Page 8 - 2019 Colliers Forecast Book

8 Colliers International | West Michigan

West Michigan Industrial
Transactions and Listing Rate Trends
Source: Colliers International Research Department

45 6
40 Weighted Average Weighted Average
Listing Rateng R Linear Regression 5
Listing Rate
company’s needs but also creating space for future expansion. 35
This allows for short-term landlord fl exibility while reaping the 30 4
benefi ts of construction economies of scale. 25 3

Industrial land sales should continue to be active, and investor Numer of Transactions 20 Price per Square Foot (NNN)
sentiment in the product type will again be very positive. 15 2
As we reach the peak of the market, some current owners will 10 1Q19 - PROJECTED 2Q19 - PROJECTED
look to exit and take their gains, while out-of-market investors 5 1
who have exhausted all of their opportunities in major markets 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
will continue to look towards secondary markets like West 0 0
Michigan and view it as one of the last remaining places to get Number of Lease Transactions
yield. The problem facing sellers is where to roll the proceeds Current Industrial Vacancy Rate
into, as options are scarce and with stock market volatility
and capital gains tax implications, exiting the commercial real Source: Colliers International Research Department
estate investment market can be unappealing.

As we look ahead, the short-term forecast for industrial real GENERAL INDUSTRIAL
estate is promising, thanks to a strong economy and e-commerce
trends. Further out, trade disputes and growing labor shortages
represent rising headwinds. The U.S. and local economies FLEX
continue to fi re on most cylinders, despite these headwinds.
Economic growth for the year should again be strong, though WAREHOUSE/STORAGE
the recent pace will not be sustained much longer. Job growth
remains very strong but continues to ease as we are nearing
full employment and wage growth is reaching its targets, and MANUFACTURING
the Federal Reserve Board will continue its pace of moderate
hikes through next year, in its quest for a soft landing in 2020 TOTAL
or 2021. 0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%