Page 9 - 2019 Colliers Forecast Book

Colliers International | West Michigan 9

View from 35 Oakes Street SW

GRAND RAPIDS OFFICE

As the national economy has continued a slow but steady 2.5 percent. As we move into 2019, we expect job growth
recovery over the last eight years, West Michigan’s offi ce to slow slightly, however, it is expected that growth will still be
market has steadily grown as well. Each quarter has seen positive. Although we are nearing full employment, the labor
positive net space absorption while vacancy has decreased by participation rate, which is a calculation of those 16 years or
more than 10 percent during that time. The downtown offi ce older who are employed or actively seeking employment, is
market continues to see both development and redevelopment expected to increase. Michigan has been below the national
with the city’s core expanding in all directions. The suburban average since 2003.
medical offi ce market continues to thrive as well. Heading into
2019, it is expected that the market will continue to stabilize, West Michigan continues its battle for qualifi ed workers, which
face some economic uncertainty, but largely continue its is causing many companies to re-examine their offi ce space.
positive momentum. As West Michigan builds its reputation A theme we talked about in last year’s forecast, and expect
nationwide, we expect national companies to grow their to continue to manifest itself in 2019, is that of fl exibility.
presence in the area, while regional companies also make This means fl exibility of working from the offi ce or from home,
decisions to position themselves for the future. or even from a coworking space. It also means fl exibility of
the building itself. Many buildings now offer services such as
Despite a slow start to the year, Gross Domestic Product (GDP) exercise rooms, small conference rooms, cafés, dry-cleaning,
growth for the United States throughout all of 2018 is expected or pet-friendly environments. Amenities keep people in the
to reach more than 3 percent, which would be the highest rate building, allowing them to complete tasks like exercise and
since 2004. Meanwhile, the economy continues to create new eating, or even dry-cleaning or pet services, without having to
jobs at a healthy rate — averaging just under 200,000 nonfarm leave the premises. As offi ce spaces evolve, the importance of
payroll jobs per month over the past year. Grand Rapids has creating environments that cater to a multi-tasking generation
benefi tted from this more than most metropolitan areas in the are growing in importance.
state and now has an unemployment rate of approximately