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Brick-And-Mortar Retailers Rush to Open More Fulfillment Centers As They Strive to Keep Pace in a Changing Landscape

Brick-And-Mortar Retailers Rush to Open More Fulfillment Centers As They Strive to Keep Pace in a Changing Landscape

Retailers Are Focused on Faster Delivery, Transportation Costs

Sam’s Club plans to spend the coming months converting closed stores into distribution centers to fill online shopping orders, joining other national retailers in scrambling to grab up warehouse, industrial or even former big box store properties in response to the boom in e-commerce.

In another sign of a rapidly changing retail landscape, the rush to seize these properties is prompting developers to revitalize industrial areas across the country. Retailers are seeking to cut delivery times and transportation costs, raise their e-commerce capabilities and compete with a changing landscape driven by Amazon, which operates more than 300 distribution and delivery centers that process shipments from other parts of the country to get individual packages to the homes of shoppers...    ...more

RSK: Even talk of one in SE Madison...just talk but at least the idea has been born...betting it will happen...

Ken Noes: The next billion dollar idea will be the last mile solution...

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Kroger will road test Nuro`s driverless delivery vans in autumn

CINCINNATI (Reuters) - Kroger Co and Silicon Valley startup Nuro will begin this autumn what they call the first real-world road test of an unmanned delivery vehicle, as the largest U.S. supermarket operator battles Amazon and others for U.S. dominance in fresh grocery delivery.

The test of Nuro’s “R1” van, which is shaped like a rounded, silver lunch box, comes as Kroger and other store-based food retailers are racing to catch up with or gain an advantage over online retailer Amazon.com Inc, which sent grocery sellers scrambling to add home delivery after its $13.7 billion acquisition of Whole Foods Market last year.

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RSK: At a max speed of 25 mph, this could be a road hazard.

Ken Notes: This will be a HUGE hit if we legalize cannabis -- Wow man I could really go for some Doritos right now... (I am sorry but I could not resist the opportunity)...

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WeWork Makes Retail Debut With First WeMrkt In NYC, Plans National Expansion

Office sharing giant WeWork has launched WeMrkt in New York City, which is a reinvention of the company`s Honesty Market. The first of the new stores is located at the 205 Hudson WeWork location in Lower Manhattan, with plans to expand to other locations in New York and then nationally soon after.

The shop offers a small but curated array of items, including snacks, office supplies and WeWork-branded apparel....

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RSK: Self-serve self-pay, not so sure how that will work out but I do like the concept...

Ken Notes: It will be interesting to see if the private sector can replace the Public Market, I believe this may be the new mall and a great retrofit for the old mall. "Test your retail concept here!" Self-serve self-pay could easily be updated with an auto pay that is supervised like every big box now offers...

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CBG NOTES: events...
CBG Summer Social
Date: Wednesday, August 8th, 2018
Time: 4:00 PM

Event Details:
It`s that time of year again for our annual August afternoon meeting with hors d`oeuvres and alcoholic refreshments! Please join us at Pontoon Porch from 4:00 - 7:00 p.m. We`ll have a short meeting and then it will be time to enjoy the food & drink. We hope you can join us!

..........

Congrats Deal of the year winners...  Presentation Here!

Note from RSK: At our CBG Madison meeting on Wed. April 11th, CARW and Catalyst gave a demonstration on their property data system. To find out more go here. It is no charge for a few months.

Actually, there is no charge to list properties on the system... just to use the data and view properties. This is the opposite of Property Drive which charges for a listing but allows anyone to view the data and properties. We are neither endorsing or directing you to join Catalyst but want you to have the information to make a choice on your own company`s needs.

See More Here:

carw.com/wisconsincommercialdataexchange

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Carter Validus Sells 59,516 SF Data Center Near Milwaukee for $21M
HARTLAND, WIS. — Carter Validus Mission Critical REIT Inc. has sold its Milwaukee Data Center in Hartland, about 30 miles west of Milwaukee, for $21 million. The 59,516-square-foot property sits on nearly eight acres. Landmark Infrastructure Operating Co. LLC purchased the asset. The company also recently sold a data center in Alpharetta, Ga., for $64 million. Carter Validus Mission Critical (CVMC) REIT I owns one remaining data center in Andover, Mass., but CVMC REIT II owns 27 data center properties as of the end of the first quarter...   ...more

Ken Notes: Data centers could also be huge for Wisconsin. If we have the right backbone, we have the rest in spades - reliable power, secure locations, good construction, strong workforce, desirable living, affordability.

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Final Verdict: Workers Hate Open Offices And They Reduce Productivity
It has been one of the pillars of modern office design and workplace theory: open offices, with fewer walls, doors and spatial boundaries, encourage interaction and collaboration between workers.

A central tenet of the coworking phenomenon is the prevailing assumption that mingling with co-workers will expose you to a bounty of new ideas — and large corporates in all fields have taken the bait to tear down office walls, dismantle cubicles and remove any sense of workplace solitude...   ...more

RSK: Like this is a real shocker? Duh. But I do believe open office makes the worker feel better and more comfortable and even if productivity drops a bit you are having a hard time finding talent, you are better off with the concept of some sorts.

Ken Notes: If you give all your employees the Myers–Briggs Type Indicator or any other personality survey you will find we all thrive in different environments and work best in a variety of office configurations. We unfortunately all think our personal idea is best. This is why we tend to develop for our personal interests when we really need to develop for the array of personalities and skills that best serve our company. The title should be some workers hate open offices, I promise other do not.

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Traditional Restaurant Chains Launch Fast-Casual Concepts to Lure Millennials

Many are in testing stages, trying to find the right size in the right market as they compete in a crowded sector.

Some well-established,casual-dining chains are rolling out more modern, fast-casual concepts to try to attract younger diners.They include Cracker Barrel, Tony Roma’s, Hooters and Denny’s.

These older chains want to capture market share in the hot fast-casual sector.After all, millennials dine out or get takeout five times a week, according to a study by Bankrate.com. That’s compared with just 2.5 times for boomers.

Since these chains have decades of experience in the restaurant business, spinning off a fast-casual concept to help revitalize their brand may be a natural progression...


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RSK: I agree that at times you need to start from fresh rather than trying to change something old into a new concept. Why so many restaurant owners cannot understand why someone doesn`t want to pay the price. It is usually because the concept is old or dying out.

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The Gialamas Company, Inc.

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The Gialamas Company`s premier development. The park has over 57 buildings containing 200+ companies, occupying over 3.0 million square feet.

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Retail Drives Industrial Growth Through Much of the Western U.S.
The industrial market is enjoying a moment in the sun throughout the West. Much of this is due to the retail sector’s continued technological advances, which have placed increasing demand on speedy delivery as manufacturing, distribution and warehousing needs are more important now than ever.

“The market fundamentals for industrial properties are the best they have ever been,” says Bob O’Neill, senior vice president of acquisitions at CapRock Partners in Newport Beach, Calif. “Industrial absorption, lease rates and sales prices are at all-time highs, while market vacancies are at historic lows and construction in the Western United States remains in check.”...

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RSK: Not just the West but all across the USA!

Ken Notes: If Wisconsin were serious about economic development, we would focus on becoming the Midwest distribution hub for all retailers (both brick and mortar and E-commerce). We could work with the big players, rail, and logistic companies like Schnieder, to create turnkey solutions for the industry.

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Should CRE Players Return to Defensive Investing?
It feels to me like we are in extra innings, running on borrowed time.

Over the last eight years private equity real estate has witnessed some of the best total returns in its history. This has also coincided with the longest stock bull market in U.S. history. Some investors feel as if the current expansion can continue unabated. More disturbingly than that, and perhaps spoiled by the astounding returns in this cycle, many investors are still reaching for IRRs they achieved in the near past, blithely ignorant of the fact that most of the appreciation was the result of mean reversion and record low interest rates. Investors remain aggressive today when they should be defensive...

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RSK: David is right on here. Investing will see its returns in cash flow, depreciation and debt reduction in my book. Appreciation if any will be a plus.

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Building For Sale: Paoli Creamery -- 6858 Paoli Rd

7.5 Acres on the Sugar River in Paoli, this 10 unit mixed-use commercial/residential bldg has 10 unique, large units many with high vaulted ceilings overlooking the Sugar River. No one unit is alike. 7.5 acres, makes room for additional units or building, C1 zoning allows many uses. Real Estate only for sale. Building is fully leased. 48-hour notice for showings 10-12 on Tues & Thurs. Proof of funds availability needed...

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Ken Notes: Now this is a destination property!

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A New Era for Industrial Design

Strong demand for industrial space is pushing developers to undertake speculative projects like Hays Commerce Center in metro Austin. Hillwood and HPI are co-developing the facility.

Demand for industrial space is soaring and the growth of e-commerce has opened the doors for more competitors to enter the freight and logistics spaces. In addition, the latest data from the Bureau of Labor Statistics (BLS) notes that year-to-date, the United States has added 200,000 new positions in the manufacturing sector, greatly increasing the demand for new industrial space...
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RSK: Very interesting. Cross-docking is coming and going at the same time. Self-driving trucks will also change the scene.

Ken Notes: When I was Mayor in Neenah we had a developer in our industrial park that built 4plex industrial spaces that cash flowed when half (2 of 4) were rented, the businesses then knew they had the ability to expand in place. Brilliant and he did very well because as they expanded is was pure profit.

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The Rise Of ‘Office As A Service’ Might Be Here Sooner Than You Think

The future of office space will be about more than square footage or open-office floor plans. Rather, office managers will have to focus on creating an attractive user experience, from free coffee to lounge space, for every occupant. In the U.S., around 1.2 million employees worked in a coworking space last year. With flexible office space now the main driver of office occupancy growth, many landlords have started to convert conventional office space into coworking and flexible space....

...Coworking giants like WeWork have built entire brands based on the needs of its members, many of whom are smaller tenants who would not have the space or skill set to design spaces around individual employee needs. Having the ability to adapt to office trends and provide the appropriate amenities has shifted the value chain in office leasing...

Coworking giants like WeWork have built entire brands based on the needs of its members, many of whom are smaller tenants who would not have the space or skill set to design spaces around individual employee needs. Having the ability to adapt to office trends and provide the appropriate amenities has shifted the value chain in office leasing.

Read more at: https://www.bisnow.com/austin-san-antonio/news/office/the-rise-of-office-as-a-service-might-be-here-sooner-than-you-think-89637?utm_source=CopyShare&utm_medium=Browser
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RSK: Quite a few landlords and building owners and operators are going to have to get with it pronto. However, if you are not a startup company you may want to negotiate a longer-term lease.

Ken Notes: We-Work, Regus, and even the new spaces in Madison are catering to the array of work environments that serve the varying needs of the individual.

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The U.S. Needs 4,000 More Data Centers In The Next Two Years

The big picture when it comes to data centers, according to the speakers at Bisnow`s Data Center Investment Conference & Expo South, is very big indeed.

Increasing connectivity and other factors mean that roughly 600 zettabytes of new data is created each year (that is 600 trillion gigabytes), which is about 200% more traffic than current data centers can handle. To keep pace with the growth of data, the industry is going to have to build about 4,000 new facilities — on average 200K SF, 25 megawatt facilities — by 2020, the speakers said....

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RSK: The only problem is they do not tell you where they are needed....just that they are needed.

Ken Notes: Where is where the fiber is, and FYI Verona and Fitchburg have an abundance of it. Also they are just rural enough, close to a metro, and priced right. I can help you market this if you are interested...

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40-Foot Ceiling Heights: The Feature No One Really Wants?

Warehouse ceilings may be reaching farther into the sky, but it is not necessarily because tenants are demanding it.

“We are building 40-foot clear [ceiling heights]. We have not had a tenant to date utilize that,” Core5 Industrial Partners Managing Director Lisa Ward said.

Developers have been raising ceiling heights and overall warehouse sizes for the past few years, especially as companies rely further on e-commerce to drive sales. Between 2012 and 2017, the average warehouse was 185K SF, 143% larger than the typical warehouse built between 2002 and 2007, according to a recent CBRE report. On top of that, ceiling heights climbed 4 feet to an average of 32.3 feet in the same period...

See Also:

Amazon wants its delivery network to include hundreds of startups

Helping entrepreneurs start small delivery companies will let Amazon further ramp up its e-commerce engine–and might be the start of something even bigger.

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RSK: Very interesting. I think the street level drive-in doors for Uber and Lyft deliveries would be more important than 40` high ceilings.

Ken Notes: Amazon is now offering $100,000 to independent last mile providers (see second article) and in dense areas up will be the only affordable option.

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Mid-America Real Estate Group
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Mid-America Real Estate - Wisconsin, LLC offers the same high level of service in property leasing, asset management, tenant representation and investment sales for which Mid-America has become known.

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Millennials Driving Force Behind Home Sales; Affordable Suburban Locations Gaining Popularity
For a fifth consecutive year, millennials led home purchase activity, comprising 36 percent of the buyers in 2017. The oldest millennials are now 37, and as this generation ages and starts families, a wave of potential new buyers are moving into the market. Approximately two-thirds of first-time buyers in 2017 were millennials, but housing affordability remains a concern in 2018 as home listings under $200,000 continue to shrink. Homes in this price tranche have fallen 59* percent since May 2012...   ...more

RSK: You know the rest of the story. Where people live and concentrate, retail and other services follow.

Ken Notes: I would add that many millennials are looking for non traditional homes, more amenities, less maintenance, smaller, affordable, turnkey, in great neighborhoods...

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Investors Unleash Millions Into Pet-Tech Startups

In 2017, $69.51 billion was spent on pets in the U.S., according to the American Pet Products Association. That’s up 69 percent from one decade prior. As a whole, the global pet market is estimated at $109 billion. A share of that goes to veterinary care, which is a $17 billion industry in the U.S. alone.

So it’s no surprise that the increased spend on pets is reflected in increased funding for pet-related startups...

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RSK: Right up my tech/dog alley.

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Epic Systems buys Ella`s carousel and collection of whimsical art and toys

The Ella’s Deli carousel may whirl again.

Epic Systems Corp. has bought the former Madison restaurant’s historic outdoor carousel and the collection of whimsical art and toys inside that made Ella’s Deli a favorite of children and adults alike before it closed in January after 41 years.

“It’s really good news. It all happened very, very fast,” said Ken Balkin, who owns the Ella’s Deli building and business with his wife, Judy. “Epic Systems has purchased the carousel and the art collection and they’re going to carry it forward into their campus in a real positive way.”

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Ken Notes: This is perfect for the EPIC campus but will be missed on East Wash...

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SIOR Report - The Last Mile
We’ve been hearing and talking a lot about the Last Mile distribution and logistics, especially Amazon HQ2 over the past few months, so I’m excited to introduce this issue of SIOR Report, featuring a cover story on how the last mile is impacting the warehousing and delivery world. SIORs are always at the forefront of information and activity in the industry, and this topic is no exception. This "new" dynamic has been pushed particularly by Amazon, and its creativity in the swiftness of transport. Suddenly, old, multistory, and infill buildings have a potentially resurrected life to fulfill the need for speed in deliveries...   ...more

RSK: Worth the quick read here.

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JULY 2018 - Cirex Digital Version

View Our May Digital Version Online Here

Subscribe to Real Estate CIREX Digest

Subscribe to CIREX to receive our monthly Real Estate Digest in PRINT.

  • Hundreds of property listings, organized for easy browsing.
  • New properties are featured every month.
  • Property/Drive CIREX Members alphabetically listed in our extensive directory.
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P.F. Chang`s owner seeks sale of Chinese food chain
  • P.F. Chang`s owner said Friday it has retained Bank of America/Merrill Lynch and Barclays to explore a possible sale of the Chinese food chain.

  • Centerbridge acquired P.F. Chang`s in 2012 and recently separated it from Pei Wei Asian Diner, creating two distinct businesses.

  • Centerbridge said it received "multiple unsolicited indications of interest" for P.F. Chang`s...
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RSK: I believe the one out in Middleton is still open.

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Banks Get More Generous with Construction Loans for New Apartments
It’s getting a little easier to find a construction loan to build a new apartment property, compared to the end of 2017.

Banks are getting more aggressive,” says David Webb, vice chairman of debt and structured finance with CBRE Capital Markets, based in Washington, D.C. “It is getting easier to get deals done.”...

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RSK: This seems to be contrary to everything we have heard lately but it may be the answer to why all the new projects keep coming online.

Ken Notes: I get nervous when banks start making it easy to get money that particular market segment may have run its course. Think condos, commercial land, big homes, golf courses...

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Who Owns The Minerals Under My Property?
Real property ownership comprises a group of rights, sometimes referred to by lawyers as the “bundle of sticks” theory.  This means that property owners can retain the entire bundle of rights together, or they can separate out some of the rights and sell, lease, gift, or otherwise convey those rights to others.  Among the bundle of sticks is the right to use the surface of the land and the right to own and use the minerals underneath the surface of the land.  This ability to separate the minerals and related mineral rights from ownership of the surface causes confusion for many Wisconsin landowners; do I own these minerals or not?...   ...more

RSK: Good question. One of our RE CE instructors from Reinhart, Maya, explains.

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The Rise Of The Five-Minute Shopping Trip

Thanks to Amazon and Whole Foods, a new kind of locker talk could be sweeping the grocery sector, and it centers on how much can be bagged in a five-minute window.

Micro-shopping trips, defined as trips that take less than five minutes, are becoming increasingly common thanks to grocery services that let customers order online and pick up in-store. The development made national news when such trips were reported to have climbed 8.7% at Whole Foods stores after Amazon acquired the grocery chain in August 2017, according to research by data-analyzing firm InMarket. The increase is attributed to its Amazon Lockers, where shoppers can pick up preordered items...

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RSK: I am a big believer in micro shopping trips to grocery stores. That way I can get in an express lane for a quick check out. That is the one thing I really dislike is waiting in line to check out. Wasting time.

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Ruedebusch Development & Construction

Ruedebusch Development & Construction, Inc. is a highly qualified, vertically integrated full service commercial construction, and real estate development company located in Madison, Wisconsin which offers:

  • Commercial Real Estate Development
  • Design Build Construction
  • Commercial Real Estate Brokerage
  • Economic Development, Commercial Real Estate, and Facility Consulting
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What`s New In This Brooklyn Sears Store? A Kmart

Sears Holdings, which owns Sears and Kmart, has for the first time brought the two brands together under the same roof by opening a 10K SF Kmart inside a Sears store at 2307 Beverley Road in Brooklyn.

The retailer, which is beleaguered by falling sales and rising debt, is presumably testing the new initiative to see if the combined brands can spark some kind of turnaround, CNBC reports...

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RSK: Now Sears Exec`s are starting to put on the thinking caps instead of just closing stores. They need to adapt and be able to morph.

Ken Notes: Sears needs / needed to become the "Appliance Amazon" -- they had it all delivery outlets, brand names, good relations wilt other players, show rooms, repair... Alas it may be far to late...

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Why Retail Landlords Need to Think Like Editors

People respond well to those that are sure of what they want,’ Vogue editor Anna Wintour once remarked. ‘What people hate most is indecision.’

In essence, that’s the role of a great editor: to take a point of view on the world and clearly express it through the pages of a magazine. It’s about bringing a singular vision to life and selling that vision to as many people as possible. It is not just about chasing what’s popular, reflecting public opinion or playing to generic trends. It’s about having a clear message that helps their publication stand out from the crowd.

At first glance, this may not seem to shine much light on today’s retail landscape, but at Appear Here we believe shopping destinations could massively benefit from an editorial eye...

A good editor provides the glue that holds a magazine together...

And here’s the other lesson magazines have for us: during disruption, there’s no room for mediocrity...

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RSK: When you reach the bottom read about this editor. He has an amazing thing going on.

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Building For Sale: 1610 S Church St Watertown WI

Fantastic site for just about anything w/ hard to beat exposure & visibility. Perfect for LOTS OF OFFICE applications, but can be built to suit for many retail uses. Located on ideal corner of Boomer & Church St, w/ high traffic count to benefit large variety of business options. Ample parking off Utah St, w/ wide range of neighboring successful businesses to compliment your venture. Call today!

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Next Generation Of CRE Data Companies Cautiously Emerges To Challenge CoStar

The commercial real estate data sector is rapidly and fundamentally changing before our eyes.

Startups like VTS, Reonomy and CompStak are launching new services, charting nationwide expansions, landing venture capital investments and securing institutional partnerships. As they widen their product offerings and user bases, these companies are beginning to resemble young versions of the industry`s Goliath: CoStar....

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RSK: The only serious player in our market area is Catalyst and for S.C. Wisconsin is Property Drive.

Ken Notes: I hope we realize that PropertyDrive and Cirex are different animals in that they are local, have a different pay model, and actually provide the lions share of the data now used in the state system...

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The State of Retailing Online 2018

The annual “The State of Retailing Online” study conducted by NRF and Forrester examines the impact of ecommerce and provides key metrics for benchmarking. The survey examines retailer attitudes and investment levels for critical digital commerce issues. This year’s results demonstrate that the line between the digital and physical worlds is blurring as the retail landscape continues to evolve, with many retailers focusing on digital store initiatives in 2018.

Key findings from this year’s report include:

  • Net-net, stores are growing:...
  • Omnichannel remains a key store investment area: ...
  • Digital retail continues to be the bright spot it’s been for years:..
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RSK: This seems a bit contrary to what is actually happening. Good news if it is true.

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CBL Puts the Experiential in Retail

Fresh takes on mall anchors, entertainment and more are driving strategy at the REIT`s properties, CEO Stephen Lebovitz reports.

“Experiential” is the buzzword in retail as consumers shift their focus and overextended retailers in waning categories downsize or shut down. The shift—perhaps not entirely unusual in the ever-changing retail sector but seemingly more extreme in its redirection—is forcing owners of malls and shopping centers to rethink their tenant mix.

Just how significant is the shift in tenancy? In a Q&A session during the National Association of Real Estate Editors annual real estate journalism conference in Las Vegas dubbed “The Retail Armageddon—Is It Real?”...


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RSK: Again this is happening right here right now at West Towne.

Ken Notes: Add destination to the buzzwords for retail. Ask yourself, "Why would I go to the mall for something Amazon will place on my doorstep." Answer - "It is fun."

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From Brick-and-Mortar to Omnichannel: The New Retail Mix
There are a lot of changes happening in retail right now, but one thing is certain: shoppers want both the online and in-store experience (often at the same time) and the brands that get it right will succeed. For the modern retail landlord, understanding and evolving with these e-commerce trends is critical to the success of your retail assets.

E-commerce is not a retail-store killer

There is no denying that online sales are cutting into overall retail sales, as evidenced by this section in CBRE’s report. Though online sales have been growing 15% annually since 2010, as tracked by the U.S. Census Bureau, that number can be deceiving.

As CBRE tracks it, online only made up 8.9% of total retail sales last year, and that does not account for purchases made online and picked up at physical stores where an additional purchase could have been made. Retail real estate landlords need to understand the strongest operators have a significant balance between the two channels. ...

E-commerce sales vary by category...

M-Commerce and its retail future...

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RSK: This is so right on. Both online and brick and mortar are complimenting each other and you really need to do both...even Amazon is finding it needs physical retail space...if for last mile delivery if nothing else.

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Knight Barry Title Group

                       608-255-2700  www.KnightBarry.com
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With over 200 experienced real estate professionals, Knight Barry provides exceptional support and service. Visit us online for more information about our 40+ commercial and residential offices throughout Wisconsin and Michigan.

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Building For Sale: 161 Horizon Dr Unit 107 Verona WI

Two tenant commercial condo perfect for first time commercial investor. Long term tenants anchored by Edward Jones...

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What Happens When Your Tenant Demands To Be Paid To Occupy Your Space?

I talk to and get pitched by startups constantly and a major part of the pitch is about their business model and how they make money. It’s obvious. In some way shape or form, it’s ALWAYS charge the broker or the building owner. PERIOD! WITHOUT FAIL!

But I have a little hint, ok maybe not so little hint for them. Yes, it’s about revenue and then some.

And of course…….

You need to make money....


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RSK: You may have to read this one twice to have the concept sink in.

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You Can’t Handle The Truth: Debunking 6 Popular Commercial Real Estate Myths

The commercial real estate industry is evolving, but not everyone is keeping up. 

What was the norm only a decade ago has been upended by two key factors: The use of technology has made processes, investment strategies and properties more efficient and the health of the U.S. economy is experiencing its second-longest period of economic expansion in history...

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RSK: I like this.

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Google And Microsoft Make A Big Push Into Grocery And Department Store Retail
Tech giants Google and Microsoft have partnered up with two retailers, which will see them push further into the grocery and department store retail space, respectively.

Google announced a tie-up with French supermarket giant Carrefour, which will see the company sell its groceries on Google’s new dedicated French shopping site starting next year. Carrefour groceries will also be available via Google-operated connected speakers and voice-assisted devices.    ...more

RSK: A few of us were just talking about Amazon and is it becoming a behemoth and monopoly. Many are trying to combat it. Eventually, I think Amazon will implode somehow.

Ken Notes: I think Amazon is here to stay, watch for them to enter new and larger item markets in the future as they solve last mile delivery issues.

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Inside Walmart’s journey to cashierless retail

Walmart is testing the waters of cashier automation, first by letting customers scan and pay for items within an app, and now, giving in-store reps the ability to help customers pay on mobile devices.

It’s also studying customer comfort levels with automated payments. At this point, it’s not ready to get rid of cashiers — they’ll just be part of a bigger menu of customer checkout choices, according to Walmart rep Ragan Dickens.

Dickens would not comment on whether fully automated stores are in its plans. But for the past two months, it’s been testing an Apple-store type concept called “Check out with Me” at 350 stores. It gives the agent the ability to check out a customer on a mobile device...    ...more

RSK: This might be an answer to my pet peeve of waiting in line to check out.

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Building For Lease: 4001 Felland Rd Ste. 103 Madison WI

4001 Felland Road, 100% warehouse with drive-in door. Available November 1, 2018.

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Reinhart Boerner Van Deuren s.c.

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With the largest Real Estate Practice of any law firm in Wisconsin, Reinhart offers clients custom-tailored real estate insight.

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South Florida Startup Combines Coworking, Coffee Shop And Incubator

Brian Jacob admits that at first it might seem like he has “a horrible business plan” for his coworking space in Fort Lauderdale. But when all its parts work together, “it can create amazing opportunities for our customers," he said...

...Often, he said, the clients who came to him for consulting would be bright individuals with ambitious plans, but lacked a piece of the puzzle that would make their companies successful. Some of them needed funding. Some needed apps or software. Some just didn’t have a good handle on marketing. Once he connected resources, a few of those businesses found success, so Jacob thought, “Let’s create a facility where all that magic can happen.”...

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RSK: Just love this concept. How about the Uber of trucking? Why not. Really a fun read.

Ken Notes: I would make one observation, we need a more professional co-working space. I would love to see marketing firms or temp firms enter this space, both have product to offer the tenants immediately. I rand my technology consulting business in alliance with both a temp firm and the local Tech college - These were great partners...

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Will Questionable Credit Spoil Real Estate`s Restaurant Banquet?
The restaurant industry was the perceived saving grace of shopping centers during the retail apocalypse. When mall owners were faced with the conundrum of how to fill vacant spaces, food and beverage concepts were a viable solution. But now even restaurants are facing a wave of closings due to overexpansion, especially midpriced casual chains like Applebee`s and Ruby Tuesday.

While the formerly reliable sector suffers, continued consumer demand for locally sourced, small-scale fast-casual restaurants is garnering the attention of developers looking for new tenants — even if they aren’t as well-known as the industry’s bigger, high-credit chains....

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RSK: Just not sure how many Hu Huts and Subways we can have or should I say we need...

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Why Milwaukee Is the Midwest’s Coolest (and Most Underrated) City

Amidst the steep bluffs of southeastern Wisconsin, in a shallow valley where three rivers join before flowing into Lake Michigan, lies an unexpected gem. It’s a small but glittering one, a city that, despite its old world charm, geographical beauty, and longtime liberal leanings, has somehow been underrated for decades—either overshadowed by the megawatt metropolis of Chicago 90 miles south or wrongly cast as just another decaying, rust-belt ghost town.

But Milwaukee is neither. Ever since its early days as an agricultural port and brewing capitol, Wisconsin’s largest city has been a magnet for industry, immigrants, and intrigue..    ...more

RSK: Love this. Not only the cool aspect of "Mawaukee" but there is so much going on in CRE as well. A happening place.

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How headcount could replace price per square foot

Landlords could start charging per person instead of per foot if co-working advocates have their way.

As the industry’s office space continues to evolve rapidly, executives of companies that creatively fill space office market and its valuation model needs to catch up.

“If you think about a building whether it’s a retail or office as a marketplace with a captive audience, the ways you start to think about how to monetize that audience can be tremendous,” said Ryan Simonetti, co-founder of fluid meeting space company Convene...

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RSK: New concept, but no matter what or how you call or charge for it you still need X at the end to pay for expenses and give a bit of a return on investment and risk.

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Starbucks To Close 150 Locations, Pull Back On Franchise Expansion Strategy

Starbucks might finally be realizing what stand-up comedians have been saying for years: There are too many Starbucks.

The coffee titan announced that it will be closing 150 locations in fiscal year 2019, after years of averaging about 50 closures annually, the Wall Street Journal reports. Starbucks CEO Kevin Johnson acknowledged that the strategy of rapid franchising, with locations within supermarkets, airports and the like, had overextended the company and reduced profitability.

Starbucks has reportedly opened 3,000 new locations in the past three years, passing McDonald`s in terms of store count in the U.S. But sales have slowed in that same time, with the company reporting flat traffic in this year`s second quarter and predicting 1% growth in Q3...

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RSK: I still laugh when I see a Broker who has a strip mall for lease say "Great location for coffee shop"....right.

Ken Notes: but great location for co-working coffee shop might be just the ticket...

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Mall Owners Today Are Stuck With Hard-To-Unload Properties

As mall owners pour money into top-tier malls to add experiential elements and other features unavailable online, the owners of a large number of lesser-quality malls are pushing to offload the struggling assets...

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RSK: To me it depends on the size of the retail space and again location, location, location.

Ken Notes: I mentioned earlier, is it a destination...

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Duke Long’s Updated 2018 Top 150 Commercial Real Estate People You Must Connect With On LinkedIn.
35. Ralph Kamps https://www.linkedin.com/in/ralph-kamps-21297a8/
Managing Partner Cirex Realtor Emeritus
Wisconsin University of Wisconsin-Madison
Madison, Wisconsin Area   ...more

RSK: Honored to make the list once again at #35

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Building For Sale: 634 Water St Prairie du Sac WI

Exceptional opportunity to own a quality built professional building on the Wisconsin River in downtown Prairie du Sac. Three levels overlooking the River and the new Great Sauk Trail walking/biking path. Reception area, 9 private offices, 3 restrooms, plus showering area. Walk out basement. Owners would lease back, or consider dividing the space. Call Carole Lukens for details at 608-393-1784.

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Building For Sale: Trail`s Lounge - Portage WI

Successful Restaurant - been in operation for over 40 years seller to retire - Located in the historic Wauona Trail - across from the Veteran`s Memorial Fields many events - fully equipped - turnkey business - over 4,000 sq. ft., large dinning/banquette room - oval bar - spacious kitchen, plenty of parking...

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2018 Event Calendar

 JULY 2018

July 26 | 5:30 – 10:00 PM
25th Anniversary
Discovery World

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RSK: A list of CARW Events and CE.

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Booming Economy Prompting Hawkish Fed Policy; Global Financial Markets May Complicate Future Action
Fed raises benchmark interest rate; additional increases anticipated. The Federal Reserve increased the federal funds rate by 25 basis points, lifting the overnight lending rate to a range of 1.75 percent to 2 percent. Citing stronger consumer spending, and a highly optimistic business community, the Fed laid out the potential for two additional rate hikes in 2018. The Fed noted strong job growth, accommodative fiscal policy and above-target inflation as reasons for continuing to normalize monetary policy over the coming months.   ...more

RSK: If you are a seller this is good news as the increases are low but steady. Asking prices will remain strong.

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4 Factors Driving Office Space Decisions

There is a lot of talk about how much the landscape has changed in the commercial office sector, with the rise of the creative office at the forefront of the conversation. Global brokerage firm Cushman & Wakefield recently released a reportSpace Matters, detailing the reasons for some of these changes to traditional office spaces and how space decisions are being made by occupiers today.

According to Cushman, there are four main factors that are highly important to today`s commercial real estate executive when making space decisions. Read on for the breakdown...

#1. Office Density...
#2. Amenities...
#3. Parking...
#4. Rent Concessions...

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RSK: Good study. When it comes to CBD office space the problem with the older buildings are not enough on-site parking. The newer buildings all have sufficient underground and/or bi-level ramps. With a few large buildings on the books on East Washington, some of these older buildings may suffer in occupancy or rent concessions.

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High Point Office Park

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Affordable. Versatile. Excellent visibility. A unique gem tucked alongside Madison’s West Beltline Highway 12/14...

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NEED SOME ADDITIONAL CASH??

High Point Office Park is pleased to announce a new broker incentive program from now through the end of September 2018.
  • Lease 8,000 or more square feet for 5 years and receive $5,000.
  • Lease 2,000 or more square feet for 5 years and receive $1,500.
  • Lease 2,000 or more square feet for 7 years and receive $2,000.
  • Lease 2,000 or more square feet for 10 years and receive $3,000.
  • Lease under 2,000 square feet for 5 years and receive $750.
  • Lease under 2,000 square feet for 3 years and receive $500.
Ben Hurd High Point Office Park LLC
bhurd@iamgtllc.com ph: 608-213-3106 mobile: 608-213-3106
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Are you fed up with CoStar and LoopNet? Do Something Now! Join QuantumListing.
I`ve been a commercial real estate broker for over 30 years. I`ve used CoStar and LoopNet for many of those years, and yes they have a lot of data, but I have gotten fed up with their inaccuracy and expense.

I started QuantumListing to address those problems. It has lots of user friendly features and once your 3 month free trial is over, it is reasonably priced ($79.99/year for an individual user)...    ...more

RSK: Yet another supposed solution to pay for your own data. To me, the model that will survive is the one that is free and will collect revenue from advertisers...like a FaceBook model.Ken Notes: Keep it simple... PropertyDrive lists what brokers want to list, it is current and accurate because brokers are paying for it, it is free to both the public and other brokers, it is a direct link between the broker and client...

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The 15 BIG Questions You Must Answer About Commercial Real Estate And Your Data!

Where we stand today.

Commercial real estate data has long been left abandoned in dark recesses and behind firewalls, either forgotten or hidden. Mostly for a perceived competitive advantage. Today that may no longer be a choice....

...

The Big Questions:

1. Will data availability and portability, done well, help create a defined commercial real estate brand?

2. What new audiences will the data attract?

3. Will we need commercial real estate data, advisors?

4. Will we manage our data daily, weekly or monthly?

5. What do “innovative” data mining and monetization methods now in use by Google and others, mean to commercial real estate?

6. Will this affect commercial real estate locally, at a regional level or on a global scale?

7. What happens to commercial real estate data when it’s collected and syndicated into “the cloud”?

7. What happens if there is a monetization of the data without the knowledge and permission of the rightful owner?

8. Can commercial real estate be stupid enough to go back to square one?

9. How do we, as an industry, determine the real value of data beyond the context of that data is just property data?

10. Do we need only need “comps” to build upon or to derive a valuation model?

11. What exactly is the Commercial MLS’s/ CIE’s role?

12. Does this create a new kind of data marketplace?

13. Do we understand how business intelligence and analytics are being applied to the data generated by commercial real estate transactions?

14. How should the commercial real estate industry confront this data challenge?

15. How should we do it?...

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RSK: Timely and gives you something to ponder on...how can you make your data perform in your business? Click on the story to see Dukes answers...

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RASCW Events and updates
Cindy Strange Memorial Golf Outing

July 18 @ 10:00 am - 6:00 pm

Register your team today - space fills up fast!  Deadline is July 9, but don`t wait.  This event traditionally sells out earlier than the deadline. Not a golfer?  Join the fun by attending the after golf reception only.  Be sure to register by July 9. Click on the link below for the registration form...

Bike for the Boys & Girls Club

July 21 @ 7:00 am - 1:00 pm

Please join Team REALTOR® Riders!  Sign up to ride or make a donation to the team today!

Mallards Game Fundraiser for Movin’ Out 2018

July 26 @ 5:00 pm - 10:00 pm

New Developments for Commercial Brokers 2018 Review

Adam Sayer, Director of Planning and Development, City of Verona
click here for presentation

Michael Zimmerman, Assistant City Administrator/Director of  Community & Economic Development, City of Fitchburg
click here for presentation

Mike Davis, City Administrator, City of Middleton
click here for presentation

Tax Reform, Josh Ganshert, Baker Tilly
click here for presentation

Key Legal and Regulatory Updates, Tom Larson and Cori Lamont, Wisconsin REALTORS® Association
click here for presentation

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RSK: In case you missed the RASCW Commercial Update Seminar a link to the powerpoint presentations is above. Worth the time to go over it

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Debt Extension Isn’t Likely to Save Sears, Experts Say

Sears Holding Corp. continues to gasp for air. However, the struggling company just got some breathing room from creditors after receiving more time to refinance its debt.

In a June 4 Securities and Exchange Commission filing, Sears says it has two additional years to pay back its lenders, including Sears CEO Eddie Lampert. The company consolidated three loans, including two real estate loans, totaling $593 million, which were due next month. The new consolidated loan’s due date has been pushed out to July 20, 2020...    ...more

RSK: Seems like we are beating a dead horse here. Maybe they should get back into mail order inexpensive homes.

Ken Notes: It amazes me that a company that had today`s marketplace dialed in in the 20,s, 30`s, 40`s, 50`s, 60`s can now be so clueless...

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FoodFight Restaurant Group - WELCOME

Our roster of restaurants reads like a who`s who of Madison`s favorite eateries: From Monty`s Blue Plate Diner, to The Avenue Bar, to Steenbock`s on Orchard, each is unique in its atmosphere and menu and each is the best at what it does!
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Building For Lease: 2825 University Ave Suite C Madison W

Pizza Shop ready for use with included walk in freezer and industrial oven. Space is ready for lease and showings are available upon request. Some seating in restaurant available but mostly for take-out and delivery. Monument signage is also available to tenants....

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National Hospitality Research Report

Second Quarter 2018

Economic Momentum Propels Occupancy to New Heights;
Private Investors Fuel Bidding in Secondary and Tertiary Markets

Hotel sector on track for exceptional room demand. Healthy employment growth and increased consumer spending continue to drive hotel performance nationwide. Occupancy rose to a 30-year high in March, driving increases in ADR and RevPAR. The trend will continue as the stimulative effects of the new tax laws drive economic growth and unemployment remains low. Several markets with large development pipelines, however, may face supply pressures, reducing occupancy and slowing RevPAR growth.

  • Record consumer and business confidence levels support expectations of strong consumption and business spending this year. These rising confidence levels will likely buoy room demand through the remainder of the year, keeping occupancy at a historical high.

  • A healthy pace of hiring, rising wages and a low unemployment rate are underpinning strong summer travel expectations, with travel associations expecting travel expenditures to increase by 5 percent this year. Rising expenditures will bode well for hotel occupancy, ADR and RevPAR.

  • The accelerating economy and improving property performance metrics have boosted supply additions in many markets, like Nashville, which may begin to weigh on occupancy improvement. The metro has more than 5,200 rooms underway, about 12 percent of its existing room inventory. Increased supply has outpaced room nights, with occupancy falling 60 basis points during the past 12 months.
Access Full Report   ...more

RSK: Quality labor and shortage is always a problem in hospitality and restaurant areas.

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Building For Sale: Ella`s Deli and Ice Cream Parlor

Landmark historic Madison restaurant on the market for the first time in 41+ years as the owners are ready to retire. 5,561 SF building on a 1.04 acre lot with plenty of parking. Sale also includes a rental property located on the adjacent parcel at 2912 E Johnson St. consisting of 3 apartments - one 2 bedroom - 1 bath unit on the first floor and two efficiency units on the 2nd floor...


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Building For Sale: Fastenal Building - 151 Corporate Drive Beaver Dam

Building has Fastenal as anchor tenant with additional regional tenant, Aerospace and two other local tenants. Tenants in end cap of 5,000 sq. ft. on month to month lease with option to owner occupy if desired. Quality building in great corner location.

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Shopping malls want to make you pay for prime parking spots
Malls across the country, having lost millions of customers to online rivals, hope to win shoppers back with a rather odd marketing plan: pay for parking.

In partnership with an app called MyPark, malls and outlet centers are starting to reserve the best parking spots — those nearest the stores — and will allow shoppers to reserve those spots, for a fee.

Woodbury Common Premium Outlets is the latest shopping center to sign a deal with MyPark. Shoppers who want to reserve a spot near the entrance or by popular restaurants can pay $3 for two hours — plus $3 an hour thereafter — to reserve a spot as much as six months in advance.

Serious shoppers are already scooping up spaces for Black Friday, according to MyPark CEO Luis Mayendia, who is eyeing airports and hospitals as expansion targets...

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RSK: Great idea...but wonder what problems will arise from this. Why not just Uber or Lyft there?

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You Wear What You Eat

Hours after the indie fashion house Telfar presented its Spring/Summer 2016 collection during New York Fashion Week, the brand hosted an afterparty at an unexpected venue: a White Castle in Hell’s Kitchen.

White Castle had been a recurring theme for the brand’s founder, Telfar Clemens, for years, and the iconic slider chain has even catered his fashion shows. “There is a White Castle a block from the apartment where I was born and still live in Queens — that was where my parents would take us if we had been good,” Clemens says. “When I was a teenager I DJed to pay for my [early fashion] collections, and that White Castle was the only thing in my neighborhood that was open past 3 a.m.”

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RSK: Hey my friends at Food Fight let`s get with this....not exactly a money maker but the advertising alone would be worth it.

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Consumers Beginning to Consider Malls as Grocery Destinations

With food retailers increasingly looking to differentiate their shopping experience by opening stores within indoor shopping malls, including Wegmans’ recent debut of what it called a “unique” multilevel location within a mall in Natick, Mass., it seems that consumers are increasingly warming to the idea of being able to shop at a supermarket along with such mall staples as Auntie Anne’s and Yankee Candle...

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RSK Maybe Sears needs to get in the grocery business as an option. They certainly have the locations...or better yet partner with a grocer.

Ken Notes: If I had empty mall space I would be begging for a Trader Joes or other great destination grocer to fill my space...Remember the old downtown with a butcher, baker, produce market, hardware, clothing, notions, cafe, office supplies, electronics, soda counter, and drug store... This is what a mall should be... It is by the way the model Walmart uses in thinking about their stores and Amazon is the e-version...

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Crown Commercial Real Estate/Development, LLC

Offering real estate services and design-build construction solutions for growth oriented clients...   ...more

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Economy Drives Increased Spending; Housing-Related Consumption Rising
Retail sales accelerate as unemployment rate tumbles. Retail spending posted another strong month with help from an incredibly tight labor market. The 3.8 percent unemployment rate has placed upward pressure on wages as many companies compete for quality employees. This trend has supported modest but steady wage growth, driving the annual pace of wage gains to 2.7 percent in May this year, in turn supporting a 5.1 percent increase in core retail sales. With a number of tailwinds propelling retail sales, spending has been strong in several categories, particularly building materials, which grew by 5.0 percent over the past year. Elevated discretionary income has empowered homeowners to tackle home improvement projects, which many are undertaking instead of selling their homes and buying new ones. This has in turn weighed on home sales activity....   ...more

RSK: There you have it another reason Sears should get into the Single-Family Home business...

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The Top 3 Trends CRE Asset Managers are Focused on Right Now

One of the best parts of my job is having the opportunity to sit down with some of the world’s most forward thinking, innovative and successful landlords and brokers on a regular basis. In an industry that is changing as fast as ours, these conversations provide invaluable insight into the macro trends that are driving change, and how CRE’s leading minds are positioning their businesses to adapt and thrive.

Over the last few months I’ve been on the road pretty frequently, going to major conferences including ICSC ReCon and RealComm, and visiting clients and partners across North America and Europe. The bottom line – I’ve spoken with A LOT of people...

Here are the three change agents that asset managers are focused on right now...

#1. The tenant is now in charge...
#2. Amenities are a given, but what’s the ROI?...
#3. Data-driven decision making is finally here...


 

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RSK: We building owners better heed these trends.

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Recent sponsors below...
Thanks you for sponsoring CIREX and Cirexnews.com
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Evans Properties, LLC.

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Professional Real Estate Management and Sales

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ARTIS REIT / Madison Lifestyle Office Portfolio


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Madison Lifestyle Office Portfolio comprises 16 Class A properties totaling over 1.7 million square feet of leasable area and an additional 8.3 acres of development land. The portfolio is located on the west side of Madison, Wisconsin.

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Newmark Grubb Gialamas

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Newmark Grubb Gialamas specializes in investment sales, office, retail, industrial, land, multi-family properties and 1031 exchanges. Our knowledgeable, local brokers are subject experts in their field.

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T. Wall Enterprises





Expect Professional Management with a Personal Touch
with every T. Wall Urban Village.

(608) 575-1018 or Contact@TWallEnterprises.com

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IA Management

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Wisconsin Commercial Real Estate

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Our focus is your focus, our goals are your goals.

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Madison Commercial


For lease on Medical Circle - Up to 4,902 SF Available
  •     Currently being remodeled with new elevator
  •     Open floor plans
  •     Under new ownership
  •     Beltline visibility & monument signage
  •     Plenty of parking

call Mike Herl

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