NAI Wisinski of West Michigan Releases Q4 2025 Market Reports
Q4 2025 Market Report cover Office, Industrial and Retail across West Michigan
WEST MICHIGAN OFFICE MARKET
West Michigan’s office market closed out 2025 in a more balanced position following several years of elevated activity. Leasing activity increased throughout the year as more businesses brought employees back to the office, supporting steady demand across both downtown and suburban submarkets. Overall vacancy finished Q4 at 7.3%, with average asking rents at $17.99/SF (modified gross).
Downtown Grand Rapids continues to carry the highest vacancy and rental rates, driven largely by Class A inventory, while suburban submarkets performed more favorably with lower vacancy and stable demand. Owner-occupant interest remained strong despite higher interest rates, though sales activity was limited by constrained inventory. Notable transactions and office-to-residential conversions helped remove supply and contributed to a healthier outlook heading into 2026.
Mary Anne Wisinski-Rosely shares her full outlook of the office market in West Michigan. Click the link below to read more!
WEST MICHIGAN INDUSTRIAL MARKET
The industrial market showed signs of moderation in Q4, transitioning from historically tight conditions toward a more balanced environment. Industrial vacancy increased modestly to 3.2%, driven by new inventory deliveries and larger blocks of space returning to the market. Leasing activity slowed slightly, with many users focused on right-sizing rather than aggressive expansion.
Average asking rents ended the year at $6.29/SF (NNN), down modestly quarter-over-quarter but still historically strong. Smaller and flex industrial spaces continued to outperform, frequently achieving rental rates above $10.00/SF, while larger blocks of space saw increased price sensitivity and concessions. Overall, pricing, vacancy, and absorption trends point to a market that is rebalancing rather than weakening, with fundamentals supporting stable performance heading into 2026.
Kurt Kunst provides insight on industrial market shifts that are shaping conditions in West Michigan. Click the link below to read more!
WEST MICHIGAN RETAIL MARKET
West Michigan’s retail market remained active in 2025, balancing steady momentum with real-time adjustment. Restaurants and service-oriented uses continued to drive leasing activity, particularly in well-trafficked corridors, while needs-based retail such as banks, auto care, and convenience users remained resilient. Overall retail vacancy closed Q4 at 6.0%, with average asking rents at $13.30/SF (NNN).
Investment activity persisted as owners and developers repositioned assets and leaned into experience-driven and mixed-use concepts. Major developments expected to deliver in 2026, including the Acrisure Amphitheater and riverfront mixed-use projects, are anticipated to increase foot traffic and support future retail demand in key nodes across the region.
Rod Alderink shares his perspective on what is driving the retail market in West Michigan. Click the link below to read more!
INSIGHTS FROM ACROSS THE MARKET
Across all three sectors, Q4 reflected a market in transition rather than retreat. Office performance stabilized, industrial shifted toward balance without losing momentum, and retail continued to evolve around convenience, experience, and redevelopment.
Our Q4 2025 Market Reports provide a closer look at these trends and what they mean for owners, users, and investors 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.