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GRDadof3

Downtown Office Vacancy Rates

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so do you think this will mean, that demand will keep rising, sparking perhaps the building of a high rise office!! building, instead of residential only?

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I don't know the industry stats, but I think if it drops below 10% for a sustained period, then the prospects for new office space is high.

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I don't know the industry stats, but I think if it drops below 10% for a sustained period, then the prospects for new office space is high.

It won't happen for the whole of downtown, but you are correct if it happens with Class A office space. Loft conversions take care of the demand for the Class B and C, while new towers would take care of the Class A. That is why the Lyon & Ottawa Tower was proposed back in the mid 1990's, because available Class A space was below 10% vacancy.

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They mentioned the 'first new office building in 20 years'. What is this all about...

"The market is tightening," Mundell said from the Lansing company's Grand Rapids office. "Downtown is hot right now. We're seeing traditional suburban users closely considering downtown Grand Rapids again."

Very good to hear from a pro. The fact that some suburban companies are even bothering to look downtown is good. Hopefully this increased demand does not significantly alter price. It would be nice to grow downtown overall - which means being open and affordable for the little guys. After all, the little guys are the future big guys.

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Don't get your hopes up too much, at the beginning of 2004 Lansing had and overall CBD office vacancy of 16.6% and a Class A Vacancy rate of 7.5% and there isn't even a whisper of a new office building that I'm aware of. On top of that some of the office space has been converted into lofts and according to a real-estate analyst interviewed on thursday, the market is beginning to improve noticeably. Actually rather than GR's hopes being dulled, maybe my hopes for Lansing should be higher, if the 10% thing is true Lansing should be due for another new class A building anytime, and I'm sure GR's class A vacancy rate is as low or lower than Lansing's.

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They mentioned the 'first new office building in 20 years'. What is this all about...

Very good to hear from a pro. The fact that some suburban companies are even bothering to look downtown is good. Hopefully this increased demand does not significantly alter price. It would be nice to grow downtown overall - which means being open and affordable for the little guys. After all, the little guys are the future big guys.

When I read the part you're referring to back in November, I assumed he was talking about the Macatawa Building (which has been mentioned in the Business Journal BTW). I think there will always be affordable rates downtown, just maybe not in Class A space.

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When I read the part you're referring to back in November, I assumed he was talking about the Macatawa Building (which has been mentioned in the Business Journal BTW). I think there will always be affordable rates downtown, just maybe not in Class A space.

When I read it, I thought it was the Riverfront building they were talking about. As far as Meritage, they moved across the street from Knapp's Corner into GR Twp. The owner said it was to save their employees from paying city taxes. :angry:

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