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
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