Grand Rapids Industrial & Logistics MarketView H2 2016
•Demand remained solid in H2 2016 marking the 7th consecutive period of positive net absorption.
•Low inventory and increased occupancy costs associated with new construction have resulted in rising asking rental rates.
•Lack of available inventory of existing space and continued steady demand has led to an increase in land sales for development.
•Landlord’s negotiating power continues to increase resulting in less incentives and longer lease term requirements for tenants.
•Area 52 completes its 127,500 sq. ft. expansion, delivering a total of 327,500 sq. ft. of new construction to the market in 2016.
•Nearly 652,633 sq. ft. of predominantly tenant build-to-suit industrial space is scheduled to be delivered to the market in H1 2017.