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| Commercial REALTORS® Must Move to Prevent K-16 Ballot Proposal Passage
Yet a group of Michigan education interests have joined forces to create a proposal they’d like to see on the ballot in November that would guarantee yearly increases in spending for K-16 education. Led by the Michigan Education Association (MEA), the initiative would require the legislature to increase education funding no less than the rate of inflation regardless of available revenue to the state. Such a requirement would result in an estimated $1.1 billion beyond what is currently spent on K-16 education without an identifiable revenue stream, new program cuts, or accountability for the additional spending. Michigan is already facing a struggling economy and over the last two years the state has seen over 75,000 people migrate out of the state. Higher taxes are the sure way in which that additional money would be “found” – and that means higher taxes on commercial properties, a sales tax on services, and other potentially devastating consequences for our industry and our livelihood. The success of our industry depends on bringing businesses into Michigan through low tax rates and incentives that give them the best profit margins, and on keeping current businesses in our communities through those same incentives. Creating policy that makes new spending possible only through yet-unstated new funding sources could mean disastrous higher business taxes, property taxes, and cuts to services like fire and police response. If our state builds the right environment, business will come and we will prosper in our industry. If our state spends without limit or accountability, business will not come, business will not stay, and commercial real estate markets will become depressed. Early estimates by the House Fiscal Agency have shown that K-16 proposal would cost Michigan citizens $1.1 billion/year more that is already provided in education financing. We don’t need to be hurting any worse. The Michigan Association of REALTORS®, and through it, our commercial division, MiCAR, has joined the Coalition to Stop the K-16 Spending Mandate to ensure that commercial and residential real estate is not threatened by unabated spending. While commercial REALTORS® support quality education for Michigan, the proposed K-16 Spending Mandate is bad public policy that would result in new tax increases to account for the mandatory funding increase. This proposal would tie the hands of legislators during critical budget negotiations and reduce funding to other statewide priorities, and reduce our state’s ability to bring and keep business in Michigan – and reduce our profits, the success of our industry, and our livelihoods. View K-16 REALTOR® Talking Points MiCAR Takes Active Role in Statewide Commercial Events After more than two years of slowly emerging into the Michigan commercial real estate scene, in 2006 MiCAR has exploded into the industry through numerous sponsorships of commercial events, provision of continuing education at top-draw events like Synergy, and through attendance of MiCAR leadership at elite real estate events like the MAR Broker Summit in April.
How, if at all, has the role of the broker changed in commercial real estate over the past several years? Commercial real estate has become tougher over the past several years. As a result, the competition has intensified but technology has allowed brokers to cover more product types and geographical regions. What creative options have you as a broker used to remain successful under these changing conditions? Every broker must provide value-added services to their clients. Today’s brokers must be smart, aggressive and assertive salespeople. It is especially important for brokers to know the latest technological tools as they relate to the brokerage field. Brokers must be comfortable with technology to stay ahead of the competition. What is the role of the broker in bringing tax money back to the community through public/private partnerships? These partnerships can be challenging, but the benefit to the communities that they serve can be significant. It is important for brokers to know that there is potential for these types of public/private partnerships. Brokers are an integral part of this process because they can introduce clients to the appropriate authorities. What is the role of the broker in initiating public/private partnerships and how can this successfully be done? The broker is an important conduit for initiating relations between the private and public sector. Brokers can contribute to options for economic development and offer advantages to both sectors. Visit the Farbman Group Web site MarketView - Grand Rapids - Retail, Vol 1, 2006 MarketView - Greater Lansing - Retail, Vol 1, 2006 MarketView - Grand Rapids - Office, Vol 1, 2006 MarketView - Greater Lansing - Office, Vol 1, 2006 MarketView - Grand Rapids - Industrial, Vol 1, 2006 MarketView - Greater Lansing - Industrial, Vol 1, 2006 Office Market Trends - West Michigan - First Quarter, 2006 These market reports are provided courtesy of Grubb&Ellis / Paramount Properties in Grand Rapids and CB Richard Ellis’ Lansing office. Members of the MiCAR Board of Directors and the CCIM Board of Directors were asked to contribute their First Quarter market reports for publication in this edition of MiCAR Monthly. All contributions submitted by the deadline have been included in this issue. If you would like your company’s market reports included in future issues, please email Carrie Wolanin at cwolanin@mirealtors.com. |
MiCAR Monthly
• President's Letter |
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Andrew is the President of the Farbman Group, a full service real estate solutions firm, which he joined in 2000. His responsibilities involve evaluating strategic opportunities for both first-party equities and third-party businesses, negotiating partnerships and arranging debt and equity financings. He specializes in underwriting valuation and negotiation on mergers, acquisitions, IPOs, liquidations, bankruptcy/foreclosure, privatizations, divestitures and recapitalizations for public and private real estate operating companies. Prior to joining the Farbman Group, Andrew worked with The Blackstone Group in New York City where he personally placed over $200 million, and also with the New York Real Estate Investment Banking Division of Lazard Freres & Co. LLC, where he was personally involved in the closing of over $5 billion in transactions.
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