1. Wisinski of
West Michigan
Office • Industrial • Retail • Multi-Family
100 Grandville Ave SW Suite 100
Grand Rapids, MI 49503
616. 776. 0100 www.naiwwm.com
*Also serving the Kalamazoo & Southwest
Michigan areas from our new Kalamazoo office*
Retail Market Report
West Michigan Q4 - Year End 2015
2. LookingAheadattheRetail
MarketinSixteen.
For Retailers, Brands and
Consumers.
* The information contained herein has been given to us by sources we deem reliable. We have
no reason to doubt its accuracy, however, we do not make any guarantees. All information
should be verified before relying thereon.
* Source: NAIWisinskiofWestMI, CoStar Property®
, U.S. Bureau of Labor Statistics
GRAND RAPIDS, MI
The Market
2015 was an EXCITING year for retail real estate in West
Michigan. The market continues to absorb vacancy and
significant new projects have come on line. The most notable and
largest project is the 75 store Tanger Outlet center in Byron Center.
This was a long awaited dream for the throngs of outlet mall
shoppers. Look for continued development around Tanger
especially some food related brands. In Holland, de-malling began
on the now named Shops at West Shore along with outlot
construction. Kalamazoo saw a major new development off
Stadium Dr at US 131 with the opening of Costco and the regions
first Field Stream scheduled to open in the first quarter of 2016.
Here are a few others who chose to locate in Grand Rapids in 2015:
Trader Joes, Fresh Market, West Elm, Wolfgang Puck, Slows BBQ,
Orvis, Jersey Mike’s Subs, Bravo, Pieology, Menchies Yogurt and
more. As we look forward to 2016 the pace for retail doesn’t show
any signs of slowing down. There is significant new
construction happening at Knapp East Beltline with several new
names to be announced soon. The long awaited arrival of
Chick-fil-A is projected to occur this year and our area’s first
Freddy’s Frozen Custard Steakburgers is under construction on
Plainfield NE. If you’re already a retailer in Grand Rapids, please
contact our NAI Retail Team to learn how we can assist you with
mapping out and securing your new or next location. If you’re
wondering if your company should open a store in West
Michigan…the time is now! Anyone on our Retail Team would be
happy to discuss the West Michigan marketplace in further detail.
Please contact us. Have a great 2016!
-Rod Alderink,
Principal | NAI Member
“Our West Michigan
economy continues to
receive accolades as one of
the fastest growing in the
country ranked in similar
company with Houston and
Denver. Our unemployment
continues to be the lowest
in the state and below the
national average. Grand
Rapids is no longer seen
as an in-fill location after
retailers have ventured
to Chicago and Detroit.
Wisconsin based Kessler
Jewlery chose Grand
Rapids for its first out-state
location.”
3. Construction Trends Across the US
0
10
20
30
40
50
60
70
80
90
1993 1996 1999 2002 2005 2008 2011 2014
$Billions
0
10
20
30
40
50
60
70
1993 1996 1999 2002 2005 2008 2011 2014
$Billions
0
20
40
60
80
100
120
1993 1996 1999 2002 2005 2008 2011 2014
$Billions
A New High and Soaring
10
20
30
40
50
60
70
80
90
1993 1996 1999 2002 2005 2008 2011 2014
$Billions
Well Below Average
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Total, All Structure Types Single Family Houses
Source: Census Housing Starts. -to-date, Oct 2015
2014 2015*
4. West Michigan
Retail Submarket Statistics
Retail Statistical Changes Year-over-Year and Quarter-over-Quarter
CONSTRUCTION
CONSTRUCTION
ASKING RATES
ASKING RATES
VACANCY RATE
VACANCY RATE
NET ABSORPTION
NET ABSORPTION
3Q15vs. 4Q15
4Q14 vs. 4Q15
2015 Q4 Retail Snapshot
Submarket Total RBA
Vacant
Available SF
Vacancy
Rate
Total Average
NNN Rate
($/SF/Yr)
Total Net
Absorption (SF)
Lakeshore
Community 1,465,132 90,031 6.1% $8.16 3,512
Neighborhood 1,465,132 90,031 6.1% $7.96 3,512
Strip 1,022,191 97,080 9.5% $9.64 -554
Total 3,952,454 277,142 7.0% $8.59 6,470
Northeast
Community 445,573 160,256 3.6% $4.89 -
Neighborhood 1,094,518 118,000 10.8% $10.57 3,681
Strip 680,347 66,508 9.8% $9.96 -2,950
Total 2,220,438 344,764 15.5% $8.47 731
Northwest
Community 863,186 32,718 3.8% $12.00 6,975
Neighborhood 1,094,518 118,000 10.8% $10.57 3,681
Strip 531,191 64,690 12.2% $9.94 15,420
Total 2,488,895 215,408 8.7% $10.84 26,076
Southeast
Community 744,146 15,815 2.1% $20.81 860
Neighborhood 2,468,589 436,857 17.7% $10.26 8,800
Strip 1,717,517 147,520 8.6% $9.98 13,503
Total 4,930,252 600,192 12.2% $13.69 23,163
Southwest
Community 1,651,066 230,596 14.0% $10.60 2,800
Neighborhood 966,819 136,904 14.2% $7.96 2,194
Strip 948,325 68,189 7.2% $9.53 3,150
Total 3,566,210 435,689 12.2% $9.36 8,144
Overall Total 17,158,249 1,873,195 10.9% $10.19 64,584
6. Methodology | Definitions | Submarket Map
Community Center
A shopping center development that has a total
square footage between 10,000 - 350,000 SF.
Generally will have 2-3 large anchored tenants,
but not department store anchors. Community
Center typically offers a wider range of apparel
and other soft goofs than the Neighborhood
Center. Among the more common anchors are
supermarkets and super drugstores.
Strip Center
A strip center is an attached row of stores or
service outlets managed as a coherent retail
entity, with on-site parking usually located in
front of the stores. Open canopies may connect
the storefronts, but a strip center does not have
enclosed walkways linking the stores.
Neighborhood Center
Provides for the sale of convenience goods (food,
drugs, etc) and personal services (laundry, dry
cleaning, etc.)
Absorption (Net)
The change in occupied space in a given
time period.
Available Square Footage
Net rentable area considered available for lease;
excludes sublease space.
Average Asking Rental Rate
Rental rate as quoted from each building’s
owner/management company. For retail, a triple
net rate is requested.
RBA
The total square footage of a building that can
be occupied by, or assigned to a tenant for
the purpose of determining a tenant’s rental
obligation.
Deliveries
Buildings that have their certificate of
occupancy and are allowed to be moved into by
the tenant/purchaser.
Vacancy Rate
All physically unoccupied lease space, either
direct or sublease.
SF/PSF
Square foot/per square foot, used as a unit of
measurement.
Southwest
Northeast
Southeast
Northwest
Lakeshore
Methodology:The retail market report includes community, neighborhood, and strip
retail buildings within each of the defined submarkets. For definition of product type,
please see below.
7. Through our affiliation with NAI Global, we can also assist you with your needs throughout the US globally
right here from West Michigan.
Doug Taatjes, CCIM, SIOR
616 292 1828
dougt@naiwwm.com
Hillary Taatjes-Woznick
616 242 1113
hillaryt@naiwwm.com
Tim Platt
616 575 7031
timp@naiwwm.com
Gary Steere
616 575 7008
garys@naiwwm.com
Russ Bono
616 242 1115
russb@naiwwm.com
Jeremy Veenstra
616 242 1105
jeremyv@naiwwm.com
Marc Tourangeau
269 207 3072
markt@naiwwm.com
Stanley Wisinski III, SIOR, CCIM
616 575 7015
sjw@naiwwm.com
Bill Tyson
616 242 1103
billt@naiwwm.com
Meet Our Team
Retail Specialists
Rod Alderink
616 242 1104
roda@naiwwm.com
Dane Davis
269 459 0434
daned@naiwwm.com
Dick Jasinski
616 575 7003
dickj@naiwwm.com
Scott Nurski
616 242 1106
scottn@naiwwm.com
In the spring of 2011, two successful and reputable companies, The Wisinski Group and NAI West Michigan
merged. The merger represents collaboration, rich traditions, innovative technologies, unique cultures and
diversity of skills and specialties which ultimately benefit our clients. We’re going back to our fundamentals,
strengthening our core, and becoming stronger in the services we provide our clients. Our focus is simple,
building client relationships for life by offering market appropriate advice and then executing. Our success is
a direct result of its unwavering commitment to providing the best possible service to each and every client.
Our Brokers, with their 562 plus years of combined experience (20.1 years average), possess the knowledge
and expertise to manage the most complex transactions in industrial, office, retail, and multifamily specialities
throughout West Michigan.
NAI Wisinski of West Michigan
At a Glance
Achieve More.
Local Knowledge. Global Reach.
8. 100 Grandville Ave SW Suite 100
Grand Rapids, MI 49503
616. 776. 0100 www.naiwwm.com
facebook.com/naiwwm
@naiwwm
nai-wisinski-of-west-michigan
Wisinski of
West Michigan
Office • Industrial • Retail • Multi-Family
