President's Letter
By Ray Kisor, MiCAR President
Grubb & Ellis/Paramount Commerce, Grand Rapids, MI

I am pleased to serve MiCAR as the 2007 President. The MiCAR board has had its first meeting of the year and it looks like we have some challenges, however, I am confident we will overcome.

First of which is getting the MiCAR name and value to be known by more commercial practitioners throughout the state. MiCAR is in the beginning stages of a brand awareness campaign. Yet this month, you will receive the chance to participate in an online survey. Please take the time to give MiCAR your feedback so we can better assess what you might already know about MiCAR, and your perception of its services.

I would also encourage you to learn more about MiCAR by visiting MAR’s Web site and clicking on the MiCAR link at the top. Or you can directly link to the site here.

I look forward to serving the state’s commercial interests throughout 2007.

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MiCAR Announces 2007 Board Representatives

The MiCAR Board is pleased to announce the following appointments have been made.

President - Raymond Kisor, Grubb & Ellis/Paramount Prop

President-Elect - Randall Thomas, Colliers International

Treasurer - Van Martin, CB Richard Ellis

MAR Board of Director Rep - Mark Piper, Piper Realty Company

Northern Michigan Rep - Michael Schmidt, Coldwell Banker Schmidt

Commercial Alliance of REALTORS® Reps

Rodney Alderink, Taatjes & Tol Inc.

Michael Cagen, Marcus & Millichap

Mary Anne Wisinski Rosely, SJ Wisinski & Company

Commercial Board of REALTORS® Reps

Richard Birdsall, Signature Associates

Nicholas Maloof, Associated Environmental Serv.

William Milliken Jr., Milliken Realty Company

Public Policy Update

Commercial Broker Lien – SB 1099 – SUPPORT
The MAR worked closely with Sen. Mike Bishop in modeling this legislation after the Construction Lien Act to protect rightfully earned commissions of our commercial members. The introduction of the legislation raised some concern among other interest groups such as the Michigan Bar Association, Michigan Land Title Association, and BOMA. A majority of the concerns stem from the recording gap that is present in many county registers of deeds, most prominently, Wayne County.

The bills were effectively held from committee by the majority policy staff until all sides could air their concerns. In the spirit of cooperation MAR continued to explore a “Florida-type” compromise which places the lien on the proceeds from the sale rather than the real property itself. Members of MiCAR were less than enamored with the approach given that it requires the broker to have knowledge of when and where the closing will take place.

Though the 2005-2006 legislative session has come to a close look for the reintroduction of this legislation as it was introduced last year.

Real Estate Enforcement Fund Expansion – HB 6267 – Support

This bill expands the authority of the Attorney General and the Department of labor and Economic Growth to utilize the existing Real Estate Enforcement Fund to investigate and prosecute unlicensed activity and real estate fraud. The FBI recently ranked Michigan among the top five states in the country in incidents of fraud and this legislation became important to address the growing problem and the changing face of fraudulent activity in Michigan.

The legislature passed HB 6267 before session ended and it is now awaiting the Governor’s signature. Appropriations were made in this year’s AG budget to make sure this money is going to the purpose for which it was intended.

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Commercial Real Estate Looks Good for 2007

The bull market in commercial real estate made 2006 a record year, and many believe 2007 will be just as good.

"There's just a lot of cash in the system chasing assets that throw off a yield," says Michael H. Winer, who manages the Third Avenue Real Estate Value Fund. "As long as the liquidity is there, the prices will hold up."

Prices for a square foot of office space were up 17.2 percent in 2006 to $218, from $186 in 2005, according to Real Capital Analytics, a New York research firm. Warehouse and industrial space jumped 8 percent to $68 a square foot in 2006 from $63 in 2005. Retail space, such as malls and strip centers, was up 10 percent.

The increases in rents — up 2 percent in the third quarter alone — and the low vacancy rate, 13.5 percent, further supports the idea that 2007 will be rosy.

Source: NAR Daily Real Estate News

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MiCAR Monthly
January 2007

• President's Letter

• MiCAR Announces 2007 Board Representatives

• Public Policy Update

• Commercial Real Estate Looks Good for 2007