A friendly reminder that we are hosting another blood drive this Friday from 9 am to 1 pm in our building. If you would like to participate, please register in advance. You can set up an appointment with Vicki Tolan (616-776-0100 or email@example.com) or register online at https://donate.miblood.org/portal/ by using sponsor code “NAI”.
Please remember, a photo ID is required and all donors should eat well and drink plenty of fluids prior to donating.
Thank you in advance for making this blood drive another successful one!
It’s that time again. Join us September 7th from 9 am to 1 pm for another blood drive put on by Michigan Blood. It will be held in the garden level of our building at 100 Grandville Ave SW. To set up a time to give, please contact Vicki Tolan at 616-776-0100 or by email at firstname.lastname@example.org. Your participation is greatly appreciated!
FIRST QUARTER SOLD REPORT RELEASED
Commercial real estate in West Michigan is continuing to show increased activity and growth, according to recently released first quarter closed sales statistics reported to the Commercial Alliance of REALTORS®.
The number of commercial sale transactions reported for the first quarter of 2012 has increased 23.8% compared to the first quarter of 2011. Retail and office transactions reveal a large increase in activity, with increases of 45.8% and 40% compared to 2011. The industrial sector, which showed huge growth in 2011, reported two fewer transactions in the first quarter of 2012, than in 2011.
Overall commercial real estate sales volume correlates directly with the slow down in the industrial sector. While office sales soared with a 109% increase over 2011, and retail showed steady growth at 7.2%, sales volume for industrial properties declined by 63.9%.
The slow down in the industrial sector is not necessarily indicative of a lack of demand for industrial property. “The industrial sector is experiencing something that hasn’t been seen for several years – the need for new construction of manufacturing and warehouse space. The current inventory of larger footprint industrial space is extremely limited, ” stated 2012 CAR President Mary Anne Wisinski-Rosely, of NAI Wisinski West Michigan. “The office and retail sectors increases in both the number of transactions and volume demonstrates the strength and viability of doing business in West Michigan.”
COMPARATIVE ACTIVITY REPORT – CLOSED SALES
|First Quarter 2011/ First Quarter 2012|
|NOTE: This report reflects closed sales reported to Commercial Alliance of REALTORS
from the West Michigan area, particularly Kent, Ottawa, Muskegon, Allegan and Kalamazoo Counties.
This report does not include leasing activity.
|Property Type||Number of Transactions 2011||Number of Transactions 2012||% Change|
|Property Type||Real Estate Sold 2011||Real Estate Sold 2012||% Change|
It was a little less than two decades ago that local business leaders could see what was unfolding in West Michigan. The industrial sector was steadily declining, and companies were either going out of business or moving away. It was evident that something had to be done.
That’s when two hometown heroes, Amway founders Richard DeVos and Jay Van Andel, proposed their vision to turn Grand Rapids into one of the top medical services cities in the world. Their leadership and philanthropic efforts spurred a series of events, forever changing the landscape, mentality and image of Grand Rapids.
One of the city’s first streets, Michigan Street, running parallel to I-196, was the initial site of their vision. In 1996, Jay and Betty Van Andel founded the Van Andel Institute. They broke ground in 1998, and the Van Andel Institute opened its doors in 2000. The institute is now home to scientific research that is focused primarily on cancer and Parkinson’s disease and has received more than $1 billion in research funding.
The original development was a $60 million facility. In 2010, the institute opened a second phase with an additional 242,000 square feet at a cost of $175 million.
Butterworth Hospital, now part of Spectrum Health, sits atop the hill on Michigan Street. In 1993, the Helen DeVos Women and Children’s Center moved to the site working as part of Spectrum Health.
In 2011, the Helen DeVos Children’s Hospital opened its doors to a 440,000-square-foot facility at a cost of $286 million, largely funded by the DeVos family. Spectrum Health combined with other local generous donors to found the Meijer Heart Center and the Lemmen-Holton Cancer Pavilion, costing about $137 million and $78 million, respectively.
The Medical Mile is host to Michigan State University’s (MSU) College of Human Medicine, Grand Valley State University’s (GVSU) Cook-DeVos Center for Health Sciences, Grand Rapids Community College’s Calkins Science Center, and Ferris State University’s pharmacy program.
MSU’s building is 180,000 square feet, and GVSU’s is 217,000 square feet, costing $90 million and $57 million respectively. In total, more than $1.2 billion has been invested in the Medical Mile and the surrounding area on world-class medical facilities.
The problem isn’t a lack of interest in the Medical Mile, but rather a lack of space. The corridor has barriers on all sides: the freeway to the north; the Grand River to the west; Heritage Hill, a historic part of Grand Rapids with 1,300 homes dating back as far as 1848 to the east and south; and the rest of downtown to the southwest.
The developers of Midtowne Village, a six-building complex that houses the 100,000-square-foot Women’s Health Center, had to get the zoning of their site changed as well as purchase and demolish 46 homes.
Other organizations are beginning to look for vacated buildings that can be occupied for their use. GVSU plans to cross the expressway to the north and develop another site for medical use, and MSU is in the process of acquiring the old Grand Rapids Press building that remains vacant with the presses still inside.
Last Week, Dr. Peter Linneman of NAI Global hosted a web conference on the global economic recovery. His presentation covered all aspects of commercial real estate, the general welfare of the economy, and thoughts on what needs to be done to help the recovery. Some key talking points from the presentation are below:
- Low demand for development (Commercial construction at a 50 year low)
- Household formation is up, but still remains low (High unemployment rate for household formers)
- GDP has rebounded, but still worse off (3%) on a per capita basis due to a 3% increase in population
- The economy is adding jobs, but we still have a long way to go (Have only recovered 21% of jobs across the nation)
- Pent-up households are declining
- Vacancy rates are declining slightly across the board (Industrial, Office, Multi-Family)
- Retail sales are back up (Still 3% less due to population increase)
To listen to the web conference in its entirety, click here to register.
Dr. Linneman, widely recognized as one of the leading strategic thinkers in the real estate industry, was recently cited as one of the 25 most influential people in real estate by Realtor Magazine. He serves as Principal of Linneman Associates.
Have you been downtown Grand Rapids to see ArtPrize Yet? Did you know about the ARTchitecture Tour? There are QR codes on six buildings throughout downtown Grand Rapids that will link you to the the history and architectural features of that building. This is part of CARWM’s “Do the Driveby” campaign. The QR codes will link you to a site where you will also be able to enter for a chance to win a free iPad!
Won’t be able to make it downtown? You can still participate in the ARTchitecture Tour from home! Just go to www.carwm.com and click on “Do the Driveby”. From there you can view the buildings that are part of the tour and also enter to win the iPad!
Look for posters like this one!
Jacquelyn Smith, Forbes Staff
Employers in all 50 states expect the bleak employment picture to perk up during the three-month period ending in September. In fact, hiring managers in dozens of metropolitan areas anticipate considerable increases in hiring, while others present a darker forecast.
The employment services firm ManpowerGroup has surveyed more than 18,000 employers in 100 metropolitan areas to find out who’s hiring, who’s firing and who plans to maintain their current staff levels in the third quarter of 2011, July through September. Of the surveyed employers, 20% anticipate an increase in staffing levels in their second quarter hiring plans, while 8% expect a decrease in payrolls. The difference between those numbers gives you what ManpowerGroup calls a net employment outlook of 12%–or 8% when seasonally adjusted, which is still up from 6% for the same period last year. Sixty-nine percent of employers expect no change in their staffing, and the final 3% of employers are uncertain.
The survey reveals that the metropolitan area with the most optimistic forecast of all for hiring this summer is Grand Rapids-Wyoming, Michigan.
“This is the strongest outlook we’ve seen in the Grand Rapids-Wyoming market in almost three years,” says Melanie Holmes, a vice president at ManpowerGroup. “The market results are considerably more optimistic than last quarter and one year ago. Among our clients, we’ve seen real strength among manufacturing employers as well as a demand for clerical and customer service support.”
The Grand Rapids-Wyoming region enjoys a 24% net employment outlook, the percentage of employers that expect to add employees (30%) minus the percentage that expect to reduce their workforce (6%). Another 61% said they anticipate no change, and 3% didn’t know.
“This does not come as a surprise,” says Kevin Stotts, vice president of community programs at the Grand Rapids Area Chamber of Commerce. “The employers I have spoke with, either large or small, have been very optimistic over the past several months. In fact, a persistent challenge with many employers in the area has been finding qualified talent to meet their needs. While specific sectors may not have rebounded as quickly, most are doing better than 2010, which was a strong year.”
To read the rest of the Forbes article, please click here.
Michigan Small Business and Technology Development Centers land $1.6 million federal grant to drive job growth
By: Mark Sanchez
$1.6 million in federal money will enable Michigan’s Small Business and Technology Development Centers to boost their ability to aid small businesses.
The two-year grant will go to hire nine financial and strategy consultants to work with SBTDC clients around the state to sharpen their financial management and strategic planning.
Consultants will work with small businesses that are in a growth mode and want to diversify, and need some assistance identifying the future and how to get there, said Teresa Sickles, a manufacturing and financing tools specialists with the Michigan SBTDC.
“They’ve evolved to a second-stage business to where they are taking it to the next level and where they are saying, ‘We really want to grow that business,’” Sickles said.
The grant was available through $50 million allocated in the Small Business Jobs Act of 2010. The Michigan SBTDCs are among the first in the U.S. to receive the federal funding.
The Michigan SBTDC, housed at Grand Valley State University in Grand Rapids, opted to target small businesses that are on the cusp of growth and need to become more sophisticated in their financial management because they have the greatest potential for job creation, Director Carol Lopucki said.
“That where the jobs are created,” Lopucki said. “They are certainly the ones positioned for making the job growth that Michigan is looking for right now.”
The Michigan SBTDC — which plans to focus the effort primarily, but not exclusively, on small manufacturers — has set goals of providing 13,500 hours of counseling over two years and assisting clients in securing $90 million in capital, retaining 450 jobs and creating 1,800 new jobs.
Other SBTDCs receiving the first round of funding through the Small Business Jobs Act are in Alaska, California, Idaho, Iowa and South Carolina. The Michigan SBTDC received the largest of the six grants.
The Michigan Economic Growth Authority (MEGA) today approved tax incentives for nine companies choosing to expand or locate in Michigan. According to the companies’ estimates, the approved projects are expected to generate up to $89.4 million in new private investment, and create and retain a projected 1,222 direct jobs in communities across the state.
“As we work to foster business opportunities across a wide spectrum of sectors, we’re using every tool in our economic-development arsenal to leverage the kinds of public-private partnerships — like the ones announced today — that attract investment and create jobs for Michigan workers,” said Michael Finney, President and CEO of the Michigan Economic Development Corporation (MEDC).
The MEGA board approved incentives to win the following projects for Michigan over competing states and countries:
- Avon Protection Systems Inc. — The wholly owned subsidiary of Avon Rubber and the manufacturer of gas masks plans to invest $600,000 to expand production of gas masks for first responders, as well as specialized filters for the military, in Cadillac. The company expects the project to create up to 143 direct new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $596,354 over six years to convince the company to expand in Michigan over a competing site in Maryland. The City of Cadillac is considering an abatement in support of the project. http://www.avon-protection.com/
- Changan US Research and Development Center Inc. – The new-to-Michigan auto company is fully owned by Changan Automobile Co. Ltd., one of the largest automakers in China. The company plans to invest $7 million and lease a facility in Plymouth Twp. to conduct analysis, testing, simulation and verification activities for the auto industry. The company expects the project to create up to 161 direct new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.7 million over seven years to convince the company to locate in Michigan over competing sites in Ohio, California and China. The Charter Township of Plymouth is considering an abatement in support of the project. http://www.globalchana.com/
- Chemetall US Inc. – The developer, manufacturer and supplier of state-of-the-art specialty chemicals plans to invest $20.7 million to build a new manufacturing facility in Jackson. The company expects the new plant to retain up to 74 existing jobs. The plant will be the largest plant in the company’s history, occupying 200,000 square feet with room for expansion on 40 acres. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $810,511 over five years to support Chemetall’s decision to base its operations in Michigan over competing sites in Indiana and Kentucky. Blackman Charter Township is considering an abatement to further support of project. www.chemetallamericas.com
- Crain Communications Inc. – One of the largest privately owned business publishers plans to invest over $3.6 million in facilities and website development over the next several years at its Detroit location in a major expansion of its AutoWeek.com website. The company expects the project to create up to 50 direct new jobs during this time. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $443,229 over five years to convince the company to expand in Michigan over a competing site in Illinois. The city of Detroit is in support of the project. http://www.autoweek.com/ and http://www.crain.com/
- The MACOMB GROUP – A premier distributor of pipes, valves, fittings, and related products plans to invest $6.5 million to consolidate its four metro Detroit facilities into one significantly larger Sterling Heights location to eliminate redundancies, increase its fabrication capabilities, and improve operational efficiencies. The company expects the project to retain 107 existing jobs with an eye toward continued future growth. Based upon the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1 million over six years to help convince the company to expand in Michigan over a competing site in Ohio. The city of Sterling Heights is considering an abatement in support of the project situated within their SmartZone. http:/www.macombgroup.com/
- Macprofessionals Inc. – The company with the largest staff of Apple-certified technicians in the United States plans to invest $2.2 million to expand in Novi to support significant growth in its operations. The company expects the project to create up to 119 direct new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $568,578 over five years to encourage the company to expand in Michigan over a competing site in Texas. The city of Novi is supportive of the project. http://www.macprofessionals.com/
- Martinrea Jonesville LLC – The tier one automotive supplier of underbody components plans to invest $15.9 million in a 50,000 square-foot expansion at its current facility in Jonesville. The company expects the project to create up to 168 direct new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $989,769 over five years to encourage the company to expand in Michigan over a competing site in Mexico. The village of Jonesville is considering an abatement in support of the project. http://www.martinrea.com/Public/Home.aspx
- MTU Detroit Diesel Inc. – The manufacturer and servicer of diesel engines and propulsion systems for off-highway applications such as marine, rail, defense vehicles and power-generation systems plans to invest up to $32 million to retain its headquarters and to establish a logistics center as well as a potential future training center. The logistics center would locate in the Charter Township of Brownstown. The company, which is owned by Tognum AG, Germany, expects the project to create up to 115 direct new jobs and retain 245 existing jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at up to $7.5 million over eight years to encourage the company to expand in Michigan over a competing site. http://www.mtu-online.com/mtu-northamerica/mtu/mtu-in-north-america/
- NU-VU Food Service Systems – The manufacturer of commercial food service equipment plans to invest $950,000 to expand its operations in Menominee by purchasing the assets of another company. The company expects the project to create up to 40 direct new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $90,201 over three years to encourage the company to expand in Michigan over competing sites in Vermont and Illinois. The city of Menominee is considering an abatement in support of the project. http://www.nu-vu.com/
Companies eligible for a MEGA Employment Tax Credit against the MBT are those engaged in manufacturing, mining, research and development, high technology, wholesale and trade, film and digital media, office operations, and tourism projects as defined by state law. Generally, retail facilities are not eligible. A company may receive a MEGA agreement specific to its circumstance, as defined in statute as High Tech, High Wage, Retention, Standard or Rural MEGAs.
The MEGA board is also empowered under statute to award Brownfield Redevelopment tax credits to support new business expansion projects on property that is contaminated, blighted or functionally obsolete.
Further details on the MEGA MBT tax credits are available online:
Snyder asked the Legislature to make adequate funding for this promotion a priority during his Jan. 19 State of the State address. He signed the bill at the Henry Ford Museum, one of the state’s top tourist attractions.
“The Pure Michigan campaign delivers results,” Snyder said. “It is an investment that provides a positive return on our tax dollars by fueling tourism statewide. When we tell the rest of the country what Michigan is all about, it is clear that vacationers and job providers begin to see our state as the place to live, work and play. I applaud the Legislature for its swift action in ensuring that this worthwhile program is adequately funded.”
The new law provides Pure Michigan with a more permanent funding stream by establishing Michigan’s 21st Century Jobs Fund as a legal funding source for tourism promotion. It also adds $10 million to the Legislature’s current Pure Michigan appropriation of $15 million for this fiscal year. In addition, the law requires the Michigan Strategic Fund to annually report details of the campaign’s expenditures to the House and Senate appropriations subcommittees that oversee economic development.
The award-winning radio and television promotion highlights Michigan as a travel destination and has generated nationwide praise since its launch about five years ago. However, the campaign has not had a steady and secure funding source.
Snyder also announced that the 2011 Pure Michigan national cable television advertising buy begins Monday, March 14 on 24 cable networks. The budget for this ad buy is $11 million, the largest ever, with $1 million of that coming from the private sector. This is the third year for national Pure Michigan advertising but the first time that private-sector advertising partners are included in the campaign.
The Henry Ford and Mackinac Island each contributed $500,000 to participate in the national cable advertising, and there will be a commercial about each of them among the Pure Michigan commercials airing nationally. Pure Michigan television commercials will air nationally 4,500 times during this buy, which runs through June on the following cable networks: A&E, ABC Family, Animal Planet, Bravo, CMT, CNN, Cooking Channel, E!, Food Network, Fox, Golf Channel, HGTV, Lifetime, Lifetime Movie, MSNBC, Nick at Nite, OWN, Oxygen, Style, TLC, Travel Channel, USA, WE and the Weather Channel.
Pure Michigan is ranked among the Top 10 tourism campaigns of all time by Forbes magazine. It has enhanced Michigan’s image as a travel destination and has increased the number of leisure trips to the state as well as the amount of spending by travelers and associated tax revenues, according to the Michigan Economic Development Corp. One private study shows that every dollar spent on Pure Michigan generates more than $3 in revenue for the state.
The legislation, House Bill 4160, is sponsored by state Rep. Wayne Schmidt, R-Traverse City. It is now Public Act 3 of 2011