Limited inventory will continue to be a common theme throughout 2017 


»» The West Michigan investment market continues to be constrained by a lack of available for-sale supply. Much like user-driven transactions, opportunities have grown thin.

»» Vacancy rates are at historic lows, creating stabilized assets that allow owners to capture nearly maximum operating incomes. This has in-turn raised overall values and made underwriting investment deals a bit more difficult.

»» Along with dropping capitalization rates, interest rates have started to tick up, squeezing margins for investors. Although capital is relatively available compared to years past, that doesn’t mean it is cheap.

»» Strong local market fundamentals have drummed up considerable interest and demand from investors both locally and out-of-market, however these savvy investors are patient and diligent about identifying the right deal.

»» Economic fundamentals point to continued slow and steady growth, as the expansion phase of the business cycle moves into its 94th month.

Click here to read the full Q1 2017 West Michigan Investment Market Report.