Abstract
The Grand Rapids industrial market started slow and steady in the first quarter of 2008 but made up for lost time during the remainder of the year. The vacancy rate decreased from 9.4 percent during the first quarter of 2008 to 7.5 percent at year-end. The consolidation, relocation, and expansion of three companies in the Grand Rapids area, which absorbed nearly 2.5 million square feet, significantly impacted the overall vacancy rate during 2008. One of the companies consolidated their operations from multiple West Michigan locations, while the second company relocated operations from three locations outside of the market and the state indicating that Grand Rapids continues to be a viable destination for out of state industrial users to locate. The third, a locally based company, has been taking large blocks of space off the market for the last few years, and continued this trend in the fourth quarter of 2008. Although we expect continued interest from out of market companies looking at Grand Rapids, the amount of space taken off the market in 2009 will almost certainly be much less than it was in 2008.