Page 18 - 2019 Colliers Forecast Book
P. 18

18   Colliers International | West Michigan

                                                                                                           Studio Park

          This was sensed when Hinman Company’s development  A lack of new development will continue to keep pricing in the
          plans for 10 Ionia Avenue NW, were scaled back from a  landlord’s favor. While there are some development deals that
          42-story hotel and apartment complex to a 13-story building  will be completed, current construction costs are prohibitive to
          featuring fi rst-fl oor retail and a 12-story Marriot Residence Inn.  consummate new deals, which may keep rents steady or even
          Other developments include Embassy Suites by Hilton at 710  improve them. Demand will continue to be steady on the rental
          Monroe Avenue NW, Staybridge Suites by Holiday Inn at  side and there is not a massive pipeline to offset the current
          942 Front Avenue NW, a 130-room AC Hotels by Marriott  supply and demand curve. New inventory that does come
          at 50 Monroe Avenue NW, a 160-room Hyatt Place Hotel at  to the market this year will not hinder demand, which should
          150 Ottawa Avenue, and Studio Park’s 155-room Canopy by  continue to bode well for landlords throughout the year.
          Hilton. There has also been a proposed 24-story hotel tower
          development between the Windquest Building at 201 Monroe
          Avenue NW and DeVos Performance Hall next door at 303
          Monroe Avenue NW, which would bring an additional 400
          rooms downtown.

          West Michigan Interest Rates                          Average Rental Rates Per Unit
          Source: Yardi Matrix | Property Loans                 Source: Yardi Matrix | Rental Market Trends
            7%                                                    $960

            6%                                                    $940

            5%                                                    $920
           Interest Rates  4%                                    Average Rental Rate Per Unit  $900  January 2018

            2%                                                    $860
            1%                                                    $840           January 2017

            0%                                                    $820
               2010    2011   2012    2013   2014   2015    2016   2017   2018  January 2016
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