The office market can seem like a sluggish one when analysts compare it to the booming multifamily and industrial commercial sectors. But there are plenty of metropolitan areas across the Midwest in which the office sector is thriving.
As an example? Look at the Grand Rapids and Kalamazoo areas in Michigan.
NAI Wisinski of West Michigan recently released its West Michigan office report for the second quarter. And the company found plenty of good news to report.
First, there is demand. Strong leasing and sales activity in the West Michigan office market has caused the vacancy rate in this sector to drop from 6.4 percent in the first quarter of the year to 5.5 percent in the second. The largest drop in vacancy rates too place in the downtown Grand Rapids submarket, which saw this rate fall from 7 percent in the first quarter of the year to 4.9 percent in the second.
NAI Wisinski reported that building owners are investing dollars into their properties in an effort to capture the best tenants. This is good news for the region. NAI Wisinski points to the improvements being made at 1000 East Paris, located in Grand Rapids’ East Paris medical corridor.
The owners of this 110,000-square-foot medical office building began making improvements late in the second quarter of this year, improvements that are expected to be completed by the end of the year. Construction crews will upgrade common areas, remodel the building’s lobby areas, upgrade its restrooms, add new wall and floor coverings and improve the space’s interior signage.
NAI Wisinski said that this building is far from alone. Improvements to both suburban and downtown office buildings have become more common. The company predicts that this trend will continue as long as the office market throughout West Michigan remains hot.
The former Klingman’s furniture building at 1001 28th St. is also undergoing renovations, work that will cost from $3 million to $5 million. One future tenant for this space is Advantage Sales & Marketing, which plans to move an estimated 400 jobs into the new office. This company’s renovations are expected to be done by January of 2018.
West Michigan Eyecare Associates opened a new office during the quarter at 2112 E. Paris Ave. The new office is 11,500 square feet.