This Weeks Articles...
Is Retail-To-Industrial The Next Big Thing, Or Just A Pipe Dream For Last-Mile Logistics?
CBRE, After Launching WeWork Competitor, Forecasts Coworking Shift
How The Trade War Will Impact Rent Prices
Rochester, Buffalo and Hartford Least at Risk of a Housing Downturn in the Next Recession
Amazon Aims To Pump Up Employment In Major U.S. Markets
Building For Lease: Austin Place 111 N Fairchild St Madison WI
What WeWork Is Doing Right and Wrong
GameStop to close up to 200 stores by year’s end
Three World Trade Center retail space is still a dark void
Victoria’s Secret men lay out a turnaround plan centered on women
Winning The Real Estate Investing Game Starts With Goals
Renters `Don`t Care About Amenities` As Much In Cost-Driven Apartment Market
The Conference Season Is Upon Us. Here Are The Duke Long Real World Tips and Rants To Help You Survive.
Building For Lease: 6418 Normandy Ln Madison WI
Need a primer on a commercial subject -- try searching CirexNews: Search Here!
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......more
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:
This show is for anyone who has sold or is thinking about selling property and is looking to reinvest their capital gains and minimize the taxes owed on capital Gains. It should also be of interest to real estate brokers, accountant, attorneys and business brokers and investors.
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 taking over the site of a once-thriving mall in Akron, Ohio, that was shut down and abandoned after a decade-long decline.
Amazon is planning to build a 700,000-square-foot facility at the site of the former Rolling Acres Mall, one of two fulfillment centers the company is opening in Ohio.
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......more
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......more
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.
President Trump’s on-again-off-again execution of the trade war with China and other countries has fed uncertainty into businesses’ decision-making. Corporate investment spending is softening,...
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.
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......more
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......more
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....more
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.......more
They say the best investment on earth is earth, but more often than not, only the 1 percent — or anyone who has the capability to cough up millions — gets to have the chance to grow a profit through real estate. But a company called DiversyFund has devised a way to lower the barrier and allow everyone who previously had no access to investing in real estate to create a diversified portfolio of real estate assets.
For as little as $500, you can invest in DiversyFund`s commercial real estate investment trust (REIT), which is composed of projects personally handpicked by a team of professionals. They only purchase properties they deem would yield high returns, which they would then manage, renovate, and sell. The profits, of course, would be split among the investors a.k.a you.
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...
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......more
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......more
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.
Whether it happens this year, next year, or in 10 years, another recession is inevitable. Regardless of when it comes, it’s unlikely to have a large negative impact on the real estate market. However, there are some metro areas that are more at risk of a housing downturn than others. Riverside, Phoenix and Miami have the highest risk of a housing downturn in the next recession, while Rochester, Buffalo and Hartford have the lowest risk.
With the Great Recession still fresh in Americans’ memories, the idea of a housing crash is psychologically linked with an economic recession for many people today. But historically that usually hasn’t been the case...
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.....more
As technology becomes more integrated into our lives, businesses are having to rapidly adapt to consumer demand for speed and efficiency.
McDonald`s is no exception.
The fast-food chain is reportedly opening a fleet of new restaurants that aim to feed customers faster by serving exclusively takeout. It`s been described as McDonald`s first new restaurant format since it introduced the drive-thru in the 1970s...
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......more
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......more
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......more
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)......more
Sam Zell, who amassed a nearly $6 billion fortune with roots in commercial real estate, is slamming WeWork, the office-sharing firm that’s widely expected to go public as early as this month.
WeWork, which rebranded itself as the We Company, is not doing anything new, Zell told CNBC on Wednesday.
“I had the privilege of investing in this kind of company once before. As a matter of fact, this kind of company began in 1956,” when office subletting emerged, Zell said in a “Squawk Box” interview...
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....
Two-day delivery. Next day delivery. Same day delivery. The new norm for shipping standards is only getting shorter. In fact, McKinsey reported that 20-25% of the consumer market will be handled by same-day delivery service by 2025.
As consumers move more and more of their purchasing online, the need for last-mile distribution and fulfillment centers only grows. Traditionally, distribution involves the storage and shipment of goods to stores in large batches. Fulfillment, on the other hand, is the shipment of products to consumers in smaller batches. Distribution centers can easily function in semi-rural locations where land is cheap and plentiful. Fulfillment centers, however, need to be a lot closer to the consumer’s shipping address...
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......more
J’s BBQ - 333 Watson Street
Cocktails at 5PM – Dinner at 6PM
J’s BBQ 333 Watson St, Ripon WI 54971
Immediately following dinner, Matt Kirkman and Krista Kamke of Green Lake County Land Use Planning and Zoning will inform us of any new updates and do a Q&A Session
After many years of steady renewal intentions, national office renewal intentions increased again this quarter to 68.4 percent of office tenants indicating they are likely to renew their lease. This increase marks six continuous quarters of growth beginning with 63.8 percent intent in the first quarter of 2018 as well as the highest renewal intentions for office that we have ever documented. The lowest renewal intentions documented were in the fourth quarter of 2009 when only 57.5 percent of office tenants were likely to renew....
The net lease quick service restaurant market experienced something new midway through the year, according to The Boulder Group’s QSR Net Lease Report for this year’s second quarter. Cap rates in the retail subsector continued their decline and dropped to their lowest point ever.
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......more
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
“Location, location, location” still holds, of course, but for the retail side, the main considerations these days might be stated as “food, fun and fitness,” as retailers strive ever harder to create experiences that will bring shoppers into retail centers, according to a midyear 2019 retail outlook from Marcus & Millichap.
An experiential approach to finding the best mix of retailers appears to be winning the approval of investors, many of whom are looking to sign a variety of non- or less-traditional tenants. To fill vacant big-box spaces, gyms and other fitness tenants are much-desired, as are entertainment retailers, such as e-sports venues and dine-in movie theaters. The report notes that fitness tenant space in shopping centers has almost tripled in the past 10 years. Other experience-oriented retail categories have a positive outlook as the economic cycle progresses. Bars and restaurants, for example, are likely to remain sought-after tenants...
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......more
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.......more
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......more
It seemed like an impossible idea. In 2014, an MIT project called CityHome proposed a sleek robotic armoire that would live inside your apartment, amplifying a tiny footprint with Jetsonian features like a kitchen and bed that could slide out from seemingly nowhere. It was neat, sure, but experiments like this rarely come to fruition as real products...
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......more
The Seattle-based department store chain calls the store, known as Nordstrom Local, a “neighborhood hub.” The approximately 1,800-square-foot location—at 1273 3rd Ave.—won’t sell clothing, nor any other goods directly. Customers can stop there to pick up an online order, make a return or have an item altered. The store will also host networking and other events.
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.”......more
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....more
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.......more
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....more
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!...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......more
$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....more
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....more
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.”......more
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!......more
The Top 10 list in its entirety is as follows:
When WeWork filed to go public this summer, we learned an incredible detail about its cofounder Adam Neumann: He was paid a whopping $5.9 million by the company he runs for use of the word "we."
The logic was laid out as such: Ahead of its initial-public-offering filing, WeWork reorganized and rebranded as The We Company. To rebrand itself around the word "We," the company paid its own CEO nearly $6 million for trademark rights...
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......more
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....more
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: