Struggles? Yes. But West Michigan office market still outperforming national averages

The West Michigan office market faces its challenges. But the fundamentals here are stronger than they are in many markets across the United States, according to the latest research from Colliers.

In its fourth quarter 2025 Grand Rapids office report, Colliers said that the West Michigan region — which includes the cities of Grand Rapids, Kalamazoo, Muskegon and Holland — ended 2025 with modest absorption and a slight drop in vacancy. Colliers said, too, that leasing activity persisted across core and suburban submarkets, while rents continued to climb amid limited new supply and cautious development.

Colliers reported that the office sector in the West Michigan region ended the year with an overall vacancy rate of 9.6%. That figure is down from 9.3% in the third quarter. The West Michigan region includes the cities of Grand Rapids, Kalamazoo, Muskegon and Holland…

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