GRAND RAPIDS, Mich. -- The Right Place released its 2026 Development Report on the outlook for real estate development across the region on Wednesday.
The 28-page report provides a comprehensive look at West Michigan's industrial, office, retail and housing sectors. It uses data collected from leading commercial real estate partners to provide a holistic view of the development ecosystem in Greater Grand Rapids.
As you might expect, with the riverfront redevelopment taking place - with the Grand River Restoration project underway - and the new entertainment venues coming online, the report is optimistic. The 12,000-person-capacity Acrisure Amphitheater opened in May, and the Amway Stadium -which will be home to professional soccer club A.C. Grand Rapids - will open in 2027.
Tim Mroz, the Right Place's senior vice president of Community Development, said the large-scale construction represents long-term investment in housing, jobs, and livability.
"The fundamentals for the region still remain strong," he said in a telephone interview with WOOD Radio News. "Projects are still being built, demand is still strong for new projects. Rents are going up, vacancy rates are still well below the national average. But we do have some stubborn headwinds that we're fighting against."
Mroz said those include the rising cost of construction and fuel, plus inflation that is at a three-year high.
"On top of that, the lending market is starting to pull back on construction lending," he added.
On the positive side, large-scale construction for downtown projects like the Amway Stadium are creating jobs and development.
A 21-story office building is proposed as part of a mixed-use riverfront development at Fulton Street and Market Avenue. It is part of an $800-million project that envisions a three-tower development supported by some local families and the Magellan Development Group based in Chicago. The development will include construction of a 43-story residential building and a 27-story hotel with condominium units.
Mroz was asked about the increasing number of vacant storefronts downtown.
"One of the stubborn realities of our central business district downtown is we still struggle on the retail side," he replied. "There are several organizations, as well as the City of Grand Rapids, that are doing everything they can to reinvigorate that. I think the investments in the amphitheater and the soccer stadium are going to really help with that."
The Development Report tracks six-year trends across industrial, office, retail and housing sectors.
The Right Place provided more information in a news release, via Clark Communications:
“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.”
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.
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About The Right Place, Inc.
The Right Place, Inc., is a regional nonprofit founded in 1985 with the mission to drive sustainable economic growth and shared prosperity for all in the Greater Grand Rapids Region. The Right Place works to achieve this mission by focusing on three core areas: People, Place, and Prosperity. The Right Place is an Accredited Economic Development Organization (AEDO) as designated by the International Economic Development Council. Find out more by visiting rightplace.org, liking us on Facebook, and following us on LinkedIn and Instagram.