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
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