100 Grandville Ave SW Suite 100Grand Rapids, MI 49503616. 776. 0100 www.naiwwm.com

*Also serving the Kalamazoo & Southwest Michiganareas from our Kalamazoo office*

Wisinski ofWest Michigan

Office • Industrial • Retail • Multi-Family

NAI Wisinski of West MichiganMarket ReportWest Michigan Q4 - Year End 2016

* The information contained herein has been given to us by sources we deem reliable. We have no reason to doubt its accuracy, however, we do not make any guarantees. All information should be verified before relying thereon.

* Source: NAIWisinskiofWestMI, CoStar Property®, & U.S. Bureau of Labor Statistics

GRAND RAPIDS, MI

The Market

Personalized service & collaborative teamwork.

Why NAI?

Your business is our business. Personalized service and collaborative teamwork form the core of our philosophy. We provide custom solutions focused on your business objectives, taking a fiduciary position with your asset to maximize value at each point of the process.

We will listen, take a holistic view of your business and apply our commercial knowledge to maximize potential, guide your investment and add value. When appropriate, we are eager to push the boundaries and do things differently, as our singular purpose is to achieve better outcomes for our clients. We are lo-cal and we are global. Our diversified platform spans from Grand Rapids across North and South America and the Caribbean, Europe, the Middle East and Africa, and in the Asia Pacific region. With our care-ful selection of seasoned professionals who are deeply rooted in their markets, we have developed our business to support yours over the long-term. And as you look at growth markets, so do we—with more offices globally than any other commercial real estate firm, we are actively expanding in strategic locations so we can help you stay ahead of your competition.

CompanyDone DealsQ4 2016Commercial Real Estate Services, Worldwide.

Wisinski ofWest Michigan

3910 Roger B Chaffee Blvd.43,572 SF 7.74 acres

SOLD

1090 36th Street SE 25,176 SFEtna Supply Company

LEASED

1239 Comstock Street40,930 SF 7.74 acres

SOLD

4140 East Paris Ave. SE187,558 SFVetitiv Operating Company

LEASED

168 Louis Campau3,960 SF

SOLD

171 Monrow Ave. NW2,956 SFThe Private Bank and Trust Co.

LEASED

5251 Clyde Park Ave. SW200,732 SF 2.31 acres

SOLD

1000 East Paris 3,540 SFDonald P Condit , MD

LEASED

Sattler Square Shopping Center 95,000 SF

SOLD

52 Monroe Center NW3,535 SFAli’s Bridal

LEASED

4696 Lake Michigan Ave. NW14,469 SF

SOLD

29 8th Street W. 2,745 SFCherry Republic

LEASED

Industrial

Office

Retail

West MichiganIndustrial Submarket Snapshot

Industrial Statistical Changes

CONSTRUCTION

CONSTRUCTION

ASKING RATES

ASKING RATES

VACANCY RATE

VACANCY RATE

NET ABSORPTION

NET ABSORPTION

4Q15 vs. 4Q16

3Q16 vs. 4Q16

2016 Q4 Snapshot Submarket Total RBA Vacant

Available SFVacancy

RateTotal Average

NNN Rate ($/SF/Yr)Total Net

Absorption (SF)

LakeshoreWarehouse 9,905,606 146,833 1.5% $4.60 -5,500Manufacturing 24,196,695 889,319 3.7% $2.40 -122,341Hightech Flex 1,002,287 0 0 - 7,523Total 35,104,588 1,036,152 3.0% $2.95 -120,318NortheastWarehouse 4,859,792 56,340 1.2% $4.60 15,494

Manufacturing 7,159,112 152,643 2.1% $3.72 175,262Hightech Flex 565,606 8,250 1.5% $7.25 -Total 12,584,510 217,233 1.7% $4.22 190,756NorthwestWarehouse 4,647,427 70,975 1.5% $3.36 116,040Manufacturing 12,750,264 364,415 2.9% $3.61 72,525Hightech Flex 1,208,188 0 0 $7.25 0Total 18,605,879 435,390 2.3% $3.78 188,565SoutheastWarehouse 21,915,963 414,516 1.9% $3.49 55,388Manufacturing 25,817,047 919,127 3.6% $4.15 117,968

Hightech Flex 3,038,832 178,292 5.9% $5.80 -23,430Total 50,771,842 1,511,935 3.0% $3.96 149,926SouthwestWarehouse 7,651,600 98,007 1.3% $3.14 -26,317Manufacturing 21,810,764 84,448 0.4% $3.73 97,244Hightech Flex 763,625 17,600 2.3% $6.99 1,080Total 30,225,989 200,055 0.6% $3.68 72,007

Total Overall 147,292,808 3,400,765 2.3% $3.66 480,936

Last Quarter vs. This Quarter

Last Year vs. This Year

*Disclaimer: Historical data figures are subject to change based upon the timing of when CoStar receives market information. NAIWWM uses the numbers available at the time each quarterly report is published.

-500,000

0

500,000

1,000,000

1,500,000

2011 2012 2013 2014 2015 2016

RBA Delivered Warehouse RBA Delivered Manufacturing RBA Delivered Hightech Flex

0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%

2011 2012 2013 2014 2015 2016

Vacancy Rate

Vacancy Rates- Warehouse Vacancy Rates- Manufacturing Vacancy Rates- Hightech Flex

West MichiganOffice Submarket Snapshot

Office Statistical Changes

CONSTRUCTION

CONSTRUCTION

ASKING RATES

ASKING RATES

VACANCY RATE

VACANCY RATE

NET ABSORPTION

NET ABSORPTION

4Q15 vs. 4Q16

3Q16 vs. 4Q16

2016 Q4 Snapshot Submarket Total RBA Vacant

Available SFVacancy

RateTotal AverageRate ($/SF/Yr)

Total Net Absorption (SF)

Total Under Construction SF

DowntownClass A 1,496,576 127,746 8.5% $21.31 0 0Class B & C 7,657,172 508,802 6.6% $16.41 -5,484 162,800Total 9,153,748 636,548 7.0% $17.21 -5,484 162,800NortheastClass A 373,679 6,830 1.8% $17.39 0 0Class B & C 3,166,641 187,594 5.9% $13.40 -30,478 30,000Total 3,540,320 194,424 5.5% $13.90 -30,478 30,000NorthwestClass B & C 2,475,620 176,044 7.1% $11.47 -23,117 0SoutheastClass A 1,091,208 34,422 3.2% $15.60 6,629 0Class B & C 9,707,547 914,669 9,4% $11.23 1,701 19,816Total 10,798,755 949,091 8.8% $11.67 8,330 19,816SouthwestClass B & C 2,905,642 300,688 10.3% $9.74 -30,032 35,000

Overall Total 28,874,085 2,256,795 7.8% $12.77 -80,781 247,616

*Disclaimer: Historical data figures are subject to change based upon the timing of when CoStar receives market information. NAIWWM uses the numbers available at the time each quarterly report is published.

Last Quarter vs. This Quarter

0

200,000

400,000

600,000

2011 2012 20132 014 2015 2016

RBA Delivered Class A RBA Delivered Class B&C

2

0.00%

5.00%

10.00%

15.00%

20.00%

20112 012 2013 2014 2015 2016

Vacancy Rates

Vacancy Rates Class A Vacancy Rates Class B&C

2

Last Year vs. This Year

West MichiganRetail Submarket Snapshot

CONSTRUCTION ASKING RATES

VACANCY RATENET ABSORPTION

3Q16 vs. 4Q16

4Q15 vs. 4Q16

CONSTRUCTION ASKING RATES

VACANCY RATENET ABSORPTION

*Disclaimer: Historical data figures are subject to change based upon the timing of when CoStar receives market information. NAIWWM uses the numbers available at the time each quarterly report is published.

Retail Statistical Changes Last Quarter vs. This Quarter

22-100,000

0

100,000

200,000

300,000

2011 2012 2013 2014 2015 2016

RBA Delivered Neighborhood RBA Delivered Community RBA Delivered Strip

20.00%

5.00%

10.00%

15.00%

20.00%

20112 012 2013 2014 2015 2016

Vacancy Rate Across All Submarkets

Vacancy Rates- Neighborhood Vacancy Rates- Community Vacancy Rates- Strip

2

2016 Q4 Snapshot

Submarket Total RBA VacantAvailable SF

Vacancy Rate

Total AverageNNN Rate ($/SF/Yr)

Total Net Absorption (SF)

Lakeshore

Community 1,476,132 51,553 3.5% $8.38 8,910

Neighborhood 1,476,132 51,553 3.5% $8.38 8,910Strip 1,024,876 64,350 6.3% $11.31 9,033Total 3,977,140 167,456 4.2% $9.14 26,853NortheastCommunity 445,573 112,920 25.3% $4.89 28,936Neighborhood 1,124,622 60,024 5.3% $10.78 17,995Strip 682,033 50,872 7.5% $9.89 -2,537Total 2,252,228 223,816 9.9% $8.76 44,394NorthwestCommunity 465,640 30,939 6.6% $15.95 0Neighborhood 726,480 111,097 15.3% $7.21 -45,459Strip 555,660 47,188 8.5% $11.33 -423Total 1,747,760 189,224 10.8% $12.36 -45,882SoutheastCommunity 740,015 4,800 0.6% $10.75 0Neighborhood 445,573 112,920 25.3% $10.34 28,936Strip 1,701,747 102,830 6.0% $11.54 9,601Total 2,887,335 220,550 7.6% $11.15 38,537SouthwestCommunity 1,651,066 228,027 13.8% $10.56 0Neighborhood 966,819 71,962 7.4% $8.91 7,419Strip 945,897 62,881 6.6% $11.70 -9,247Total 3,563,782 362,870 10.2% $10.41 -1,828Overall Total 14,428,265 1,163,916 8.1% $7.62 62,074

Last Year vs. This Year

Submarket Map

Office

Southwest

Northeast

Southeast

Northwest

Lakeshore

Methodology | Definitions | Submarket Map

NortheastNorthwest

SoutheastSouthwest

Downtown

Retail & Industrial

Marketing MattersWhether you require a simple property brochure or a comprehensive advertising and PR campaign, our marketing team at NAI Wisinski of West Michigan will work side by side with our brokerage, property management, and research teams to develop an innovative marketing strategy tailored for our brokers and client’s asset. Our office maintains relationships with local and regional press, providing PR services and guidance when appropriate. Our job is to make an impression, to stand out from the crowd and, most importantly, to make our company and client’s properties look outstanding.

Allison SeeleyMarketing Director

Savannah HerrmannMarketing Assistant

Bailey AivarsMarketing Assistant

100 Grandville Ave SW Suite 100Grand Rapids, MI 49503616. 776. 0100 www.naiwwm.com

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@naiwwm

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Office • Industrial • Retail • Multi-Family