Understanding CRE Terminology & Grand Rapids Submarket Map
NAI Wisinski of West Michigan is headquartered in Grand Rapids, MI, in the Downtown Submarket.
We know the intricacies of the commercial real estate (CRE) world can be overwhelming. As experts in the industry, we believe it’s important to give our clients the resources to best understand the basic lease and sale terminology and how that relates to each CRE sector (retail, office, industrial) and the local submarkets. Read on to get a taste of our everyday language!
KEY CRE TERMS
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 office space, a full-service rate was requested; for retail, a triple net rate was requested; for industrial, a NNN basis.
BUILDING CLASS
Class A product is office space of steel and concrete construction, built after 1980, quality tenants, excellent amenities, and premium rates. Class B product is office space built after 1980, fair to good finishes, and a wide range of tenants.
COMMUNITY CENTER
Typically offers a wider range of apparel and other soft goods than neighborhood centers. Among the most common anchors are supermarkets, super drugstores, and discount department stores.
DELIVERIES
Buildings that have their certificate of occupancy and are allowed to be moved into by the tenant/purchaser.
HIGH TECH FLEX
This type of space is only found in flex buildings. It can be used as office, medical, industrial, warehouse, distribution, quasi-retail, or research and development space.
MANUFACTURING
A sub-type of industrial building primarily used for manufacturing products; may also include warehousing or distribution areas.
NEIGHBORHOOD CENTER
Provides for the sales of convenience goods (food, drugs, etc.) for day-to-day living needs of the neighborhood, with a supermarket being the principal tenant.
RBA (Rentable Buildable Area)
Mainly used for office and industrial.
SF/PSF (Square Foot / Per Square Foot)
Used as a unit of measurement.
STRIP CENTER
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.
UNDER CONSTRUCTION
Buildings in a state of construction, up until they receive their certificate of occupancy.
VACANCY RATE
All physically unoccupied lease space, either direct or sublease.
WAREHOUSE
A secondary type of industrial building generally used for storage and/or distribution.
THE GRAND RAPIDS SUBMARKET MAP
Our local expertise extends across the distinct submarkets that make up the greater Grand Rapids area. Each submarket has its own character, demand drivers, and opportunities across retail, office, and industrial sectors.
With the Grand Rapids Submarket Map, clients can better understand how location factors influence vacancy rates, asking rents, absorption, and other metrics. Which are all key to guiding investment and leasing decisions.
If you’d like a closer look at the Grand Rapids Submarket Map or a personalized discussion about how it applies to your business or portfolio, reach out to our team today. We’re here to help you navigate the local CRE landscape with confidence.
NAI WISINSKI OF WEST MICHIGAN
NAI Wisinski of West Michigan is the region’s largest independently owned commercial real estate firm. Headquartered in Grand Rapids and maintaining a second location in Kalamazoo, MI, NAIWWM provides all facets of commercial real estate services, including brokerage and property management, throughout the entire West Michigan region and beyond.
Give us a call today at 616.776.0100 to learn how our expertise can begin working for you.