Now there’s a lot less bank work and a lot more traditional real estate deals.
By Mike Nichols
There’s a trend in the Grand Rapids-area industrial market that Stu Kingma is keeping his eye on.
With this year’s rough winter now in the rearview mirror, Kingma, an associate broker with NAI Wisinski of West Michigan, has seen a spike in industrial real estate growth and construction.
During the Great Recession, the local industrial market was troubled, but as “that ship righted itself,” he said, demand for industrial space began picking up.
A lot of the work Kingma was doing during the recession was for bank assignments — when a bank had taken a building back because of non-payments and needed it disposed of.
Those days, however, are much rarer now.
“That was a significant part of the market for two or three years running. There were a lot of bank properties on the market, a lot of distressed real estate, a lot of borrowers underwater, and so our business model shifted a bit from helping companies who were growing and needing space, to working for banks that took back buildings they didn’t want,” he said.
“That part of business has shrunk dramatically. Now the vast majority of our business is no longer entirely driven by bank work.”
Italian company plans $17.6M plant, 109 jobs
An Italian plastics mold maker is investing $17.6 million in the area and plans to create 109 jobs in the process.
San Polo di Piave, Italy-based INglass-HRSFlow recently agreed to terms with NAI Wisinski of West Michigan to purchase land to make hot-runner systems for plastic injection molding in Byron Center Township, at 720 74th St. SW, according to The Right Place, a regional economic development nonprofit, on Wednesday.
The company plans to create 109 over the next four years.
INglass, formerly named Incos, was founded in 1987. The global company is a simple supplier of molds and hot runner systems.
Dr. Peter Linneman, NAI Global’s Chief Economist, authored his newest white paper titled “The Tale of Two Cycles”.
This paper includes:
- Why every real estate cycle is similar yet different.
- Why in the crashes of the early 1990s and 2009, there was an abundance of supply for too little demand.
- Why both crashes offer distinctive features and lessons for the future.
- How development booms were fueled by easy money.
- Why, in any crash, there are winners and losers.
Developer unveils 14-story apartment tower for downtown Grand Rapids
By Jim Harger | firstname.lastname@example.org (From Mlive)
GRAND RAPIDS, MI
It’s the largest project yet for Brookstone Capital, Chew’s Midland-based company that has seven housing projects either completed or underway in the city’s downtown, Heartside Neighborhood and Southeast Side.
Chew said his $35 million to $40 million project will include 54 market rate units and 54 affordable housing units that will be eligible for low income housing credits from the Michigan State Housing Development Authority.
Ranger Die is heading to Coopersville
By David Czurak (From Grand Rapids Business Journal)
The former Best Packaging building in Coopersville is about to become the new best home for Ranger Die Inc.
The longtime Walker-based manufacturer recently closed with Coastal Container on the 107,000-square-foot building that has sat vacant for more than three years. Ranger Die, which has been in Walker since 1955, will begin moving soon and plans to be up and running with its 95 employees at 1300 W. Randall St. by October.
Ranger Die does tooling and metal stamping. The company designs and builds tooling that is statistically capable and ready to print. It also is an ISO-registered metal-stamping facility that ships 1.5 million parts each month.
NAI Wisinski of West Michigan wishes good luck to associate broker Chad Versluis! This week he begins a two month biking trip with his son. This is the last summer before his son attends college, and the 3,900 mile trip will be a great bonding experience. Since Chad and his son have already completed 1,000 practice miles, they are ready for the challenging average of 70 miles a day, six days a week! Chad and his son will be camping with 200 other bikers, 80 of whom will complete the trip with them.
To read more about the Sea to Sea program or to track the progress of the trip visit http://seatosea.org/.
Rockford Development unveils new project
Housing complex is planned for city’s west side.
From the Grand Rapids Business Journal written by David Czurak
The Grand Rapids Brownfield Redevelopment Authority gave its blessing to a new residential project for the city’s northwest side, which is the first step to make the proposal a reality.
Rockford Development plans to invest $2.4 million into a four-building residential complex on the corner of Douglas Street and Seward Avenue, just a block south of Bridge Street. The property was home to an American Legion building that closed in 2007. The site offers about 17,000 square feet of buildable space.
“Our plan is to build four residential units,” said Mike Mraz, vice president of development for Rockford Development.
Riverside Senior Care gets authority’s OK
Northern Michigan developer wants to convert school into senior housing.
From the Grand Rapids Business Journal written by David Czurak
A Harbor Springs multi-family housing developer had its plan amendment approved by the Grand Rapids Brownfield Redevelopment Authority for a new senior living center on the city’s northeast side.
G.A. Haan Development wants to turn the former Riverside Elementary School at 2420 Coit Ave. NE into an assisted living and memory care facility for up to 55 seniors. The Grand Rapids Public Schools system closed Riverside in 2010 and sold the 36,000-square-foot building and its site to Haan Development last year.
“The property qualifies as being functionally obsolete,” said Jonathan Klooster of the brownfield authority.
“Total investment in the project is estimated to be $6.8 million, resulting in 51 new jobs with wages ranging from $11 to $35 per hour,” added Klooster.
New development on Ionia to get underway soon
Brookstone Capital will add new residences and retail downtown.
From the Grand Rapids Business Journal written by David Czurak
At its last meeting, the Grand Rapids Brownfield Redevelopment Authority unanimously approved an amended work plan to redevelop a vacant parcel at 240 Ionia Ave. SW and authorized a development and reimbursement agreement for the project being done by Brookstone Capital.
Brookstone Capital of Midland plans to build a $15 million, seven-story residential and retail structure on the property across Ionia from Heartside Park. The project includes creating 60,000 square feet of space for 48 one- and two-bedroom apartments, mostly the low-income variety, and 4,600 square feet of space for ground floor retail.
The blood drive will be held from 9:00 am to 1:00 pm in Suite 200 of our building at 100 Grandville Ave SW, Grand Rapids, MI 49503
To help save a life and register for a time slot, please contact Ann Yarnal at 616-242-1119 or by email at email@example.com.
Dave Smies and Stu Kingma were both given awards for Top Industrial Leasing Brokers, Bill Tyson was recognized as a Top Retail Leasing Broker, and Stan Wisinski and Mary Anne Wisinski-Rosely were both recognized as Top Sales Brokers.
In addition, NAI Global as a whole was well represented, bringing in 132 individual awards and 91 firm awards across the country.
By: David Czurak
From the Grand Rapids Business Journal
The combined cities of Grand Rapids and Wyoming were named by Site Selection magazine as the nation’s tenth ranked metro area among locales with a population between 200,000 and 1 million.
Dayton, Ohio, captured the top spot in that category.
Site Selection has made these awards annually since 1978 and it focuses on “new corporate facility projects with significant impact” to compile its rankings.
WASHINGTON (February 25, 2013) – Major commercial real estate sectors continue to improve, albeit slowly, with gradual economic improvement and job creation driving absorption of space, according to the National Association of RealtorsÒ quarterly commercial real estate forecast.
Lawrence Yun, NAR chief economist, said rental housing demand has been exceptionally strong. “Rent increases have been higher in multifamily housing where supply is not matching strong demand, thereby allowing landlords to raise rents at faster rates,” he said. “Overall commercial real estate leasing activity continued to grow in most markets during the closing months of 2012, which is modestly lowering vacancy rates in all of the commercial sectors early this year.”
National vacancy rates over the coming year are expected to decline 0.4 percentage point in the office market, 0.4 point in industrial, 0.3 point for retail and 0.1 point in multifamily, with that sector experiencing the tightest availability.
“Business spending is expected to rise faster in 2013 because of record high corporate profits. Low interest rates also are permitting companies to improve their balance sheets,” Yun said.
NAR’s latest Commercial Real Estate Outlook1 offers projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data for metro areas were provided by REIS, Inc.,2 a source of commercial real estate performance information.
Vacancy rates in the office sector are forecast to fall from a projected 16.0 percent in the first quarter to 15.6 percent in the first quarter of 2014.
The markets with the lowest office vacancy rates presently (in the first quarter) are Washington, D.C., with a vacancy rate of 9.4 percent; New York City, at 9.6 percent; and Little Rock, Ark., 12.1 percent.
Office rents should increase 2.6 percent in 2013 and 2.8 percent next year, following a 2.0 percent gain in 2012. Net absorption of office space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is expected to total 34.0 million square feet this year and 42.3 million in 2014.
Industrial vacancy rates are likely to decline from 9.6 percent in the first quarter of this year to 9.2 percent in the first quarter of 2014.
The areas with the lowest industrial vacancy rates currently are Los Angeles and Orange County, Calif., each with a vacancy rate of 3.6 percent; Miami, 5.6 percent; and Seattle at 6.0 percent.
Annual industrial rents are projected to rise 2.3 percent this year and 2.6 percent in 2014, after increasing 1.7 percent last year. Net absorption of industrial space nationally is likely to total 121.8 million square feet in 2013 and 103.5 million next year.
Retail vacancy rates are forecast to slide from 10.7 percent in the first quarter of the year to 10.4 percent in the first quarter of 2014.
Presently, markets with the lowest retail vacancy rates include San Francisco, 3.5 percent; Fairfield County, Conn., at 4.2 percent; and Orange County, Calif., 5.2 percent.
Average retail rents will probably rise 1.5 percent in 2013 and 2.1 percent next year, following a 0.8 percent gain in 2012. Net absorption of retail space is seen at 11.9 million square feet in 2013 and 16.4 million next year.
The apartment rental market – multifamily housing – should see vacancy rates ease from 4.0 percent in the first quarter to 3.9 percent in the first quarter of 2014; vacancy rates below 5 percent generally are considered a landlord’s market with demand justifying higher rents.
Areas with the lowest multifamily vacancy rates currently are New Haven, Conn., at 2.0 percent; New York City, 2.1 percent; and Minneapolis and Syracuse, N.Y., each at 2.5 percent.
Average apartment rents are expected to increase 4.6 percent this year and 4.7 percent in 2014, after rising 4.1 percent in 2012. Multifamily net absorption is projected at 270,600 units in 2013 and 253,200 next year.
The Commercial Real Estate Outlook is published by the NAR Research Division. NAR’s Commercial Division, formed in 1990, provides targeted products and services to meet the needs of the commercial market and constituency within NAR.
The NAR commercial community includes commercial members; commercial real estate boards; commercial committees, subcommittees and forums; and the NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.
Approximately 78,000 NAR and institute affiliate members specialize in commercial brokerage and related services, and an additional 232,000 members offer commercial real estate services as a secondary business.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. For additional commentary and consumer information, visit www.houselogic.com and http://retradio.com.
1Additional analyses will be posted under Economists’ Outlook in the Research blog section of Realtor.org in coming days at: http://economistsoutlook.blogs.realtor.org/.
2Beginning in the third quarter of 2011, NAR commercial forecasts have been generated based on historical data provided by REIS, Inc., and do not correspond with prior historical information from previous forecasts. This source permits coverage of more metro areas than were previously covered.
The next commercial real estate forecast and quarterly market report will be released on May 28 at 10:00 a.m. EDT.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the “News, Blogs and Videos” tab on the website. Other commercial information and reports are posted in the Commercial Research area of the “Research and Statistics” tab.