WYOMING — Existing capacity in West Michigan’s industrial real estate continues to dwindle.
The Grand Rapids office of commercial brokerage Colliers International Group Inc. announced that the firm has signed 22 leases in the last 15 months at the newly renovated Grand Rapids Corporate Center on Roger B. Chaffee Memorial Drive in Wyoming.
The tenants at the facility — which has gone from 35 percent occupancy to 95 percent occupancy in that time period — are largely industrial in nature, according to Trent Wieringa, a senior associate at Colliers International.
The leases consist of a combination of manufacturing, warehousing and service-oriented businesses, Wieringa wrote in an email to MiBiz. The majority of the leases are in the range of 2,000 to 6,000 square feet, he said.
The largest lease went to Piedmont Plastics Inc., a Charlotte, N.C.-based distributor of plastic sheet, rod, tube and film products.
The company signed a long-term lease for 25,000 square feet of space, according to the statement.
Wieringa declined to provide the total value of the 22 leases, noting that “the landlord has secured a significant amount of value.”
The 159,000-square-foot Corporate Center was acquired in May 2015 by J.B. Davies, a principal in Bloomfield Hills-based real estate firm JBD Acquisition Corp., as MiBiz reported at the time.
Since then, Davies invested in renovations including landscaping, signage, new lighting and parking lot improvements, according to the statement.
“It’s really exciting to see how this facility has evolved over the last year,” Davies stated. “It was our goal to transform this building into an attractive facility for growing and established companies with strong business plans, and it’s rewarding to see the Grand Rapids Corporate Center being used by businesses across a variety of industries.”
Davies paid $2 million for the facility last year, according to property records.
Remaining suites at the Corporate Center range from 2,000 to 17,000 square feet, plus a 17,000-square-foot warehouse.
The absorption of space at the Grand Rapids Corporate Center serves as a microcosm of the larger industrial market in the region, where vacancy stands at about 6 percent, according to the Second Quarter 2016 market report from Colliers International.
Additionally, commercial real estate sources recently told MiBiz that new construction is quickly becoming a good option for expanding manufacturers. Sources also noted that vacant land sales have been picking up in the region.
“Over the last year, we’ve seen an increased demand for industrial and office space across the region,” stated John Kuiper, executive vice president of Colliers West Michigan.