GRAND RAPIDS, MICH. - A high demand for space has been one of the main trends for real estate in 2017, and industry experts expect the same going into 2018, with the main concern being product shortage facilitated by the heightened costs of construction.
Stuart Kingma, broker with NAI Wisinski West Michigan, said significant market activity in the industrial sector has been the trend for at least the past three years.
“Dating back three, four or five years, it’s really been pretty active,” Kingma said. “The biggest challenge I’ve seen in 2017 is product availability.”
Kurt Kunst, partner and broker at NAI Wisinski, said realtors still are recovering from the 2009 crash. After the crash, clients stopped putting speculative developments out on the market.
“Just this year, there’s a lot more build-to-suit, a lot more (speculative development) coming online,” he said.
Kingma said one of his concerns for the coming year is what the activity level is going to be. Because clients are just now beginning more speculative builds, new inventory won’t immediately appear.
“You don’t just put a building up overnight, it takes planning, time and certainly a lot of effort,” he said. “I think I’m saying the same thing about 2018 going forward. It’s going to be an inventory concern, but we do see a few more developers walking out on the speculative type of approach to the market.”
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© 2017 Grand Rapids Business Journal