A fairly new addition to the West Michigan commercial real estate scene, Grand Rapids-based Vision Real Estate Investment Inc. had a “banner year” in 2016. said President Tim Engen. With a mix of multi-tenant office buildings, industrial facilities and mixed-use residential properties within its portfolio, the firm made headlines in mid 2016 when it paid more than $31 million to acquire 99 Monroe, the fully-leased and renovated downtown Grand Rapids Class A office building.
"As we approach the end of the calendar year and look to 2017, we anticipate stable occupancy rates in our industrial assets. We foresee continued lease demand for smaller multi-tenant buildings as companies make a move into and feel out our strong West Michigan market. We also expect an ongoing appetite in middle to large single-tenant buildings if the industrial economy holds strong and these new and existing companies continue to experience growth. With respect to office and residential, we have mild reservations about the strength of rental and absorption rates. These rates have seen staggering growth throughout the recent addition of hundreds of new units. … It’s safe to say there is a presumption of increased interest rates within the next couple months or years. We are anxious to see the lag time that (capitalization) rates follow suit. … A market adjustment following a period of increased financing costs and cap rates will provide an opportunity for low-leveraged, high-cash investors." - Tim Engen, President, Vision Real Estate Investment Inc.