Home Explore 2015-2016 Annual Market Study

2015-2016 Annual Market Study

Published by jkitchens, 2016-07-06 11:33:18

Description: The Bradley Company Annual Commercial Real Estate Market Study! Learn valuable insights in changing markets and make informed commercial real estate decisions with the highest quality information available.

Keywords: Commercial Real Estate

Read the Text Version

Pages:

Certain retail submarkets within Allen County are slowly beginning to see new life. The increased activity in downtown Fort Wayne increases the likelihood of more retail developments in the downtown area.NORTHEASTINDIANA | RETAILALLEN COUNTYȱ¢Ȃȱȱȱěȱȱȱ ȱ¢ȱ ¢ǯȱȱȱȱȱ¢ȱȱȬȱȱǰȱȱȱȱǰȱȱǰȱ¢Ȭ ȱȱ ȱŗŖŖȱȱȱȱȱȱȱȱ ȱ¢ȱǰȱȱȱȱȱ ȱȬȱȱȱȱǯȱȱǯȱęȱȱȱȱȱǰȱȱěȦȱȱǰȱ ěȱȱȱȱǰȱŜśŖǰŖŖŖȬȬȱȬȱȱ ȦȦȱǯȱ ȱ¢ȱȱȱ¢ȱȱǰȱȱȱ ȱ¢ǰȱȂǰȱȱȱ¢ȱȱȱŜŖȱǰȱ ȱȱ¢ȱȱȱȱȱȱȱ ȱŗŞȬǰȱȬ¢ȱȱǰȱȱȱŘŖȱ¢ǰȱ¢ȱȱȱȱȱȱȱȱ¢ȱ ȱ ȱȱǯȱ£ǰȱȱȱȱ¢ȱǰȱȱȱǰȱȱ ȱȱȱ¢ȱȱȱ ȱ ¢ȱȱȱȱ ȱȱȱǰȱȱ ȱǯȱ ȱȱȱ¢ȱȱȱȱȱ ȱȱǯȱ ȱǰȱǰȱȱ¢ȱǰȱȱ ȱȱȱȱȱȱǰȱȱ Ȃȱ ȱȱȱȱ¡ȱȱȱǯȱȱ¢ȱȱȱȱȱ¢ȂǰȱȂǰȱǰȱȱAvailable Square Feet2015 Available Square Footage ȱ¢ȱȱȱ¢ȱ ȱȱȱ ȱȱ ȱȱȱȱȱȱȱǯȱ¢Ȭȱ3M ! ȱȱȱ ȱ ȱȱ¢ȱȱȱȱ¢ǯȱ ȱȱȱȱŘŖŗśȱ ȱȱȱȱ ŜřŜǰŖŖŖȱȱȱȱȱȱȱȱǯȱ2M Surrounding Counties ȱ¢ȱȱȱȱ¢ȱȱȱ¢ȱ1M ȱȱȱȱ¢ǰȱ¡ȱȱȱȱȱȱ ȱęȱȱȱȱȱŘŖŗśǰȱ¢ȱȱȱȱ 0 ȱȱřŞşǰŝŖřȱȱȱȱȱȱ Allen County ǯȱȱȱȱȱȱĴȱȱ ȱŚśŘŘȱȱǻŞŖǰśŖŖȱȱǼǰȱěȱȱ ȱřŞŗŗȱȱȱǻŝŘǰŚŘŗȱȱǼǰȱȱȱȱ ȱȱŝřŖŗȱȱǻŜşǰŖŘŜȱȱǼǰȱȱ ȱ£ȱȱŜŗŘŞȱȱǻŗŜŝǰŝśŜȱȱǼǯȱ 49

NORTHEAST INDIANA | RETAILAvailable Square Footage Availability Rates3M 25% 20%2M 15% 10%1M 5%1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 0% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15\"# $\" Asking RatesRetail asking rates greatly vary from the Allen County/ 2015 Average Asking Rates (PSF NNN)Fort Wayne market to the smaller, more rural counties inthe region where development and activity are relatively New Secondminimal. Construction GenerationDepending on the area, new construction space in Allen <10,000 SF >10,000 SFCounty was in the range of $18 - $35/square foot, triple-net(NNN). New construction spec buildings on Dupont and Allen County $21.44 $12.23 $7.82Diebold Road are asking $25 - $35/square foot, NNN. Tworecently completed retail strips, 9831 Illinois Road and LaGrange County3128 St. Joe Center Road, are asking $21 - $23/square foot,NNN, while Phase II of Shoppes at Southtown, a build-out Steuben County $8.68 $5.83opportunity, is asking $23/square foot, NNN. Noble County $6.96 $6.00Asking rates for second generation space below 10,000square feet in Allen County averaged $12.23/square foot, DeKalb County $10.75 $7.51NNN, while asking rates of spaces above 10,000 square feetaveraged $7.82/square foot, NNN. Whitley County $8.21 Huntington $11.99 $7.70 County Adams County $8.29 $9.00 Wells County $9.92 $7.50> The Landing Rendering, Fort Wayne50

NORTHEAST INDIANA | RETAILAverage Lease Asking Rates (NNN) Second Generation - Over 10,000 SFSecond Generation - Under 10,000 SF $10$14$12 $8$10 $6$8 $4$6 $2$4 1Q15 2Q15 3Q15 4Q15 $0 1Q15 2Q15 3Q15 4Q15 1Q14 2Q14 3Q14 4Q14 1Q14 2Q14 3Q14 4Q14\"# $\" \"# $\"Increased rooftops with new housing developments New Constructionare spurring retail development throughout AllenCounty. Retail space in downtown Fort Wayne has seen $25an acceleration of movement over the past year, with $20expectations to continue throughout 2016. A catalyst for $15ȱȱȱȱĴȱȱȱȱ¢ȱ£ǰȱ $10which could spur more retail activity in the downtown $5ǯȱȱȱȱĴȱȱȱȱȱand Illinois Road continue to increase at a modest pace. $0 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q14 > Fort Wayne Riverfront Conceptual Rendering 51

NORTHEAST INDIANA | RETAIL Notable TransactionsSale CITY SIZE SF SALE PRICE P R I C E /S F OFF MARKET Fort Wayne 63,134 $1,490,000 $23.60 Q2 ADDRESS 49,920 $1,200,000 $24.04 Q2 3201-3261 St. Joe Center Rd. Angola 74,564 $727,500 $9.76 Q2 202 E. Harcourt Rd. Fort Wayne 23,784 $525,000 $22.07 Q2 1130 N. Coliseum Blvd. Fort Wayne 421 N. 13th St.Lease CITY COMP SF BUILDING SF TENANT OFF MARKET Auburn 120,426 ADDRESS 120,426 The Auto Park Q2 350 N. Grandstaff Dr. Fort Wayne 35,000 Kendallville Fort Wayne 21,600 5300 Decatur Rd. New Haven 11,650 75,078 Diamond Comic Q2 625 W. Coliseum Blvd. 21,600 Distributors, Inc. Q3 910 Lincoln Hwy. 69,550 Q2 Vintage Treasures, LLC Dollar Tree Stores, Inc. New Construction, Addition & Remodel ActivityThe total value of building permits issued for retail Building Permit Total Valueproperties increased in Northeast Indiana from 2014 to2015. This is largely due to an $18.4 million increase in $60MAllen County from 2014 to 2015. The value of retail permitsissued in 2015 for the surrounding counties decreased$417,000 from 2014.ȱęȱȱȱȱȱȱȱ¢ȱȱ $40Mdue to Kroger’s $8.15 million addition/remodel to their $20Mstore at 6002 St. Joe Center Road and the $7.7 million-worthof remodeling projects going into the Embassy Theatre in $0downtown Fort Wayne. 2014 2015 \"# $\"52

NORTHEAST INDIANA | RETAILGrowth & DevelopmentALLEN COUNTYFirst Financial Bank opened its Fort Wayne regional hub Upscale steakhouse Ruth’s Chris will be opening aand downtown banking branch in the Anthony Wayne location inside the Skyline Tower in downtown FortBuilding located at 203 E. Berry Street. In addition to the ¢ǯȱȂȱȱ ȱȱ¢ȱȬȱęȬĚȱȱǰȱȱȱȱȱȱȱ restaurant space in the new $40 million development.ȱşǰŝŖŖȱȱȱȱȱǰȱȱȱȱ ȂȱȱȱȱȱŗŖŖȱȱȱ¡ȱĚǯȱȱȱȱȱȱȱȱ the United States.ȱȱȱŗŖŖȱȱȱȱǰȱǰȱand Kentucky.Renovations to the Embassy Theatre in Fort Wayne arecompleted. The $10 million campaign renovation projectȱȱȱ¡ȱȱȱĚǰȱȱȱȱǰȱȱȱ ȱĜȱǰȱȱȱȱ¢ȱȱȱǰȱȱȱȱȱȱ¢ǰȱȱȱȦȱȱȱȱȱĚǰȱȱȱȱ¢ȱ¡ȱĜȱǯ > Ruth’s Chris Rendering, Fort Wayne “ I’m encouraged by the momentum we continue to see in our downtown. GLC will be a great partner, and we appreciate their commitment to Fort Wayne as we work together to move our community forward in the right direction. Providing additional housing and retail opportunities in the heart of our City strengthens our position as a destination place for individuals, families, and businesses. We’ve done our due diligence to ensure the residential piece is reflective of the tremendous investments taking place in our ” downtown and community as a whole. MAYOR TOM HENRY> Embassy Theatre, Fort Wayne FORT WAYNE 53

The demand for luxury apartments is on the rise and the upsurge in younger professionals renting by choice is evident by the above market occupancies in the Class A properties.NORTHEASTINDIANA | MULTI-HOUSINGALLEN COUNTYThe demand for luxury apartments is on the rise and Looking forward through 2016, sales of multi-housingthe upsurge in younger professionals renting by choice properties in Allen County are expected to increase overis evident by the above market occupancies in the Class 2015 as demand strengthens and availability of long-termA properties. As Millennials continue to push demand interest rates stay favorable, and value-add opportunitiesfor upscale living and amenities, we anticipate a strong and new construction assets prove to be highest indowntown market over the long-term, especially as the demand. Maturities of loans that locked in 10-year money¢ȱȱȱȱȱěȱȱȱ£ȱ ȱŘŖŖśȬŘŖŖŝȱ ȱȱĚȱ¢ȱ Ȃȱȱand walkability of the downtown area. The continued to sell as these loans mature and the market remainsstrength and interest of people wanting to rent versus own favorable to sell.(and in some cases, their inability to own) will continue topush the demand for multi-housing assets.Conventional Multi-Housing 2015 Statistics # of Total Avg. Avg. Occ. Smallest Largest Earliest Latest Avg. Year Properties Units Units Rate Property Property Year Built Year Built BuiltAllen County 91 21,292 234 95.8% 40 1,988 1920 2015 1979*Reporting on properties 40 units and above Rent & Occupancy Average Occupancy RatesAllen County continues to show strength and stability 98%within the multi-housing market. Historic occupanciesin the Allen County market have hovered between 91.5 96%percent and 94 percent over the past decade, with 2015year-end occupancies at 95.8 percent, a 2 percent increase 94%from 2014. Over three years, the average occupancy ratehas increased 2.4 percent. 92% 2014 2015 201354

NORTHEAST INDIANA | MULTI-HOUSINGAverage Rent by Unit Type Rental Rates$1,400 Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom $1,400 Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom$1,200 $1,200$1,000 $1,000 $800 $800 $600 $600 $400 $400 $200 $200 $0 $0 # Two, three, and four-bedroom apartments experienced Tertiary markets continue to see a lot of interest froman increase in rental rates from the previous year, while ǯȱȱĴȱȱȱ¢ȱȱȬȱstudios and one-bedrooms had a slight decrease. The investors is primarily due to higher returns on investment,ȱęȱȱȱȱȱȱȬȱ stable occupancy trends, reduced competition, value-ǰȱ¢ȱĴȱȱȱȱȱȱ ȱǰȱȱȱȱȱȱ¢ǯȱȱlike Steeplechase at Parkview, The Harrison, and Oak investors’ returns continue to tighten in primary markets,ǯȱȱ we have seen increased interest in secondary and tertiary markets that have stable economies. The majority share ofMoving forward, we believe high-end rental rates above institutional and large private investors are seeking new$1.00/square foot will be received well in the market construction assets for purchase or value-add propertiesso long as the property appeals to the residents, both ȱȱǯȱȱȱȱ ȱȱȱin luxury, amenities, and location. Fort Wayne is still been in the low to mid 6 percent range, while value-addsubstantially behind in rental rates in comparison to other opportunities are averaging in the 8-10 percent range onIndiana markets, but moving forward, a push for new pro forma capitalization rates.luxury apartments in prime locations should prove to bestrong opportunities for development. New Construction, Addition & Remodel ActivityThe total value of multi-housing permits issued in 2015ę¢ȱȱŘŖŗŚǯȱȱŘŖŗśǰȱȱ¢Ȃȱȱvalue of multi-housing permits issued was approximatelyǞŚřȱǰȱǞŗşȱȱȱȱŘŖŗŚǯȱȱȱȱȱȱȱ ȱ¢ȱȱǰȱwhich contributed to over 70 percent of the total amountȱȬȱȱȱȱȱ¢ȱȱŘŖŗśǯȱBuilding Permit Total Value !\"$50M$40M$30M$20M$10M$0 2015 > Cityscape Flats Rendering, Fort Wayne 2014 55

NORTHEAST INDIANA | MULTI-HOUSINGGrowth & DevelopmentConstruction began on the new $27 million CityscapeFlats, located on the west side of Ewing Street acrossfrom Parkview Field in downtown Fort Wayne. Plans forDomo Development, LLC, and the City of Fort Wayne’snew project includes a 163-unit apartment complex, 14row houses, 173 space parking garage, and streetscapeimprovements. The project is scheduled to be completedsummer 2017.Great Lakes Capital announced plans to construct aŗŘȬ¢ǰȱǞŚŖȱȱǰȱȱȱĜȱȱthat will be known as Skyline Tower. This mixed-usedevelopment will complete the Ash Skyline Plaza andSkyline Garage project. Plans call for 124 apartmentsȱŗŖȱĚȱȱȱǰȱȱ ȱȱȱȱĜȱȱȱŗŝŖǰŖŖŖȱȱǯȱȱȱanticipated for late summer-early fall, with anticipatedcompletion of the residential portion expected in late2017-early 2018. > Cityscape Flats Rendering, Fort Wayne “To be competitive with a global workforce that we are trying to attract and retain, we believe we need 1,800 Class A market rate apartments in downtown Fort Wayne of new development or redevelopment. The Cityscape Flats and the Skyline project represent significant progress toward that goal. Our hope is that these projects will spur further Class A ”multi-family development. ERIC DODEN – FOUNDING PARTNER DOMO DEVELOPMENT AND DOMO VENTURES> Skyline Tower Rendering, Fort Wayne56

NORTHEAST INDIANA | SUMMARYNORTHEASTINDIANA | SUMMARY“ We have nothing but upside potential despite what’s going on in the national market, we understand that we’re not immune from that, but there is a lot of momentum and we have a palpable increased level of confidence in terms of how to get work done in our region and it’s playing out in the city and the other communities as well. ”JOHN SAMPSON – PRESIDENT & CEO NORTHEAST INDIANA REGIONAL PARTNERSHIPIn December, Northeast Indiana was selected as a winner >> Fort Wayne Riverfront Conceptual Renderingof up to $42 million in funding from the Regional Cities Parkview FieldInitiative. The Regional Cities Initiative is vital to Indiana’seconomic development to improve quality of life. NortheastIndiana’s plan includes 38 projects to be implemented in thenext two years, with a total investment of $400 million.ȱęȱȱǱ• A regional trail system and the Fort Wayne Riverfront Development• Nine new or expanded arts venues across the region, anchored in unique downtown districts• $40 million in redevelopment and revitalization of 11 downtowns ($440 million total)To learn more about Northeast Indiana’s Regional CitiesInitiative, visit their website at:ĴǱȦȦ ǯǯȦȦȬȦ Photo Courtesy: Visit Fort Wayne 57

NORTHWEST INDIANAThe Northwest Indiana Region is comprised of three counties totaling approximately1,525 square miles with roughly 28,088 businesses calling the region home. The regionis part of the Chicago metropolitan area and is noted for its heavy industrial marketwith major steel mills located along Lake Michigan. Lake Michigan St. Joseph Porter LaPorte Lake Starke Jasper Newton DEMOGRAPHICS BY COUNTYLaPorte Population 2015 Median Household 2014 Feb. 2016Porter Households Income Labor UnemploymentLake 112,842 $46,018 Force 167,588 43,141 48,934 Rate 494,069 63,501 $61,790 7.8% 188,338 83,829 $50,682 6.6% 231,350 7.8% < Urschel Laboratories < The Promenade at Founders’ Square58

The industrial sector for Northwest Indiana is thriving. The region saw nearly one million square feet of industrial construction in 2015. The declining availability rates along with increased absorption is creating a positive outlook for the industrial market in the coming years.NORTHWESTINDIANA | INDUSTRIALLAPORTE COUNTYBoth Interstate 80/90 and Interstate 94 run through LaPorteCounty, making it an ideal location for industrial users ȱęȱȱȱȱȱȱȱsuch as Chicago, Detroit and Indianapolis.The main industrial park continues to be the ThomasRose Industrial Park, located in the City of LaPorte. Thenewly expanded 137-acre industrial park will feature dualȱȱȱȱȱȱǯȱȱ¡ȱȱexpected to bring around 1,000 new jobs to the area.ȱęȱȱȱȱȱ¢ȱ > ArcelorMittal Burns HarborIndustrial Park on U.S. Highway 35 and U.S. Highway 6 onthe south side of LaPorte. The park is the site of the Inland access to Lake Michigan and nearby railways, operates twoȱȱȱȱȱȱǯȱȱȱȱȱ¢ȱ ȱȱȱȱȱȱȱęȱȱȱthe Chicago South Shore & South Bend Railroad and CSX. of raw steel annually. The Burns Harbor facility primarily ȱȱȱ¢ǯȱȱ< Lakes of Valparaiso Other industrial submarkets ¡ȱȱȱȱȱȱȱ¢ȱ ȱ within the county include the Indiana’s largest bulk warehouse/light industrial park. The 385-acre mixed-use park is located at Interstate 94, less North Pointe Industrial Park, the than one mile from Lake Michigan and the Port of Indiana. ȱȱȱȱȱȱǰȱ ȱ¢ǰȱȱ North LaPorte Industrial Park, ¡ȱǯȱ the South Shore Industrial Railroad ȱȱȱȱȱȱŗŚŖȬȱȱȱ that could soon see many industrial projects happening Park, the Millennium Industrial Park, ȱȱȱǯȱȱ¡Ȭȱȱȱȱ on Interstate 49, with great access to U.S. Highway 30 andand the Guardian Industrial Park in Interstate 80.Michigan City. 59 PORTER COUNTY ȱȱȱ¢ȱ¢ȱȱȱ ȱȱȱ¢Ȃȱ¢ǯȱĴȂȱ plant in Burns Harbor is the company’s second ȱȱ¢ǰȱ¢ȱȱŚǰŖŖŖȱ ǯȱThe fully integrated steel producing facility, with

NORTHWEST INDIANA | INDUSTRIALLAKE COUNTYThe steel industry plays an important role in the economic ȱ ȱȱȱȱȱȱę¢ǰȱȱmakeup of the industrial market of Lake County. The ȱȱȱęȱ¢ȱȱȱȂȱ¡ȱ¢ȱȱȱȱȱȱĜ¢ǰȱ¢ǰȱ ǯȱȱę¢ȱ¢ȱȱȱȬȱȱ¢ǰȱȱȱȱȱȱȱ ȱ£ȱȱȮȱȱȱȱȱȱȱȱ¢ȱȱȱȱȱȱȱ ȱȱ¢ǯȱȱę¢ȱ¢ȱ¡¢ȱŗǰŞśŖȱemploying most of the region’s residents. ȱȱ¢ȱȱęȱȱȱǯȱĴȂȱȱȱȱȱȱȱ ȱ¢ȱȱȱȱ ȱȱȱȱȱȱ¢ȱȱȱǰȱȱ ǱȱȱȱȱȱȱřǰŗŖŖȱȱȱ¢ȱŚǰŞśŖȱǯȱȱ¡ȱȱȱ ȱǰȱȱŘŖŖȬȱȬȱȱ ȱȱȱȱȱȱȱ ȱȱ ¢ȱŗȱȱȱȱȱȱǰȱȱǰȱȱȱȱ¢ȱȱȱȱȱȦȱȱ ¡ȱȱȱȱȱǰȱȱřŞŜȬǰȱȱȦȱǯȱ Ȭǰȱęȱ¢ȱǯ Available Square FeetAvailable Square Footage “ There’s deﬁnitely a need for new5M construction as we’re seeing pent-up demand4M in Northwest Indiana from the recession.3M The region’s low vacancy rate and shortage2M of new product show the need for this type1M of development. I’m conﬁdent we will see0 2014 2015 some public-private partnerships in the near 2013 ”future that will grab a lot of attention. MATT SALTANOVITZ – DIRECTOR OF ECONOMICȱȱȱȱȱȱȱȱ DEVELOPMENT NORTHWEST INDIANA FORUM ȱȱȱȱȱȱ ȱ¢ǯȱȱ¢ȱ ȱȱȱȱȱȱȱȱěȱȱȱȱŘŖŗřǰȱ¢ȱŞŚŖǰŖŖŖȱȱǯȱȱŘŖŗśȱǰȱ ȱ ȱȱęȱȱȱȱȱto the end of the year for all three counties. Lake County¡ȱȱȱȱŞŖŖǰŖŖŖȱȱǰȱ ȱȱ¢ȱ ȱ¢ȱȱȱȱ¢ȱȱěȱȱǰȱ¢ȱȱȱȱȱȱŜśŗśȱ¡ȱǰȱȱśŜŝǰşŘŖȬȬȱȱȱȱ¡ȱȱȱǰȱ ȱȱȱǯȱ60

NORTHWEST INDIANA | INDUSTRIALAsking RatesAsking rates remained fairly consistent with those of 2014 2015 Average Asking Rates (PSF NNN)for LaPorte and Porter County. Lake County saw a slightȱȱȱȱȱŘŖŗŚǯȱȱ¢ȱĚ¡ȱ LaPorte County MFG FLEX WHSEbuildings in Porter County are asking $5.00 to $9.00/square Porter Countyfoot, gross. With some of speculative buildings currently Lake County $2.42 - $2.55ȱǰȱȱȱ¡ȱȱȱȱǰȱ - $8.18 $6.75we may see rates begin to increase in the coming years. $6.90 $5.13 $4.89Notable TransactionsSale CITY SIZE SF SALE PRICE PRICE/ SF OFF MARKET Portage 567,109 $18,300,000 $32.27 Q4 ADDRESS Portage 157,920 $9,200,000 $58.26 Q2 6515 AmeriPlex Dr. Portage 122,023 $3,400,000 $27.86 Q2 5900 Carlson Dr. Lowell 137,000 $1,700,000 $12.41 Q4 6525 Daniel Burnham Dr. 790 W. Commercial Ave.Lease CITY COMP SF BUILDING SF TENANT OFF MARKET Portage 233,000 567,109 Q4 ADDRESS Wanatah 182,200 182,200 Logistics Team Q4 6515 AmeriPlex Dr. LaPorte 52,414 52,414 Continental Q1 9702 W. US 30 Cabinetry Components 520 Eggebrecht Rd. Alexandria Moulding 61

NORTHWEST INDIANA | INDUSTRIALNew Construction, Addition & Remodel ActivityOverall, for the Northwest Indiana region, the total value Historical Building Permit Total Valueof industrial building permits issued in 2015 was $36.8million less than 2014. For the northwest region, 2014 $100Msaw a number of major projects under construction likeĴȱȱȱǰȱ ȱȱęȱ $50Mconstruction in 2015 or are expected to be completed earlyŘŖŗŜǯȱȱŘŖŗśǰȱȱ¢ȱȱȱȱȱȱǞŚřǯśȱ $0 2015million, or 67 percent of the total value for the region. 2014ȱȱȱȱęȱȱȱȂȱ ȱȱȱ ȱȱȱǰȱ ȱ permits totaled more than $11 million.ȱǞŗŜȱȱȬěȱȱȱ¢ȱ ȱ¢ȱĴȱȱĴȱȂȱǞřŗǯŝȱȱ ȱconstruction project. Removing that permit from 2014ǰȱȱ¢ȱ¢ȱ ȱȱȱȱin construction in 2015. As space continues to tighten inthe northwest market, we expect more new constructionprojects to happen throughout 2016.Growth & DevelopmentLAPORTE COUNTYB & B Manufacturing is nearing completion of an Alcoa opened their expanded advanced jet engine parts85,000-square-foot production facility at its 52-acre site facility in LaPorte in October 2015. The approximatelylocated in East Gate Industrial Park. B&B Manufacturing is $100 million, 320,000-square-foot expansion provides newinvesting $6.85 million to construct and equip the facility. capabilities that broaden Alcoa’s reach in engines for largeThe expansion project retained 74 employees and expects commercial aircraft. The new location will create 329 newto create 40 new jobs by 2024. jobs by 2019.> B&B Manufacturing, LaPorte > Alcoa Howmet, LaPorte62

NORTHWEST INDIANA | INDUSTRIALPORTER COUNTY LAKE COUNTYĴȱȱcompleted their new $260 million, ȱ, a Chicago-based manufacturer of250,000-square-foot recycled paper mill in Valparaiso. The shelving products, has expanded into Gary. Edsal signed ȱȬȬȬȱȱȱĜ¢ȱȱȱ ȱęȬ¢ȱȱȱȱŘŖŖǰŖŖŖȱȱȱȱȱȱȱin October. The mill is expected to produce 370,000 tons of Chicago Steel building at 700 Chase Street. Over the next¢ȱȱȱ¢ǰȱȱȱȱȱĜȱ¢ȱ two years, Edsal plans on hiring 300 people and expandingin the industry. into 325,000 square feet of space at their Gary location.The largest building in the 385-acre AmeriPlex at the Port ǭȱȱ¢, a manufacturer of cut-to-length steelbusiness park in Portage was recently acquired by ȱ tubing, is investing $5.6 million to purchase, renovateȱȱ. At the same time, ȱ, a and equip a 196,000-square-foot facility at 4000 E. 7thwarehouse and trucking company, announced plans to Street in Gary. T&B Tube is relocating its South Holland,move from Elwood into the property at 6515 AmeriPlex Illinois, operations into the new facility. The investment isDrive. Logistics Team plans to occupy about 40 percent expected to create up to 100 jobs by 2017.of the 574,249-square-foot building, leaving over 341,000square feet of space for one or two more additional tenants. ȱǰȱǰȱstarted construction for a railcar repair center and warehouse in the East GibsonIn June, ȱȱopened their new Yard Economic Development Area in Hammond. Expected385,000-square-foot headquarters and manufacturing completion of the $90 million investment at the 155-acreȱȱŗŘŖŖȱĴȱȱȱȱǯȱǰȱ ȱȱ¡ȱȱȱęȱ¢ȱȱŘŖŗŝǯȱȱthe producer of slicing equipment for a wide array of food Ȃȱęȱȱȱ¡ȱȱ¢ȱȱȱę¢ȱproducts, invested $80 million into the relocation and people, with phase two potentially creating hundreds ofȱȱȱ ȱ¢ǯȱȱ ȱȱȱ jobs.160 acres in Chesterton, allowing room for growth. ȱęȱȱȱ’s new ȱȱ ȱ is nearing completion. The estimated $72 million project includes a storage warehouse, capable of holding 120,000 short tons of fertilizer, and a rail yard with the capacity to hold up to 1,000 rail cars, which was completed in 2012. The entire project is expected to be completed in early 2016. ȱ, a high-tech advanced manufacturing company, started moving into their new location at the East Chicago Enterprise Center. Hoist is spending about $40 million to move from Bedford Park to East Chicago, relocating 270 to 300 production workers. Hoist could potentially employ up to 500 employees in the city by 2022. Hoist expects to pump $23 to $24 million into the ȱȱ¢ȱ¢ȱ¢ǯȱ ȱȱ¢, one of the nation’s foremost agricultural and specialty formulators and distributors in ȱȱǰȱȱȱȱ¢ȱȱȱ ȱǯȱȱȱȱęȱȱȱȱ ȱȱ ȱ, an 800-acre industrial park.> Urschel Laboratories, Chesterton ȱȱǯȱȱȱȂ, a 100+-year- old family owned company based in Fort Wayne, will open its 7th commercial bakery at 790 W. Commercial Avenue in Lowell. Perfection Bakeries will employ 117 people, making them the second largest employer in Lowell. Perfection will invest approximately $20 million into the building and equipment. At capacity the bakery will produce 10,000 loaves of bread per hour. 63

The office sector in Northwest Indiana continues to remain fairly stable with limited new construction projects.NORTHWESTINDIANA | OFFICELAPORTE COUNTY LAKE COUNTYLocal downtown areas of LaPorte and Michigan City hold ȱȂȱȱȱȱȱ¢ȱȱĜȱȱ ȱȱ¢ǯȱĜȱ Ĝȱȱȱȱȱȱ ȱȱȱȱǯǯȱȱȱȱȬ¢ȱĜȱ ȱȱĴȱ ¢ȱřŖȱȱȱȱŜśǯȱȱȱĜȱȱǰȱȱȱȱȱ¢ǰȱȱȱȱ ȱȱȱ ȱ ǰȱȱȱǰȱȱȱȱȱȱȱȱ ȱȱȱȱȱȱȱȱǯȱȱ ȱȱȱȱŜśȱȱǯǯȱ ¢ȱřŖǯȱ ȱȱȱȱ ¢ȱȱȱȱPORTER COUNTY ȱȱŜśǰȱȱĜȱȱȱȱ¢ȱȱ ǰȱȱǰȱȱȱȱȱȱȱ¢ȱȱȱ¢ȱȱȱȱ ǯȱ¢ȱȬȱĜȱȱȱȱȱȱ ȱȱȱ¢ȂȱĜȱȱȱȱ ȱȱȱȱǰȱȱ ǰȱȱȱȱȱȱǯȱȱǯȱ¢ȱȱǰȱ ȱŞŚǰȱęȱȱȱǭȱǰȱȱȱȱȱȱȱȱȱȱȱȱȱ ȱȱȱȱȱ ǯȱĴȱĜȱȱȱȱ¢ǯ ȱȱȱȱ ȱǰȱȱȱThe Interstate 49 corridor is another high concentration of ȱřŞŜȬȱ¡ȱȱȱǰȱȱȱȱĜȱ¢ǯȱȱȱȱȱřŖȱĜȦĚ¡ȱ¢ȱ ȱȱȱȱȱȂȱǰȱ ȱȱ ȱȱȱȱǯȱȱ ȱȱȱȱȱ¢Ĵǰȱǯȱȱȱȱȱȱ¢ȱȱ¢ȱȱ ȱŜŖǰŖŖŖȬȬȱȱ¢ȱȱȱȱȱȱȱǯȱȱȱȱȱ ȂȱĚȱȱȱěȱȱ¢ȱĚ¡ȱȱȱ¢ȱȱȱȱȱǰȱ ȱȱ ȱȱȱ ȱȱȱĜȱȱȱȱȬȱĜȱǯȱȱ ȱ¢ȱęǯȱȱěȱȱȱȱȱȱȱ ¡ ȱȱȱȱ¡ȱȱȱȱ ȱȱȱĴȱĜȱȱȱȱǯȱ¢ȱȱȱ ȱȱǰȱ¢ǰȱȱȱĜȱǯȱȱȱȱȱȱȱȱȱ ¢ȱȱȱȱȱřŝǰŘŖŖȬȬȱȱȱĜȱǯȱěȱȱȱȱȱȱ ȱĜȱǰȱ ȱȱȱęȱȱȱȱȱȱȱȱȱǯ Ĝȱȱȱȱ ȱȱȱ¢ȱ ȱǯȱ ȱȱȱȱȱȱȱȱ ȱęȱȱȱȱ ȱ ȱȱȱȱȱȱȂȱ¡¢ȱȱȱȱȱȱ ȱǯ64

NORTHWEST INDIANA | OFFICEAvailable Square FeetȱȱȱȱĜȱȱȱȱȱȱ ȱȱ¢ȱȱȱȱȱȱȱȱŘŖŗśǯȱȱ¢Ȃȱ ȱȱȱȱǯȱȱȱȱȱȱ¢ȱ ȱ¢ȱǰȱ ȱȱȱȱȱ ȱȱȱęȱȱȱȱȱ£ȱŗřǰŖŖŖȱȱǯȱȱ¢ȱ ȱȱȱȱ ȱȱȱȱȱȱȱ ȱ¢ȱȱȱȱȱȱȱŘŖŗśǰȱ ȱȱŚŞŝǰŖŖŖȱȱ ȱ¢ȱȱȱȱȱȱ ȱȱȱȱȱěȱȱȱȱȱ¢ǯȱȱ¢ȱȱ ȱ ȱȱȱǯȱȱ¢ȱ¢ȱȱȱȱěȱȱȱȱ ȱŗŖǰŖŖŖȱ ȱȱȱȱȱȱȱȱȱśŖǰŖŖŖȱȱǯȱ ȱ ȱȱȱȱȱȱŗŖřŗȱ¡ȱȱ ȱȱ¡ȱǯȱ¢ǰȱȱȱ ȱȱȱȱȱȱĴȱȱȱ ȱĜȱ ȱȱȱȱȱ ȱȱĴȱȱǯȱȱ¡ȱȱȱȱȱȱ ȱȱȱȱȱȱȱǰȱȱ ȱȱȱ¢ȱȱȱȱȱȱȱȱ¢ȱȱ ȱȱȱǯ¢ȱǯȱȱȱȱȱȱĜȱȱȱȱȱȱ¢ȱȱȱĴȱ ȱǯȱ 2015 Available Square Footageȱȱȱȱȱȱȱȱȱȱȱȱ¢ȱȱȱȱȱȱȱ \" \" \"# \"$ȱȱǯȱǰȱȱȱȱȱȱŗŖǰŖŖŖȱȱȱȱȱȱ 1.5M¢ȱȱȱȬȬȱȱȱ ȱǯȱ 1M 500K 0 Porter LaPorte Lake Asking Rates 2015 Average Asking Rates (PSF NNN)ȱ¢ȱȱĜȱȱȱȱȱȱȱ Lake County CLASS A CLASS Bȱ ȱȱ¢ǰȱ ȱȱȱȱȱ Porter County $16 - $22 $11 - $16ȱȱȱȱǞŗŜȬǞŘŘȦȱȱȬȱǻǼǰȱ LaPorte County $15 - $21 $10 - $15 ȱ ȱȱȱȱȱȱȱ¢ȱ $13 - $18 $9 - $13ȱǞŗşȬǞŘŘȦȱȱǯȱȱȱȱȱȱȱȱȱ¢ȱȱ¢ȱ ȱǞŗśȬǞŘŗȦȱȱǰȱ ȱ ȱȱȱȱǞŗŞȬǞŘŗȦȱȱǯȱȱȱȱȱ¢ȱȱȱȱȱȱȱ¢ǯȱȱ¢ȱȱȱȱȱ ȱȱȱȱȱȱȱǰȱȱȱȱȱȱȱȱ¢ȱȱȱ¡ȱ¢ǯȱ > Merrillville Corporate Park 65

NORTHWEST INDIANA | OFFICE Notable TransactionsSale CITY SIZE SF SALE PRICE P R I C E /S F OFF MARKET Crown Point 21,497 $1,175,000 $54.66 Q2 ADDRESS 6,656 $470,000 $70.61 Q2 2100 N. Main St. Highland 12,000 $260,000 $21.67 Q2 8731 Indianapolis Blvd. Munster 513 Ridge Rd. OFF MARKET Q4Lease Q2ADDRESS CITY COMP SF BUILDING SF TENANT5265 Commerce Dr. Crown Point 6,000 30,000 Maxim Healthcare Services1620 Country Club Valparaiso 4,980 17,426 Rescare New Construction, Addition & Remodel ActivityBuilding Permit Total Value ȱȱȱȱĜȱȱȱȱȱŘŖŗśȱ ȱ ȱȱȱ¢ȱǞŘşȱȱȱȱ$60M ȱ¢ǯȱȱȱęȱȱȱȱ ȱĜȱ ȱȱȱȱŘşŘşȱȱǰȱ ȱ$40M ȱȱǞřśȱǯȱȱ¢ȱȱĜȱȱ ȱȱȱ ȱȱȱȱȱ¢ǰȱ$20M ȱĴȱȱŞŚȱȱȱȱǯȱ$0 2015 2014 Growth & Development > 2929 Carlson Drive Rendering, HammondLAKE COUNTYȱȱ ¢ȱȱȱ ȱȬ¢ǰȱȱȱĜȱȱȱ2929 Carlson Driveȱȱȱ¡ ȱȱȱȱǯȱ ȱȱȱȱȱȱǞśǯśȱȱȱȱřŝǰŖŖŖȬȬȱǰȱ ȱ ȱȱȱřǯśȱǯȱȱȱȱȱȱȱȱ¢ȱ¢ȱŘŖŗŜǯȱ66

The retail market in Northwest Indiana continues to ﬂuctuate. The market saw many retailers close up shop, while at the same time saw multiple grocery stores expand/upgrade their current stores.NORTHWESTINDIANA | RETAILLAPORTE COUNTY PORTER COUNTYThe primary retail submarket within LaPorte County The main retail markets of Porter County are situatedcontinues to be the U.S. Highway 421 corridor between within the City of Valparaiso, along LaPorte Ave, nearInterstate 94 and U.S. Highway 20 in Michigan City. State Road 49. Shopping centers in that area are MarketHowever, shoppers also are drawn to the region by the Place, which includes big-box tenants such as Kohl’s,Lighthouse Place Premium Outlets with over 120 outlet Home Depot, and Target and a variety of national tenantsstores just west of downtown near the Michigan City including Panera Bread, rue21, The Children’s Place,beach. Claire’s, and many more; Valparaiso Walk, which features national tenants Best Buy, Michaels, Bed Bath & Beyond,Dunes Plaza, located along U.S. Highway 20, has seen a and Marshalls; and the new Porter’s Vale Shopping Center,massive redevelopment and repositioning. Major retailers which includes JC Penney, a 39,000-square-foot, 12-screennow located in the plaza are Kohl’s, PetSmart, and TJMaxx. Cinemark Movie Theater, and several new tenants,Other big-box retailers in the area include Walmart, highlighted by Gordmans, Dick’s Sporting Goods, FiveMenards, Lowe’s, and Meijer. Fast casual restaurants, Below, and Ross Dress for Less.such as Panera Bread, have moved into the area as well.Ĵȱǰȱ¢ȱȱȱǰȱȱȱśŝŞǰŗŞŗȬȬ Highlighted by Bass Pro Shops, the Ameriplex at thefoot mall with Carson’s and Sears as anchor tenants. ȱȱĴȱȱȱ¡ǯȱȱȱAlthough many of the interior stores sit vacant, the prime, as Subway, Quaker Steak, Longhorn Steakhouse, andcorner location along a busy corridor makes the mall a ȱ ȱ¢ȱȱȱřŞśȬȱ¡Ȭȱȱcandidate for possible redevelopment. park located along Interstate 94 in Portage.Downtown LaPorte, known as the “Antique Capital of Smaller retail pockets can be found along the IndianIndiana,” boasts seven collectible and antique stores all Boundary Road and State Road 49 intersection in ȱȱęȬȱ ǯȱȱȱȱȱ Chesterton, as well as along US Highway 6, Center Avenue,is east of downtown located along Lincolnway, where and Willowcreek Road in Portage.retailers Walmart, Dollar Tree, and Wings, Etc. aresituated. 67

NORTHWEST INDIANA | RETAILLAKE COUNTYA primary retail trade area of Lake County is located The retail market was a tumultuous one for the restaurantalong U.S. Highway 30 near the intersection of Interstate industry. The Lake County market lost: Tilted Kilt, two65. The area is highlighted by the Southlake Mall and Bagger Dave’s locations, Jamba Juice, Long John Silver’s,the Crossings at Hobart. Southlake Mall, the area’s Golden Corral, Boston’s Pizza, Tequila Cocina, Bronco’slargest shopping mall, features retailers JCPenney, Dick’s Pizza, The Patio, and Mediterranean Grill. This does notȱ ǰȱ¢ȂǰȱȱȱĴǰȱȱǯȱȱ appear to be an ominous sign of a softening market butCrossings of Hobart is highlighted by big-box retailers rather a combination of poor management and poorlyWalmart, Burlington Coat Factory, Hobby Lobby, Value thought out concepts.City Furniture, Best Buy, and Ross Dress for Less. Othermajor shopping centers in the immediate area include theCostco-anchored Merrillville Crossing, and MerrillvillePlaza.U.S. Highway 41, between Interstate 80/94 and U.S. > The Crossings at Hobart ¢ȱřŖǰȱȱȱȱȱ¢ȱĴȱȱȱretail pockets with national tenant exposure. Locatedalong this stretch is the newly developed Shoppes onMain. Tenants include Whole Foods, Gordmans, and RossDress for Less. The intersection at U.S. Highway 41 and45th Avenue is highlighted by the Eastwood Mall and thePort De L’eau Plaza Shopping Center. The U.S. Highway30 and U.S. Highway 41 intersection is highlighted by theCrossroads Shopping Center, which is anchored byWalmart and Strack & Van Til. Available Square FeetThe amount of marketed retail space in Lake and Porter 2015 Available Square FootageCounty decreased from the beginning of 2015. LaPorteCounty had a slight increase of 14,000 square feet. Lake 2.5MCounty absorbed the most amount of square feet in 2015, ȱȱřŜřǰŖŖŖȱȱěȱȱȱȱȱȱ 2Mof the year, while Porter County absorbed 162,000 squarefeet. 1.5Mȱǰȱȱȱ¢ȱȱȱȱȱęȱ 1Mtimes the amount of available square feet than both Porterand LaPorte Counties. Historically, the amount of square 500Kfeet for the northwest region has remained relativelyǯȱȱȱęȱȱȱ ȱȱ 0 Porter LaPorteprojects, we expect this trend to continue throughout 2016. Lake \" \" \"# \"$68

NORTHWEST INDIANA | RETAILAsking RatesAverage retail lease asking rates for the region increased 2015 Average Asking Rates (PSF NNN)over the prior year. The region continues to see a high levelof national tenant interest, largely due to its proximity New Secondto Chicago. The highest rates for new construction space Construction Generationoccur in Porter and Lake County, where rates havereached as high as $34/square foot, triple-net (NNN). New <10,000 SF >10,000 SFconstruction space in Porter County ranges from $20 to$34/square foot, NNN, while new construction space in LaPorte County $25.00 $11.60 $11.63Lake County ranges from $18 to $32/square foot, NNN. Porter CountyAs for LaPorte County, retail out-lots are leasing for $25/ Lake County $24.67 $12.79 $19.17square foot, NNN. $16.67 $12.75 $13.56With the increase in regional and national tenants, as wellas highly sought after retail corridors for the region, rentalrates for new construction space may continue to rise inthe coming year.Notable TransactionsSale CITY SF SALE PRICE P R I C E /S F OFF MARKET Merrillville 29,375 $1,850,000 $62.98 Q1 ADDRESS 22,300 $1,420,000 $63.68 Q3 1500 E. 83rd Hobart 9,570 $650,000 $67.92 Q2 3823 E. Lincoln Hwy. Crown Point 30,082 $550,000 $18.28 Q3 10732 Broadway Valparaiso 1457 S. SR 2 Downtown Valparaiso Downtown Hammond >>Photos Courtesy: JoeyBLS Photograph 69

NORTHWEST INDIANA | RETAIL New Construction, Addition & Remodel ActivityBuilding Permit Total Value The total value of retail permits issued in 2015 for Northwest Indiana was $8 million more than 2014’s value.$80M Lake County accounted for 77 percent of the total value$60M of retail building permits issued in 2015. The largest$40M increase from the previous year came from Porter County,$20M where $11.7 million more was issued in 2015. Over half of the $16 million issued in Porter County came from new developments at the Porter’s Vale Shopping Center in Valparaiso.$0 2014 ȱęȱȱȱȱȱȱȱ $6.8 million towards a new 4-unit, 50,625-square-foot retail 2015 building at 1101-1113 5th Avenue in Hammond, $4 million for a new retail development at 1550 E. Lincoln Highway in Merrillville, and $3.7 million for a new 42,774-square-foot Whole Foods at 199 U.S. Highway 41 in Schererville. Growth & DevelopmentPORTER COUNTY LAKE COUNTYThe Portage Redevelopment Commission and Catalyst Craft brewery New Oberpfalz Brewing celebrated itsLifestyle Sports Resort LLC closed on the sale of 170 acres ȱȱȱ¢ȱȱ ĜǯȱȱřǰŖŖŖȬȬȱof property for $6 million in June. A feasibility study was ¢ȱěȱ¢ȱ ȬĚȱǰȱȱdone to support plans for the site to become a sports resort. pints, 64-ounce growlers and 4-ounce samplers of itsConstruction could begin in early spring. mainstays, seasonal and experimental beers. Two other breweries, Pokro Brewing Co. and Wildrose Brewing,Holladay Properties received approvals to move forward ȱȱȱ Ĝȱȱ¢ǯȱȱ ȱȱȱwith its Promenade at Founders’ Square plans, an urban- seven-barrel brewing system with a 2,000-square-foot barlooking mixed use development. Holladay has worked and restaurant. ȱȱĜȱȱ ȱ¢ȱȱȱȱȱȱ20-acre project in Founders’ Square Park. Ground could Centier Bank opened a branch inside the historic formerȱȱȱȱęȱȱȱȱǞśŖȱȱ ȱ ¢ȱȱȱȱȱ ¢ǯȱȱ¢ȱȱȱproject in early 2016, with occupancy by the end of the major step in the redevelopment of the city’s second-tallestyear. building. Other plans for the building include renovation ȱȱȱȱ¢ȱȱȱȱȱĚǰȱ which will eventually be marketed to communications, technology and healthcare companies. Centennial Village is a mixed use development in Munster, Indiana, located on the former Munster Steel site along Calumet Avenue and 45th Street. The development is expected to contain a residential component, hospitality, and several retailers.> Promenade at Founders’ Square, Portage70

Subtle multi-housing market in Northwest Indiana, with only a couple new construction projects occurring in 2015. NORTHWEST INDIANA | MULTI-HOUSINGConventional Multi-Housing 2015 Statistics # of Total Avg. Avg. Occ. Smallest Largest Earliest Latest Avg. Year Properties Units Units Rate Property Property Year Built Year Built BuiltLaPorte 13 2,032 156 91.3% 34 572 1892 2011 1979PorterLake 30 4,880 163 96.4% 30 432 1968 2014 1987 38 10,550 278 92.2% 48 1,337 1950 2008 1978*Reporting on properties 30 units and above*Properties under construction as of 1/1/16 were not included in the average occupancy rate, latest year built, and average year built calculations for Porter County. Rent & OccupancyThe occupancy rates for Lake and LaPorte County Rental rates throughout the northwest region havedecreased from the previous year, while Porter County increased over the past several years. New constructionȱȱȱȱȱŘŖŗŚǯȱȱȱĚȱ projects like the Preserve at Grande Oaks, as well asof occupancy rates in LaPorte County is due to the low the Lakes of Valparaiso, have mostly contributed to theinventory of market rate apartments in the area. As we increase in prices. As renters seek higher-quality spaceexpect to see more companies moving into northwest with high-end features, developers will continue toIndiana from other states, bringing with them hundreds pursue opportunities for projects in the growing marketsof jobs, we may see occupancy rates start to increase throughout the region.throughout the region, especially in Lake County. 71

NORTHWEST INDIANA | MULTI-HOUSINGAverage Occupancy Rates 2015 Average Rent by Unit Type100% $1,40098% $1,20096% $1,000 $80094% $60092% $40090% $20088% $0 2011 2012 2013 2014 2015 Studio 1 Bedroom 2 Bedroom 3 Bedroom New Construction, Addition & Remodel ActivityThe total value of multi-housing building permits issued Building Permit Total Value 2015for Northwest Indiana outpaced 2014, largely due to a $25million increase in 2015 for Porter County. Porter County $40M Ĵȱȱşŗȱȱȱȱȱȱȱȱǯȱȱ $30MThe majority of permits came from two brand newapartment complexes, the Preserve at Grande Oaks and $20Mthe Lakes of Valparaiso. The estimated cost in 2015 for thePreserve at Grande Oaks was over $11.6 million, while the $10Mestimated cost of the building permits issued in 2015 forthe Lakes of Valparaiso was approximately $17.8 million. $0The Lakes of Valparaiso is a $50 million project, whose 2014building permits spanned several years. Growth & DevelopmentPORTER COUNTY > The Lakes of ValparaisoPlans are moving forward for Holladay Properties’ $50million Promenade at Founders’ Square development. Theurban-looking mixed-use development will include nineapartment buildings, totaling approximately 300 units.Seven of the buildings will be three stories tall, with fourȱȱȱȱĚȱȱǯȱȱȱwill span across 20 acres and could begin construction inthe spring of 2016.The Lakes of Valparaiso development is completed. Thenew 407-unit luxury apartment complex spans 55-acresand is located at 1715 Lake Michigan Drive in Valparaiso.The $50 million project includes high-end stainless steelappliances, granite countertops, connected parking, and acountry club quality clubhouse.72

NORTHWEST INDIANA | SUMMARYNORTHWESTINDIANA | SUMMARY“ A lot of businesses, brokers and site selectors are looking to Northwest Indiana. We’ve told our story well in the greater Chicagoland region. Companies are noticing that they can get the best of both worlds: access to the Chicago and Midwest markets, coupled with Indiana’s stellar”business climate. MATT SALTANOVITZ – DIRECTOR OF ECONOMIC DEVELOPMENT NORTHWEST INDIANA FORUMThe Northwest Indiana market continues to see positivemomentum, especially in the industrial sector. With 2015being one of the best years in regards to square footageunder construction, in addition to the steady decline in theamount of available industrial space, more developmentcould be on the horizon. The region’s proximity to majorcities, along with being located in the number one state forȱȱȱǰȱȱȱȱȱȱĚ ȱȱcompanies moving into the area from neighboring states. > Catalyst Sports Resort, Portage Merrillville U.S. 30 Corridor> Downtown Gary >Photos Courtesy: JoeyBLS Photograph 73

WEST MICHIGANThe West Michigan Region is comprised of 10 counties totaling Oceanaapproximately 10,857 square miles with roughly 119,000 businessescalling the region home. The region largely consists of residents who Newaygo Mecostawork in professional and managerial positions as well as unskilled Montcalmlabor jobs. Muskegon Kent Ottawa Ionia Clinton Lake Allegan Barry Eaton Ingham Livingston Michigan Van Buren Jackson Washtenaw Kalamazoo Calhoun Berrien Cass St. Joseph Branch Lenawee Hillsdale DEMOGRAPHICS BY COUNTYBerrien, Cass, St. Joseph Population 2015 Median Household *2014 *Feb. 2016 269,424 Households Income Labor UnemploymentCalhoun, Kalamazoo, 464,746 $43,453 ForceVan Buren 621,718 107,343 Rate 557,594 185,588 $44,860 127,292Kent 235,954 3.8% 207,705 $52,967Allegan, Muskegon, 231,475 3.6%Ĵ $51,263 347,923 2.7% 291,716 3.2% Source: MICHIGAN.GOV < Arena Place < Corner Shoppes@Drake Rendering74

Construction of spec buildings in West Michigan indicates conﬁdence in the long-term health of the industrial market.WESTMICHIGAN | INDUSTRIALBERRIEN, CASS, ST. JOSEPH COUNTY The major industrial park in Calhoun County is Fort Custer Industrial Park. It is home to more than 90The Southwest Michigan industrial market is strategically companies that employ nearly 10,000 people. Several majorlocated with access to several main highways and corporate community members, such as Post Cereals,interstates including U.S. Highway 31, U.S. Highway 12, ConAgra Foods, Denso, and Duncan Aviation, are based inInterstate 94, and Interstate 80/90. This location provides the area.direct routes to Northwest Indiana, Chicago, and Detroit.Two commercial airports also serve the area: Southwest Kalamazoo County’s central location along Interstate 94Michigan Regional Airport in Benton Harbor and the makes it an ideal location for industrial users. The areaSouth Bend International Airport. ȱȱ¢ȱȱ£ȦĴȱȱȱ Airport. The majority of industrial space is concentratedIn Berrien County, the industrial market is largely along Sprinkle Road just south of the interstate.concentrated in the cities of Niles, St. Joseph, and Benton Kalamazoo’s Midlink Business Park is a mixed-use development that anchors Sprinkle Road’s industrialHarbor. The main industrial concentrations within Cass ǯȱȱěȱŗǯŜȱȱȱȱȱ ȱĚ¡ȱǰȱŗŘŚȱȱȱȱȱȱȱand St. Joseph Counties are located in Three Rivers, development, dual rail service, and a truck court with secure access along Interstate 94 at the Sprinkle Road exit.Sturgis, and Dowagiac. Primary industrial parks in Other industrial parks in the immediate area include Davis Creek Industrial Park, Portage Commerce Industrial Park,Southwest Michigan include Bertrand Crossing Industrial and Portage Industrial Drive Industrial Park. Primary industrial areas within the City of Kalamazoo are located< Tanger Outlets Park, Niles Industrial Park, along Business Interstate 94 and north of the city. Groves Cornerstone Industrial Park, Education Business Technology Park is a newer industrial/ R&D park area along 9th Street in Texas Township that Three Oaks Industrial Park, features tenants such as Kalamazoo Valley Community College, MTEC, and Bronson Athletic Club. Edwardsburg Industrial Park, Van Buren County is home to the Bangor Industrial Park. Cassopolis Industrial Park, and This 105-acre park is 70 percent developed. Tenants include Automated Solutions, Getman Corporation, and Ĵȱȱǯ USA Quality Metal Finishing. CALHOUN, KALAMAZOO, 75 VAN BUREN COUNTY The W.K. Kellogg Regional Airport and the intersection of Interstate 94 and Interstate 69 makes Calhoun County a prime location for ȱǯȱȱȱȱȱ¢ȱĴȱ Creek, known for being the headquarters of Kellogg Company and often referred to as “CerealCity.”

WEST MICHIGAN | INDUSTRIALKENT COUNTY ALLEGAN, MUSKEGON, OTTAWA COUNTYKent County is home to West Michigan’s largest ȱȱȱǰȱǰȱȱĴ ȱȱconcentration of industrial space. In total, the county’s proximity to railroads, highways and waterways makingindustrial market is comprised of over 96.1 million square ȱȱĴȱȱȱǯȱȱfeet. Nearly half of this space is located in the Southeast Highlands Business Park is 188 acres in size with easyǯȱȱȱęȱȱȱȱȱ access to major highways and the Allegan Padghamproximity to the Gerald R. Ford International Airport and Field Airport. Major tenants include Allegan Countymajor highways such as U.S. Highway 131, Interstate 94, Transportation, D&J Tool & Die, Perrigo Company, andand Interstate 196 Wolverine Enclosures. Other industrial parks include the Muskegon County Airport Business Park, MuskegonAs the economic and manufacturing center of West County Business Park North, Plainwell Industrial Park,Michigan, Kent County is home to many major and the P. Don Aley Industrial Park.corporations. Amway, American Seating, Gordon FoodService, Steelcase, SpartanNash, and Wolverine Worldwideare all headquartered in Kent County. Primary industrialparks in Kent County include Area 52, Aerotech IndustrialPark, Breton Industrial Park, and the new Switch datacenter campus. Available Square FeetIn West Michigan, the total amount of available square The total available industrial square footage in Calhoun,footage for industrial space continues to decline at an Kalamazoo, and Van Buren Counties also produced noimpressive rate. In just two years, total available square ęȱȱȱȱȱ ȱ¢ǯȱȱȱfootage decreased nearly 25 percent. At the beginning of in 2014 was approximately 3.2 million square feet, and2014, approximately 19 million square feet was available the average in 2015 was approximately 3.3 million squarefor sale or lease. By the end of 2015, that number decreased feet. Kalamazoo County accounts for almost 7 percent ofto 14.2 million. available space in the sub-region.The total amount of available industrial square footage inǰȱǰȱȱǯȱȱȱĚȱȱtwo million. In 2015, the average marketed industrial spacewas approximately 2.2 million square feet, a slight increasefrom the average of 1.9 million square feet in 2014.2015 Available Square Footage Available Square Footage10M 8M 8M6M 6M4M 4M2M 0 Berrien, Cass, Calhoun, Kent Allegan, 2M St. Joseph Kalamazoo, Muskegon, 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 $ Van Buren $ $% $ Ottawa !\"#\"$%76

WEST MICHIGAN | INDUSTRIALKent County accounts for the greatest amount of industrial Available buildings is our biggestspace available in West Michigan. Nevertheless, the county challenge. Our inventory has been“has seen a major decrease in availability over the past twoyears. At the beginning of 2014, approximately 8.8 million declining over the years, because they havesquare feet of industrial space was available. By the end ofŘŖŗśǰȱȱȱȱ¢ȱřŖȱȱȱȱĴȱȱ been gobbled up in the marketplace. Wesix million. The resurgence of the manufacturing industryȱ ȱȱȱ¢ȱĴȱȱȱȱȱȱ [Grand Rapids] don’t have many actualavailability.ȱȬȱȱǰȱǰȱȱĴ ȱ ”buildings available.Counties saw a decrease in industrial square footageavailable over the past two years. At the beginning of 2014 RICK BAKER – PRESIDENT AND CEOjust over four million square feet was available. By the end GRAND RAPIDS AREA CHAMBER OF COMMERCEof 2015 only 2.6 million square feet of industrial space wason the market, a 36 percent decrease in available industrialspace. Asking RatesWhile availability of industrial space in West Michigan As supply continues to decrease and demand continuessteadily decreased, asking lease rates have remained to increase, asking rates are expected to begin to climb.relatively constant. From the beginning of 2014 to the end Higher asking rates and scarcity of quality industrialof 2015, average lease rates hovered around $3.85/square buildings results in greater opportunity for speculativefoot, triple-net (NNN). The highest average asking rates in development. This trend is already being observed in KentWest Michigan are found in Kent County where inventory County where, in 2015, 150,000 square feet of speculativeis rapidly decreasing. In 2015, $4.16/square foot, NNN was construction was underway or completed. It is expectedthe industrial asking rate in Kent County, while the rest of that industrial development will continue in WestWest Michigan had an average around $3.71/square foot, Michigan throughout 2016.NNN.2015 Average Asking Rates (PSF NNN)Berrien, Cass, MFG FLEX WHSESt. Joseph $2.50 $7.45 $5.99Calhoun, Kalamazoo, $3.08 $4.13 $3.83Van Buren $3.61 $5.25 $3.61 $3.42 $3.84 $3.87KentAllegan, Muskegon,Ottawa > Midlink Business Center, Kalamazoo 77

WEST MICHIGAN | INDUSTRIAL > Switch Data Center, Grand Rapids Notable TransactionsSale CITY SF SALE PRICE P R I C E /S F OFF MARKET Grand Rapids 127,972 $6,300,000 $49.23 Q2 ADDRESS Battle Creek 174,733 $4,000,000 $22.89 Q3 5010 52nd St. SE 151,053 $2,750,000 $18.21 Q4 4600 W. Dickman Rd. St. Joseph 130,000 $2,750,000 $21.15 Q3 3545 S. Lakeshore Dr. Galesburg 56,440 $2,000,000 $35.44 Q3 1442 S. 35th Wyoming 69,250 $1,750,000 $25.27 Q2 4600 Clyde Park SW Galesburg 9988 Miller Dr.Lease CITY COMP SF BUILDING SF TENANT OFF MARKET Walker 130,000 Q1 ADDRESS Walker 63,250 195,000 Plasan North Q1 3236 Wilson Dr. NW Kalamazoo 51,430 America, Inc. Q4 2925 Walken Ct. Walker 25,200 Q1 5200 E. Cork St. Kalamazoo 25,000 202,125 Quality Edge Inc. Q2 3123 Wilson Dr. NW 5121 East ML Ave. 811,000 Tekna, Inc. 25,200 REI Hussman 120,000 Mall City Containers, Inc.78

WEST MICHIGAN | INDUSTRIALGrowth & DevelopmentBERRIEN, CASS, ST. JOSEPH COUNTY CALHOUN, KALAMAZOO, VAN BUREN COUNTYForest River Manufacturing is expanding operations DENSO Corporation, a Japanese auto supplier, investedinto Southwest Michigan. The recreational vehicle ǞśřǯŜȱȱȱȱĴȱȱǯȱȱmanufacturer, based in Middlebury, Indiana, is purchased two buildings in the Fort Custer Industrialconstructing three, 100,000-square-foot buildings in White Park, increasing its warehouse and manufacturing space toPigeon. The project is expected to generate $7 million in 1.3 million square feet. The additional space will be usedtotal investment and create nearly 400 new jobs. for developing new manufacturing lines, additional labs for product testing, expansion of logistics and packagingWhirlpool Corporationȱȱȱȱęȱȱȱȱ operations, packaging, and shipping and receiving.its Riverview Campus in Benton Harbor. The projectis estimated to cost $155 million and will include threebuildings. The facility is Whirlpool’s largest refrigerationtechnology center and is home to 1,200 engineers andtechnicians.A $30 million expansion is underway at Lane Automotivein Watervliet. The supplier of performance auto parts isconstructing a 214,500-square-foot warehouse at its planton Lane Drive just south of Interstate 94. This expansion isexpected to take two years to complete and will result in138 new jobs upon completion.Eagle Technologies Group announced plans to build a > Whirlpool Riverview Campus, Benton Harbornew manufacturing plant at 3545 Lakeshore Drive in St.Joseph Township. The building will be 150,000 square feetand is expected to cost $6 million. > Lane Automotive Expansion Rendering, Watervliet 79

WEST MICHIGAN | INDUSTRIALKENT COUNTY German parts supplier, ETO Magnetic Corporation, plans to build a new manufacturing facility in Kentwood. TheSwitch, a Nevada-based data center operator, is ȱǰȱȱȱśşŘśȱĴȱȱǰȱ ȱȱconstructing a two million-square-foot “SuperNAP” 65,000 square feet. ETO Magnetic expects the facility to becampus at the site of the former Steelcase Pyramid complete and operational by October 2016.building in Grand Rapids. This data center will bethe largest in the eastern United States and require ALLEGAN, MUSKEGON, OTTAWA COUNTYapproximately 1,000 employees. The company plans toinvest $5 billion in construction costs and infrastructure. Alcoa is investing $22 million in its power and propulsion facility in Whitehall. The company provides metal for jet engines and will add a Hot Isostatic Pressing (HIP) line to its operations. The investment will allow Alcoa to keep up with the growing demand in the aerospace industry and ěȱȱǰȱǰȱȱřȱǯȱ> Switch Data Center, Grand Rapids Kenco, a third-party logistics provider, is building a new facility at 750 Riley Street in Zeeland. The newPlasan North America Inc., a military defense contractor, 230,000-square-foot warehouse will have 28 loadingmoved its business and headquarters to 3236 Wilson docks and 150 truck trailer parking spots. Construction isDrive in Walker. The relocation represents a $12.3 expected to be complete in the spring of 2016.million investment and will create an additional 120jobs. The 195,000-square-foot building allows Plasan to OMT-Veyhl USA Corporation is doubling the size ofȱȱȱĜǰȱȱȱǰȱȱ its manufacturing plant in Holland with an $8.8 millionproduction resources all under one roof. investment. The company specializes in manufacturing ergonomic furniture. The expansion will add 98,000 square feet of space and 206 new jobs to the site located at 11511 James Street.Robert Grooter’s Development Company constructed anew 100,000-square-foot industrial building costing $3million at the Aerotech Industrial Park in Grand Rapids.The development company also is constructing a newindustrial complex near the Gerald R. Ford InternationalAirport. The complex will be named “Area 52” for itsȱȱȱȱśŘȱǯȱȱęȱȱȱindustrial warehouse buildings, totaling 800,000-square–feet, is expected to be complete in April 2016.The furniture maker, Nucraft, broke ground on a47,700-square-foot expansion in Comstock Park that willconnect its two manufacturing facilities. When complete,the industrial building at 5151 W. River Drive NE will benearly 300,000 square feet.General Motors announced plans to invest $162 million and > OMT-Veyhl USA Corporation, Hollandreactivate a portion of its Wyoming facility located at 2100Burlingame Avenue SW. The investment will provide tools,equipment, and 300 new jobs to support future projects.80

Quality office space continues to drive transactions in WestMichigan as employers try to attract and retain talent withworkplace amenities.WESTMICHIGAN | OFFICEBERRIEN, CASS, ST. JOSEPH COUNTY KENT COUNTYȱ¢ȱĜȱȱȱ ȱȱȱ ȱȱȱȱȱȱǰȱȱ¢ȱȱȱȱȱ ȱȱȱȱǰȱǯȱ ȱȱ¢ȱřŖȱȱȱȱȱĜȱǯȱȱǰȱ ȱěǰȱȱǯȱȱęȱȱ ¢ȱȱȱȱȱȱ ȱȱȱȱȱĜȱȱȱȱ ȱȱȱȱȱ ȱ ȱȱȱȱȱǻǼǯȱ¢ȱǯȱȱǰȱȱȱ ŝśȱȱȱȱĜȱȱȱȱȱȱȱȱȱȱ¢ǰȱȱȱȱ ǰȱ ȱ ȱǯȱȱ¢ǰȱȱ ȱȱȱȱȱȱȱȱ¢ȱȱȱǰȱȱȱ Grand Rapids/Kent County Quadrant Mapȱǯȱ ROCKFORDCALHOUN, KALAMAZOO, VAN BUREN COUNTY NORTHWEST NORTHEAST SUBMARKET SUBMARKETȱ¢ȱĜȱȱȱ¡¢ȱŘǯśȱ COMSTOCKȱȱǯȱȱȱĜȱȱȱȱ PARK ȱȱ¢ȱȱȱȱęȱȱȱǯȱȱȱ¢ȱĜȱȱȱȱ¢ȱȱȱ WALKERȱȱĴȱȱȱȱȱ¢ȱǯȱ CBD£ȱ¢ȂȱĜȱȱȱȱ¢ȱȱȱȱȱǻǼȱȱ£ǯȱȱ GRAND ȱȱȱȱȱ¡¢ȱŘǯŘȱȱ RAPIDSȱȱȱĜȱǰȱȱȱȬȱȱȱ¢Ȃȱȱ¢ǯȱȱ GRANDVILLE WYOMING£Ȃȱȱȱȱȱȱȱǰȱ HUDSONVILLE KENTWOOD SOUTHEASTǰȱȱȱȱȱȱ SUBMARKETȱȱȱ¢ȱĜȱǯȱȱ¢ȱ SOUTHWESTȱ£ȱ¢ȱȱ¢ǰȱę£ǰȱȱ SUBMARKETȱ¢ǰȱȱȱǯȱ BYRON CENTERȱȱ¢ȂȱĜȱȱȱȱǰȱȱȱȱśŖŖǰŖŖŖȱȱǯȱȱ¢ȱȱȱȱ ęȱ ȱȱȱȱęȱȱȱȱĜȱǯȱ ȱȱŗşşŖǰȱȱȱȱǰȱ ȱȱ ȱȱȱȱȱǯȱȱ¢ȱȱȱ ȱȱȱȱȱȱ ȱǰȱ ȱȱȱȱȱ ǰȱ ȱǰȱ ȱȱȱȱȱȱ¢ȱȱ ȱ ǯȱȱ¢ȱȱȱȱĜȱȱȱȱ ȱȱȱȱǯ 81

WEST MICHIGAN | OFFICEMajor developments and increasing population continue “ The tech industry is really growingȱȱȱȱȱȱĜȱǯȱȱĜȱbuildings that were once primarily vacant are being right now. We have companies that startedredeveloped to accommodate the growing demand for out ﬁve years ago that now have 250ȬȱȱȱȱȱĜȱǯȱȱ employees. It’s not that each company individually has a signiﬁcant impact [on theTechnology, healthcare, and education continue to drive office market], but collectively they have aȱĜȱȱȱȱ¢ǯȱȱȱȱ ȱȱȱȱȱȱȱĜȱǯȱMajor employers in the area include Spectrum Health,Meijer, Amway, Gentex Corporation, and Grand Valleyȱ¢ǯALLEGAN, MUSKEGON, OTTAWA COUNTY major impact. If you look at the employmentȱǰȱǰȱȱĴ ȱȬ¢ȱȬ numbers year to year, you have to look atregion is comprised of approximately ten million squareȱȱĜȱǯȱ¢ȱĜȱȱȱȱ the population growth. We are growing atin Grand Haven, Holland East, Holland North, Zeeland,ȱǰȱȱȱǯȱȱĜȱ ”10,000 a year for the last four years.ȱȱȱȱȱęȱȱȱȱȱǯȱȱȱȱȱȱĜȱȱȱǰȱ RICK BAKER – PRESIDENT & CEOǰȱȱǯ GRAND RAPIDS AREA CHAMBER OF COMMERCE Available Square Feet ȱ¡ȱȱęȱȱȱŘŖŗŚǰȱȱ ȱĜȱȱȱȱȱ¢ȱ ȱȱȱĜȱȱȱȱȱȱȱ ¢ȱȱȱŘŖŗśǯȱȱ¢ȱȱǯȱȱȱȱȱŘŖŗŚǰȱ¢ȱȱĜȱ ȱǰȱȱȱ ȱȱȱ£ǯȱȱȱȱȱ¡¢ȱȱȱȱǯȱ¢ȱ ȱȱȱȱŜŖŖǰŖŖŖȬȬȱȱ¢ȱȱȱȱŘŖŗśǰȱȱȱȱȱ¢ȱȱŘśȱ ȱȱȱȱȱȱȱȱǯȱǰȱȱ¡¢ȱŜǯśȱȱȱǯȱȱȱ ȱ ǰȱȱȱȱ¢ȱȱȱ¢ȱȱǰȱ ǰȱȱȱȱȱŘŖŗśȱ ȱ¢ȱ ȱǰȱȱȱ¡ȱȱȱȱ¢ȱȱĜȱȱȱȱȱȱŘŖŗŚǯȱȱ¢ȱȱ ȱȱȱ¢ȱ ȱȱ ȱȱŘŖŗŜǯȱǰȱȱȱȱȱĜȱȱęȱ¢ȱĜȱǯȱȱȱȱĴȱȱȱȱ¢ȱ ǰȱǰȱȱĴ ȱȱ¡ȱȱ¢ȱĜȱǯȱ ȱ ȱȱ¢ȱȱȱȱĜȱȱȱ ȱŘŖŗśǯȱȱȬ¢ȱȱȱȱśǯŜȱȱȱǰȱǰȱȱǯȱȱǰȱȱ¢ȱ ȱȱ¢ȱ¢ȱǯȱȱȱĜȱȱȱ¢ȱǯȱȱȱȱȱŘŖŗŚȱȱȱȱȱŘŖŗśǰȱȱȱ 2015 Available Square FootageĜȱȱȱĚȱȱśŖŖǰŖŖŖǯ 4M # # # #ǰȱ£ǰȱȱȱȱȱ ȱȱ 3Męȱȱȱȱ¢ȱȱĜȱȱȱŘŖŗśǯȱȱȱȱȱŘŖŗśǰȱȱȱĜȱȱ 2Mtopped two million square feet, and by the end of the year,ȱȱȱȱŗǯŜȱȱȱǯȱȱŘŘȱȱȱ ȱ¢ȱěȱ¢ȱȱȱȱ 1MȱȱȱĜȱȱȱǯȱȱŘśŖǰŖŖŖȬȬȱȱȱěȱȱȱȱ 0 Calhoun, Kent Allegan,ȱȱȱŘŖŗśǯ Berrien, Cass, Kalamazoo, Muskegon, Van Buren St. Joseph Ottawa82

WEST MICHIGAN | OFFICEAsking RatesȱȱȱȱĜȱȱȱȱȱ 2015 Average Asking Rates (PSF NNN)ȱȱȱȱ¢ȱȱȱȱȱŘŖŗśǯȱȱȱȱȱǻǼȱǰȱ ȱ Class A Class B¢ȱȱȱȱȱ ȱȱǰȱȱȱ¢ȱȱ ȱǞŗśȱȱǞŘŖȦȱǰȱȬ Berrien, Cass, ȱǻǼǯȱȱȱ ȱ ȱȱȱȱȱ St. Joseph - $12.34 $12.00 $7.76 ȱȱȱǞŗŘȦȱǰȱǯȱȱȱȱȱȱĜȱȱ¢ȱȱ ȱǞŝȱȱǞşȦ Calhoun, $13.20 $13.65 $8.13 $7.46ȱǰȱǯ Kalamazoo, $19.49 $8.68 Van Buren $16.74 $13.38 $7.76 $7.57ȱȱ¡ȱȱȱȱȱĜȱȱ ȱȱ $9.77 $7.13ȱȱȱȱȱȱŘŖŗŜǯȱȱȱ Kentȱȱȱǰȱȱ ȱȱȱȱȱȱȱȱ¢ȱĜȱǯȱȱȱ Allegan,ȱȱȱȱ ȱĜȱȱ ȱ Muskegon, Ottawaȱ¡ȱȱȱȱȱǯȱ ȱǰȱ¢ȱȱ¡Ȭȱȱ ȱȱȱǰȱȱ¢ȱȱǯȱNotable TransactionsSale CITY ȱ ȱ Ȧ ȱ Grand Rapids 165,000 $5,300,000 $32.12 Q2 131,419 $2,200,000 $16.74 Q2 401 Hall St. SW Kalamazoo 50,826 $1,400,000 $27.54 Q2 401 S. Burdick St. Kalamazoo 50,000 $600,000 $12.00 Q2 303 N. Rose St. 11,238 $582,500 $51.83 Q4 750 E. 40th St. Holland 593 Heritage Ct. HollandLease CITY ȱ ȱ ȱ Grand Rapids 68,568 Q3 Grand Rapids 64,861 188,562 Miller Johnson Q4 Arena Place 19,996 Q1 25 Ottawa Ave. SW Kalamazoo 18,118 105,700 Spectrum Health Q1 950 Trade Center Way Grand Rapids 17,546 109,006 Q1 99 Monroe Ave. NW Grand Rapids 200,000 Ameri First Home 40 Pearl St. NW Mortgage KPMG LLP 118,182 Start Garden 83

WEST MICHIGAN | OFFICE Growth & DevelopmentBERRIEN, CASS, ST. JOSEPH COUNTY > Miller Johnson Suite, Arena Place, Grand Rapids KENT COUNTYHowenstine Dental is constructing Berrien County’s Sibsco, LLC, announced that it will build 12 Weston, aȱȱ¢ǯȱȱŚǰŚśŖȬȬȱȱĜȱ Ȭ¢ȱĜȱǰȱȱȱȱȱȱȱbuilding is being built at 3386 Niles Road in St. Joseph. and South Division Avenue in downtown Grand Rapids.The project is expected to be complete in the summer of The developer expects the construction of the building2016. to cost roughly $23 million. The building will include a ȬȱȱǰȱȬȱǰȱȱȱA software company is bringing its headquarters to ȱĜȱǯdowntown Niles. UltraCamp, LLC, will spend $1.1 millionto rehabilitate the historical Gallery Building at 127 E. Orion Real Estate Solutions plans to build a pair ofMain Street. The company expects the renovations to be ȱȱȱȱȱĴ ȱȱȱ¢ȱȱȱcomplete in the spring of 2016. in downtown Grand Rapids. The two towers, connected ¢ȱȱȱǰȱ ȱȱ ȱŗŚȱȱŗŝȱȱCALHOUN, KALAMAZOO, VAN BUREN COUNTY ǯȱȱȱ ȱȱȱȱȱĜȱȱ ȱ the other will be completely residential. The project isThe newly renovatedȱ¢ȱĜȱȱ expected to be complete in 2019.SuitesȱȱȱŗŘȱǯȱŘŖȱȱȱĴȱǯȱȱřǰśŝŘȬȬȱĜȱȱȱŘŜȱȱ Construction is wrapping up on the second phase of theĜȱ ȱȱȱȱȱȱȱǯȱ Heritage PointeȱȱĜȱǯȱȱ ȱȱOwner Marcia Magiera purchased the building for comprised of three buildings totaling 80,000 square feet.$115,000 and began renovations in September 2014. Commercial developer, First Companies, is leading the ȱȱŘŖŜŖȱȱȱȱȱȱ ȱǯȱȱȱȱ£ȱ £Ĵȱǰȱȱȱ ALLEGAN, MUSKEGON, OTTAWA COUNTYJohn Street in downtown Kalamazoo, was purchased byȱ for $2.2 million. Bronson is acquiring The Health Pointe, a joint venture between ȱproperties in the vicinity of its downtown campus to Health andȱȱl, announced plans to buildhave the option of future expansion. The three-story ȱȬ¢ǰȱŗŘŝǰŖŖŖȬȬȱȱĜȱǯȱȱ131,419-square-foot building has been vacant since 2012. The building, expected to open in 2017, will be located near ȱŗśŖŖŖȱȱȱǯǯȱ ¢ȱřŗȱȱ ȱǯ84

West Michigan is becoming the premier location for retailersentering the state.WESTMICHIGAN | RETAILBERRIEN, CASS, ST. JOSEPH COUNTY CALHOUN, KALAMAZOO, VAN BUREN COUNTYThe areas surrounding The Orchards Mall in Benton The major retail corridor in Calhoun County is locatedHarbor and South 11th Street in Niles continue to be ȱ¢ȱȱȱĴȱǯȱȱȱȱȱSouthwest Michigan’s main retail submarkets. Many of the by the 559,000-square-foot Lakeview Square Mall which ȱȱȱȱ¢ǰȱȱ ȱěȱ features approximately 50 retailers including Sears,and St. Joseph, also feature a mix of local and national Macy’s, Barnes & Noble, and Carmike Cinemas. Inretailers that primarily cater to the Lake Michigan tourism addition to the Lakeview Square Mall, Beckley Road isindustry. ȱȱȱ ǰȱŘŜŖǰŖŖŖȬȬȱȱȱȱ anchored by Target, ABC Warehouse, and Dollar Tree.At approximately 530,000 square feet, The Orchards Mall, Other concentrations of major retailers can be found alonglocated at 1800 Pipestone Road in Benton Harbor, is one Columbia Avenue and West Dickman Road.of the largest shopping malls in Southwest Michigan.The mall is anchored by JCPenney, Sears Hometown, and The primary retail markets within Kalamazoo CountyCarson’s. In addition to The Orchards Mall in Benton are located in Portage and Kalamazoo. The Portage retailǰȱȱȱ£ȱȱȱěȱřŘśǰŖŖŖȱ area is anchored by the 770,000-square-foot Crossroadssquare feet of retail space and houses tenants such as Mall, which features nearly 100 retailers. Major tenantsTarget, TJ Maxx, Kohl’s, and Dunham’s Sports. There are include Sears, Macy’s, JCPenney, and Burlington Coatalso several big-box retailers in the area such as Lowe’s, Factory. Other big-box retailers in Portage located alongMeijer, Walmart, and Home Depot. Westnedge Avenue include Kohl’s, Target, Home Depot, Lowe’s, Menards, and Meijer. Kalamazoo’s main retail area is centered around Western Michigan University along Stadium Drive and West Main Street. Major shopping centers include Maple Hill Pavilion, Stadium Shoppes, Campus Pointe, West Century Center, and the new Corner@Drake development. The Van Buren retail market is largely concentrated in the city of South Haven. The downtown area is comprised of many seasonal shops and small retailers that primarily cater to Lake Michigan tourism. < Corner@Drake, Kalamazoo 85

WEST MICHIGAN | RETAILKENT COUNTY ALLEGAN, MUSKEGON, OTTAWA COUNTYOver 44 million square feet comprise the Kent County ȱȱǰȱǰȱȱĴ ȱȬ¢ȱȬretail market. The primary retail centers are focused region, primary retail concentrations are located in theȱȱǰȱȱȱǰȱęȱ Holland and Muskegon areas. Major shopping mallsAvenue, 28th Street SE, RiverTown Crossings Mall, and include the Lakes Mall and the Westshore Mall. Small retailthe Woodland Mall. Several secondary retail corridors ȱȱȱĴȱȱȱ ȱȱȱȱȱȱȱȱęȱ¢ȱ ȱȱȱ Grand Haven, Allegan, Otsego, and Plainwell.ȱȱȱ ȱȱȱǯȱȱcorridors are Bridge Street, Fulton Avenue, Cherry Street, The Lakes Mall is an enclosed shopping mall in MuskegonWealthy Street, Gaslight Village, downtown Ada, and that has over 600,000 square feet of retail space. Majordowntown Rockford. ȱȱǰȱǰȱ¢ǰȱȱȂȱ Sporting Goods. The Westshore Mall is a 410,000-square-Kent County is home to West Michigan’s two largest ȱȱȱȱȱ ȱȱȱȱȱshopping malls. RiverTown Crossing Mall, located at 3700 367,000-square-foot power center in 2016.Rivertown Parkway in Grandville, is approximately 1.25million square feet. The super-regional mall is home to overŗŚŖȱȱȱ¢ȱ¢ȂǰȱȂǰȱ¢ǰȱȂȱSporting Goods, Sears, and Younkers. The Woodland Mallat 3195 28th Street SE in Grand Rapids is also comprised ofover 100 stores totaling 1.1 million square feet. Anchoringȱȱ¢Ȃǰȱǰȱ¢ǰȱȱǷȱCinema.Other major shopping centers in Kent County include the > The Shops at Westshore, Hollandrecently redeveloped Shops at CenterPoint in Grand Rapidsand the new Tanger Outlets in Byron Center. The Shops atCenterPoint is an outdoor center with 575,000 square feetof retail space and Tanger Outlets is a 360,000-square-footmall with over 80 stores.Available Square FeetThe recovering health of West Michigan’s economy had ȱȱȱȱȬ¢ȱȬȱȱǰȱȱęȱȱȱȱ¢ȱȱȱȱȱ Kalamazoo, and Van Buren Counties experienced2015. More companies are opening or expanding and less ȱȱȱŘŖŗśǯȱȱȱȱȱŘŖŗśǰȱȱȱȱǯȱȱȱȱȱŘŖŗśȱ approximately 2.2 million square feet was marketed asapproximately nine million square feet of retail space ǯȱ¢ȱȱȱȱŘŖŗśǰȱ¢ȱȱȱŗǯśȱȱ ȱȱȱȱȱǯȱ¢ȱȱȱȱŘŖŗśǰȱȱ ȱȱ ȱǯȱ£ȱ¢ȱ ȱȱȱȱȱȱŜǯŚȱȱȱǯȱȱǰȱ ȱȱȱȱȱȱ ȱȱśŖŖǰŖŖŖȱ¢ȱȱȱȱȱȱȱȱ¢ȱ ȱȱȱěȱȱȱȱŘŖŗśǯȱȱȱapproximately 28 percent in 2015. ȱȱ¡ȱ¢ȱ¢ȱȱȱȱȱ in the 5,000 to 10,000-square-foot range. As this trendǰȱǰȱȱǯȱȱȱ ȱȱ¢ȱ continues, it is expected that new construction of retailȱȱȱ¢ȱȱȱȱȱŘŖŗśǯȱȱ ȱ ȱǯȱśŖŖǰŖŖŖȱȱȱ ȱȱȱȱ¢ǯȱȱThis is approximately a 30 percent decrease in total ȱȱ¢ȱȱȱȱȱȱ¢ȱ¢ȱȱ¢Ȭȱȱ¢Ȭǯȱȱȱ ȱȱȱȱȱȱęȱ ȱȱȱŘŖŗśǰȱȱ ȱȱȱǯȱȱ¢ȱ ȱȱ ¢ȱę¢ȱȱȱȱȱȱȱȱǰȱśǰŝŖŖȬȬȱȱȱěȱȱ ȱ¢ǯȱȱǰȱȱŜŖŖǰŖŖŖȱȱȱȱěȱȱmarket every quarter. market in 2015.86

WEST MICHIGAN | RETAILThe availability rate for the county has now dropped 2015 Available Square Footage \" \" \"# \"$ȱęȱǯȱȱ¢ȱȱȱȱ¢ȱǰȱȱȱ¡ȱȱȱ ȱȱ 2.5M Allegan,ȱȱ ȱȱȱȱ¢ǯ Muskegon, 2MȱȱȱȱȬȱȱȱǰȱ OttawaȱȱȱǰȱǰȱȱĴ ȱ ȱȱ 1.5Męȱȱȱȱ¢ȱȱȱǯȱȱ¡¢ȱŝŖŖǰŖŖŖȱȱǰȱȱŘŝȱȱȱ 1MȱȱǰȱȱěȱȱȱȱŘŖŗśǯȱȱȱȱȱŞǰŖŖŖȱȱȱȱ ȱȱȱȱ 500Kȱǯȱ 0 Calhoun, Kent Berrien, Cass, Kalamazoo, St. Joseph Van BurenAsking RatesȱȱǰȱȱȱȱŘŖŗśȱȱ 2015 Average Asking Rates (PSF NNN)ȱȱ¢ȱȱȱȱ¢ȱǯȱȱȱȱȱȱȱȱȱ ȱ SeconděȱȱȱŗŖǰŖŖŖȱȱȱȱȱȱ Construction ǞŗŖȦȱǰȱȬȱǻǼǯȱȱ ȱȱ¡ȱȱȱ¡ȱȱȱȱȱȱȱ ǀŗŖǰŖŖŖȱ ǁŗŖǰŖŖŖȱȱǞŝȦȱǰȱǯȱȱȱȱȱȱȱ ȱȱ ȱȱȱȱǞŗŞǯşŞȦȱ Berrien, Cass, $16.86 $8.33 $5.53ǰȱǯ St. Joseph $17.95 $9.79 $7.00ȱȱ¢ȱ¢ȱȱȱ¢ȱȱ¢ȱ Calhoun,ǯȱȱǰȱȱ¢ȱȱȱȱ¡ȱ Kalamazoo,ȱȱȱȱǯȱ ȱȱȱ Van BurenȱȱȱȱȱǞŘŚȦȱǰȱȱȱȱ ȱȱǯȱȱȱȱǰȱǰȱȱǯȱȱ Kent $22.85 $11.49 $9.43ȱȱȱ ȱȱǯȱȱȱ¡ȱȱȱȱȱ ȱȱȱȱȱŘŖŗŜȱȱ Allegan, $18.27 $8.65 $6.27¢ȱȱȱǰȱȱȱ ȱȱ Muskegon, Ottawaȱȱ ȱȱȱ¢ȱǯȱ> Tanger Outlets, Grand Rapids 87

WEST MICHIGAN | RETAIL Notable TransactionsSale CITY SF SALE PRICE P R I C E /S F OFF MARKET Muskegon 85,577 $5,200,000 $60.76 Q2 ADDRESS Caledonia 163,500 $3,200,000 $19.57 Q1 1650-1720 E. Sherman Blvd. Kalamazoo 58,140 $1,980,000 $34.06 Q2 1825-1925 Marketplace Dr. Schoolcraft 37,604 $500,000 $13.30 SE Q1 - 2016 412 Howard St. 12733 N. US Highway 131Lease CITY COMP SF BUILDING SF TENANT OFF MARKET Kentwood 56,300 Q3 ADDRESS Coopersville 15,000 56,300 Fox Powersports Q1 3562 29th St. SE Grand Rapids 9,812 15,000 Q4 Kalamazoo 7,000 9,812 Platinum Bid Q4 708 O’Malley Dr. Grand Rapids 6,054 Auction Service Q3 1747 Plainfield Ave. NE Little Lucy’s Café 6749-6839 S. Westnedge & Bakery Ave. 45 Ottawa Ave. SE 162,778 Kirkland 188,562 The Wheelhouse Growth & DevelopmentBERRIEN, CASS, ST. JOSEPH COUNTY CALHOUN, KALAMAZOO, VAN BUREN COUNTYUnited Federal Credit Union opened a new 9,600-square- Menards,ȱȱȱȱȱǰȱȱfoot location at 2819 S. State Street in St. Joseph. This ȱ ȱȱȱśřŖŖȱ ȱȱȱ£ǯȱȱĚȱȱȱǞřȱȱȱȱȱȱȱȱ ȱȱȱȱŗśŞǰŚŖŖȬȬȱȱǰȱŘśȱ¢ǯ ȱŚŖǰŗŝŘȬȬȱȱ¢ǰȱȱŘŝǰŜŚŞȬȬȱ ȱǰȱȱȱŗŘǰşŜŖȬȬȱȱȱȱȬȱȱǰȱLehman’s Orchard, opened a ǯȱȱȱȱȱȱȱȱȱŘŖŗŚǯ ȱ ȱȱȱ ȱȱȱŘŖŚȱǯȱȱǯȱ ȱȱȱŗŘǰŖŖŖȬȬȱȱ CVS Pharmacyȱȱȱȱȱȱȱȱȱȱȱ¢ȱȱǞŗśŖǰŖŖŖǯȱȱȱȱȱ ¢ȱȱȱ ȱ ȱȱȱ£ǯȱȱȱ ȱȱȱ¢ȱȱǰȱȱȱȱ¡ȱȱȱȱȱȱȱ ȱȱȱȱȱȱȱȱȱȱǯȱȱ2016. ȱ ȱ¢ȱŗřǰŘŘśȱȱȱȱǰȱ ȱȱ ȱŗŗǰśŖŖȱȱȱȱȱȱȱȱǯȱȱȱȱ¢ǰȱȱ¢ȂȱęȱCVSPharmacyȱȱȱȱȱŘŖŗśǯȱȱŗřǰŖŖŖȬȬfoot store is located at the intersection of Niles and Napierȱǯȱǯȱȱȱ ȱ¢ȱ ȱŘŖȱȱŘśȱpeople.88

WEST MICHIGAN | RETAIL The Village at Knapp’s Crossing, a new retail center in Grand Rapids, has started phase two of construction. According to site plans, the development will be comprised of 14 buildings totaling approximately 248,000 square feet. ȱȱȱǭȱȱǰȱǯǯȱȂǰȱ and Bagger Dave’s.> Old National Bank Rendering, Kalamazoo Fox Powersports opened a 56,300-square-foot supercenter near U.S. Highway 131 South of Grand Rapids. TheDevelopment at the Corner@Drake, a 39.25-acre retail company closed its previous locations at 2807 Lakecenter in Kalamazoo, continues to progress. The $70 ȱȱȱȱřśŜŘȱŘşȱȱȱȱ ȱmillion project, led by AVB Inc., became home to to consolidate at the new store. ȱȂȱęȱȱȱȱin November of 2014. Opening in 2016 was a new The B.O.B.ȱ¡ȱȱȱŘŖȱȱȱȱȱ150,000-square-foot Field & Stream outdoor specialty store underway. The $32.7 million project includes a 2,256-seatand a Consumers Credit Union. Future plans include a entertainment venue, a 5,000-square-foot beer garden, and19,000-square-foot regional headquarters for Old National a 14-story residential tower called The Venue Towers. TheBank and a 20,000-square-foot retail center, Corner project is not expected to be complete until [email protected] Zeigler Auto Group will be constructing a new,70,000-square-foot dealership and motocross track at theMidlink Business Park in Kalamazoo. The 41-acre complexwill be home to Zeigler Motorsports, the company’s new¢ǰȱǰȱȱȱǯȱȱis expected to begin in March and be complete before theend of the year.KENT COUNTY > The B.O.B., Grand RapidsStudio C!, a $140 million mixed-use development is ALLEGAN, MUSKEGON, OTTAWA COUNTYcoming to downtown Grand Rapids just south of VanAndel Arena. The project, undertaken by Loeks Theatres Westshore Mall is undergoing $25 million in renovationsand 616 Development, will include a nine-screen movie that will turn the enclosed mall into an exterior-designedtheater, 187 residential units, 38,000 square feet of retail shopping center called The Shops at Westshoreǯȱȱspace, a public piazza and a 900-space parking garage. ǰȱȱȱ¢ȱȱȱȱGroundbreaking is expected in early 2017. A potential Investors, said the switch to an outdoor shopping center issecond phase of the project could include a tower with an in response to drivers of shopping in the Holland market.additional 150 residential units. Located at 12331 James Street, the new 367,000-square-foot power center is expected to be complete in the summer ofTanger Outlets opened a new shopping mall at 350 84th 2016.ȱȱȱ¢ȱǯȱȱǞŝşȱȱȱȱȱcomprised of over 80 stores totaling 360,000 square feet.Some major retailers include Vera Bradley, Michael Kors,Kate Spade New York, Polo Ralph Lauren Factory Store,and Banana Republic Factory Store. 89

Rising multi-housing occupancy rates spur new development in West Michigan. WEST MICHIGAN | MULTI-HOUSINGConventional Multi-Housing 2015 StatisticsBerrien, Cass, # of Total Units Avg. Units Avg. Occ. Smallest LargestSt. Joseph Properties 2,507 109 Rate Property PropertyCalhoun, 23 16,672 93.07% 34 292Kalamazoo, 26,487Van Buren 78 6,679 214 96.18% 36 1,170Kent 111 239 97.99% 32 1,764 667Allegan, Ottawa, 39 171 97.36% 30and Muskegon*Reporting on properties 30 units and aboveThe multi-housing sector in West Michigan is healthy > Arena Place, Grand Rapidsand continues to show signs of future growth. Many newconstruction, rehabilitation, and redevelopment projectswere undertaken or announced in 2015. The region ispoised to see steady investor activity in the coming years.Grand Rapids, in particular, is on pace with the nationaltrend of continued growth in upscale, downtown, urban-style living and we do not believe it is a “trend” that willbe going away in the foreseeable future. As cities suchȱ ȱȱȱ¡ȱěȱȱȱȱgrowing its downtown urban core, it is no wonder bothrenters and home owners are relocating in large massesto be closer to the amenities that cities are providing inthe downtown markets. Walkability scores lend a high¢ȱȱĴȱȱȱȱ ȱȱas the ability to walk to work, restaurants, bars, theatres,museums, and other activities continues to push demand inthese submarkets.90

WEST MICHIGAN | MULTI-HOUSINGRent & OccupancyAverage occupancy rates throughout West Michigan were 2015 Average Rent By Unit Typewell over 90 percent in 2015. Most notably, Kent Countywas at 98 percent, indicating a virtually full average $1,400occupancy. This is the result of an increasing population $1,200and the reurbanization movement. Although many new $1,000multi-housing properties have been delivered to themarket recently, average occupancy rates are expected to $800stay around 95 percent. Supply has not yet met demand, $600as evidenced by the continued announcements of new $400construction projects.High occupancy rates have resulted in an increase in rental $200rates. Two bedroom units in Kent County, where demandis highest, were leased at an average of $930 per month. In $0 1 Bedroom 2 Bedroom 3 Bedroomthe more rural counties like Berrien, Cass, and St. Joseph, Studiorental rates for two bedroom apartments were nearly $300less, averaging $653 per month. Rental rates are expected to continue increasing as new and redeveloped propertiesare being delivered to the market. !\"#$\"% &Notable TransactionsCOMPLEX ADDRESS TOTAL SALE PRICE/ BUYER UNITS PRICE UNIT Cocke Finkelstein, Inc. /Ramblewood Apartments 4277 Stonebridge Dr. SW, $100,400,000 $58,817 GEM Realty Capital, Inc.River Oaks Apartments Wyoming, MI 1,707 Cornerstone HoldingsOld Farm Shores $43,250,000 $113,816 5425 E. Paris Ave. SE, 380 N/A Kentwood, MI $25,400,000 $73,837 344 2122 Sandy Shore Dr. SE, Kentwood, MIGrowth & DevelopmentCALHOUN & KALAMAZOO COUNTY Harrison Circle, a new $15 million residential/commercial development, is coming to the River’s Edge Area ofThe Heritage Tower ȱ ȱĴȱȱ¢ȱ Kalamazoo. NoMI Developers plans to construct two,stands vacant, but restoration of the historic 20-story ęȬ¢ȱȱȱŝŖǰŖŖŖȱȱǯȱȱȱbuilding is expected to begin in the summer of 2016. 616 ȱęȱĚȱ ȱȱȱŗŖŖȱȱǯȱȱDevelopment plans to redevelop the 122,937-square-foot The project is expected to begin in the summer of 2016.building into 58 market-rate apartments, 90 hotel rooms,ȱȱȱȱĜȱǯȱȱȱȱ 91expected to cost $29 million.

WEST MICHIGAN | MULTI-HOUSING2700 West, a new student-housing and commercial Construction is underway on The Rowe building inbuilding, opened in time for the 2015-2016 school year. downtown Grand Rapids. The 11-story building, locatedThe 45,000-square-foot building, located on West Michigan ȱȱȱȱȱȱȱȱȱȱȱ¢ĴȱǰȱȱȱȱǞŗřȱȱ ǰȱȱȱȱȱǞŘŚȱȱ ȱȱǯȱdollars. The building is composed of ground-level retail The updated building will consist of 77 market-rateȱȱřśȱȱȱȱŗřśȱǯ apartments, eight condominiums, and ground-level retail spaces. The projected is expected to be completed in the summer of 2016 Construction is underway on Gateway at Belknap, a 98,471-square-foot mixed-use development just north of the ȱȱȱ ȱǯȱȱȱ¡ȱ the project to be completed by next fall. The building will include 88 apartments, 6,500 square feet of restaurant space, and 5,000 square feet of retail space.> 2700 West, Kalamazoo Orion Real Estate Solutions and Midtown PropertiesKENT COUNTY announced plans to build a pair of towers at the corner ȱĴ ȱȱȱ¢ȱȱȱȱ ȱ ȱǯȱȱȱ ȱȱ ȱŗŚȱȱŗŝȱ ȱǯȱȱȱȱ ȱ ȱȱȱȬȱ apartments and condominiums. Construction is expected to begin in 2016.Construction is underway on Fulton Place, a 112-unit ȱȱȱȱȱȱǞŚśȱȱȬȱȱ¡ȱȱ ȱ¢ȱȱ Arena PlaceȱȱȱśśȱĴ ȱȱȱȱ ȱUniversity’s downtown campus in Grand Rapids. The ǯȱȱȬ¢ǰȱřŝŜǰřŚŜȬȬȱȱ¡ȱ ȱȱȱȱǰȱěȱŘřŘȱ ȱȱŗŖŖȱȬȱǰȱȱȱĜȱbedrooms and 10,000 square feet of ground-level retail space, retail space, and 280 parking spaces. The project isspace. Construction is scheduled for completion by the expected to be complete mid-2016.2016-2017 school year. Maplegrove Property Management, LLC, announcedKnapp Corner Flatsȱȱȱ ȱǞŘśȱȱȱ ȱȱȱ¡ȬȱȱȱŘřŚȱȱȱ¡ȱȱȱřŗŖŖȱȱȱȱȱ ȱǯȱȱ in downtown Grand Rapids. The eleven story building willThe development will consist of six, three story buildings ȱŘŜŖȱȱȱŜŖǰŖŖŖȱȱȱȱĜȦȱŘŖřȱȱǯȱȱ retail space. Construction is expected to begin in August 2016 with a planned completion in January 2018.The 616 Lofts on Monroe opened in November of 2015.The four-story building at 820 Monroe Avenue consists > Venue Tower, Grand Rapidsof 54 one and two bedroom apartments, ground-levelretail space, and a 60-space underground parking garage.¢ȱȱȱȱȱǞŗǰŗŖŖȬǞŘǰŘŖŖǯȱA proposal is in place to construct Diamond Place, aŗśŖȬȱěȱȱ¡ȱ ȱȱȱǰȱȱȱȱǯȱȱȱȱ¢ȱoccupied by Proos Manufacturing and Fabrication. Thiswill be the fourth major housing development beingȱȱȱȱȱȱȱ ȱCollege and Fuller Avenues.Construction on Venue Tower, the 12-story residentialȱȱȱȱȱȱǞřŘǯŝȱȱǯǯǯȱ¡ȱproject, is currently underway. The 85,500 square-footbuilding is expected to be complete in early 2018.92

WEST MICHIGAN | SUMMARYWESTMICHIGAN | SUMMARY“ Buildings and workforce are the two big things, right now. I think workforce isnumber one. Site selectors are coming in and looking at what the workforce is, thenﬁguring out where they can steal (the talent) from. The workforce is a big key right now. Itis an issue for the state, it’s an issue for the nation, and it’s going to be a challenge for our”school systems and universities.JEROME KISSCORNI – ASSISTANT CITY MANAGER / ECONOMIC DEVELOPMENT DIRECTORCITY OF KALAMAZOOThe economy in West Michigan continued to grow in WEST MICHIGAN QUICK FACTS2015 resulting in a healthy commercial real estate market.Across all lines of business, quality space was absorbed, • 5th fastest-growing economy in the U.S.tired buildings were redeveloped, and new constructionmaterialized. Scarcity of quality buildings is forcing • Grand Rapids recognized as the 2nd best place to livedevelopers to explore new and creative opportunities in the United States by The Wall Street JournalȱȱȱĴȱȱǯȱȱȱȱȱincreasing population and incentive programs like the • The country’s 8th largest cluster of biopharmaceuticalKalamazoo Promise are working to assist employers in the suppliersacquisition and retainment of quality talent. • Home to fourȱȱȱȱȱ> Grand Rapids SkylineSource: The Right Place 93

A seasoned and talented team of real estate professionals servingthe Midwest region since 1978.2015-2016MARKET PROFESSIONALSCREATING REAL VALUE IN PROPERTY.Founded in 1978, Bradley Company is a ęȱȱȱęȱěȱȱȱȱȱȱȱȱȱȱǯȱȱȱĜȱȱȱȱǰȱ ȱ¢ȱ¢ȱŘśŖȱ ȱǯȱȱ¡ȱȱȱŗŗȱȱȱȱȱȱ¢ȱȱĜǰȱǰȱȱȱȱĜȱȱȱȱ¢ȱǯȱȱǰȱ ȱȱȱȱȱȱȱśśŖȱȱǯȱȱȱȱȱȱŘǰřŖŖȱȬȱȱ¢ȱȱȱȱȱȱǯȱȱ BROKERAGE ASSET SERVICES MULTI-HOUSING • ȱȱȱ • ¢ȱ • ¢ȱ • ¢ȱ • ¢ȱȱ • ȱȱȱ • • Ȧȱ¢ • ȱ • ȱ • ȱ • ¢ȱ • ǰȱȱȱȱ • ¢ȱȱ • ȱȱȱ • ¢ȱȱȱ ȱ CAPITAL MARKETS • ȱ ȱȱȱȱ • ȱȱęȱ¢ • • ȱȱȱ¢ȱȱ • ȱ • ȱ • ȱ • ȱ • ȱ • ȱȱȱȱ • ȱȱȱ • ¡ȱ¡ȱȱǰȱ CORPORATE SERVICES ȱȱȱȱ • ȱ¢ȱ • ȱ¢ȱ • ȱ • ȱ¢Ȧ TAX CONSULTING94 • ȱȱ • ȱ • ¢ȱȱȱ • ¢ȱ • ȱ • ¢ȱǭȱ • ȱǭȱȱ • ¢ȱ¡ȱȱȱ • ȱ • ¢ȱ • Analysis • ¡ȱ¢ȱ • ȱȱȱȱ¢

CENTRAL INDIANA INDIANAPOLIS ALEX COHN ----- DAVID REED DAVID ELLIS [email protected] Senior Vice President ----- [email protected] [email protected] W. SHAWN CONWAY Vice President [email protected] Allisonville Rd., Suite 150Indianapolis IN 46250T | 317.588.1334NORTH CENTRAL INDIANASOUTH BEND BRAD TOOTHAKER, CPM, SIOR SOUTH BEND JOHN O’BRIEN, CCIM President & CEO Industrial & Retail112 W. Jefferson Blvd., Suite 300 [email protected] DAN SKODRAS, CPA [email protected] Bend, IN 46601 Managing Director,T | 574.237.6000 SCOTT FORD Corporate Services LUCAS DEMELF | 574.237.6001 Executive Vice President [email protected] Retail & Investment [email protected] AL KOCH [email protected] Retail & Office MARK NEAL [email protected] PATRICK MAGLIOZZI300 NIBCO Pkwy., Suite 250 Principal Industrial & LandElkhart, IN 46516 [email protected] AUTUMN PSAROS [email protected] | 574.522.7100 Retail KARA MCGUIRE [email protected] STEVE ELLISONWARSAW Executive Vice President Industrial & Retail [email protected] CHRIS BARTH [email protected] S. Buffalo St. Office & RetailWarsaw, IN 46580 RUDY YAKYM III [email protected] WILLIAM FRASCHT | 574.267.2323 Senior Vice President Industrial & Office [email protected] GREG PINK [email protected] Industrial & Office JOE DECOLA [email protected] JANEE CARLILE Vice President Director, Brokerage Support [email protected] JENA MAY SMOROSKE [email protected] Office & Retail MICHAEL ZINK [email protected] CASEY CUPP Vice President, Multi-Housing Marketing Director [email protected] JOHN JESSEN [email protected] Office & Investment JAMIE RUIZ [email protected] THERESE GEISE Vice President, Tax Consulting Office & Retail & Business Development JOHN MESTER [email protected] [email protected] Retail & Office [email protected] FRANK CASSELLA ----- ELKHART [email protected] MATT WETZEL JEREMY MCCLEMENTS Land & Retail Industrial [email protected] [email protected] RANDY LIPPS GARY SALYER Retail & Office ALEX REED Retail & Land [email protected] ----- [email protected] [email protected] WARSAW KIRK ZUBER Industrial & Retail [email protected] 95

NORTHEAST INDIANA DAN DICKEY FORT WAYNE RUSSEL JEHL President, Northeast IN Retail & Office [email protected] JIM BANKS [email protected] Land & Office AL STOVALL [email protected] STAN PHILLIPS Retail & Industrial Retail & Office [email protected] KELLY CASTLE [email protected] Retail ANNA BOWMAN [email protected] STEVE CHEN ----- Office & Industrial [email protected] KIENAN O’ROURKE [email protected] Office & Industrial CARL DEIHM [email protected] TYLER BINKLEY Industrial & Retail Industrial & Retail [email protected] MIKE DAHM [email protected] Investment & IndustrialFORT WAYNE CHAD GLASSBURN [email protected] Multi-Housing111 E. Ludwig Rd., Suite 101 [email protected] PAUL REFAKISFort Wayne, IN 46825 Industrial & RetailT | 260.423.4311 GREG CONKLING [email protected] Land & Investment [email protected] RACHEL ROMARY ----- [email protected] INDIANA JIM NICKSIC MERRILLVILLE STEVE NICKSIC ----- ----- [email protected] ROSS BROWN [email protected] ----- MICHELLE DEVINE [email protected] Land & Office [email protected] TODD DICKARD Office & Industrial [email protected] W. 84th Dr.Merrillville, IN 46410T | 219.650.6500WEST MICHIGAN KALAMAZOO JODI MILKS, CCIM Retail & Office [email protected] EVAN RIGGLE GRAND RAPIDS MIKE LOPATIN Multi-Housing Investments277 S. Rose St., Suite 3500 [email protected] KEVIN VANHAITSMA [email protected], MI 49007 -----T | 269.327.0089 MITCHELL PATZER [email protected] -----GRAND RAPIDS [email protected] PEG O’DOWD Office & Retail250 Monroe Ave., Suite 426 [email protected] Rapids, MI 49503T | 616.254.000596

YOU INVEST IN YOUR BUSINESS.We invest in you.You’re invested in your business, and you deserve a bank that’s starfinancial.cominvested in you. At STAR Bank, we believe it’s essential to invest inour communities and in the businesses that support them. We were ©2016 STAR Financial Groupfounded more than 70 years ago on the idea of treating businessesright, and that spirit lives on today. It’s the kind of service and attentionyou would expect from a family-owned bank. To learn more, call JoshPeters, North Region President, at 260.467.5546 or John McCreary,South Region President, at 317.566.7352 or visit starfinancial.com. Service ExcellenceFamilyValues Relationship Banking Local Indiana’sSince Decision Largest Private1895 Making Family-Owned Bank BEST Bank for Business 255 East Day Road, Mishawaka, INMember FDIC (574) 243-2822 • CENTIER.COM 97

(;3(5,(1&(5(/,$%,/,7<,17(*5,7< Peace Of Mind REAL ESTATE Our Northern Indiana Real Estate Practice SOLUTIONS. Stephen A. Studer John Lloyd Krieg DeVault once again ranked PARTNER OF COUNSEL #1 for most commercial Real Estate [email protected] [email protected] lawyers selected to the 2016 SELECTED TO THE 2016 SELECTED TO THE 2016 Indiana Super Lawyers® list.* INDIANA SUPER INDIANA SUPER LAWYERS® LIST LAWYERS® LIST www.kriegdevault.com Frank A. Hoffman Christopher D. Long Krieg DeVault LLP PARTNER PARTNER 4101 Edison Lakes Parkway [email protected] [email protected] Suite 100 SELECTED TO THE 2016 SELECTED TO THE 2016 Mishawaka, Indiana 46545 INDIANA SUPER INDIANA SUPER P: 574.277.1200 LAWYERS® LIST LAWYERS® LIST Scott J. Fandre J. Brian Hittinger OF COUNSEL PARTNER [email protected] [email protected] Paul G. Reis Sarah E. Jones PARTNER ASSOCIATE [email protected] [email protected] © 2016 Krieg DeVault LLP. * Krieg DeVault’s 2016 #1ranking shared with one other law firm.98

Pages:

jkitchens

2015-2016 Annual Market Study

Like this book? You can publish your book online for free in a few minutes!

Create your own flipbook

TOP SEARCH

business design fashion music health life sports home marketing children

2015-2016 Annual Market Study

Description: The Bradley Company Annual Commercial Real Estate Market Study! Learn valuable insights in changing markets and make informed commercial real estate decisions with the highest quality information available.

Keywords: Commercial Real Estate

Read the Text Version

jkitchens

TOP SEARCH

RELATED PUBLICATIONS