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

Dear Members,

It is hard to believe it is September! What a great summer we had in spite of the challenges with the economy and trying to understand the implications of the proposed MBT replacement tax. I can only encourage you to take the time to study the impact now and act accordingly because when it is on the books you will have to live with it. This is not a simple process and I applaud Rob Campau, Brad Ward and Bill Martin for their diligent pursuit of fairness on our behalf. Please communicate your concerns to MAR. I understand the next 60 days is the period for tweaking this legislation.

The MAR Convention this month will be hosting a commercial track on the 27th. This is not a must attend but it is an easy and comfortable way to fulfill any shortfall in your CE requirements while relaxing in Mt. Pleasant.

October 12th in Southfield, MiCAR and Midwest Real Estate News are sponsoring “Industry & Legal Update”. This will have two hours of legal CE credit.

November 7th-8th in Troy, MiCAR and UM-ULI will sponsor the annual FORUM. This is always a well-attended and informative event.

I am excited about the direction MiCAR is headed, we are trying to be responsive to last years task force headed by Joe Banyai to determine the needs of our membership. If you have any thoughts or concerns please call or e-mail me.

Remember, “What you do speaks so loudly, that I can not hear what you say.” - Ralph Waldo Emerson

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Tax Hikes, Reforms focus of 2008 Budget
Senate, House Leaders to address donors on budget crisis

As summer is winding down, the legislature is heating things up with floor debates and late night sessions to work on solving the $1.75 billion gap in the 2008 budget. The budget process is being closely monitored by all, especially with talks swirling about a potential government shutdown, tax hikes, and various cuts. Last week, plans that included putting a sales tax increase on the ballot in November, along with a temporary income tax hike were squashed, sending the House and Senate back to work on other ideas and initiatives to raise revenue for the state. Although the House and Senate are in agreement that a balanced budget is quickly needed, partisanship has positioned itself into the negotiations, and both chambers are now placing the blame of an incomplete budget solution on each other. Now, House leadership wants to pass a balanced budget by this Friday that includes some form of a tax increase, while the Senate majority maintains their firm stance on reforming government spending first.

The relationship between the Democratic-controlled House and the Republican- led Senate makes the 2008 budget talks highly intriguing. The MAR is pleased to announce that both Senate Majority Leader Mike Bishop (R-Rochester) and House Speaker Andy Dillon (D-Redford) will be the featured guest speakers at the RPAC Recognition Breakfast, on Thursday, September 27th at 7:00am in the Saginaw Room during this year’s MAR Convention. Moderated by Tim Skubick, the breakfast will provide an opportunity to hear both legislative leaders on their plans to solve the 2008 budget, and get Michigan’s economy moving. The breakfast is a ticket-only event for RPAC donors who have contributed $100 or more.

To RSVP, please email Tony Daunt at tdaunt@mirealtors.com.

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Commercial Real Estate Index Continues Rise in Second Quarter

A forward-looking index for the commercial real estate market recorded its ninth consecutive improvement in the second quarter, according to the National Association of REALTORS®. The Commercial Leading Indicator for Brokerage Activity rose 0.5 percent to an index of 120.7 in the second quarter, the highest on record, from a downwardly revised reading of 120.1 in the first quarter, and is 1.1 percent higher than the second quarter of 2006 when it stood at 119.7. NAR’s track of the index dates back to 1990. Lawrence Yun, NAR senior economist, said the commercial sectors are benefiting most from rises in industrial production, shipments of durable goods and wholesale trade. “Despite some signs of slower overall economic expansion, the rise in the index means net absorption of space in the industrial and office sectors is likely to expand over the next six to nine months,” he said. “In addition, an improvement in returns on investment implies healthy rent increases for commercial property owners.” Positive movements in the index components more than offset a fall in the National Association of Real Estate Investment Trusts price index. The net gain in NAR’s index also indicates modestly higher completions of overall office, warehouse, retail and lodging structures. “In short, the latest data suggests improved business opportunities for commercial real estate practitioners in the months ahead,” Yun said.

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September 2007

• President's Letter

• MiCAR Provides Another CE Opportunity

• Tax Hikes, Reforms focus of 2008 Budget

• Commercial Real Estate Index Rises

NAR - REALTORS® Commercial Alliance Resources

• Hot Topics

• Technology & Intelligence

• Commercial Report

• Real Estate Outlook

• RCA Report

• Commercial Power Tools