Office V Michigan

Grand Rapids office market stays strong in third quarter

Grand Rapids office market stays strong in third quarter,ph01

How popular has Grand Rapids, Michigan, become? Earlier this year, Reuters named the city one of the country’s top-20 “superstar metro areas” based on the number of new jobs created here from 2010 to 2017. Given the economic strength of Grand Rapids, it’s not surprising that the city is seeing plenty of commercial real estate activity, too.

For proof, just look at the third quarter office report recently released by Colliers International.

Colliers reported that companies continued to either move into the Western Michigan area during the quarter or expand their headquarters spaces here. At the same time, leasing activity increased, causing office vacancy rates to fall.

According to Colliers, the vacancy rate for office space in downtown Grand Rapids fell to 9.59 percent. That rate stood at 7.45 percent for suburban office space. Rental rates in the Western Michigan office market hit $17.76 a square foot during the third quarter.

New developments are plentiful in the Western Michigan market. Colliers said that West Michigan Community Bank is adding its seventh branch location in the region, this one at 4797 Cascade Road SE in the Cascade submarket of Grand Rapids.

Grand River Bank is building a second location at the northeast corner of Fulton Street and Crahen Avenue NE, while First Community Bank is adding its second Grand Rapids location at the northwest corner of Cascade Road and Parchment Drive SE.

Two organizations announced new headquarter locations in the third quarter. Caledonia-based Acrisure will move its headquarters to 105,000 square feet at Studio Park in Grand Rapids in 2021, with plans to create 400 jobs during five years. Kids’ Food Basket, a non-profit fighting childhood hunger, moved into its new headquarters in September. The two-story, 27,000-square-foot LEED-certified building on Leonard Street will allow Kids’ Food Basket to serve more children.

In the engineering industry, Hubbell, Roth and Clark relocated from a 3,500-square-foot office to 7,000 square feet at 1925 Breton Road SE. Flint-based Rowe Professional Services opened an office at 4345 44th St. SE in Kentwood, Michigan.

The medical office sector continues to grow here, too. Priority Health purchased two properties near its headquarters for $6 million. SpendMend, a cost-recovery firm for healthcare organizations, relocated to a 31,000-square-foot building in Cascade Office Park after outgrowing its 6,315-square-foot office. And two pediatric dentists partnered to open Pediatric Dental Specialists of West Michigan, which will offer oral health services for children at 2155 E. Paris Avenue SE.