West Michigan Commercial Rental Market: High Rents, Low Inventory
When deciding how to house their business, some business owners opt to go the commercial property rental route. Now, every commercial property option for a company, including renting, can have its challenges. Sometimes, the property market in an area raises some additional potential difficulties for business owners looking to lease space for their business. Data from a recent set of reports that looked at this year’s second quarter points to a couple different aspects of the current West Michigan commercial rental property market that could pose challenges for prospective commercial tenants.
One of these challenges has to do with rents. According to the above-mentioned reports, commercial property rents in West Michigan are at historically high levels. This is the case for multiple sectors, including the industrial, office and retail sectors. So, the costs of renting commercial space may be particularly high in the area these days for businesses.
The other area of challenge has to do with commercial space inventory. The reports indicate that such inventory is low in the area, leading to slowed commercial growth rates. Low inventory could make finding a suitable property more difficult for a business looking to rent in an area.
It appears these challenges will be hanging around for the near future. An analyst with the company behind the above-mentioned reports predicted a continuation of the trends of slow growth and high rents in the West Michigan commercial rental market for upcoming months.
In challenging market conditions, like those discussed above, good preparation and research can be important for West Michigan businesses looking to rent.
Now, challenging market conditions are not the only potential difficulties West Michigan business owners could run across in efforts to find and reach a lease agreement on the right commercial space for their business. Another are challenges in negotiating a lease with a commercial property owner. Such negotiations can be high-stakes ones in which missteps or failing to give certain details due regard could put a prospective tenant at a significant disadvantage. So, when in commercial lease negotiations, among the things a business owner looking to rent commercial space may want to have is a skilled commercial real estate attorney’s assistance.
Source: REJournals, “Commercial rents at historic highs in West Michigan, according to Colliers,” Dan Rafter, July 15, 2016