As the office market continues to evolve, conversations are proving to be the most valuable source of insight. A recent discussion with our brokerage team revealed several consistent themes that reflect today’s market.
Office Market Overview
Momentum is building across the office sector, with increased tours and renewed interest in both listed and unlisted opportunities.
“I think activity is strengthening.” Doug Taatjes, CCIM
“Spaces that have been on the market for a long time are moving.” Mary Anne Wisinski Rosely, SIOR, CCIM
Overall, spaces that had been sitting for extended periods are now filling up. This includes both off-market and on-market deals, signaling a shift from hesitation to action.
Tenants are still rethinking their space needs. Even with more people back in the office, flexibility and hybrid models remain a strong influence.
“The overall trends [show] that most people are rethinking their office space and layouts from the amount of space they need, compared to what they had before. It’s surprising because everyone is coming back to work, but it seems like there’s still a strong emphasis on hybrid.” Doug Taatjes, SIOR, CCIM
This shift is not happening all at once. It is being shaped by lease expirations, which are creating windows for tenants to rethink their space.
“One thing I thought of is COVID hit in 2020, if you had a 5 or 6-year lease, in that 5-year lease, you didn’t get to react, but now you do. Now there is a bunch of people who are thinking about downsizing.” Hillary Taatjes Woznick
Many tenants are just now reaching the end of those lease cycles, giving them their first real opportunity to adjust space size, layout, and long-term strategy.
Rising construction costs are making build-outs more difficult for both landlords and tenants to justify.
“Someone has to pay more; either the landlord or the tenant has to pay more. If the landlords are not willing and the tenants are not willing, you better find a space that’s ready to move into.” Mary Anne Wisinski-Rosely, SIOR, CCIM
As a result, demand is clearly favoring spaces that are already built out or require minimal improvements.
Spaces that are not built out, or that are wide-open shells, are seeing little to no activity. Once potential tenants understand a space is not move-in ready, interest drops off quickly. The time and cost required to complete those spaces is simply too high for many users in today’s environment.
This dynamic is reshaping leasing across the market, with move-in-ready or near-move-in-ready spaces consistently outperforming.
There are inconsistencies in how lease rates are aligning across submarkets. Some areas appear underpriced relative to actual deal activity, particularly in corridors where stronger rates are achievable.
At the same time, location continues to play a critical role in leasing success. Properties closer to core amenities and established activity centers tend to perform better than those on the edge of downtown or in less active pockets.
The office market is gaining traction, but it is evolving.
Activity is returning and decisions are being made, but expectations have shifted. Users are more cost-conscious, more selective, and more focused on speed to occupancy than at any point in recent years.
For owners and investors, the takeaway is straightforward. Positioning matters more than ever. Spaces that align with today’s tenant priorities are moving. Those who do not are sitting.
At NAI Wisinski of West Michigan, we bring together deep local market knowledge across West and Southwest Michigan with the strength of the global NAI platform. From Grand Rapids to Kalamazoo and beyond, we understand how decisions play out at the property level and at the business level.
We know West Michigan because it’s our home.
Our team brings generations of experience rooted in West Michigan. With 53 team members and respected industry designations including 8 SIORs, 6 CCIMs, and 4 CPMs, we offer informed guidance shaped by decades of work in this market.
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