NAI Wisinski of West Michigan Releases Q3 2025 Market Reports
NAI Wisinski of West Michigan tracks trends across the Office, Industrial, and Retail sectors in West Michigan.
WEST MICHIGAN OFFICE MARKET
West Michigan’s office market showed modest signs of stabilization in the third quarter. Overall vacancy declined from 7.9% in Q2 to 7.4%, while net absorption rebounded to 93,138 square feet following negative totals earlier this year. Average asking rents adjusted slightly to $18.19/SF, reflecting landlord flexibility and shifting tenant demand.
Downtown Grand Rapids Class A properties held steady with vacancy at 14.2%, while Class B and C properties across the northeast and northwest submarkets performed better, keeping vacancy below 9%. Southeast Class A space remains challenged, with vacancy above 15%. The Lakeshore submarket stayed quiet, though its affordability continues to attract cost-conscious users.
WEST MICHIGAN INDUSTRIAL MARKET
Industrial performance was mixed in Q3, with notable variation between submarkets. The southwest and southeast posted steep losses, led by (240,582) square feet of negative absorption in manufacturing. By contrast, the northwest submarket recorded the strongest gains, driven by warehouse leasing and steady user demand. Warehouse vacancy remains lowest across the region at under 3%, while manufacturing continues to show higher vacancy levels.
Key transactions included Van Eerden Foodservice Co.’s $2.95 million purchase of the 50,451 SF El Matador plant through a sale-leaseback, keeping operations in place while expanding its footprint. Weiss Technik North America announced a $25.6 million, 125,000 SF consolidation in Kentwood, bringing 36 new jobs. Other activity included large leases and sales across Sparta, Holland, Ravenna, Grand Rapids, and Walker.
WEST MICHIGAN RETAIL MARKET
Retail remained active in Q3, highlighted by community-focused projects and redevelopment activity. The southwest submarket posted strong absorption with more than 17,000 square feet of activity, while the northwest and southeast also recorded gains. The northeast softened slightly, with vacancy rising from 11.9% to 12.3%.
Notable deals underscored ongoing investment. The historic Ledyard Building is being converted into 36 apartments with $11.4 million in total investment. The Hispanic Center of Western Michigan expanded its El Centro Community Hub budget to $8 million, while Habitat for Humanity of Kent County purchased a $2.3 million facility for consolidation. On the retail side, projects included a $1.95 million, seven-acre retail pad on East Beltline Avenue, a new Bank of America branch, and multiple restaurant proposals in Kentwood. Cultural anchors also grew, with LaFontsee Galleries reopening a lakeshore location in Douglas.
INSIGHTS FROM ACROSS THE MARKET
Across all three sectors, the third quarter reflected a balancing act between supply, demand, and adaptive reuse. Office performance steadied after earlier declines, industrial showed clear divergence between warehouse strength and manufacturing challenges, and retail benefited from community-driven projects and redevelopment momentum.
Our Q3 2025 reports provide a closer look at these trends, helping decision-makers understand opportunities and challenges across West Michigan.
Have questions about what these numbers mean for you? Give us a call at 616.776.0100 or send us a message!