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14 Colliers International


Quarterly as a percentage of retail sales                      Emerging trends in Real Estate 2018 survey


9                                                              Urban/high-street retail 33.4%                                           40.1%       26.4%
                                                                                                                                    39.7%           30.6%
8                                                              Neighborhood/community               29.7%                          49.0%            31.5%
                                                                             shopping centers       19.5%              41.6%                        46.0%
7                                                                                                                                                   69.1%
                                                                     Lifestyle/entertainment                                                        61.4%
6                                                                                          centers
5                                                              Outlet centers 12.4%

4                                                              Regional malls 5.2%                         25.7%

3                                                              Power centers 5.0%                          33.7%

2                                                              0% 20%                                             40%  60%                     80%
        1Q09  1Q10  1Q11 1Q12 1Q13 1Q14     1Q15  1Q16  1Q17                                               Buy Hold Sell

                    Adjusted  Not adjusted

more apparently in large markets. Grand Rapids, however,       saw a great deal of progress made in the village in 2017,
is entering that realm, with desirable locations leasing at    and look to see that continue in 2018. Recently, Kingma’s
rental rates that our region has never seen before. In the     Market opened a second location and Vitale’s Pizza built
popular retail corridors, we are seeing and anticipating       a new building and relocated just west up Fulton Street.
rental rates to push towards $40 per square foot (triple
net), while even tertiary locations see increased interest,    In addition to witnessing areas re-invent themselves, we
although not at the same lease rates.                          also expect to see new retail corridors start to emerge
                                                               in the coming year. One area to keep an eye on is the
This past year, we saw the long-time vacant former-Roger’s     east M-6 freeway area. As data server provider Switch
Department Store and Klingman’s Furniture building on          continues to build-out the former Steelcase Pyramid
28th Street Southwest re-imagined into the new home            building, we expect activity to increase in the surrounding
for Advantage Sales and Marketing, which moved out             area. Multiple hotels and apartments are planned nearby,
of downtown Grand Rapids. One major reason being               and as daytime population increases, retail will follow.
parking. As numerous large retail tenants move out of          Davenport University and Farmers Insurance also have
big footprints, we are interested to see how these spaces      a large presence in the area and will help drive retail
are utilized going forward. Gyms, grocery stores, and          demand as well.
call-centers are all options on the board.
                                                               The retail market is not without headwinds, however. To
A project that has garnered a lot of interest is the Bridge    be sure, we are seeing change. In 2018, we expect to
Street Market development on the corner of Bridge Street       see further advancements in e-commerce and delivery
and Stocking Avenue on the city’s northwest side. For a        automation, and retailers adjusting to new patterns in the
long time, those living in and around downtown have            way people shop.
wondered when a neighborhood urban grocery store
would be built. Rockford Construction has partnered            The acquisition of Whole Foods by Amazon is a major
with Meijer Corporation to bring a scaled-down grocery         move that will affect the way people shop in 2018, and
concept to the area, which should spur further momentum in     we expect Amazon to both continue to evolve, as well as
the corridor. The development will include additional retail,  announce the location of the much-anticipated “HQ2”.
office space, apartments and parking. The project will be
delivered in phases, with parts of the project complete        Beyond shopping habits shifts, we have also seen a
near the end of 2018 and a final product early in 2019.         number of retailers struggle with over-leveraging themselves
Also undergoing significant change is downtown Ada. We          on balance sheets. Over the past decade, we have seen
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