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With an industrial market near capacity, building new seems to be the logical next step. However,
    high new construction costs and more efficient operations are resulting in many companies
                  making do with what they have or paying a premium for additional space.

            Historically, West Michigan has not been a market where    of an expanding market. The 140-acre Jamestown Commerce Center,
developers build large amounts of speculative space. It has been       the 92-acre Site 36, and the 230-acre Walker View development were
one, however, where companies move around the market, nestle           sites we were eager to keep an eye on for industrial activity due to
into pockets that fit their needs, and expand on existing buildings    their accessibility and infrastructure. However, many tenants have
when necessary. Generally, growth is fairly conservative. But          been hesitant to be first in and developers have waited for tenants to
now that market vacancy is down near five percent, moving              sign pre-construction leases rather than building speculatively. In
around in existing inventory has become difficult. This has            2017, we look for all three sites to gain momentum.
fueled more creativity in non-listed properties as well as new
build-to-suit projects.                                                            Some hesitation has come from high construction costs and
                                                                       long lead times for completion due to building company constraints.
            At the beginning of 2016, as many industries continued     Those looking for new space are usually in need of it immediately, and
showing strength, we predicted land sales to increase in anticipation  waiting 12-18 months for a new building is often less than ideal.

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