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This Weeks Articles...
Cirex News is emailed weekly to over 2,000 CRE Brokers/Agents and people interested in commercial real estate. In our weekly News & Views you can promote your clients properties and your services for just $15 for new listings (If it is put into the Cirex Guide no extra charge) and $25 for a banner ad (also free to Guide advertisers). call 608-345-2880...
2020 was a uniquely challenging year for the world of offline retail, but it also presented an opportunity to truly appreciate its value. The resilience of consumer demand and the ongoing ability of many brands to continue driving engagement and interest, even amid the pandemic, served as a huge testament to the retail landscape’s strength.
We kicked off 2020, without knowledge of the impending COVID storm, by acknowledging six brands we felt would show tremendous strength over the course of the year. Then, as the retail recovery was getting rolling, we dove into six others that would perform well in the second half of the year....
RSK: The supposed winners in retail for 2021 and resurgence in Malls? Not sure about that one.
Ken Notes: I think the logic for malls is they have to change or die and change is good... right????
Biden now has better shot at changing taxes, Opportunity Zones
When Joe Biden won the 2020 election, there was a significant hurdle between the president-elect and some real estate reforms he wanted: a Republican Senate.
That changed Wednesday when two Democrats won Senate seats in Georgia. Biden’s proposals have a better chance of making it to the floor with Democrats holding half of Senate seats, Kamala Harris poised to cast tie-breaking votes as vice president and Sen. Charles Schumer, D-New York, as majority leader...
RSK: If you are involved in real estate in any way, you need to read this.
Ken Notes: Good read, we may need to get proactive on the CRE front and demonstrate we can create jobs and revenue...
The year 2020 featured a global pandemic, an economic downward spiral, and an unforgettable presidential election. In the world of retail, 2020 was similarly grim, with a massive wave of store closures and industry bankruptcies defining much of the shopping landscape throughout the year.
But, believe it or not, 2020 also had its good moments.
Today, we`ll take a look at the biggest events in retail in 2020, as we celebrate the turn of the year with a special edition of Insider Retail. We`ll go through the ups and downs of 2020 — from store closures to the acceleration of e-commerce — and try to predict what`s to come in 2021....
Retail`s winners and losers in 2020
How the pandemic may have permanently changed the restaurant industry
Americans shopped online more than ever before, leading direct-to-consumer brands to thrive
Virtual at-home fitness companies brought the gym experience to your living room
The wackiest new menu items to launch in 2020:
The wildest retail stories of 2020:...
RSK: Some very good stories in this article....a fun read.
Ken Notes: if the pandemic doesn`t get you the Popeyes` beignets stuffed with Hershey`s chocolate just might!
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.
Alternate Properties Continued to Gain Steam
Under the very unique conditions created by COVID-19 and associated lockdowns, some property types previously viewed as “niche” have proven they can be both recession- and pandemic-resilient. Some of these properties were already in high demand previously—investors have generally favored biolab space and single-family rentals (SFRs) in recent years.
But in a world where most office workers have either been urged to or opted to work from home, buildings dedicated to biolab facilities continued to be far more occupied, partly as a result of the necessary work taking place there and partly because they already had plenty of safety protocols in place to begin with....
RSK: A year-end wrap-up.
The outgoing executive administration`s lasting impact on the natural environment, clean energy landscape and transition to a decarbonized, climate-aligned U.S. economy is palpable — with the equivalent of 1.8 billion metric tons of CO2 added by 2035, a figure nearly one-third of all U.S. emissions in 2019.
Even an extreme economic disruption like the global Covid-19 pandemic is expected to yield only about a 7% annual CO2 emission reduction. For reference, the UN Environment Programme advises
cutting global emissions by 7.6% each year until at least 2030 to have
hope of achieving Paris Agreement goals. Compared to 2019, this
emissions gap has not been narrowed and — so far — remains unaffected by
...CRE owners, executives and investors looking to align with the Biden administration`s sustainability criteria ought to take a similar approach and consider the following:
RSK: Be interesting to see if they do jump on the Biden Program...can tell this was written by a partisan person.
Ken Notes: READ THIS if the Georgia vote goes democrat the strategies here are golden...
1121 S Park St, Madison, WI 53715
PRE-LEASING | Build-to Suit. Located blocks from the Capitol Square and Hwy 12/18 for convenient west/east travel. Between Lake Monona/UW Arboretum, strong local-national retailers such as Barriques, Famous Dave`s BBQ, Honeycomb Salon, UW Health/other hospitals. Approx. 21,700 VPD. Greater exposure with apartments on three floors (55 beds). Largo Patio wrapping the Retail space with 14` Retail ceiling height. Rooftop Terrace and Dual Signage opportunity. 4:1000 Parking and Underground stalls. Space delivery Spring 2021....more
Macy’s is starting to streamline its store portfolio.
The department store giant will close about 45 stores by mid-year, reported CNBC. The closures are part of a plan that Macy’s unveiled in February 2020 to shutter approximately 125 of its least productive stores during the next three years, including approximately 30 locations that were already in the process of being closed.
Macy’s currently operates 544 namesake stores......more
RSK: I would be surprised if the Macy`s at Hilldale didn`t stay.
1,032 sq. ft. Retail / Office Space For Lease
1,032 sq. ft. retail / office space along Greenway Blvd. for lease in Middleton. Co-tenants include Robertson Cosmetic Center, Zoup, T-Mobile and Salon 262. Unique opportunity to lease an efficient first floor space in this high traffic corridor with building and monument signage. See the attached brochure for more information on this opportunity....more
New Construction Class A Flex Space Available 2664-42064 SFNew Construction Class A Flex Space Available 2664-42064 SF. Dock & drive-in loading, 16` clear, build-to-suit offices...
COVID-19, wildfires and civil unrest all threatened property values and tax revenues in 2020, notes Foster Garvey attorney Cynthia Fraser.
Across America, 2020 transformed the urban core. Hotels sit vacant, deprived of business by travel that has been all but suspended. Restaurants under occupancy restrictions struggle to break even or have closed for good where winter weather precludes outdoor dining. In some locations, plywood sheets encase office and commercial buildings for protection against vandalism. In my own city of Portland, Ore., walking through parts of downtown is like walking through a ghost town of shuttered businesses that once teemed with commerce.
Suburban and rural properties have sustained similar impacts, while fires have ravaged many communities. With skyrocketing unemployment in many states, governments have set eviction moratoriums, and the number of tenants not paying rent continues to grow. Landlords may begin to file for bankruptcy protection in increasing numbers as their own bills—including property taxes—come due...
RSK: I doubt it but it should. Municipalities coffers are already low from loss of sales tax, hotel tax etc. But, owners of income property may have suffered losses in rent collection and many assessments are based on income valuation. There will need to be negotiations and even-handed outcomes here.
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.
Next year is going to be a confusing one for anyone in the office market. The coronavirus pandemic emptied out most offices throughout much of the past year, and everyone from entry-level workers to CEOs found Zoom calls and other technologies made it possible to work from home. But the possibility of vaccinations and increased safety won’t end uncertainty and leaves both landlords and tenants with a dilemma: How do you negotiate leases when it’s impossible to know how many employees will return to the office, how many will stay home and how much space will be needed?
New leases for significant amounts of space were rare throughout summer and fall as most tenants took a wait-and-see attitude. Q3 activity in Chicago was mostly confined to sublease deals and renewals, according to a Colliers International report. Year-to-date absorption was negative 146K SF, and about 2M SF became available for sublease. The average rental rate was essentially unchanged in the past year, standing at $42.13 per SF in Q3, just 2 cents below where it was in Q3 2019.
But behind the scenes, some negotiations are taking place, and big changes could be afoot...
RSK: Let`s hope so. I see rents dropping and more flexible lease terms including low rent if another pandemic hits the US.
Ken Notes: I think the real estate market should lobby to get some legislation in place to pay the interest on loans and defer payments for both the owners and the leaseholders in times of government shutdowns. The foreclosure / bankruptcy cycle is helping no one except those with cash to buy up the collateral damage...
Home prices are rising across the nation, but the Covid pandemic is turning the usual geographical trends on their heads.
Home values have historically risen most sharply in large cities on the coasts, where supply is leaner and demand is stronger. That is no longer the case....
RSK: Interesting. No mention of any cities in the frozen tundra of the Upper Midwest.
After several years of predictability, 2020 was one of the most tumultuous years in recent real estate history, and 2021 looks set to be equally uncertain.
Coronavirus vaccines, social impact, climate change and what constitutes a mainstream real estate sector will be on investors’ minds in the new year, according to UBS Asset Management. Here are the investment bank’s top 10 real estate questions for 2021.
RSK: A prediction from across the Pond as they say in the UK.
The Restaurant Hospitality editorial team offers a glimpse into the mist for the coming year
It has been an unprecedented year of upheaval, including a global pandemic, bitterly partisan politics leading up to an election, a painful national conversation about race and equity and a series of regional disasters. That makes prognosticating more of a challenge.
But as the industry looks for ways to adapt on the road to recovery, there are trends emerging with staying power.
Expect to see more pivots by those in fine dining, including the emergence of drive-thrus and tasting experiences from home – or in complete isolation....
RSK: Fine dining is going to have to do more high tech. An example would be delivering a meal package to customers and then doing a zoom meeting with all the people that purchased one and help walk them through the cooking process, type of wine, and other preparations...make it an event.
608-255-5060 or 608-255-8780 email@example.com...more
Many companies have protocol on how office workers should behave to curtail the virus`s spread, but how will that work when their numbers swell to hundreds? ...
RSK: Yes, it will be a focal point going forward...starting to blend virtual with face to face office needs as workers slowly return. It will be the new blend and of course workers will be all about safety first.
Rents for retail space in New York City have tumbled to historic lows, dropping as much as 25% from 2019 levels, as troubled retailers like Neiman Marcus and Century 21 closed stores and vacancies soared, according to a report Friday.
RSK: The author says it will take years to recover but I am betting on New Yorkers` resilience that it won`t take that long once the Covid is handled.
Still on hold - firstname.lastname@example.org...
Congrats to all the winners and nominees.
Announcement: CBG has cancelled all meetings and activities through 2020, including their famed Holiday Gathering. See you next year hopefully.
The product is the newest addition to the company’s all-in-one commercial website, CommercialEdge.
Yardi continues to expand its suite of property listing and management services with the relaunch of CommercialSearch.com, an intuitive commercial property listing platform. The relaunch follows a complete redesign of the site to provide tenants with a more streamlined approach to commercial listings and contacting brokers....more
CommercialSearch offers tenants more than 180,000 listings that are updated daily and span all major U.S. markets. Listings include office, retail, multifamily and industrial properties, and can be viewed and posted free of charge. The site aims to assist companies that already have a foothold in their respective markets and are looking to move offices or expand into new locations, while also providing excellent service to any firm involved with commercial real estate...
RSK: Another CRE property search and listing platform? It says it is free to list and search but nothing is free. A local platform or regional is much better.
Ken Notes: Local brokers can either control their own listing or they can watch nationals take over. look at Zillow in the home sector to see this in action. Computer algorithms can not do what a broker can...
More than seven months into the novel coronavirus pandemic, a disturbingly large number of U.S. companies are at risk.
That’s according to research from BCG Turn, the transformation, turnaround, and restructuring unit of Boston Consulting Group, which revealed that economic distress is deeply entrenched and shows no sign of letting up as the pandemic maintains its grip...
RSK: I think he may have misquoted on the vaccine. Instead of developed (there will be 3 shortly two already in the system) I think he may have meant "as soon as the vaccine is distributed".
Heather Ewing - 608.239.4781 - Heather@ABSTRACT-CRE.com
Tenants in bankrupt Manhattan apartment buildings affiliated with Emerald Equity Group LLC are demanding that housing code violations including rat infestations and bed bugs be immediately addressed as part of a Chapter 11 agreement.
Residents are seeking an order compelling the debtor, 203 W 107th Street LLC, to use available funds to address outstanding New York City Housing Court orders and make any urgent repairs to the buildings, according to court papers......more
RSK: Nothing like living in NYC. If the owners are bankrupt then part of the work-out goes to them before they emerge. If they are just handing the properties back to the bank or a new bidder, fixing the problems will belong to new owners. Not pretty and there will be more I am sure...
Ken Notes: I hear they are good roasted with a little BBQ sauce...
Christmas Tree Shops is making a significant change to its e-commerce strategy.
In an undated statement on its FAQ page, the retailer, best known for its bargain-priced home décor and seasonal items, says it is no longer selling products on its christmastreeshops.com site. However, customers can still browse the site to find items sold in stores, as well as content such as product previews, trends and tips.
According to Christmas Tree Shops, customer desire for an exciting, unpredictable shopping experience led to its decision to curtail online sales...
RSK: First of all, I didn`t know this store existed. Secondly, it just may work.
2021 Economic and Commercial Forecast featuring KC Conway, CCIM and Missy Hughes
January 13, 2021 @ 1:00 pm - 2:30 pmKC Conway, CCIM joins CARW, CCIM and SIOR for a custom program outlining the economic and commercial real estate forecast for 2021. A link will be sent closer to the event....
Commercial Real Estate Resources:
REALTOR CV Addendum:
Ken Notes: Thank you Tracy Johnson President and CEO of CARW for keeping me in the loop. Note CARW events have all moved online and I have not found another organization that has reacted as effectively as CARW to the new realities....
UPDATE, DEC. 28, 10:26 A.M. ET: President Donald Trump signed the stimulus bill into law on Dec. 27. He had delayed signing as he pushed for an increase in the direct payments to Americans from $600 to $2,000, but the bill went through with the $600 agreed on by Congress last week.
Congressional leaders have completed negotiations on a large stimulus bill that will provide $900B in coronavirus pandemic relief, along with a $1.4 trillion omnibus spending package.
The relief measure, expected to be passed by the House and then the Senate as early as Monday, includes a number of provisions that will help various sectors of the real estate business — though it is missing key programs industry groups lobbied for...
RSK: Stay tuned on this one. I am sure there will be changes along the way.
building for lease
Excellent space for a smaller retailer! Located on iconic State Street with some of the best foot traffic in the city. Natural light flows in though the front windows as it is situated on the north side of State St. Nearby ramp parking. Over 3.5M pedestrians annually with the greatest Millennial density in downtown retail...
The red-hot life sciences market in and around Boston is lacking a critical piece as its growing companies look to expand.
Biomanufacturing facilities are few and far between in the region, and biopharmaceutical companies are scrambling for solutions, experts said. New medicines require fundamentally different manufacturing than the drugs of the past, meaning most of these facilities need to be built new.
RSK: Why not locate some of this here in Madison in the Midwest? We are centrally located, have a great pool of this type of talent, rated one of the top 10 places to live every year and they can join other biomedical companies thriving here. I am sure the cost of living is much lower here than in the Boston area.
With the largest Real Estate Practice of any law firm in Wisconsin, Reinhart offers clients custom-tailored real estate insight.
Investors from California and London partnered to buy the defense contractor`s new research and office facility in Menomonee Falls for about $100 million.
Bascom Group Partners with Capital Trust Group on $100.0M Acquisition of Milwaukee, Wisconsin Area Facility ...more
RSK: Very nice transaction....kudos to Founders Three for the sale.
WASHINGTON (Reuters) - U.S. bankruptcy filings for 2020 hit their lowest level since 1986 as a flood of government support programs offset at least temporarily the full brunt of the coronavirus pandemic and a related recession, Epiq AACER reported on Friday.
The firm’s compilation of bankruptcy cases showed the Chapter 11 filings used to reorganize larger businesses still jumped 29% in 2020 to 7,128, compared to 5,158 in 2019, a tally that included major retailers like J.C. Penney driven under by the biggest economic downturn in a century...
RSK: This just doesn`t seem right, but I guess if you take out retail and hospitality, it may have been a good year.
Ken Notes: Two notes, this may only be a deferral in the market and second many of the properties are owned outright, with no bank involvement it the the owners that are taking it on the chin. No banks, no bankruptcy...
building for lease
Prominent corner on the Capitol Square available for Lease. Bring your concept or create intrigue with a Bond-like theme incorporating the vault/safe into the space design. Western sun exposure for carefree afternoon and evening venues. Use of the lower level is negotiable. It exhibits rounded walls, restrooms and separate sink area and coatroom. Ideal location for a niche retailer that would complement Fromagination, Square Wine, Rare Steakhouse and others. Convenient access to the beltline for travel to Milwaukee and Chicago.
Private equity funds have been among the most active buyers in recent months.
Concerns about downsizing and uncertainty around when many tenants might return to the office definitely impacted office sales investment volumes in the first half of 2020. But the winds may be changing, as the downward spiral on office sales started showing signs of reversal in the third quarter, the most recent period for which final data is available...
RSK: Seems, according to this that REITs are playing a major role in this. Plus, majority of sales are from suburban areas rather than the CBDs.
High Point Office Park is an 11-building, 217,418 square foot office park located in one of Madison, Wisconsin’s finest western locations.
According to a new report by global property consultant CBRE -- high-tech fitting rooms, hospitality lounges, on-site processing of returns and online orders shipped from the store -- are just a few of the features and functions that retailers are adopting in order to meld in-store shopping and e-commerce fulfillment in the same space.
While these innovations and trends have long been talked about in the retail sector, the pandemic has fueled a new sense of urgency for retailers to design stores of the future that support shopping in-person, online or by mobile device... ...more
RSK: Comes back to the old phrase in real estate..." Location, location, location!"
Burger King announced its first total rebrand in over 20 years on Wednesday, including a return to the classic logo and an emphasis on the whopper.
Insider saw inside the first restaurant in this new design through a virtual tour in Miami. The new look will eventually roll out to the rest of the chain, although customers might not see it for a while as Burger King corporate plans a prolonged integration over the next few years.
RSK: Without having to have sit down and 90% take-out and drive-thru, these prototypes can pop up in more places because of less land needed. You`ll see more of this in all aspects of restaurants not just fast food, but good food fast.
NMHC Rent Payment Tracker Finds 76.6 Percent of Apartment Households Paid Rent as of January 6
The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 76.6 percent of apartment households made a full or partial rent payment by January 6 in its survey of almost 11.3 million units of professionally managed apartment units across the country....more
This is a 1.7 percentage point, or 192,613 household decrease from the share who paid rent through January 6, 2020 and compares to 75.4 percent that had paid by December 6, 2020. These data encompass a wide variety of market-rate rental properties across the United States, which can vary by size, type and average rental price...
With over 350 experienced real estate professionals, Knight Barry provides exceptional support and service. Visit our website for more information about our 50+ commercial and residential offices throughout Wisconsin, Michigan, and Minnesota.
MADISON: 2450 Rimrock Road, Suite 204, 608-255-2700
CAP SQUARE: 44 E. Mifflin Street, Suite 101, 608-255-2700
US regulators greenlit a second coronavirus shot on Friday, authorizing Moderna`s vaccine for emergency use.
The Food and Drug Administration granted emergency use authorization for Pfizer`s two-shot vaccine on December 11. Both vaccines are very similar two-dose mRNA shot courses.
RSK: This is my FYI article of the week just in case you were wondering.
After the Centers for Disease Control and Prevention prioritized restaurant workers in December as “other essential workers” and part of the third group in the first wave (group 1c) in line to receive the COVID-19 vaccinations, cities are beginning to provide timelines for when these essential workers will be eligible to receive vaccinations.
On Monday, Washington, D.C. mayor Muriel Bowser said in a press conference that the city’s restaurant workers have been classified as “other essential workers” and will have a target vaccination eligibility date of Feb. 1. Residents living in Virginia and Maryland will also be eligible for the vaccinations.
RSK: This is part of the problem with the vaccine distribution...each State determines who is next in line and when. No uniformity. But that may not be all bad. States have different levels of outbreaks and populations being hit hardest.
1 A state of disorder
6 Cause of an itch, perhaps
10 "_____ go on, we remember..."
14 Up until now
15 Sometimes it`s gray
16 Alternative to "shake"
1 Numerical prefix
10 Large quantity
14 Pointy object in British pubs
15 Demeter, in Rome
16 Operatic solo
17 Belonging to the good Doctor of rap
18 Witherspoon of "Big Little Lies"
Large Corner retail/office space. Loads of glass. Eclectic space in an eclectic neighborhood. High traffic count. Mezzanine, plus finished lower level. 3,500 on main level extra 2,000 lower level. Tenant pays only for main level and pays 25% of cams water/sewer etc....more
West Beltline Commercial property with large lot and plenty of parking. Basement. Many uses permitted. Former bicycle sales and repair. $800+/mo billboard income. Price based on $11/NNN at 7% Cap Rate.
Solid retail/office building on W. Beltline. Formerly bicycle shop. Basement space for storage included at no extra cost. Large parking lot. $11 NNN......more
Offering real estate services and design-build construction solutions for growth oriented clients... ...more
Eclectic Schenks Corners. A bit of old and new mixed in the build out. Up to 2 bays remain 940 sf &1,680 sf. 1,680 sf is perfect for a coffee shop with old brick & beams exposed. Spaces can be combined. Tenant pays utilities. Exposed brick, heating, wood, skylights and more. 2 Units have basement for use.
Former KFC location. Property only. Vacant. Being sold in”As Is “ Condition. Corner of Oak and E. Wash.. Drive through window. Madison Metro stop at corner. On major E/W route to the Capital. 2nd Picture in Attachments is as it appears today. Co-listed with Ralph Kamps....more
Just off E. Washington behind the new Hy-Vee. Many suite options ranging from 150 sf to 1,880 sf with rates from $10.00 to $14 gross, depending on size term and TI`s. Landlord pays all. On bus line. Great for non profits, small office/service reps. Interstate and airport a minute away. Agent interest. Controlled storage also available for pharmaceutical reps, suppliers etc......more
Beginning Thursday, April 16, the WRA will launch a new "Legal Update Live" series of online, open and interactive meetings that cut through the noise and distill key business and practice-related information that you need to know during this coronavirus pandemic. This series will feature the WRA legal team addressing the latest business issues, procedures and programs you need to know. Subject matter experts from Wisconsin law firms, government agencies and the National Association of REALTORS® also will be featured to provide updates and answer your questions.
Let the WRA help you navigate the novel business challenges you face during these difficult times. We hope you`ll join us for our first Legal Update Live at 2:00-2:30 p.m. on Thursday, April 16. The WRA will provide more details -- including the video link to access Legal Update Live -- next week in WRA emails and on the WRA`s social networks.
In the meantime, the WRA has a wealth of resources, including information on SBA programs and programs you may qualify for, such as PPP, PUA and EIDL; coronavirus real estate forms; Q&As and more. Find these on our resource webpage at www.wra.org/coronavirus.
Stay safe, stay healthy and stay informed!
WRA President & CEO
Cirex News is emailed weekly to over 2,000 CRE Brokers/Agents and people interested in commercial real estate. It is online at CirexNews.com. All of our articles are archived and searchable. So a search for "opportunity zone" will bring up dozens of articles on the subject.
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Since 1975, Flad Development & Investment Corp. has emerged as a leader in the development of quality commercial real estate projects in Madison and Milwaukee.
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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NAI Global is a leading global commercial real estate brokerage firm with over 400 offices worldwide and annually completes more than $20 billion in property-related transactions...
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Hours Wednesday - Sunday 4:30PM - 9:00PM