The retail market is best understood through conversations coming straight from the field. Our brokerage team shared several consistent themes that provide a snapshot of today’s market performance.
Retail Market Overview
The retail sector experienced a sluggish start to the year, particularly from January to mid-February. However, momentum has clearly begun to build in recent weeks.
“Sluggish start, but things are clearly ramping up, a lot more activity in the last month, a lot more inquiries from a leasing standpoint. People are starting to list shopping centers for sale, a lot of things are stirring.” Bob Lotzar
Leasing activity has picked up significantly, with a noticeable increase in inquiries and deal discussions. At the same time, more property owners are bringing assets to market, including shopping centers and investment properties.
“It has picked up especially in the B and C retail centers. We are filling spaces that have sat there for quite a while. That level of activity has really gone up, especially in the last 30 to 60 days.” Rod Alderink
One of the more notable trends is the increased absorption of space in B and C retail centers. Spaces that had remained vacant for extended periods are now being filled, signaling renewed demand in segments that had previously lagged.
This shift suggests that tenants are becoming more flexible in location and quality, prioritizing availability and cost over premium positioning in some cases.
“A newer product is coming to market. Larger properties with out-of-market brokers that have thrown up some investment deals. AutoZone’s and Firestone’s single-tenant investments are coming to market.” Paul Oosterbaan
“From an activity standpoint, it is sluggish in retail in January to mid-February. As soon as the retail guys from the national guys get their budgets for the year and their instructions for how many stores they have to open, then all of a sudden in February and March everyone starts to look for locations.” Jodi K. Milks, CCIM
This increase in inventory is creating more opportunities for investors while signaling growing confidence in the retail sector’s stability.
The restaurant sector continues to be one of the most active drivers in retail leasing.
A wide range of food and beverage users are actively expanding, including brands like Auntie Anne’s, Smoothie King, Raising Cane’s, Dunkin’, Dave’s Hot Chicken, and Pita Way.
Food users are driving a significant portion of current demand, with many concepts actively seeking new locations across the market.
When evaluating vacancy rates, it is important to look beyond percentages and consider total square footage.
A market may appear to have a higher vacancy rate on paper, but if much of that vacancy is concentrated in a few large spaces, the reality for smaller tenants can be very different. Understanding the composition of available space provides a more accurate picture of market conditions.
At NAI Wisinski of West Michigan, we combine deep local market expertise with the strength of a global platform. From Grand Rapids to Southwest Michigan and beyond, we understand how retail trends translate into real-world opportunities at both the property and 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.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.