Neither the uncertainty of a new presidential administration nor possible interest rate hikes act as a deterrent for development, according to Rick DeKam. “It would take a much larger multiple percentage point increase to dramatically slow our economy, which is not in the Fed’s best interests,” said DeKam, the principal at Portage-based Midwest Realty Group LLC. He believes it’s “smooth sailing” heading into 2017, particularly because of low inventory across commercial real estate sectors in West Michigan and continued high demand.
"2017 should continue to be another banner growth year based upon pent-up market demand that still exists for new space and real estate investments; continued low interest rates expected for the entire upcoming year; and limited real estate supply, which will continue to push market values north and drive additional new construction. The only issue that I can see that may work to somewhat cool this expansion would be any affects on standard commercial real estate lending terms that could result from the new Dodd Frank bank reforms. For us as a landlord, our primary concern is the financial health of our tenants and wondering if they have gleaned the right lessons from the past downturn for a strong future. The continued consolidation of the lending industry may also be creating new future difficulties in securing financing, but that’s still to be seen." - Rick DeKam, Principal, Midwest Realty Group LLC