GRAND RAPIDS – Amid a tight industrial real estate market, new construction continues to take hold.
Grand Rapids-based construction and development firm First Companies Inc. announced over the weekend that it finished work on two industrial buildings located near Gerald R. Ford International Airport in southern Kent County.
The two buildings — 82,000 square feet and 124,000 square feet — are for ETO Magnetic Corp. and Gourmet International Inc., respectively.
“First Companies began developing land near the airport in the early 1970s and continues to support industrial and manufacturing businesses looking to locate or expand in this area,” Craig Baker, president of First Companies, said in a statement.
Total project costs for the two buildings were not shared.
Limited inventory, particularly for industrial buildings, has been one of the major challenges for the region’s commercial real estate market and speculative building has been slow to come out of the ground due to relatively high construction costs, commercial real estate sources tell MiBiz.
Commercial brokerages have pegged the region’s industrial vacancy rate at as low as five percent in recent months, according to quarterly reports released by firms such as NAI Wisinski of West Michigan and Colliers International Inc.
“As our local operations continued to grow, we needed to evaluate our space requirements and decided to build,” Michael Ignaczak, president of ETO Magnetic, said in a statement. “This location was ideal as it is right down the street from the previous office and will allow us to double our footprint as needed in the future.”