The contraction of retail, and the empty spaces it has left behind, has meant opportunity for industrial redevelopment in some cases, such as a former regional mall in Ohio that is now serving Amazon.

That prominent example is the site of the 2.2M SF Randell Park Mall in suburban Cleveland. Vintage 1976, the property sputtered to an end in the 21st century. The site was razed entirely a few years ago and is now an Amazon warehouse, or fulfillment center, as the retail giant calls it...

TODAY - TUESDAY 8/27/2019

This is our first in our weekly series of live-streaming shows, focused on Opportunity Zones. Neal Bawa will serve as our master or arms and talk about, “The Five Perils of Opportunity Zones”. To attend the live-stream, ask questions, leave comments and participate in the conversation, click the following links at 2:45, PM on August 27, 2019:

YouTube https://youtu.be/v6HPBHJodDs

Facebook https://www.facebook.com/creradioandtv/

Twitter/Periscope https://www.periscope.tv/CREradio

In New York, it was JPMorgan Chase, the bank founded by the financier who helped fund the creation of modern America. In London, it was HSBC, the former Hong Kong and Shanghai Banking Corp., a company that ties together London with its former Far East colonial empire.

Today, WeWork has eclipsed both of them, becoming the biggest private sector office occupier in both cities less than a decade into its existence. It occupies or is about to occupy 7.2M SF in New York and 4.4M SF in London...

• Amazon is planning to build a 700,000-square-foot facility on the site of the shuttered Rolling Acres Mall in Akron, Ohio.
  
  
• Rolling Acres Mall fell victim to declining shopper traffic and permanently closed in 2013.
  
  
• Former tenants include Macy`s, JCPenney, Target, and Sears.
  
  
• Amazon`s move into the site is symbolic of a new era of retail dominated by e-commerce giants after the retail apocalypse wiped out hundreds of shopping malls.
  

WeWork, now known as The We Company, announced this morning the acquisition of a rival co-working business, Spacious. The three-year-old, New York-based startup turns restaurants that sit empty during the day into co-working spaces, and is one of several niche co-working startups — like Convene, Knotel, Industrious, The Yard, The Wing and Alley, for example.

Spacious was co-founded in 2016 by CEO Preston Pesek, whose background is in commercial real estate. The company’s goal was to take advantage of under-utilized urban spaces, including abandoned retail stores and empty restaurants, to serve the co-working crowd. The company has since converted dozens of restaurants in New York and San Francisco into weekday work spaces.

Customers can access the work spaces with anything from a $20 day pass all the way up to a $129 per month annual membership...

Class A space at newly reconstructed intersection of Verona Road and McKee Road providing exposure to 70,000+/day. Property is easily accessible to downtown Madison and nearby retail. 10` ceilings, on building signage opportunity, heated underground parking and locker room with showers. First floor tenants are able to have private entrance from parking lot. Utilities included in NNN est...

That is the unmistakable message that global investors in the bond market are sending. Longer-term interest rates have plunged since the end of July — a shift that historically tends to predict slower growth, interest rate cuts from the Federal Reserve, and a heightened risk that the economy slips into outright contraction.

This is happening in an economy that, by most indicators, is solid. The United States economy is growing at a roughly 2 percent rate and keeps adding jobs at a healthy clip. There is no sign of the kind of huge, obvious bubbles that triggered the last two recessions, the equivalent of dot-com stocks in 2000 or housing in 2007.

So if there’s going to be a recession in 2020 — if the pessimistic signals in the financial markets prove correct — how would it happen? There are plenty of clues, in the details of recent economic reports, in signals from the markets, and in the recent history of recessions and near recessions.

• GoBankingRates recently released a study determing the best suburb in each major metropolitan statistical area in all 50 US states.
  
  
• The August 2019 study evaluated each suburb on its crime rates (sourced from Neighborhood Scout), housing affordability (sourced from Zillow), annual cost of living (sourced from the Bureau of Labor Statistics), and school district scores (sourced from Niche).

In cities across the U.S., multifamily developers are finding that building less is doing more.

As rents have increased and urbanization has intensified, developers have responded with smaller apartments, and new analysis shows those efforts are paying dividends.

After lagging behind bigger units earlier this decade, the vacancy rates for the smallest 25% of one-bedroom units have dipped below those for medium and larger units, according to CoStar. This is a reversal from earlier in the decade, when the largest 25% of units posted the lowest vacancy rates and the smallest 25% saw rates above 7%, CoStar consultant Robin Trantham told Bisnow. The average unit completed last year measured 941 SF, according to RENTCafé. That is 5% less than the average of 10 years prior. ..

Eight year old, 30,000 SF modern manufacturing building with 9500 SF of office, design and specialty areas. This building has a number of amenities including large conference room, demonstration room, kitchen/break area, air conditioned and humidity controlled manufacturing area, substantial electrical power, 3 loading docks + 1 OH drive in door.

ALSO FOR SALE HERE

Much of that growth might not be by the coworking model pioneered during this decade by WeWork and others, the report also says. CBRE predicts a shift in the industry toward partnerships between building landlords and coworking companies, rather than coworking companies being tenants that then sublease...

If your favorite college football team lifts a trophy at the end of this season, student housing investors around that school will be celebrating right along with you.

A university with a major football program has corresponded with boosted enrollment in recent years, based on greater media attention. That increase in enrollment leads to greater demand for student housing, providing stronger fundamentals for those looking to invest in the sector, a new CBRE report found.

Amid a higher level of economic uncertainty than the country has seen in nearly a decade, student housing is considered by the investment community as among the safest asset classes due to consistency of demand. With new construction not terribly different from standard multifamily, the industry is shedding its label as a niche field...

Cannabis is big business in Colorado, and the industry continues to grow at breakneck speed. 

The number of licenses awarded to businesses selling weed in retail stores has increased every year since voters approved the legal use of marijuana in 2014. But the question remains: What is the tipping point for market saturation? 

The number of licenses the state has awarded to marijuana retailers has increased from 440 in August 2016 to 571 for the same month this year, according to the Colorado Department of Revenue Marijuana Enforcement Division.

On the cultivation side, the number of licenses the state issued to companies growing marijuana increased from 583 in August 2016 to 739 in August 2018 before dropping down to 699 on Aug. 1...

When it comes to college football, there’s no price too high for fan loyalty.  

Last year, fans in the SEC conference reportedly dropped between $1,212 and $4,232 (depending on their team) on everything from tickets to food and merchandise. However, when factoring in hotel prices, the average spend got as high as $6,200 per fan—a nearly $2,000 premium.

Which raises the question: How much could a savvy homeowner make renting their house? After all, with the NCAA reporting roughly 47 million football fans attending games last year, there’s certainly no shortage of people needing places to stay....

For pizza makers, order delivery used to be simple. Customers would call the pizza joint, then wait for a delivery person to show up. Now online ordering, which is revolutionizing the fast-casual and fast-food restaurant business as a whole, is impacting the giant pizza chains, as well as smaller operators, with unclear results for the restaurants.

In particular, the No. 1 and No. 2 U.S. pizza brands, Pizza Hut and Domino`s Pizza, are taking opposite approaches to online orders...

We as in we are commercial real estate and to most of us all, that means buildings. Buildings that we don’t occupy as a residence. Yes, I know there are companies out there starting to blur even that definition. But for now, let’s just keep to the basic definition of.

Buildings: It could be one simple individual building in a secondary market occupied by five different companies. It could be a portfolio of buildings across the globe occupied by A-rated tenants of all types. We are all in those types of building in some form or the other every day.

Data: The oil, the fuel, the market driver, the market maker, the data gold that flat out makes $$$$ for millions of people now and, possibly in the future…  it will make them trillions.

Scale: Has many different definitions depending on the context from which it’s used and in this instance scale by my definition is used to obtain a dominant position within the commercial real estate industry.

You don’t have to dig too deep to see how the Trump administration’s tariffs on China will likely impact the real estate industry. But the picture gets a little more complicated when you consider residential rental properties in particular.

To understand how the ongoing trade war is expected to impact independent landlords, it’s essential to consider a few other factors at play, including residential housing starts, current appetite for buying and renting homes and the potential economic impact of a long-term conflict....

Just as important as acquiring a real estate investment is knowing how you are going to exit. Selling a property takes a great amount of knowledge and coordination, and it can take months to prepare and execute. The smartest investors map out an exit strategy for each property they acquire prior to closing on a sale. The sale may be years in the future, and the plan will be reassessed often to take into account the latest market trends, economic health and demand generators, but it is key to know the end game...

It may not be WeWork`s $47B, but Knotel has just reached unicorn status.

Knotel announced the closure of a $400M funding round that brings its valuation over $1B on Wednesday. A provider of on-demand office space with flexible lease terms that seeks to remain distinct from the term "coworking," Knotel nonetheless has ambitions to grow rapidly enough and large enough to rival The We Company...

But the Trump administration’s signature plan to lift them — a multibillion-dollar tax break that is supposed to help low-income areas — has fueled a wave of developments financed by and built for the wealthiest Americans.

Among the early beneficiaries of the tax incentive are billionaire financiers like Leon Cooperman and business magnates like Sidney Kohl — and Mr. Trump’s family members and advisers...

Most investors have focused on the real estate investment side of the federal opportunity zone program, but many are missing out on a part of the program that could generate far greater returns, experts said. 

The returns on investing in a high potential company that sets up as a qualified opportunity zone business, or QOZB, and starts or relocates in one of the designated 8,700 opportunity zones could be 10 times more profitable than flipping commercial real estate, The Pearl Fund founder and Managing Partner Brian Phillips said.

It won’t be a repeat of 2008, but housing markets in some parts of the country are at more risk than others

Even if buying a home doesn’t match up with your personal vision of the American Dream, you may still want to consider investing in real estate. And buying a piece of property outright is no longer your only option for investing. Real estate crowdfunding is yet another way you can diversify your investment portfolio, often for less of an up-front expenditure..

• McDonald`s recently launched its first "McDonald`s to Go" restaurant in London. It has no seating areas and serves only takeout.
  
  
• It`s the first new format for a McDonald`s restaurant since the drive-thru.
  
  
• The new restaurant replaces cashiers with touchscreens and is stripped of decor and furniture.
  

Despite his location in one of the country`s hottest real estate markets, Urban Catalyst Managing Partner Erik Hayden employed a wait-and-see approach to San Jose`s opportunity zones.

Even after having set up Silicon Valley`s only multi-asset fund dedicated to designated properties, he waited.

As Hayden recognizes, stories similar to his occurred in markets across the country, with investors claiming a lack of clarity stalling any kind of large-scale benefits opportunity zone, which proponents promised would come to distressed communities...

Retail giant Amazon is preparing to hold job fairs around the country in hopes of recruiting as many as 30,000 new workers above and beyond the company`s seasonal expansion that comes every fall. If Amazon succeeds in hiring that many workers, it would represent a 5% increase in its workforce.

The fairs, which will happen Sept. 17, will be in highly developed logistics markets, and in some cases where Amazon already has a strong presence. Besides the company`s hometown of Seattle, the events are also scheduled for Arlington, Virginia, home of HQ2, along with Boston, Chicago, Dallas and Nashville...

Starting as a real estate investor can be a daunting task. Markets are usually already established—and trying to break into an established field takes time and effort. Many times, newcomers aren`t aware of everything that`s going on, which can leave them scrambling to find out themselves or to recover from a surprise...

As billions of dollars in Chinese imports were hit with a new 15% tariff on Sunday, many retailers braced for a serious impact — but not all of them.

Among major U.S. retailers, home improvement stores The Home Depot and Lowe`s are relatively insulated from the impact of President Donald Trump`s tariffs on many consumer goods, according to a Wells Fargo analysis reported by Reuters. Both companies rely on China for 10% or less of their merchandise...

Excellent views of Capitol, Overture Center and State Street. Minimum of 5 year lease term. Fully finished basement space also available for office use (up to 2,930 SF at $22/SF)...

• Scott Galloway, the best-selling author and well-known tech-industry pundit, is a professor of marketing at New York University`s Stern School of Business.
• He analyzed WeWork`s S-1 filing as the company prepares for an initial public offering under its new name, The We Company.
  
  
• He summarized most of the major criticisms that have been lobbed at the company: its losses, culture, corporate structure, and disclosures about its business dealings with its founder-CEO, Adam Neumann.
  
  
• But Galloway, in his customary shoot-from-the-hip style, takes it further: He also criticized the bankers involved in this deal, writing they "stand to register $122 million in fees flinging feces at retail investors."
  
  
• The following is his blog post in full, republished by permission. It originally ran on his own blog, "No Mercy / No Malice."

  Really? Really?

  I`ve started nine firms and I`m, generously, 3-4-2 (win-lose-tie). In retrospect, and I think about this a lot, the only reliable forward-looking indicator of our firm`s success or failure was … timing. Specifically, the part of the economic cycle at founding.

WeWork is an amazing business. They are a phenomenon. There are a lot of reasons why WeWork attained the valuation it currently has — which many consider crazy. It was reported last week that the valuation was being slashed — but it is still crazy even at half the price.

The first question worth asking is why WeWork was originally valued at $47 billion....

Key Commercial is pleased to present a fully-leased multi-tenant investment opportunity. The property has been occupied by anchor tenant AMS for nearly 30 years and is home to other established businesses such as Archer auto Repair, FIT, and Denise Quade Design. The property fronts Verona Rd which sees over 50,000 vehicles per day. There are 69 on-site parking stalls with two access points...

1,600-3,200 sq. ft. of second floor office space with tons of natural light throughout. Building and monument signage available, high parking ratios and great co-tenants including Park Bank, Robertson Cosmetic Center, Jimmy John`s, Harvest Chiropractic, Orange Shoe Gym, Sun Prairie Nail Spa and Hu-Hot. Call today for a tour...

Cities, counties and states across the U.S. are increasing their minimum wage as advocates push for a $15/hour nationwide baseline, and the rising labor costs are forcing owners and occupiers of commercial real estate to rethink their business models.

D.C. last month increased its hourly minimum wage to $14 and it will reach $15 next year under a law passed in 2016. Seven states have also enacted laws to raise the minimum wage to $15, and these states — primarily large ones like New York, California and Illinois — include 30% of all U.S. workers...

More than a year after Three World Trade Center opened its doors, the tower’s Church Street-facing retail base remains embarrassingly dark.

And retail mall operator Westfield blames the Port Authority.

Westfield says it can’t bring in store tenants because it still doesn’t have the keys. “The space hasn’t been handed over yet,” a company spokesperson said — meaning by the Port Authority...

Rare opportunity to purchase 1.6 acres of vacant land along newly reconstructed Verona Road. Future owner will have prominent location at exit ramp leading into Fitchburg’s retail corridor which is anchored by Super Target and a variety of other retail/service users. Adjacent property is a newly constructed office building and there is potential to do a similar scale project on subject property....

7,000 sq. ft. build to suit opportunity with-in the Grand on Main development in Sun Prairie, WI. Ideally positioned between Prairie Lakes, the Meadow View Elementary School and the future Sun Prairie High School. Perfect B.T.S. opportunity for a clinic, dental practice, professional office tenant or anyone else looking for a high profile Sun Prairie location...

Forever 21 has been eaten alive by the new monsters in retail today, digital shopping and ginormous discount stores finally offering hot fashion at their always good prices.

An inability to evolve internally has also hampered Forever 21.

One of the formerly go-to destinations for disposable fashion is preparing a potential bankruptcy filing, according to a new Bloomberg report. With cash flow declining and turnaround plans not working, Forever 21 had reportedly sought additional financing and a debt restructuring. But those talks have stalled, per Bloomberg, and now the company may look to take a debtor-in-possession loan and enter Chapter 11 reorganization.

In other words, here comes a lot of store closures...

Nordstrom opened its first concept store on the Upper East Side Thursday, a merchandise-free, miniature location that will also expand to the West Village later this month.

Victoria’s Secret, founded with the idea that men should feel more comfortable shopping for the women in their lives, is trying to reframe itself as a brand that’s actually made with female customers in mind. But that’s a tough message to deliver when most of your management is male.

“There’s a big belief in the company that we need to evolve,” Victoria’s Secret Lingerie Chief Executive Officer John Mehas said during a question-and-answer period at the annual investor day in Columbus, Ohio. “We need to be led by her, for her.”...

Invest in a piece of history and a thriving local bar. The Roxbury Bar and Grill, formerly known as the Roxbury Tavern, underwent a facelift last year & kept it`s well loved charm. An easy stop off Hwy 12 this bar attracts patrons from the surrounding area and those just passing through. Over $20K in improvements. Upper unit could be finished for additional income or to owner occupy.

2018 DOY Presentation with Photos is Here!

A "flight to quality" doesn’t mean jetting off to a tropical resort, it`s a strategy that real estate investors are using right now to gain peace of mind. Seasoned CRE buyers are flocking to quality assets with less market and construction risk. Is it time to reposition your investment holdings?

The commercial real estate market has been so strong the past few years that property appreciation alone has turned otherwise marginal deals into windfalls. A low-risk/high-return market atmosphere has conditioned today’s real estate investors into believing outsized return metrics are the new normal....

Edge of Downtown - just off Main Street and Verona Avenue. 129 x 132 feet M/L lot for residential or professional office. Old Quonset building on site. City services.

We have an increasingly global economy and global marketplace. More than ever in the past, the US commercial real estate market has truly widespread international participants on a material scale, how will you compete?

Will there be a consolidation of the industry in general? If so will there be a consolidation of Vendors and Service providers?

Are we truly redefining the Value Chain?

Is there now by default an inevitable change in fee structure? 

Commercial real estate has been a historically analog business, what will it take to create a more robust and transparent marketplace?

All this and so much more!

For every real estate investor, the end game — your ultimate goal — must always be in sight. To be successful in real estate investing, you must have a goal, criteria to get there and the network to guide you in the journey.

1. Set Your Goal

First comes your goal. It has always been in my nature to dream huge. Not just dream big, but huge. What could ultimately bring you happiness — $10,000 in cash flow per month? OK, now think bigger: What if you could achieve $15,000 in cash flow per month? Could you travel more? Could you donate to charities near and dear to your heart? Could you retire at 40 and put time and energy into another passion in your life? Don’t limit yourself. Set your goals high...

2. Establish Your Criteria...

3. Build Your Network...

2019 CARW Rainmaker

$36,037 per acre. 19.5 acres of prime development land near the corner of Lacy Road and Seminole Hwy. Mostly tillable rolling land with some woods. Future Urban Service Area subject to Fitchburg Comprehensive Plan approval. 2 old homes on sites.

Former Light Haus Glass building now available for sale. Great centralized location with easy access to Hwy 12/Beltline and downtown Madison. Interior is a mix of showroom and production space. Built in 1966. IL zoning. 3 phase, 400 amp electrical. 16` eave height, addition 4,000 sf of mezz storage above production space. Roof top signage visible to Verona Rd/Hwy 151.

With housing costs reaching a breaking point, some developers are calling for a détente in the ongoing apartment amenities arms race. That could mean some amenities now taken for granted will be on the way out.

“We are concerned, to say the least, that we`re reaching a sort of internal rent tolerance among most of our renters,” Waypoint Residential Chief Development Officer Eric Hade said. “You can`t push [renters] much further before they have to buy a new house or, you know, I think what they will alternatively do is move out to the suburbs.”...

I am also often asked to be involved in helping create content for most of the conferences I attend. It’s not exactly an easy thing to do and like anything else sometimes it’s hit or miss whether the month spent before putting just one panel together will inform entertain and educate. You are only as good as your worst panelist. And you know who you are!...

• Nearly a dozen of WeWork`s top human resources officials have left the company in the last year or are in the process of leaving, The Information reported.
  
  
• At least five more left between 2015 and last year, including the chief HR officer, whom WeWork hasn`t yet permanently replaced, according to the report.
  
  
• News of the departures comes as WeWork has been on a hiring binge and is preparing for a planned initial public offering.

• WeWork paid its own CEO, Adam Neumann, just shy of $6 million for use of the word "We."
  
  
• Neumann owned the trademark through a private company, which then sold the trademark use to WeWork.
  
  
• In WeWork`s latest filing with the Securities and Exchange Commission, the company said it had retrieved the money it paid to Neumann for the trademark and had retained use of rights to the "we" branding.
  
  
• It did as much "at Adam`s direction," the filing said.

Very nice office on Madison`s west side with recent paint and carpet. The space includes multiple private offices, conference room, large open area for work stations, kitchenette and break room. The space is available now. Motivated landlord has rent below market rate...

7.5 Acres on the Sugar River in Paoli, this 12 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 buildings, Hamlet zoning allows many uses incl. Condos as conditional use. 48-hour notice for showings 10-12 on Tues & Thurs. Proof of funds needed.

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

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

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