Colliers International West Michigan took a closer look at the Holland market in its second-quarter reports, revealing a magnet for small businesses.
In the first quarter of 2019, Holland was named the “Best Small City to Start a Business” in the United States by Wallet Hub, marking its third year in a row with such a lofty ranking, according to an earlier Business Journal report.
Holland also was recognized by Wallet Hub as the No. 1 city for access to financial and workforce resources for business.
Holland’s environment of strong local relationships, access to customers and lower housing costs were among the reasons Colliers gave for its fertile business culture. Holland also is home to a strong manufacturing industry that continues to grow and attract talent to the lakeshore region.
Market activity picked up across the retail, industrial and office sectors in Holland in Q2. There are opportunities for seasoned investors because of strong tenant and buyer demand. There also continues to be competition among buyers as companies and investors look for high-quality space.
New restaurants and retailers have been opening steadily in downtown Holland’s mixed-use development, which already has started attracting people to West Eighth Street. In April, HopCat opened its 6,200-square-foot Holland location.
Cakabakery celebrated its grand opening in May. Sperry’s Moviehouse — a restaurant and 11-screen movie theater — opened in June. Moviegoers can enjoy a beer or cocktail with their movie and order food and have it delivered directly to their seats from concessions or the Dinnerhouse, a full-service restaurant that offers lunch and dinner on the second floor.
Market Zero, a gourmet market, is expected to open this fall in downtown Holland. It will feature a small convenience store, coffee shop and deli. Customers will be able to purchase gourmet snacks and a variety of packaged beer and wine selections.
Blain’s Farm and Fleet, a Midwest-based retail store that offers a variety of products from clothing and tools to hardware to agriculture supplies, broke ground on a new Holland location in February. The 106,000-square-foot store currently is the largest project underway in the Holland area and plans to open this fall.
According to Colliers data, Holland retail rental rates were $10.92 per square foot in Q2, which is down from $12.63 per square foot in Q1.
Comparatively, the Q2 Market reports from NAI Wisinski West Michigan, showed rental rates of $9.36 per square foot across the lakeshore region, including Holland, Grand Haven, Muskegon and Saugatuck, plus an average vacancy of 6.2%
The Holland industrial sector has continued at its normal pace. Rental rates per Colliers are $3.53 per square foot, which is down slightly from $3.73 per square foot in Q1.
According to NAIWWM, lakeshore rental rates were $3.89 per square foot, and vacancies were at 2.1% for the lakeshore region.
There were a number of notable transactions that occurred during Q2. Riders Discount, a motorcycle gear and repair company, sold its industrial condo located at 112th Ave. Challenge Manufacturing, which specializes in producing complex automotive parts such as lightweight underbody assembly structures, purchased a 198,000-square-foot industrial building at 1400 S. Pine Ave.
Office space continues to be in limited supply in Holland with rental rates competitively averaging $11.20 in the Holland market, according to Colliers. NAIWWM did not offer office statistics for the lakeshore in Q2.
In Q2, an office building located at 460 Waverly Road in Holland, which sat vacant for six years, was recently purchased by Waverly Financial Center. The firm plans to remodel the entire building.