BUSINESS Journal profiles its Newsmakers of the Year.
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JAN 25, 2021 VOL. 39, NO. 2
The Business Newspaper of Metro Grand Rapids, Holland, Muskegon & West Michigan
THIS WEEK
DIRECTOR’S URBAN EXPERIENCE HELPS Ryan Kilpatrick drives Housing Next to create housing at all price points. Page 8
Innovation marks real estate response COVID-19 forced brokers to set up a whole new way of doing business in 2020. Ehren Wynder
ewynder@grbj.com
Miss the mark? H-1B visa modifications designed to benefit U.S. workers, but startups may become victim. PAGE 3
Breaking away Veteran real estate advisers leave Colliers to launch new brokerage. PAGE 3
RECOVERY MODE Manufacturing continues expansion but economist says Grand Rapids still lags behind national recovery. Page 5
THE LISTS
The area’s top risk management companies. Page 9 The area’s top business insurance agencies. Page 10
West Michigan brokers and agents had to adjust to weather the COVID-19 pandemic in 2020 across the industrial, office, retail and multifamily markets, according to real estate leaders who spoke at the virtual West Michigan Economic and Commercial Real Estate Forecast. “West Michigan made it through an extremely tough year
Multifamily housing picked up in the third quarter and became a safe haven for investors who still expressed confidence in West Michigan. Courtesy Colliers West Michigan
in 2020, and I am confident the commercial real estate industry will continue positively in 2021,” said Jon Potvin, managing director of Colliers West Michigan. “We have learned a lot in the past year and multiple sectors made many changes that will likely be in place post-pandemic. As we
see a more widely available vaccine this year, we’re cautiously optimistic this year will be one of recovery.”
Retail In Grand Rapids, the vacancy rate as of Q3 2020 was 4.78%, which increased throughout the year
due to closures because, in many cases, retailers were not able to make their rent. Advisers predict moderate demand going forward, but only in key retail corridors. They expect the vacancy rate to increase in the CONTINUED ON PAGE 4
GR chamber survey reveals top priorities for 2021 700 members say COVID-19 business relief/recovery, talent and health care affordability are primary issues. Rachel Watson
rwatson@grbj.com
A Grand Rapids Area Chamber of Commerce survey shows COVID-19 business relief and recovery, a talented workforce and health care affordability are the top three issues concerning West Michigan businesses in 2021. Results of the 2021 West Michigan Business Advocacy Survey are in, representing the outlook of more than 700 Grand
Rapids Chamber members. “With vaccines and an end to the pandemic on the horizon, this is valuable input from our business community as we work to build a strong recovery,” said Rick Baker, president and CEO of the chamber. “The message is clear: create a business climate that supports small businesses and those impacted by public health restrictions, as well as tackle barriers to business growth, like talent, to make West Michigan a prosperous region for all.” In this year’s survey, over 70% of respondents said the West Michigan business climate was either favorable or very favorable — a significant backtrack from last year’s 94% favorability and many preceding years in the upper 90s. About 78% of this year’s
respondents represented small or mid-sized businesses. “Public health measures and business restrictions put in place to beat the pandemic have certainly impacted this metric,” Baker said. “We are focused on working local, regional and state leaders to get this perception back on track. We must strive to be the best place to start and run a business in 2021.”
COVID-19 recovery Unsurprisingly, COVID-19 relief and recovery was at the top of the list for this year’s survey respondents. From the respondents who classified themselves as business owners or executives, over 44% of them said revenue is down by more than 26% from this time last year.
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Inside Track ....... 8 Guest Columns.. 12 Housing for all
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Additionally, over 46% of these respondents need financial assistance to stay viable, with 23% being at risk of closing under current conditions within the next 12 months. “This information is concerning and shows a huge threat to our economy,” said Andy Johnston, vice president of government affairs at the Grand Rapids Chamber. “These businesses support thousands of families and help make West Michigan a vibrant and attractive comJohnston munity. We are CONTINUED ON PAGE 6