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
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