MONDAY, JANUARY 25, 2010

Grand Rapids office market remained sluggish in fourth quarter of 2009

by Midwest Real Estate News Reports
Grand Rapids

With the office market across the country struggling, it's little surprise that this sector is sluggish in the Grand Rapids, Mich., area, too.

The latest office market data from the Grand Rapids office of CB Richard Ellis shows that vacancy rates in the fourth quarter of 2009 stood at 21.6 percent in the Grand Rapids area.

The report also provided additional interesting news:

-- Kent County, Mich., is saturated with available office space.

-- Shadow space is also on the rise.

-- Businesses continue to do more in less space; many aggressively renegotiating lease terms to reduce occupancy costs.

-- Some tenants are choosing to upgrade space to benefit from depressed market rates.

-- The value of a stable tenant is at premium, and tenants are driving tougher deals.

-- Landlords prefer to renegotiate a lease with a struggling tenant rather than have a vacancy.

-- Financing for tenant improvements is very difficult to obtain, giving those landlords with access to capital a distinct advantage.

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