Posts tagged Stu Kingma
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.
At the Commercial Alliance of Realtor’s Annual Award Reception on Tuesday, Mary Anne Wisinski-Rosely of NAI Wisinski of West Michigan was named this year’s Realtor of the Year. “I feel honored to have received this award, especially since I was selected by my peers,” Mary Anne said of the accomplishment. Not only did she broker nearly $50 million in commercial real estate transactions in 2012, but she sat as the President of CAR’s board and represented CAR at multiple Michigan Association of Realtor (MAR) and National Association of Realtor (NAR) events.
This is now NAI Wisinski’s fourth Realtor of the Year award in five years. Last year Rod Alderink took home the award. Prior to that was Doug Taatjes (2010) and Stu Kingma (2009). “Our company has been well represented with this award,” said Jim Decker, President of NAI Wisinski. “We have much to be proud of and thankful for.”
From the Grand Rapids Business Journal
Before Robert Grooters revealed his plan to build more than a million square feet of new industrial space this year — some of which will be used for storage — Stu Kingma told the Business Journal the warehousing segment of the market will need more space soon.
Kingma, an associate broker with NAI Wisinski of West Michigan, also called Grooters an iconic figure in that conversation for how much space he built roughly two decades ago — and credited him for being the catalyst for developing a majority of the warehousing square footage that is still in use.
Since then, some manufacturing buildings have been converted to storage space. Kingma estimated roughly 25 million square feet is devoted to warehousing today. Those square feet represent about a quarter of the total square footage in the entire industrial real estate market, which, up to recently, has been too much.
“For the last half-dozen years or so, it’s been an excess of space in terms of its capacity,” Kingma said. “A lot of the manufacturing operators — as they went through the recession and as a consequence of that recession — their sales downsized, as did their requirement for space.
“So we had manufacturers throughout the boom years expand outside their four walls and acquire warehousing space on the outside to be able to keep up with their sales demand,” he said. “But once that sales demand slacked, they had less of a need for it and, in many cases, retrenched back into their plants and set aside a component of that space for warehousing.
“So for the past four or five years, there has been an oversupply of warehouse space,” Kingma said.
Kingma feels there still is a surplus of storage space, but not nearly to the degree of just a few years ago. He said companies looking for warehouse space today can still find some, although their choices will be limited based on how much space they need and where they want that space to be.
“The sector near the airport has tightened up substantially,” he said. “There is space left, but not anywhere near the amount of square footage there was 18 months ago.”
Kingma said the southwest sector of the market has also tightened up, and, right now, he is doing deals for storage space on the northwest side.
“Those will take a good part of that inventory and put it back into use,” he said. “And it’s local manufacturers that are re-acquiring space — either on a direct basis or through a third-party logistics company that manages their outbound and inbound supply chain and distribution function.”
That demand has lifted real leasing rates, not the asking variety, by 15 percent over the last year and a half.
Kingma feels if the current space-consumption trend continues, more warehousing space will be needed down the road.
“I believe that’s going to be the case,” Kingma said. “I think the spaces we do have available today will continue to be absorbed, and, at some point, it’s going to be such that the choices won’t be there.”
If nearly all of today’s available space is leased or bought and the market is, for all practical purposes, filled in the near future, it won’t be the first time that has happened here.
“We had that problem six or eight years ago where we had demand for space that we simply couldn’t fill and that prompted some build to suits to take place,” he said. “We’re not there yet, though, for two reasons.”
First, Kingma said there are still opportunities to find vacant space today, although not as many as 18 months ago. Second, construction costs are still very high in relation to what someone can pay for existing space today.
“But that’s starting to narrow, especially on the sales side, and, eventually, it’s going to have to be shovels in the ground to satisfy the demand,” Kingma said. “We’re not there yet, but we’re light years closer than we were 18 months ago.”
On Wednesday November 9th, Stu Kingma was given the opportunity to present at the 25th Annual University of Michigan (UM) & Urban Land Institute (ULI) Real Estate Forum. The UM/ULI Real Estate Forum is a non-profit volunteer organization dedicated to enhancing real estate education both professionally and at the university level. For twenty-five years they have been celebrating best practices in Michigan real estate. Professionals in real estate, development, and academia were all present at the forum. This year, the Forum’s focus was on identifying opportunities.
PricewaterhouseCoopers (PwC), along with the ULI published “Emerging Trends in Real Estate 2012” and ranked Detroit dead last among U.S. cities in terms of investment and development among other things. Stu was part of a Local Response Panel and discussed recent opportunities in West Michigan. Stu’s goal, along with the rest of the Forum, was to refute the claims of the PwC report. “Even though the PwC numbers show Detroit is lagging behind the rest of the country, great things are happening here,” Stu says. “I especially wanted to demonstrate that great things are happening in West Michigan as well. We are sustainable and growing in many sectors.”
Some of the topics Stu covered include the manufacturing rebound, the growing medical sector, food manufacturing, and the advanced battery production sector for vehicle use.