(GRAND RAPIDS, MI)— Greater Grand Rapids economic development organization The Right Place, Inc., has released its 2026 Development Report, a comprehensive analysis of the region’s industrial, office, retail, and housing sectors. The 28-page report combines firsthand intelligence and data from leading commercial real estate partners to provide a holistic view of the development ecosystem in Greater Grand Rapids.
“Greater Grand Rapids is entering one of the most exciting periods of growth in its history,” said Tim Mroz, Senior Vice President of Community Development, The Right Place, Inc. “Large-scale construction, riverfront redevelopment, and new entertainment destinations are reshaping the city’s trajectory. These are not just construction milestones—they represent long-term investment in housing, jobs, and livability. Across every sector, the market is gaining traction at a measured pace, and the overall sentiment is one of cautious optimism. The market is active, improving, and disciplined, providing a foundation built for sustainable, long-term growth.”
Check back into MBN as we interviewed Tim on the Michigan Business Beat for this topic!
The 2026 Development Report tracks six-year trends across industrial, office, retail, multi-family housing, and single-family housing sectors.
“Selectivity is the defining theme of this market,” Mroz added. “Tenants and buyers are waiting for the right fit—whether location, condition, or economics—rather than chasing space. Rising construction costs continue to limit new development, but where fundamentals align, this region continues to move.”
The full report was recently distributed to The Right Place investors and participants at Developer Day. It can be found on the Right Place website: www.rightplace.org/developmentreport
Below are summaries of the key sectors identified in the report, along with a 2026 outlook:
Industrial: Ongoing Demand with Extended Timelines
Greater Grand Rapids’ industrial market enters 2026 slightly outperforming 2025. Industrial vacancy stood at 3.3% in Q1 2026—well below the national average of 7.1%—while inventory reached 125.58 million square feet. Demand is active, though decision timelines have extended as buyers take a more deliberate approach. Average asking rent reached $6.36/sq ft, remaining significantly below the national average of $10.42/sq ft, keeping the region cost-competitive for industrial users. A highlight project is Proper Beverage Co.’s $80–90 million expansion into 300,000 sq ft of new industrial space in Kentwood, boosting annual production capacity by more than 460%.
Office: Flight-to-Quality Defines the Market
The office market is showing signs of stabilization heading into 2026. Vacancy declined to 13.0% in Q1 2026 from 13.8% the same quarter the prior year, continuing to compare favorably against the national average of 19%. Updated, move-in ready suites are leasing while dated spaces sit idle. Landlords face a clear choice: reinvest or fall behind. Wolverine Worldwide’s $9 million headquarters renovation in Rockford exemplifies the flight-to-quality trend, with the company investing in creative hubs, research labs, and collaborative spaces.
Retail: Gaining Momentum After Slow Start
Greater Grand Rapids’ retail market gained meaningful momentum entering 2026 after a slow start. Average lease rates reached $14.18/sq ft in Q1 2026, a 3.6% increase over the same quarter the previous year. Regional and national operators are leading demand, with inquiries, listings, and deal flow all trending upward. Gardner White Furniture Co.’s entry into the West Michigan market—its first in 113 years of operation—signals broader confidence in the region’s retail fundamentals.
Housing: Steady Demand for Multi-Family, Demand Outpacing Supply for Single-Family
Multi-family fundamentals held steady through 2025 and into 2026. Average monthly rents reached $1,511 in Q1 2026, a 3% increase from Q1 2025, reflecting solid and sustainable growth of approximately 9% over the past three years. Multi-family vacancy edged up to 6.0%, largely reflecting new construction filling the rental pipeline rather than weakening demand.
Transformative projects like Boston Square Together—a $30 million, 10-acre mixed-income redevelopment in the Boston Square neighborhood—are delivering housing alongside community and commercial amenities.
Despite elevated mortgage rates and rising prices, single-family home sales increased 6% in 2025 to 13,356 units across Greater Grand Rapids. Median listing prices grew 5.4% year-over-year to $402,117 in Q1 2026. Homes are spending an average of 48 days on the market, up from 44 days in the same quarter the prior year, signaling a modest cooling that may improve conditions for buyers as inventory builds throughout 2026.
Outlook for 2026: A Region in Motion
Greater Grand Rapids is in the midst of a generational wave of investment. With the Acrisure Amphitheater opening on the riverfront, the Amway Stadium under construction for Athletic Club Grand Rapids, a nearly $800 million mixed-use development at Fulton & Market in the pipeline, and the Gerald R. Ford International Airport’s $135 million terminal expansion underway, the region is building the infrastructure and amenities of a competitive, growing metro. Across all sectors, the market is active and disciplined—a foundation for sustainable, long-term growth.
