9,750 sq ft
13,500 sq ft
Source: Greater Regional Alliance of Realtors (GRAR)
Source: Colliers
MULTIFAMILY HOUSING
Key Metrics
Q1 2025 Q1 2024 Change
Rent
$1,466
$1,408
Vacancy
5.6%
4.5%
Note on the data: Kent County is the primary source of data for this report unless otherwise noted. Greater Grand Rapids refers to the Grand Rapids-Kentwood metropolitan statistical area (MSA), which includes Kent, Ionia, Montcalm, Ottawa, and Barry counties.
Units Under Construction
1,185
2,634
Source: Colliers
STATE OF DEVELOPMENT – AT A GLANCE 02
OFFICE
At the start of 2025, the Grand Rapids commercial office market showed early indications of growing demand. Though demand increased, it was not strong enough to push net absorption into positive territory. As a result, vacancy rates climbed from 12.7% in Q1 2024 to 13.8% in Q1 2025, reflecting lingering softness in the market. Despite the increase, Grand Rapids’ vacancy rate remains well below the national average of nearly 20%. Total inventory remained unchanged at 13.5 million square feet, and there is currently no new office construction underway. Asking rents dipped slightly from $21.65 to $21.37 per square foot from Q1 2024 to Q1 2025, a modest decrease. Both central business district (CBD), and suburban office markets, continue to focus on-site or nearby amenities, as companies prioritize spaces that support employee engagement and hybrid work models. Finally, in response to ongoing shifts in demand, building owners are exploring residential conversions. Locally, CWD Real Estate’s 111 Lyon project exemplifies this trend, converting a 95,000-square-foot downtown office building into 140 residential units. Despite elevated vacancies, there are reasons for optimism. Several companies, including Acrisure, Gentex, and BDO USA, are continuing to invest in downtown Grand Rapids, either by expanding or relocating their presence, signaling confidence in the city’s urban core and long-term recovery trajectory.
NOTABLE PROJECT
STATE OF DEVELOPMENT DIVING DEEPER
Bamboo Coworking Space (UICA Remodel)
Type: Office Developer: Bamboo General Contractor: N/A
Address: 17 Pearl Street NW, Grand Rapids Timeline: N/A Status: In progress
Investment: $4.5M Footprint: 39,418 sf
Description: In April 2025, Detroit- based Bamboo purchased the former Urban Institute for Contemporary Art gallery to transform the building into a coworking space.
Verdant Talbot Development Co. Grand Rapids, MI
STATE OF DEVELOPMENT – DIVING DEEPER 04
OFFICE
OFFICE INVENTORY
OFFICE RENT
$24.00
14M
$21.37
$22.00
13.5M
$20.00
13,518,693 sq/ft
$20.07
13M
$18.00
$16.00
12.5M
$14.00
12M
$12.00
$10.00
11.5M
2019
2020
2021
2022
2023
2024
2025
2019
2020
2021
2022
2023
2024
2025
Source: JLL
Source: JLL
Office rents jumped 6% in Q1 2025, reaching $21.37 per square foot compared to $20.07 per square foot the previous quarter. This marks the first increase in office rent rates since Q1 2024. Rental rates reached a high point of $22.06 per square foot in Q3 2023.
Office inventory remains steady at 13,518,693 square feet, marking the fifth consecutive quarter without change.
OFFICE VACANCY
Direct Vacancy
Sublease Vacancy
Total Vacancy
OFFICE SPACE UNDER CONSTRUCTION
16%
13.8%
12.7%
450K
14%
400K
12%
350K
10%
10.8%
11.5%
300K
8%
250K
6%
200K
150K
4%
2.2%
1.9%
100K
2%
0 sq/ft
50K
0%
2019
2020
2021
2022
2023
2024
2025
0
2019
2020
2021
2022
2023
2024
2025
Source: JLL
Source: JLL
After declining in late 2023, vacancy rates in the office sector continued to climb, reaching 13.8% in Q1 2025. This marks a 1.1% increase since Q1 2024, with both direct and sublease vacancies contributing to the rise.
No new significant office construction has been reported since mid-2023.
05 STATE OF DEVELOPMENT – DIVING DEEPER
STATE OF DEVELOPMENT – DIVING DEEPER 06
INDUSTRIAL
The Grand Rapids industrial real estate market remains strong, marked by sustained demand and tight supply. Vacancy rates rose from 1.9% in Q1 2024 to 2.9% in Q1 2025, but remain significantly below the national average of 6.8%, underscoring the region’s constrained availability of industrial space and continued demand. Inventory grew to nearly 125 million square feet, up from 122.8 million square feet a year prior, reflecting incremental progress in addressing the long-standing challenge of limited industrial land availability in Greater Grand Rapids. Encouragingly, the construction pipeline expanded in early 2024 for the first time since late 2021, bringing total square footage under construction to over 770,000. Net absorption in Q1 2025 indicates some softening in tenant activity. Nonetheless, average asking rents climbed from $6.56 to $6.88 per square foot, with some leases commanding even higher rates depending on technical specifications and build-to-suit requirements. However, the future is being impaired by a decline in available zoned industrial land across local municipalities. In response, the State of Michigan and the Michigan Economic Development Corporation continue to invest in grant programs and tools designed to spur the development of more site-ready industrial properties statewide. Overall, despite signs of moderation in both leasing and development activity, the overall market fundamentals remain healthy. The low vacancy rate and steady rental growth make Grand Rapids an attractive destination for industrial real estate investment.
INDUSTRIAL INVENTORY
126M
124M
124.9M sq/ft
122M
122.8M sq/ft
120M
118M
116M
114M
2019
2020
2021
2022
2023
2024
2025
NOTABLE PROJECT
Source: NAI Wisinski of West Michigan
After dipping slightly in the beginning of 2024, industrial inventory levels climbed 1.7% from 122.8 million square feet in Q1 2024 to 124.9 million square feet in Q1 2025.
Benteler Automotive
Timeline: Broke ground late 2024 Status: Under Construction Description: Benteler will use its new facility on the Site 36 property to manufacture components for the automotive battery industry.
INDUSTRIAL VACANCY
Type: Industrial Developer: N/A General Contractor: N/A
Investment: $105M Footprint: 317,000 sf Address: 3901 Buchanan St. SW, Wyoming
4.0%
3.5%
2.9%
3.0%
2.5%
2.0%
1.9%
1.5%
1.0%
0.5%
0.0%
2019
2020
2021
2022
2023
2024
2025
Source: NAI Wisinski of West Michigan
Industrial vacancy rates climbed from 1.9% in Q1 2024 to 2.9% in Q1 2025. While the industrial market remains tight, the increase in vacancy rate shows some easing in available inventory.
07 STATE OF DEVELOPMENT – DIVING DEEPER
STATE OF DEVELOPMENT – DIVING DEEPER 08
INDUSTRIAL – Site Selection Each year, site selectors and real estate professionals collaborate with the Michigan Economic Development Corporation (MEDC), to issue RFIs for companies seeking industrial space. The Right Place reviewed all RFIs from the MEDC from 2023 and 2024 that mentioned Kent County, Grand Rapids, or Economic Development Region Four to determine what companies require. Below is an analysis of those RFIs.
INDUSTRIAL
INDUSTRIAL RENT
$8.00
$7.00
Type
Min
Max
$6.00
$6.88
$6.56
$5.00
Building 173,636 sq ft 266,842 sq ft
$4.00
$3.00
$2.00
Land
91 acres
173 acres
$1.00
$0.00
2019
2020
2021
2022
2023
2024
2025
Source: NAI Wisinski of West Michigan
Year
RFIs Buildings Land Undisclosed
Industrial rents were $6.88 per square foot in Q1 2025, decreasing 3% from $7.10 the previous quarter. Despite the recent quarterly decline, industrial rents are up 5% from Q1 2024 and have grown steadily since 2019.
2024 18
10
8
0
INDUSTRIAL SPACE UNDER CONSTRUCTION
3.0M
2,676,356 sq/ft
2023 28
14
11
3
2.5M
2.0M
Total 46 24
19
3
1.5M
774,766 sq/ft
1.0M
349,700 sq/ft
500K
0
2019
2020
2021
2022
2023
2024
2025
Source: NAI Wisinski of West Michigan
Industrial space under construction peaked in Q4 2021 with 2.7 million square-feet in the pipeline. Since then, the industrial pipeline has continued to whittle down, shrinking 69% from approximately 1.1 million square feet in Q1 2023 to nearly 350,000 square feet in Q1 2024.
09 STATE OF DEVELOPMENT – DIVING DEEPER
STATE OF DEVELOPMENT – DIVING DEEPER 10
RETAIL
The retail real estate market in Greater Grand Rapids is showing clear signs of progress. Over the past year, retail inventory expanded slightly to nearly 21 million square feet, while vacancy rates fell from 4.8% to 4.2%, indicating steady improvement in tenant demand. Net absorption saw a notable increase, rising from just under 15,000 square feet in Q1 2024 to nearly 80,000 square feet in Q1 2025. While average asking rents dipped slightly from $15.69 to $15.52 per square foot, this modest decrease reflects a competitive leasing environment, not a significant drop in market confidence. The retail construction pipeline was largely depleted in early 2025 following a spike in activity in Q3 2024. Only 9,750 square feet remained under construction at the end of Q1 2025, suggesting limited new development in the near term. Major investment activity signaled renewed interest in the market, with two high-profile acquisitions: nationally-based Bridge33 Capital purchased the Shops at CenterPoint for $70 million, and Tennessee-based Poag Development Group acquired RiverTown Crossings Mall for $97 million. These transactions underscore growing investor confidence in the region’s retail fundamentals. In addition, open-air shopping center formats are gaining popularity, attracting investor attention and providing retailers with new, innovative platforms to engage consumers.
NOTABLE PROJECT
RiverTown Crossings Mall
Type: Commercial (Acquisition) Developer: Poag Development Group General Contractor: N/A Investment: $97M acquisition price Footprint: 1.3 million sf Address: 3700 Rivertown
Description: Poag Development Group plans to update the RiverTown Crossings Mall complex after acquiring the property in August 2024.
Parkway, Grandville Timeline: Ongoing Status: In Progress
11 STATE OF DEVELOPMENT – DIVING DEEPER
STATE OF DEVELOPMENT – DIVING DEEPER 12
RETAIL
RETAIL INVENTORY
RETAIL RENT
24.5M
$18.00
23.5M
$15.69
$15.52
$16.00
22.5M
$15.00
20.97M sq/ft
20.79M sq/ft
$14.00
21.5M
20.5M
$12.00
19.5M
$10.00
18.5M
17.5M
$8.00
2021
2022
2023
2024
2025
2021
2022
2023
2024
2025
Source: Colliers
Source: Colliers
Retail inventories remained consistent through 2024 and into 2025. In Q1 2025, Greater Grand Rapids had 20,970,511 square feet of retail inventory, a modest increase compared to the same quarter the previous year. Since Q1 2024, corridors including 28th Street SE (236,217 square feet) and East Beltline (49,114 square feet) had positive inventory growth.
Retail rents averaged $15.52 per square foot across Greater Grand Rapids, representing a 1% decline from Q1 2024. Retail rents have remained relatively stable since Q3 2023.
RETAIL SPACE UNDER CONSTRUCTION
RETAIL VACANCY
200K
160K 180K 120K 140K 80K 100K
10.0%
8.0%
6.0%
4.8%
4.2%
4.0%
40K 60K 0 20K
9,750 sq/ft
13,500 sq/ft
2.0%
2021
2022
2023
2024
2025
0.0%
2021
2022
2023
2024
2025
Source: Colliers
Source: Colliers
The retail market completed approximately 43,000 square feet of projects in Q1 2025, bringing the total footprint under construction to 9,750 square feet.
Retail vacancy rates ticked down after Q2 2024, reaching 4.2% in Q1 2025.
13 STATE OF DEVELOPMENT – DIVING DEEPER
STATE OF DEVELOPMENT – DIVING DEEPER 14
HOUSING Housing across Greater Grand Rapids continues to present challenges, with constrained inventory and new supply not keeping pace with demand. The single-family home market saw an uptick in activity, with 1,807 homes sold in Q1 2025 compared to 1,658 the year prior. Median listing prices also rose to $338,000, up from $327,000 in Q1 2024. Though prices dipped briefly in late 2024, they rebounded at the beginning of 2025. There are signs the market may be cooling slightly. Homes are staying on the market longer—averaging 42 days compared to 34 days a year ago—and the number of active listings per quarter jumped significantly from 665 to 1,116, providing some relief for buyers navigating a still-competitive environment. In the multifamily sector, rent prices climbed from $1,408 to $1,466 per month, indicating sustained demand. However, vacancy rates rose from 4.5% to 5.6% over the same period, suggesting that supply is beginning to catch up. Multifamily construction activity slowed, with 1,185 units under construction in Q1 2025—down from 2,634 units a year earlier—though numerous developments remain underway. Despite supply-side challenges, nearly 4,000 residential building permits* were issued across Greater Grand Rapids and surrounding communities in 2024, a 4.4% increase from the previous year. This includes a 3% rise in single-family permits and a 6% increase for multifamily units, signaling forward momentum in expanding the region’s housing stock to meet growing demand.
PERMITTED UNITS BY TYPE
Single Family
2-Unit
3 & 4 Units
5+ Units
4,500
4,000
3,500
3,000
NOTABLE PROJECT
2,500
111 Lyon Type: Residential Developer: CWD Real Estate Investment (Architect: Integrated Architecture)
General Contractor: Orion Construction Investment: $50M Footprint: 95,025 sf building (140 units) Address: 111 Lyon St. NW, Grand Rapids Timeline: Completion Summer 2026 Status: In Progress
Description: The conversion project broke ground in March 2025. The majority of the building will be converted to residential with 20 units per floor.
2,000
1,500
1,000
500
0
Source: U.S. Department of Housing and Urban Development 2020 2019
2021
2022
2023
2024
2025
Nearly 4,000 building permits were issued in Greater Grand Rapids and surrounding areas* in 2024, a 4.4% increase from the previous year. Permits for single family housing and multi-family housing units grew 3% and 6%, respectively. Permits for multifamily housing with five or more units increased 20% from 2023 to 2024. There were 519 building permits issued during the first two months of 2025, slightly lower than the 546 units during the same period the previous year.
*Building permit geography is for the Grand Rapids-Wyoming-Muskegon combined statistical area which includes Kent, Ottawa, Muskegon, Allegan, Barry, Ionia and Montcalm counties.
15 STATE OF DEVELOPMENT – DIVING DEEPER
STATE OF DEVELOPMENT – DIVING DEEPER 16
Greater Grand Rapids continues to see strong housing demand, although the market may be showing signs of a slight cool down. More homes were sold at the beginning of 2025 than early 2024, but fewer than in the post- pandemic period. Homes are staying on the market longer, and the number of average active listings increased significantly compared to early 2024. Median home prices dropped in late 2024 but rose again in Q1 2025. HOUSING – Single-Family
AVERAGE ACTIVE LISTINGS PER QUARTER
3,000
2,700
2,500
SINGLE-FAMILY HOME SALES
2,000
5,000 4,500 4,000 3,500 2,000 2,500 3,000 1,500 1,000 500 0
1,500
1,116
1,000
500
665
0
2019
2020
2021
2022
2023
2024
2025
Source: Greater Regional Alliance of Realtors (GRAR)
2019
2020
2021
2022
2023
2024
2025
There were 1,116 active single-family listings in Q1 2025, a 68% increase from the same period the previous year. Active listings spiked to 1,650 in Q3 2024, the highest number since 2019.
Source: Greater Regional Alliance of Realtors (GRAR)
Single-family home sales reached 1,807 units in Q1 2025, a 9% increase from Q1 2024. This total remains below first-quarter figures reported from 2019 to 2023.
MEDIAN LISTING PRICE
Greater Grand Rapids
Michigan
United States
$500K
AVERAGE DAYS ON MARKET BY QUARTER
$416,633
$412,467
$450K
60
$400K
50
$408,283
42 Days
$350K
34 Days
$381,408
40
$300K
30
$250K
$266,765
20
$263,967
$200K
10
$150K
0
2019
2020
2021
2022
2023
2024
2025
2019
2020
2021
2022
2023
2024
2025
Source: Realtor.com
Source: Greater Regional Alliance of Realtors (GRAR)
Median listing prices fell 7% in Greater Grand Rapids from Q1 2024 to Q1 2025. This decline mirrors national trends, though, nationally, median listing prices decreased 1%. Median listing prices have decreased generally since Q2 2024.
In Q1 2025, houses spent an average of 42 days on market, an eight-day increase from Q1 2024. Days on market also increased in Q3 and Q4 of 2024 compared to the same period the previous year.
17 STATE OF DEVELOPMENT – DIVING DEEPER
STATE OF DEVELOPMENT – DIVING DEEPER 18
Greater Grand Rapids’ multifamily housing market remains strong. Rents have gradually risen in recent quarters but remain around $1,400. Vacancy rates are showing signs of increasing, rising one percentage point from the beginning of 2024. Meanwhile, the construction pipeline for multifamily housing tapered off in recent quarters as projects were completed. HOUSING – Multifamily
VACANCY
6.0%
5.6%
5.5%
AVERAGE MONTHLY RENT
5.0%
$1,600 $1,400 $1,200 $1,000
4.54%
4.5%
4.0%
$800 $600 $400 $200 0
3.5%
3.0%
2023
2024
2025
Source: Colliers
2023
2024
2025
Multifamily vacancy has climbed steadily since Q2 2024, reaching 5.6% in Q1 2025, a nearly 1% increase since the same period the previous year.
Source: Colliers (Grand Rapids submarket)
Average rent increased 4% to $1,466 from Q1 2024 to Q1 2025. In general, multifamily rents have hovered in the $1,400 per month bracket since Q4 2023.
UNITS UNDER CONSTRUCTION
3,500
3,000
2,634
2,500
2,000
1,500
1,185
1,000
500
0
2023
2024
2025
Source: Colliers
Timber Ridge Development MOXIE Grandville, MI
The pipeline of units under construction declined to 1,185 units in Q1 2025 from 2,634 units in Q1 2024. The pipeline of new construction has declined since Q1 2024.
19 STATE OF DEVELOPMENT – DIVING DEEPER
STATE OF DEVELOPMENT – DIVING DEEPER 20
INDUSTRIAL
DEVELOPMENT INCENTIVES
MI SITES PROGRAM
INDUSTRIAL FACILITIES TAX ABATEMENT (PA 198)
The MI Sites program is a comprehensive site readiness program designed to build a strong portfolio of ready sites through the identification, analysis and marketing of the most developable industrial sites in the state of Michigan. Consistent statewide criteria positions Michigan to better compete for current and future project by identifying the strengths of each industrial property and providing insights which are used to optimize the path for enhanced readiness. Training and guidance will be provided to applicants at each step in the process to promote success.
Industrial property tax abatements provide incentives for eligible businesses to make new investments in Michigan. These abatements encourage Michigan manufacturers to build new plants, expand existing plants, renovate aging plants, or add new machinery and equipment. High technology operations are also eligible for the abatement. Tax benefits are granted by the legislative body of the city, township or village in which the investment will be located. Abatements under PA 198 can significantly reduce property taxes on new investment for eligible firms.
Learn More
Learn More
MICHIGAN BUSINESS DEVELOPMENT PROGRAM (MBDP)
STRATEGIC SITE READINESS PROGRAM (SSRP)
MBDP is available to eligible businesses that create qualified new jobs and/or make qualified new investment in Michigan. The Michigan Strategic Fund (MSF) can provide a performance-based grant, with preference given to eligible businesses seeking to locate or expand in Michigan rather than in another state. Grants will include flexible terms and conditions and will include repayment provisions under circumstances approved by the MSF. MSF support in the form of a loan will also be performance based, with preference given to qualified businesses needing assistance to expand in Michigan. Loans may include flexible terms and conditions, including below market interest rates, extended grace and repayment provisions, forgivable terms and flexible security requirements. Loans will also include provisions requiring repayment of loan funds under circumstances approved by the MSF. A commitment of staff, financial or economic support by the local municipality is required for all projects. The MSF will not provide support under this program for retail or retention projects.
SSRP provides financial incentives to eligible applicants to conduct eligible activities on, or related to, strategic sites and mega-strategic sites in Michigan, for the purpose of creating a statewide inventory of investment-ready sites to attract and promote investment in Michigan. Administered by MEDC, the SSRP provides access to grants, loans, and other economic assistance. Eligible activities include: land acquisition and assembly, site preparation and improvement, infrastructure improvements that directly benefit the site, any demolition, construction, alteration, rehabilitation, or improvement of buildings on the site, environmental remediation, architectural, engineering, surveying, and other predevelopment work required to commence construction on site improvements; or to develop a spending plan and proposal for capital investment in site readiness.
Learn More
Learn More
DEVELOPMENT INCENTIVES 22
RETAIL/SMALL BUSINESS
MATCH ON MAIN PROGRAM
The Match on Main program provides grant funding to support an eligible small business desiring to launch or grow on main street. It provides up to $25,000 in funding, reimbursed for eligible activities. The program is administered and managed by the local unit of government, downtown development authority, or other downtown management or community development organization who serves as the “eligible applicant”. Each eligible applicant can select one business per application, located in their traditional downtown or other eligible business district for support, with a maximum of two applications submitted per funding round.
Learn More
SMALL BUSINESS LENDING
Through several Capital Access programs, the MEDC partners with banks and community-based lenders to reduce risk, increase collateral availability or increase the amount of lending capital that would not otherwise be available to small businesses.
Learn More
The Current Talbot Development Co. Grand Rapids, MI
23 DEVELOPMENT INCENTIVES
DEVELOPMENT INCENTIVES 24
HOUSING + MIXED USE
MSHDA MISSING-MIDDLE HOUSING PROGRAM
REVITALIZATION AND PLACEMAKING (RAP) PROGRAM
TRANSFORMATIONAL BROWNFIELD PLAN (TBP)
BUILD MI COMMUNITY PROGRAM
TBP-based projects must have a transformational impact on local economic development and community revitalization. The plan must be either a mixed-use development project with planned integration of some combination of retail, office, and residential. A TBP allows for the capture of five sources of tax revenues associated with a project. The available tax revenues include the following: 1. Construction Period Income Tax
MSHDA’s Missing-Middle Housing Program is designed to address the lack of attainable housing, particularly for households in the 60–120% area median income range, by offering grants to help defray the cost of construction for both rental and single-family homes.
The Revitalization and Placemaking program provides access to gap financing for place-based infrastructure development, real estate rehabilitation and development, and public space improvements. Eligible applicants are individuals or entities working to rehabilitate vacant, underutilized, blighted and historic structures and the development of permanent place-based infrastructure associated with traditional downtowns, social-zones, outdoor dining and placed-based public spaces.
The Build MI Community Grant is an initiative designed to promote private investment in Michigan communities. Administered by the Michigan Economic Development Corporation (MEDC) on behalf of the Michigan Strategic Fund (MSF), this tool provides access to real estate development gap financing and technical assistance for small scale, incremental redevelopment projects. The program was also established to re-activate underutilized or vacant space into vibrant areas by promoting capital investment. Through the Build MI Community Initiative, emerging developers and newer property owners gain knowledge, tools, and information about the development process to set them up for more complex projects in the future.
Learn More
MSHDA EMPLOYER-ASSISTED HOUSING FUND
2. Property Tax Capture 3. Income Tax Capture 4. Withholding Tax Capture 5. Sales and Use Tax Capture Revenues
Learn More
MSHDA’s Employer-Assisted Housing Fund is designed to help employers invest in housing solutions for income-eligible households. Employers that contribute matching funds—whether through cash investments, land donation, a below-market interest loan, or some combination thereof —may qualify for resources through the fund to help develop new housing options. In return, rental housing must remain affordable for at least 10 years and for-sale housing must remain affordable for five years— ensuring long-term impact.
MICHIGAN COMMUNITY REVITALIZATION PROGRAM (MCRP) The Michigan Community Revitalization Program (MCRP) is an incentive program to promote private investment in Michigan communities. This tool provides Michigan communities with access to real estate development gap financing for innovative and/or impactful placemaking, historical redevelopment and/or job growth in targeted sectors. The MSF may provide support for a project in the form of a grant, direct loan or other economic assistance such as a loan participation or equity investment. All awards shall be performance-based. The focus of the MCRP is to transform underutilized properties into vibrant areas by encouraging and promoting capital investment and the redevelopment of brownfield and historic properties located in or in support of traditional downtowns and high-impact corridors in every region of the state.
Learn More
Learn More
BROWNFIELD TIF
Through the Brownfield Redevelopment Financing Act, Brownfield TIF allows applicable taxing jurisdictions to receive property taxes on the property at the current level and capture the incremental increase in tax revenue resulting from a redevelopment project. Under an MSF approved Work Plan or Combined Plan, projects can seek reimbursement from state and local property taxes for eligible non-environmental activities. Projects can also seek reimbursement from state and local property taxes for eligible environmental activities through submission of a Work Plan or Combined Plan to the Michigan Department of Environment, Great Lakes, and Energy.
Learn More
MSHDA HOUSING TIF
When a housing development is built, property taxes are often increased as a result of the improvements. Tax Increment Financing (TIF) is a way of capturing a portion of those increased property taxes and reimbursing them back to the developer to fill a funding gap. The Housing TIF program requires a project to include units targeted at 120% of the area median income to qualify for this funding tool.
Learn More
Learn More
Learn More
25 DEVELOPMENT INCENTIVES
DEVELOPMENT INCENTIVES 26
ADDITIONAL DEVELOPMENT INCENTIVE PROGRAMS
NEIGHBORHOOD ENTERPRISE ZONES (NEZ)
OBSOLETE PROPERTY REHABILITATION ACT (PA 146)
COMMERCIAL REDEVELOPMENT ACT (PA 255)
COMMERCIAL REHABILITATION ACT (PA 210)
The NEZ Program provides a reduction of future taxes for a period of 9-15 years on the improvements made to the residential component of an eligible building following its construction or rehabilitation. Two types of NEZ projects exist – “geographic” and “project-specific”. Geographic NEZ projects are those proposed in a previously established NEZ district in Grand Rapids. Project-specific NEZ proposals must be mixed-use, located in a commercial corridor and containing at least 10 residential units. The application process takes 2-5 months depending on the type of project. NEZ applications need to be approved by both the municipality and the State Tax Commission. Further, building permits cannot be pulled on a proposed NEZ project until the NEZ certificate application is received following establishment of a NEZ district, if applicable.
The OPRA Program provides a reduction of future taxes on improvements made for a period of 10-12 years following the rehabilitation of an eligible building. Eligible OPRA projects meet the following criteria: 1. Determination of functional obsolescence by the City Assessor 2. Commercial use (mixed-use or containing more than 10 rental units) 3. Investment of at least $30 per square foot 4. Project will rehabilitate an existing building, not construct a new building The application process takes 3-4 months. OPRA applications need to be approved by both the municipality and the State Tax Commission. Further, building permits cannot be pulled on a proposed OPRA project until the OPRA District is approved by the municipality.
The Commercial Redevelopment Act, (known as the Commercial Facilities Exemption), PA 255 of 1978, provides a tax incentive for the redevelopment of commercial property for the primary purpose and use of a commercial business enterprise. The property must be located within an established Commercial Redevelopment District. Exemptions are approved for a term of 1-12 years as determined by the local unit of government. For restored facilities, the property taxes are based upon the previous year’s (prior to restoration) taxable value and 100% of the mills levied. The taxable value is frozen for the duration of the certificate. For new or replacement facilities, the property taxes are based upon the current year’s taxable value and 50% of the mills levied. Applications are filed, reviewed, approved, and certificates are issued, by the local unit of government. Certificates are also filed with the State Tax Commission.
The Commercial Redevelopment Act, Public Act 210 of 2005, encourages the rehabilitation of commercial property by abating the property taxes generated from new investment for a period up to 10 years. As defined, commercial property is a qualified facility that includes a building or group of contiguous buildings of commercial property that is 15 years or older, of which the primary purpose is the operation of a commercial business enterprise or multifamily residential use. A qualified facility may also include vacant property or other commercial property which, within the immediately preceding 15 years, was commercial property. Types of commercial business enterprises include office, engineering, research and development, warehousing, parts distribution, retail sales, and other commercial activities. Multifamily residential is housing that consists of five or more units. Commercial property does not include property that is to be used as a professional sports stadium or a casino. Land and personal property are not eligible for abatement under this act.
27 DEVELOPMENT INCENTIVES
DEVELOPMENT INCENTIVES 28
POPULATION
680K
MARKET OPPORTUNITY
660K
663,405
640K
620K
600K
580K
560K
540K
Kent County Population: 663,405 Median Age: 36.5 102,817 $79,756 25-34 Year-Old Population: Median Household Income:
Source: Lightcast
(14% increase since 2001)
25-34 YEAR-OLD POPULATION
120K
(15.5% of population)
100K
102,817
80K
60K
40K
20K
0
Source: Lightcast
30 MARKET OPPORTUNITY
7
NEW DEVELOPMENT PROJECTS
17
9
1
15
1309 Madison Avenue
Gerald R. Ford International Airport Expansion
25
22
2
Amway Expansion
16
24 10
Grand Rapids Airport Hotel
12
Bamboo Coworking Space (UICA Remodel)
3
18
Habitat for Humanity Plainfield Township
17
14 23
3
4
13
Benteler Automotive
8
18
Hylant
2
5
Boston Square Together
19
Microsoft Data Center
27
6
1
CenterPoint Mall
5
20
RiverTown Crossings Mall
7
Coit Flats
21
Shea Ravines Phase II
21
26
6
8
Cooley Law Redevelopment
22
Silva
16
9
4
DeltaPlex Arena Conversion
23
The Anthony
15
Duthler’s Family Foods Redevelopment
10
20
24
Sun Title Property Housing Development
11 12
Dutton Center
25 26
The Horizon
28
111 Lyon
Timber Flats
13
Fulton & Market
11
27
Vision Lofts
11
14
Fulton Place
28
19
Wilson Crossing Townhomes
11
31 NEW DEVELOPMENT PROJECTS
NEW DEVELOPMENT PROJECTS 32
1309 Madison Avenue 1
Benteler Automotive 4
Type: Multifamily Developer: ICCF Community Homes General Contractor: ICCF Community Homes Investment: $18 million Footprint: 45 units Address: 1309 Madison Avenue SE, Grand Rapids Timeline: Completion Summer 2026 Status: In progress
Type: Industrial Developer: N/A
General Contractor: N/A Investment: $105 million Footprint: 317,000 sf
Address: 3901 Buchanan St. SW Timeline: Broke ground late 2024 Status: Announced
Description: ICCF is targeting the development to serve renters earning between 30% and 80% of the area median income. The project will include on-site parking, green space, and a playground.
Description: Benteler will use its new facility on the Site 36 property to manufacturer components for the automotive battery industry.
Type: Mixed-Use Developer: Amplify GR General Contractor: Rockford Construction Investment: $30 million Boston Square Together 5
Amway Expansion 2
NEW DEVELOPMENT PROJECTS DETAILS
Type: Manufacturing Developer: N/A
General Contractor: N/A Investment: $127.6 million Footprint: 48,000 sf renovation; 18,750 new sf Address: 7575 Fulton Street East, Ada MI Timeline: End of 2026 Status: Announced Description: Amway will relocate its research and development office from Southern California to Ada, bringing 260 new high-paying jobs to the region.
Footprint: 57 units (additional 45 units in second phase) Address: 1460 Kalamazoo Avenue SE, Grand Rapids Timeline: Spring 2026 expected completion Status: In progress Description: The project will include one, two, and three bedroom units for families making between 20% and 120% of the area median income. A second phase will add 45 additional units, along with a 9,000 square foot hall for local food businesses.
Shops at CenterPoint 6
3
Bamboo Coworking Space (UICA Remodel)
Type: Commercial (Acquisition) Developer: Bridge33 Capital
Type: Office Developer: Bamboo
General Contractor: N/A Investment: $70 million Footprint: 537,948 sf Address: 3665 28th Street SE, Grand Rapids Timeline: N/A Status: Purchase complete
General Contractor: N/A Investment: $4.5 million Footprint: 39,418 sf Address: 17 Pearl Street NW, Grand Rapids Timeline: N/A Status: In progress
Description: CenterPoint Mall was purchased by an affiliate of Bridge33 Capital for $70 million from Pine Tree Commercial in January 2025.
Description: In April 2025, Detroit-based Bamboo purchased the former Urban Institute for Contemporary Art gallery to transform the building into a coworking space.
111 Lyon CWD Real Estate Grand Rapids, MI
NEW DEVELOPMENT PROJECTS – DETAILS 34
Coit Flats 7
Redevelopment 10
Fulton & Market 13
Grand Rapids Airport Hotel 16
Duthler’s Family Foods
Type: Residential Developer: Veneklasen Construction (Architect: R2 Design) General Contractor: Veneklasen Construction Investment: $15.9 million Footprint: 72 units Address: 4959 and 4965 Plainfield Ave. NE, Plainfield Township Timeline: Late 2026 Completion Status: Groundbreaking in Spring 2025 Description: Seventy-two new residential units along Plainfield Avenue in Plainfield Township. The project will develop two vacant parcels across three acres and include three buildings when complete.
Type: Mixed-Use Developer: Talbot Development (Architect: Pinnacle Construction) General Contractor: Pinnacle Construction Investment: $31 million Footprint: 148 units (117,000 sf) Address: 648 Bridge St. NW and 345 Lexington Ave NW, Grand Rapids Timeline: Completion in Summer 2026 Status: In progress Description: The project will include 148 apartment units, a coffee shop, fitness center, dog washing room, 68 enclosed parked spaces, roof deck, and movie projection room.
Type: Mixed-Use Developer: Fulmar Property Holdings
Type: Mixed-Use Commercial Developer: Ben M. Muller Realty Co. General Contractor: N/A Investment: $2.5 million for preconstruction Footprint: 30 acres across two sites Address: Patterson Avenue and 36th Street SE, Kentwood Timeline: N/A Status: Pre-construction Description: The project will include a 135-room hotel, gas station, bank, and three drive-thru restaurants near the Gerald R. Ford International Airport.
(Architect: Progressive Companies)
General Contractor: N/A Investment: $797 million Footprint: 76 luxury condos, 595 apartment units, 130-room hotel Address: 63 Market Ave SW Timeline: Construction to begin end of 2025. Project completion Spring 2029 Status: Announced Description: Fulmar Property Holdings plans a three-tower development along the Grand River that will include an office building, retail, hotel, luxury condos, apartment units, and attached parking decks.
8
17
Habitat for Humanity Plainfield Township
11
Cooley Law Redevelopment
Dutton Center
14
Fulton Place
Type: Commercial Developer: Granger Group General Contractor: N/A Investment: $50 million Footprint: 110,000 sf Address: 111 Commerce Avenue, SW, Grand Rapids Timeline: Construction in Fall 2025. Targeted completion in Fall 2026 Status: In progress Description: Granger will move its headquarters to the former Cooley Law school and plans to develop the property to include a restaurant, hotel, training rooms, office, retail space, spa, and a rooftop club.
Type: Mixed-Use Developer: Habitat for Humanity Kent County (Architect: Create 3 Architecture) General Contractor: Orion Construction Investment: $50,000 (property price) Footprint: 27 units Address: 2500 5 Mile Road NE, Plainfield Township Timeline: Groundbreaking in August 2027 Status: In progress
Type: Mixed-Use Developer: Allen Edwin Homes General Contractor: N/A Investment: N/A Footprint: 238 units (29 acres) Address: 316 68th Street SE; 7200 Hanna Lake Avenue SE; 7307 Hammon Avenue SE Timeline: N/A Status: In progress Description: This multi-phase project will create a “village center” for Gaines Township including townhomes, apartments, mixed-use commercial, and office space spread across multiple buildings.
Type: Residential (acquisition) Developer: Winnemac Properties
General Contractor: N/A Investment: $21 million Footprint: 102 units Address: 616 West Fulton Street, Grand Rapids Timeline: N/A Status: In progress
Description: This project will include a four-story apartment building with 27 residential units and 10,000 square feet of ground floor commercial space.
Description: Winnemac plans to update the existing apartment units into luxury-class residences and convert the ground-floor commercial space into a gym for tenants.
DeltaPlex Arena Conversion 9
18
Fifth Third Residential Conversion 12
Hylant
15
Gerald R. Ford International Airport Expansion
Type: New Industrial Developer: Visser Brothers General Contractor: Visser Brothers Investment: $12.5 million Footprint: 165,000 sf
Type: Office Relocation Developer: Trust Building (CWD Real Estate) General Contractor: McGraw Construction Investment: $1.3 million Footprint: 13,500 sf Address: 40 Pearl St NW, Grand Rapids Timeline: August 2025 Status: In progress
Type: Residential Developer: CWD Real Estate Investment
Type: Infrastructure Developer: Grand Rapids Airport (Architect: Corgan) General Contractor: The Christman Company Investment: $135 million Footprint: 175,000 sf Address: 5500 44th Street SE, Grand Rapids Timeline: Expected completion in 2027 Status: In progress Description: Terminal enhancement project that is part of a larger investment in expanding the airport’s capability.
(Architect: Integrated Architecture)
General Contractor: Orion Construction Investment: $50 million approximately Footprint: 95,025 sf building (140 units) Address: 111 Lyon St. NW, Grand Rapids Timeline: Completion Summer 2026 Status: In progress
Address: 2574 Hillside Drive NW Timeline: Completion in 2025 Status: In progress Description: The light industrial development will include office and warehouse space with space for three tenants.
Description: Hylant is taking the seventh floor of the Trust Building in downtown Grand Rapids. The office will offer amenities including a full bar and lounge.
Description: The conversion project broke ground in March 2025. The majority of the building will be converted to residential with 20 units per floor.
35 NEW DEVELOPMENT PROJECTS – DETAILS
NEW DEVELOPMENT PROJECTS – DETAILS 36
22
25
27
19
Microsoft Data Center
Silva
The Horizon
Vision Lofts
Type: Commercial Developer: Microsoft
Type: Restaurant Developer: Mark Secchia (Architect: Integrated Architecture) General Contractor: Rockford Construction Investment: $16.5 million Footprint: 60,000 sf Address: 975 Ottawa Avenue NW, Grand Rapids
Type: Mixed-Use Developer: Pinnacle Construction Group and Sun Title Agency (Architect: Pinnacle) General Contractor: Pinnacle Construction Group Investment: $40 million Footprint: 171 units Address: 301 and 385 Leonard Street NE, Grand Rapids Timeline: Estimated Completion in Spring 2027 Status: In progress Description: This brownfield redevelopment will include 171 apartment units, 622 square feet of retail, and a parking structure with 80 spaces.
Type: Residential Developer: Pivotal Housing Partners
General Contractor: N/A Investment: $45.3 million Footprint: 316 acres Address: Gaines Charter Township and Allegan County Timeline: N/A Status: In progress Description: In October 2024, Microsoft purchased 316 acres from Steelcase to build a data center. The same month, Microsoft acquired 272 acres of property in Allegan County.
General Contractor: N/A Investment: $16 milllion Footprint: 51 units Address: 1201 South Division Ave, Grand Rapids Timeline: Construction starting early 2026. Open May 2027 Status: In progress Description: This 51-unit senior housing development will offer a mix of one- and two-bedroom units reserved for households making 80% or less than the area median income.
Timeline: Complete Status: In progress
Description: An upscale restaurant featuring indoor bocce ball courts, outdoor seating, event venue, indoor parking, and a game room.
23
28
20
26
RiverTown Crossings Mall
The Anthony
Wilson Crossing Townhomes
Timber Flats
Type: Commercial (Acquisition) Developer: Poag Development Group General Contractor: N/A Investment: $14.25 million acquisition price Footprint: 1.3 million sf Address: 3700 Rivertown Parkway, Grandville
Type: Residential Developer: Wheeler Development Group
Type: Mixed-Use Developer: Construction Simplified General Contractor: Construction Simplified Investment: $25 million
Type: Mixed-Used Developer: MOXIE Real Estate and Development (Architect: Create 3 Architecture)
(Architect: Create 3 Architecture)
General Contractor: WDG Construction Investment: $950,000 (property) Footprint: 44 units Address: 4087 64th St. SW, Wyoming Timeline: Completion end of 2025 Status: In progress
General Contractor: N/A Investment: $6.5 million Footprint: 28 units
Footprint: 106 units with 5,240 sf of ground floor commercial Address: 617 W. Fulton St and 17 Seward Ave. NW, Grand Rapids
Timeline: Ongoing Status: In progress
Timeline: Complete Status: In progress
Address: 3066 Fayette Avenue SW, Grandville Timeline: Breaking ground in September 2025 Status: In progress
Description: Poag Development Group plans to update the RiverTown Crossings Mall complex after acquiring the property in August 2024.
Description: The project will include a four-story building with 106 apartments, 5,240 square feet of commercial space and a 53-space parking lot.
Description: The project will include eleven buildings, each with four units and two two-car garages. Wilson Crossing will offer 22 two-bedroom units and 22 three-bedroom units.
Description: This 28-unit apartment complex will include ground floor retail. The apartments will be evenly split between one- and two-bedroom units.
24
Type: Residential Developer: Woda Cooper Development General Contractor: N/A Investment: $17.8 million Footprint: 56 units Address: 2929 Burlingame Ave SW, Wyoming Timeline: N/A Status: In progress Shea Ravines Phase II 21
Sun Title Property Housing Development
Type: Mixed-Used Residential Developer: Talbot Development
General Contractor: N/A Investment: $31 million
Footprint: 117,000 square feet Address: 648 Bridge Street NW Timeline: Project began late 2024 and will conclude in 2026 Status: In planning Description: Talbot Development plans to convert the former Duthler’s Family Food store into a 150-unit, five-story, mixed-use development project.
Description: This low-income housing development will support 56 units, with 20 units set aside for supportive housing with vouchers.
37 NEW DEVELOPMENT PROJECTS – DETAILS
NEW DEVELOPMENT PROJECTS – DETAILS 38
Page 1 Page 2-3 Page 4-5 Page 6-7 Page 8-9 Page 10-11 Page 12-13 Page 14-15 Page 16-17 Page 18-19 Page 20-21 Page 22-23 Page 24-25 Page 26-27 Page 28-29 Page 30-31 Page 32-33 Page 34-35 Page 36-37 Page 38-39 Page 40-41 Page 42Made with FlippingBook. PDF to flipbook with ease