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
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