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Need a primer on a commercial subject -- try searching CirexNews: Search Here!

To contact Ralph Kamps Please Email:  CirexNews [at] gmail.com    ...more

Cirex News is emailed weekly to over 1,300 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...

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CBRE: Retail CRE Picture far From Gloomy

Retail hasn`t been getting the best press lately. All the consumer press seems to cover is store closures, retailer bankruptcies, the death of the mall and the extinction of brick-and-mortar stores due to the dominance of Amazon.

The recently posted CBRE Retail Innovation Series illustrates the challenges that this commercial real estate sector faces, but it also provides solutions for landlords and retailers to combat and overcome a changing consumer environment.

Restaurants make a major impact...
Malls are morphing...
Technology and a changing consumer...

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RSK: "Malls Are Morphing" ha where did you hear that before..yup...right here.

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Wood Construction Gains Ground in U.S. Commercial Buildings
There is a burgeoning trend among developers across the U.S. to bring the use of wood to new heights in commercial real estate.

Wood has been a staple in building single-family homes and apartment complexes of up to 85 feet in height for decades.

But the developer of one mixed-use building in Portland, Ore. is looking to change that as part of a burgeoning trend among developers and designers across the U.S. to bring the use of wood to new heights in commercial real estate....

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RSK: If they really do have the fire hazards under control, this may be a fine option for building 4 to 5 story commercial buildings.

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Deloitte`s Commercial Real Estate Industry Outlook 2018

Air Date: 11/16/2017


Join host Micheal Bull and his guests on America`s Commercial Real Estate Show as they discuss Deloitte`s report `Commercial Real Estate Outlook 2018.` The topics they discuss include today`s talent, culture and generational management, the value of REITs and disruption or convergence of various factors impacting CRE.    ...more

RSK: Worth the listen.

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CBRE to market mixed-use development in Madison

CBRE has been retained by Smith Gilbane to lease office and medical office space at Madison Yards, a mixed-use redevelopment of the 21-acre Hill Farms site in Madison, Wisconsin.

CBRE’s Brian Wolff and Chase Brieman in the Madison office will market for lease 377,500 square feet of office and medical office space within the development. Smith Gilbane, a joint venture between Milwaukee’s Summit Smith Development, C.D. Smith and Gilbane Development Co. in Providence, Rhode Island, are developing the site...

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RSK: A lot of space to lease but Brian and Chase I am sure can get "er" done.

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CBG events...
CBG Annual Holiday Party & Meeting
Date: Wednesday, December 13th, 2017
Time: 04:00 PM

Event Details:
Please join us for our annual Holiday Cocktail Party & meeting with hors d`oeuvres and alcoholic refreshments at Casetta Kitchen & Counter in the Network222 Building. We hope you can join us from 4 p.m. to 7:00 p.m. on Wednesday, December 13. This is one of the most well attended events of the year for CBG members, affiliates, and their guests. We`ll have a short meeting and then it will be time to celebrate with your friends and colleagues. Contact Wendy with any questions at 772-0060.
Location: Network222 Building   ...more

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Commercial ALERT Report

Analysis of the Latest Emerging Risks and Trends

Commissioned By National Association of REALTORS®

Report Table of Contents

1 Capital Markets

Global Access and Managing the Flow Opens New Opportunities

2 In Search of Debt

 The Policies, Regulations and Reforms Impacting the Availability of Debt

3 Crowdfunding

A New, Interesting Alternative Avenue to Finance Commercial Developments

4 Technology

A Game Changer of the Entire Commercial Real Estate Industry

5 E-Commerce

 Changes Impacting Many Di?erent Sectors of Commercial Real Estate

6 Demographics

 It`s Way Bigger Than Just Millennials vs. Retiring Boomers

7 Sustainability

Return on Investment Slows Down ‘Feel Good and Do Good’

8 Regulations

A New Kind of President Brings Uncertainty and a Totally Di?erent Direction

9 Other Trends to Track

Cyber Security, License Portability, Mergers and Acquisitions, etc.

Appendices


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RSK: It is long, well written and worth every minute you spend on it. Covers all sectors of CRE and some predictions as well. Been nice if it was a podcast as well.

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Can the Alphabet’s City of the Future Be Both Smart and Inclusive?

The competition among tech giants to control entire cities is officially off to the races. Through its urban planning arm Sidewalk Labs, Google parent Alphabet is moving to redevelop an 800-acre waterfront area in Toronto in its image. There is almost no doubt that the project will produce a cutting-edge vision in experimental urban planning. Deeper questions about whether tech giant’s should have the keys to the city and whether they’ll be successful at creating and running them, so far, have no clear answer.

In the eyes of Alphabet’s critics, the company’s bargain for consumers (excuse me, residents) is the same: Enjoy the luxury and ignore the pernicious implications for privacy and inequality behind the curtain. There is certainly some truth to this view. Toronto’s soon-to-be tech hub will feature sensors tracking every variety of data point imaginable, from general information about air quality and noise level to more concrete things like energy use, traffic flow, travel patterns. Cameras on every corner will be used to make decisions about urban planning: Are residents using this bench? What if we put it somewhere else? Are this grocery store’s customers coming from nearby or further away?...

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RSK: I find this very interesting. Not in creating a planned city of the future, but looking at the impact of a Hi Tech employer such as the big fish Amazon when it moved into Seattle and rents and home prices skyrocketed. Great for city real estate taxes but it left almost most out of the market except those that were in the higher income brackets. Will this be the case when Amazon or another big fish select their next HQ?

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Mall owners look to shuttered department stores as big opportunities
  • Mall landlords are increasingly seeking replacements for vacated department stores.
  • The spaces present opportunities to bring in new retailers, and even mixed-use components like apartments and offices.
  • General Growth Properties, for example, is partnering with residential REIT AvalonBay to redevelop one of its centers in Seattle.

    As the year comes to a close and the holidays approach, mall owners are talking redevelopments, and particularly those of vacated Sears stores.

    The timely discussion has been a reoccurring theme on many third-quarter retail real estate investment trust, or REIT, conference calls. Analysts and investors want to know: "What are you going to do with that big box?"

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RSK: I have said this all along...malls can be micro cities with living quarters, grocery, health and recreation...the ideas are endless.

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Trump`s Tax Bill Met With Mixed Reviews Among CRE Industry

The U.S. House of Representatives released the bill, called The Tax Cuts and Jobs Act proposal, last week, revealing that two major industry tax breaks — the like-kind 1031 exchange and the carried interest tax break — have been preserved.

The like-kind exchange allows businesses to save millions by trading in older assets for something new, while the carried interest tax break is used by financial managers to cut their tax rates in half. It was originally put in place to incentivize long-term investment, CNBC reports...

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RSK: We won`t really know until or if the Tax Bill is passed. My CPA isn`t even sure how it will affect me. I am sure it won`t be good.

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Retail Is Not Dead On These 5 U.S. Streets

While things may seem bleak for retail, various retail corridors around the world are commanding high rents, attracting new retailers and remain popular among shoppers and investors.

New York City’s Upper Fifth Avenue has the highest annual rent around the world at $3K/SF, followed by Hong Kong’s Causeway at $2,725/SF and London’s New Bond Street at $1,720/SF, according to a report from Cushman & Wakefield. The Main Streets Across the World report tracks 451 top retail streets and ranks the most expensive in 68 countries by prime rental value.

“Despite a lot of negative headlines, global retail remains as dynamic and vibrant as ever in response to technological and demographic change across the world,” Cushman & Wakefield head of Europe, Middle East and Africa (EMEA) Retail Research Darren Yates said. “The most innovative retailers are combining their online and physical platforms to create a seamless omnichannel experience for the customer, but profile and location play such a crucial role in the premium retail experience.”...

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RSK: Just look at some of these rents/sq.ft......wowsers.

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Cap Rate Variations

Everyone in real estate knows how to calculate a cap rate — or do they?

Commercial real estate professionals live and breathe capitalization rates. Every trade publication, market participant, and third-party report relating to real estate quotes cap rates for various markets and properties. But ask a group of real estate professionals to calculate a specific property`s cap rate and you are likely to get a variety of answers - despite the simplicity of the formula. If cap rates are widely used and easily calculated, then why does everyone come up with a different answer?...

...Cap Rate Overview

A cap rate in its simplest form is a return on an investment based on the principle of anticipation. Value is the present worth of future benefits. A cap rate attempts to quantify the risk profile of the future benefits. It is calculated by using a non-complex formula, R=I/V, where I is the net operating income and V is the value of the property. In more complex terms, a cap rate measures a single-period, unleveraged rate of return on a real estate investment. By converting income into value, a cap rate expresses the relationship of one year`s income and value....

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RSK: As usual one can fudge or forget some numbers to get the NOI to read a bit higher..i.e. management fees. Good primer on Cap Rates of which I am not a huge fan of but respect it as a quick measure of value...but not the final.

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IA Management

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Autonomous Vehicle Tech Could Be The Biggest Disrupter In Commercial Real Estate

When autonomous vehicles go mainstream, the commercial real estate implications will be massive — from urban development planning to public transit impact and a shift in parking lot development.

Though driverless cars will benefit cities` live-work-play synergy in many ways, autonomous vehicle technology also has the potential to bring massive disruptions to the industry as developers are forced to repurpose properties in order to accommodate this new normal...

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RSK: Yes it is...and what about all the revenue cities, Counties and states make on parking? Will they sell their ramps and parking structures? And where will all these AV cars and trucks park? Miles away? That will lose some of the efficiencies for sure. Interesting.

Ken Notes: I love the idea of self driving cars, but the litigious nature of our society suggests that the reality may be well in the future. I just can not imagine the cost of insuring a system where anyone can jump in front of a vehicle owned by deep pocketed Google...

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These Machines Will Park Your Car For You

The Hive and Star Tower are not, as their names might suggest, the secret bases of crime fighters Green Hornet and Green Arrow. These structures are packed with impressive technology, and they are saving developers money and square footage while cleaning up the streets.

The Hive, in Oakland, California, and Star Tower, in Long Island City, New York, are two of CityLift Parking`s fully automated parking systems coming online in the next two months. Bisnow previewed the tech’s inner workings, specifications and how it will help developers and users...

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RSK: Well here is an answer to the question of where will AV vehicles park.

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Creative People Won’t Survive the Future Without Doing These 3 Things

The writing is on the wall.

Contractors, apprenticeships, freelance workers?—?going up.

Dedicated, hardworking, head-nodders?—?going down.

What does that mean:

This means creativity and will are going to be valued more than effort or time. Your ideas, your thoughts, your dreams, and your goals will be your currency.

So if there’s no hope of a steady job, what will we do in the future?

It’s a great question, one which I think boils down to three principles, with none of them involving a nice resume or the ability to wow a stranger in a job...

1) Build your ideal environment to create...

2) Find and solve problems...

3) Sell your art...

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RSK: Take heed CRE people creativity may be the key to our survival down the new road. As the old saying goes "If you see a fork in the road...take it"!!

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Building For Lease: 910 Mayer Ave Madison WI

Former Oscar Mayer site now for lease or sale. Build-to-suit, redevelopment opportunities and 25 acres of excess land available. Office, warehouse, cold storage and manufacturing. High visibility and easy access from Packers Avenue, Aberg Avenue and Highway 151. Property could be split to accommodate multiple tenants!

Rent PSF (Annual) (?): $4.50-$7.50

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Rhinelander Brewing Co. buys property for brewery, new HQ

Rhinelander Brewing Co. said last week it took another big step toward getting back into the business of brewing its own beer with the purchase of an 8,000-square-foot property in downtown Rhinelander.

The beer company’s owner, Jyoti Auluck, has purchased the building at 43 S. Brown St. that will become the new headquarters for the brewing company. She also plans an expansion of the firm’s gift and bottle shop in downtown Rhinelander. Auluck hopes the operations, including the brewery, could be running by February, according to the Northwoods River News in Rhinelander....

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RSK: For all you Rhinie fans out there, they are going to start brewing their own again.Yay!

Ken Notes: I must admit I do like the shorty on a hot day... Refreshing and just a swallow... Woodman`s has it...

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Q3 National Office Update: 3 Key Takeaways

U.S. office markets remained strong in the third quarter as high demand levels pushed rents up. The sector, however, is expected to experience a moderate slowdown in the new year as the industry approaches the tail end of this cycle and new supply weighs on core markets.

"Seven years into an unprecedented expansionary cycle, the U.S. office market remains in growth mode. We continue to be impressed by the market’s resilience in the face of potential headwinds and the duration of the economic cycle in comparison to this time roughly a decade ago," JLL Director of U.S. Office Research Scott Homa said. "Although we expect the rate of growth to cool in line with shifting real estate dynamics, we expect that 2018 will be yet another positive year."

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RSK: The main takeaway is that demand is still slowly building and vacancy is being absorbed. And that my friends depends what market you are in. I can show you two more stories where the opposite is true...but this is an over all statement.

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Rental Maintenance & Repair - Who is Responsible?

This guide helps determine who is responsible for rental maintenance and repairs between a landlord and tenant. This article serves as a general guideline, although your lease and/or State laws may supersede the below.

Generally Tenant Responsibilities...
Generally Landlord and Manager Responsibilities...
Landscaping & Yard Work...

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RSK: Love #1 Tenant responsible for replacing light bulbs...not in our office and commercial buildings. How about the rest of you property owners?

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San Diego Autonomous Truck Company Launches 3 Million-Mile Test Run To Prove The Technology Safe

TuSimple, a San Diego-based Chinese computer vision and artificial intelligence startup focused on autonomous driving technology, is launching an autonomous truck fleet in partnership with Nvidia, inventor of the GPU, the brain used in computers, robots and self-driving cars that allows them to perceive and understand the world.

As part of the launch, the company is test driving fleets of vehicles. TuSimple has conducted a 200-mile test drive of the technology using Lincoln sedans between San Diego and Yuma, Arizona. On Monday, it launched a test of 18-wheeler trucks between Tucson and Phoenix. During the test period, the trucks will log 3 million miles to prove the safety of this technology...

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RSK: I wonder what this will do to railroad freight business.

Ken Notes: Let me get this straight we will see self driving trucks before we see regularly scheduled rail freight routes like Fed Ex for big stuff. We are a very crazy nation...

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Building the Office of the Future
We’ve all heard rumors about Google’s office – scooters, legos, copious amounts of free food. Facebook embraces its startup culture with an internal bike shop. Twitter offers free laundry services. Thrillist offers paid time off on your birthday every year. An evolving workforce has set off a wave of new office habits, needs, and wants.

By 2020, millennials will make up 40-50% of the working population. Intuit predicts that by 2020, 40% of the U.S. workforce will be freelancers. While not every millennial wants to work at a startup, and not every freelancer wants to work from home, their demands are transforming the future of the commercial real estate industry...

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RSK: This is all so very nice but for me I would like to separate work and play a bit more that way I would appreciate them both a bit more.

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Strip Malls: The Least Glamorous Segment In Retail Is Among The Sector`s Strongest Performers

Retail real estate in 2017 can be best described in two words: “in flux.”

Vacancies across the nation have risen as big-box retailers and department stores announced closures and the construction of new product simultaneously slowed. But experts agree that retail real estate’s fundamentals remain strong. Mall operators continue to adapt to the changing landscape, and high-traffic, urban metro markets remain the best-performing in the sector.

Lost in the conversation about retail’s bifurcation is the health of the strip mall — the under-100K SF red-headed stepsibling to luxury retail and the shopping mall...

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RSK: I love this. 10 years ago they were maligned with vacancies and upkeep was a problem. Today most of them in good locations are thriving. The kick back to Big Boxes. Restaurants seem to do well in these places as do small service retailers. They are a landlords dream right now....as long as they understand depreciation is real and need to do maintenance and upkeep...

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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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Industrial Real Estate Fundamentals Tighten as Sector Keeps Evolving

The fate of industrial real estate is tied to e-commerce. In today’s market, that’s nothing to complain about.

Over the course of Q2 the sector experienced tightening fundamentals, a growing construction pipeline and rising demand from investors and tenants alike. These trends position industrial real estate for continued success over the coming quarters. Yet the sector is not likely to remain static, and from shifting demands to the growing importance of last-mile facilities, industrial real estate is on track to keep evolving.

Fundamentals tighten...
E-commerce fuels demand...
Looking ahead...

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RSK: Omni channel is the new buzz word here. The largest demand is the urban in-fill area...

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7 Booming Secondary Big-Box Industrial CRE Markets

Big-box industrial properties form the backbone of the e-commerce supply chain. That’s helped them flourish over the last decade in core regional markets from the Inland Empire to Atlanta.

Big-box CRE facilities measure 200,000 square feet or more, and while tightening industrial fundamentals support demand across core markets, secondary markets are beginning to steal the show. A recent Colliers International report said secondary markets are becoming more important than ever before as online sellers race towards next-day and same-day delivery. That dynamic is accelerating demand and reshaping markets.

From Cincinnati to Memphis...

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RSK: Well the Midwest is well represented!

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Major U.S. Retailer Files Suit Alleging Multistate Real Estate Fraud, Bribery Scheme
The country`s largest mattress retailer is accusing a host of real estate companies and executives, including its nationwide real estate broker, of a multiyear scheme that involved inflated store rents, bribes, high-priced gifts and kickbacks from developers. The company claims the scheme may have affected more than 800 stores nationwide.

Houston-based Mattress Firm is suing Colliers International`s Atlanta office, Colliers International Senior Vice President Alexander Deitch and two of the retailer`s former in-house real estate executives — Bruce Levy and Ryan Vinson — for allegedly steering Mattress Firm stores to locations with leases well above market rates....

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RSK: Stay tuned on this one. I don`t even think full disclosure would have helped these guys out.

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Smartphones Are Radically Altering The Restaurant Industry

The entire restaurant industry has been radically shaken by smartphones over the last decade, and particularly in the last 5 years. 25 years ago, food service centred around either old-fashioned sit-down places, or phoned-in delivery (which was itself a major innovation).

While metropolitan areas like Sydney or Melbourne have always been up with cutting-edge technology, most areas have been dependent on at least one of the two options, sometimes only one...

RSK: John hits a main point or two here. One, people like last minute reservations and the smart phone can accomplish that. Secondly what we have found in our places is lunch hour is being more and more dominated by phone and on line ordering. Few people eat at the actual restaurant.

Most is to go as workers head back to their offices to eat. Plus how many can your seat and serve in an 1 1/2 hours, Ordering on line or  by cell phone has more than doubled the amount you can serve in the coveted window. This will also change the amount of space configuration a restaurant will need for you CRE brokers and owners. Make it easy for people and the restaurateur serve their customers at a controlled expense.

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4 things marketers should know this holiday season

Customer expectations will be at an all-time high this holiday season, which means marketers must work harder than ever to deliver bottom-line cheer. But there can be good tidings for retailers (including brick and mortar), especially with Deloitte predicting holiday sales to surge November through January.

To meet customer expectations and overcome obstacles -- including increased competition from Amazon, deep holiday discounting and oversaturation of brand communications -- marketers need to shift strategies now to drive revenue during this ultra-competitive time of year. Honing in on customer insights, omnichannel effectiveness and loyalty will help retailers get to the bottom of what their customers really want and deliver long-term marketing ROI.

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RSK: Okay CRE Brokers of retail...take note how you can help your clients in this area. Data is becoming King in so many ways.

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Building For Lease: 1310 Mendota St madison WI

3 offices large working/reception area. 970 sf. End unit with windows. Common Conf and kitchenette. Bus line. Easy access to airport and Interstates. Ste # 107.

Also:

Building For Lease: 1310 Mendota 106 104

Ste 104 is 206 sf Ste 106 is 139 sf.....can be combined. Common Conf room, kitchenette. On bus line. Easy access to airport and Interstates, West Town & Hwy 151.

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Business for Sale: Restaurant for Sale Restaurant for Sale 3030 Fish Hatchery Rd Madison WI

Successful Dairy Queen location available on busy Fish Hatchery Road with a high vehicle per day traffic count. The restaurant is open and operational. The building features nice indoor eating area as well as outdoor patio seating. This attractive property has income in place and is a solid performer. Sale includes all inventory and all furniture, fixtures, and equipment (FF&E)...

ALSO:

Business for Sale: Dairy Queen - Verona

Dairy Queen - Verona - 651 Hometown Cir  - Verona WI   ...more

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Evans Properties, LLC.

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Professional Real Estate Management and Sales

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Can The Shopping Mall Evolve And Survive?
Hard times for shopping malls, the iconic American concept that has been exported to the entire world. Some analysts say a quarter of all such centers in the United States face closure in the next five years, mainly due to the growing popularity of online shopping, although other economic and sociodemographic factors are important. In 2017, more than 3,200 well-known chain stores such as RadioShack, JCPenney, Kmart, Sears, Macy`s or Payless ShoeSource, among others, have closed in the United States, many of them located in large sites whose closure generates problems in the surrounding neighborhoods....   ...more

RSK: Yes they can if the morph and become shape shifters...

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And the Big Future Winners in CRE Tech Will Be…

I read a fascinating article this week about how the big five (Apple, Alphabet, Facebook, Amazon, Microsoft) are dominating the world of tech. Obviously, it wasn’t always this way. But as I reflect on the trends over the last few decades in tech, it’s clear that this is where the landscape has settled for now and into the foreseeable future. The authors conclusion - there was an era where startups reigned supreme only to be supplanted now by a few behemoths....

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RSK: I understand his reasoning here but sometimes the ninja move and its ability to adapt change and have less hoops to go through makes the first inroads.

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Should Millennials Prepare for Generation Z In The Workplace?

For the past decade or so, baby boomers, Gen Xers, and just about anyone writing about business or social trends has enjoyed getting to capitalize on the impending arrival of the millennial generation. Depending on who you ask, millennials are born somewhere between the 1980s and the early 2000s, they grew up with technological access, and have both annoying and amazing qualities like a sense of entitlement, familiarity with technology, limited coping skills, and a desire to do social good...

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RSK: And the worm turns...very good update on Gen Z!

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Amazon rivals turn to legal fine print to stem Whole Foods strategy

SAN FRANCISCO (Reuters) - Whole Foods Market met a new foe this summer during talks to lease a top retail space in a San Francisco mall: the Target next door.

As City Center mall’s largest tenant, Target Corp had a say over changes to the property. According to people familiar with the lease discussions, Target balked at sharing the mall with Whole Foods because it feared competition from the grocery chain’s new owner, Amazon.com Inc...

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RSK: A little boulder in the middle of the road for Amazon brick n mortar expansion ideas.

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RASCW Events

Sauk Columbia Chapter App-y Hour

October 25 @ 10:00 am - 12:00 pm

RSVP to Andi at asa@ptitle.com See the event flyer for complete details. Sauk Columbia App-y Hour 2017

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Building For Lease: 710 Watson Rd Madison WI
6,600 sf to 8,200 sf of heated and hard to find sprinklered warehouse space. 2-3 loading docks with levelers, 22` high ceilings. Easy access to Beltline Hwy East or West and interstate. Limited use of drive in door. Gross lease. Currently used for pallet storage by owner. Nice clean space.   ...more

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Duke Long’s Top 10 Most Influential Online Commercial Real Estate People 2017

Duke Long’s Top 10 Most Influential Online Commercial Real Estate People 2017.

Yes, it’s that time of year once again.

Here we are now into our seventh year.

How do you get to be one of “the most influential” people in commercial real estate?

Relentless work and commitment to this business, our business of commercial real estate.

Here they are in order!

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RSK: As the Dukester says "It is still about connecting and helping people out". Amen brother.

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The Reinvention Of Physical Retail Is Here — 7 Things To Know As Of Q3

Contrary to popular belief, the retail industry is not on its last legs.

The third quarter brought positive news for the sector thanks to strong consumer confidence and positive economic fundamentals that are anticipated to continue in the coming months.

"Grocery-anchored neighborhood and community shopping centers account for the lion’s share of U.S. shopping centers and all but the weakest of these are going to continue to perform well," Cushman & Wakefield Vice President of Retail Research in the Americas Garrick Brown said.

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RSK: "Shedding brick n mortar too stay afloat and focus on more on-line". The key here is someone needs to house the merchandise somewhere. Stores used to be "mini warehouses" for products and last mile concept. As they close the manufacturers will have to store their goods somewhere. You will see the big boxes become warehouse inside malls...and hence...back we come full circle.

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Building For Lease: 1310 Mendota St Madison WI

3 offices large working/reception area. 970 sf. End unit with windows. Common Conf and kitchenette. Bus line. Easy access to airport and Interstates. Ste # 107.

Also: Building For Lease: 1310 Mendota Madison WI

Suite 104 is 206 sf. Suite 106 is 139 sf.....can be combined. Common Conf room, kitchenette. On bus line. Easy access to airport and Interstates, West Town & Hwy 151.

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Wheel & Sprocket to open bicycle store in Middleton

Milwaukee-area bicycle shop chain Wheel & Sprocket is expanding west with its first location planned for the Madison area.

The Hales Corners-based bike retailer has purchased the assets and inventory of Middleton Cycle bicycle shop and will convert it into a Wheel & Sprocket store, according to a news release...   ...more

RSK: Greater Madison is becoming a Mecca of Bicycle shops...and why not? We are bike friendly.

Ken Notes: I`ll pitch this here since I can`t get any traction at WDNews. Madison should install bike lockers or a bike storage facility at Alient Energy Center for those who want to peddle that last mile to downtown...

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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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Where Is The Best Source Of Talent For #CRE? Just Ask A Veteran. Better Yet Hire One!

Yes, let me state right up front, “I AM BIASED.”

If you are looking for a fair, open, perfectly written and crafted unbiased journalistic article you are in the wrong place.

You may have already known that when you clicked on in the first place. (Wink)

Seems too obvious to me. #CRE is always on the lookout for talent. Of course, it’s not just #CRE it’s stated as a top issue in any industry.

I realize that there are some schools (Wharton) and companies (Blackstone) that seem to attract some of the best and brightest to #CRE...

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RSK: Couldn`t agree more with the Dukester on this one.

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Building For Lease: 5957 McKee Rd Fitchburg WI

High visibility & easy access from McKee Road! Join Barriques, Subway, Oak Bank, Haveli Indian Restaurant and Princeton Club Express!

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Delivering Amazon: This Is What’s Right and Wrong With the City’s Pitches for HQ2
Earlier this week, The Associated Press reported that Amazon received 238 proposals from cities and regions that want to house its second North American headquarters.

Indeed, Amazon has a lot to offer: a promised 50,000 jobs and $5 billion to spend. Everyone—including Gotham—wants in on the action.

In its attempt to lure Jeff Bezos to our city, New York hasn’t shown this much leg since The Deuce era...

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RSK: This is a synopsis of why these 4 areas of New York City feel they should be selected for Amazon`s HQ2.

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Retailers Welcome Tax Bill, Call Tax Reform by Christmas ‘Perfect Present’ for U.S. Economy

WASHINGTON –The National Retail Federation welcomed tax reform legislation introduced today and called on Congress to get the measure to President Trump as soon as possible.

“President Trump wants to sign tax reform into law by Christmas, and we think that would be the perfect present for the American people and the U.S. economy,” NRF President and CEO Matthew Shay said. “The timetable is ambitious but it’s absolutely doable. Retailers are committed to getting this done and the legislation unveiled today shows that Congress is, too. It’s been a full generation since the last time our nation’s tax code was updated. Our economy can’t afford to wait another generation.”...

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RSK: Some good info here regarding the proposed new tax bill.

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2017 CCIM Holiday Party

Description

Join us for networking and celebrating the holiday season with networking, cocktails and appetizers!

We will start off with a tour at AC Hotel Madison Downtown and short presentation, followed by drinks and appetizers at Eno Vino on the 10th floor.

If you are unsure if you are a Wisconsin Member, please visit the link HERE..

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The Amazon Effect: Warehouses Become Prime Target for CMBS

In regions across the country, the rise of e-commerce is bringing industrial warehouses to burgeoning prominence in commercial mortgage-backed securities transactions, according to a report from Morningstar Credit Ratings. The report, prepared by analyst Jennifer Jones, notes that in the first half of 2017, logistics and distribution facilities outperformed all other major real estate categories in supply, demand, occupancy and rent growth....

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CoStar Goes Further Into Attack Mode After Xceligent Shakeup

In the hours after Xceligent parted ways with founder and longtime CEO Doug Curry, CoStar — the $9B data giant, dominant commercial real estate data figure and Xceligent`s legal adversary — went on a marketing blitz.

Rather than tell customers about a new product or program, CoStar sent electronic messages late Tuesday night, and print materials Wednesday morning, highlighting its case that Xceligent is stealing its intellectual property, making claims around Curry`s exit Xceligent representatives said are "patently false."...

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RSK: Another episode in this crazy Soap Opera. Tune in next week for another one.

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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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This WeWork Deal Could Breathe New Life Into Struggling Department Stores

Like many retailers, Hudson`s Bay has been struggling to stay afloat amid the shifting retail landscape, but this deal could prove beneficial. WeWork and HBC agreed to a landmark deal that included the sale of Lord & Taylor’s Manhattan flagship for $850M to a joint venture of WeWork and Rhône Tuesday morning.

As part of the agreement, Rhône will invest $500M into shares in Hudson`s Bay, some of which will eventually transfer to the JV, called WeWork Property Advisors. The deal also calls for WeWork to convert the top floors of several of Hudson Bay`s 480 department stores into office space, the New York Post reports...

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RSK: Love re-purposing and We Work is great at it. Retail is morphing my friends.

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Millennials Don`t Want To Golf. They Want To Farm
A new type of neighborhood is taking hold of the millennial generation and it could prove to change the face of golf communities across the country.

These new communities are called "agrihoods," or agricultural neighborhoods. The areas are often planned around working farms and offer green space, barns, outdoor kitchens and farm-to-table restaurants that appeal to the millennial generation because they allow residents to do environmental good in a community-based setting, Business Insider reports.   ...more

RSK: Take head owners and developers.

Ken Notes: Wait wait wait, Millennials are a diverse group but they do want experiences and less burden they saw mom and dad tied to mowing lawns and a mortgage and they do want to cut those ties...

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With store closings, bankruptcies and increasing online shopping, retail has received a lot of negative attention in the news recently.  However, retail does not appear to be dying, rather it is evolving as all industries must over time.  Real estate owners must evolve along with this changing retail landscape in order to attract quality tenants.

Online shopping has been steadily increasing; however, traditional retailers have battled back by adapting their e-commerce strategies.  Meanwhile, traditional e-commerce retailers are exploring physical store locations.  This retail evolution is producing a hybrid model of retailers that offers both brick-and-mortar and online sales.

The new version of retail stores often includes the following:...

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RSK: It keeps morphing and the building owners who can evolve to serve these new tenants can reap the benefits of some higher rents.

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Land for Sale: S 4658 Hwy 92 Hwy Brooklyn WI

This 10 Acres that joins the Village of Brooklyn, that is only 12 minutes from the Madison Beltline on a State highway provides an investment for development, business, and other pursuits. Currently the property is in the Township of Rutland zone A-1 has potential for annexation and connection for services. Over 6000 SF of storage with a well maintained pre Civil War house. Many Features.

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How Virtual Reality is Changing the Construction Industry

A recent study from ARC Document Solutions found that construction industry professionals identified virtual reality as the most important emerging technology within the industry. Virtual reality technologies have made great strides in recent years, and enterprising construction firms have begun using VR to bring new life to an old industry. Here are some of the ways that VR is changing the construction industry.

Virtual Reality for Immersive Walkthroughs and Increased Client Satisfaction

Forget architectural drawings or 3D models, virtual reality technology brings new projects to life. One California commercial builder has been using Oculus headset technology to create immersive renderings of their developments. The virtual immersion headset allows clients to move through a scaled-up 2D model, experiencing it in three dimensions.

The switch to VR saves them time by allowing their clients...   ...more

RSK: Haven`t heard much about VR in CRE lately but this is a great example of a use for it.

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Skiing`s Unsung Heroes - Ski Patrol Rescue Dogs

Skiers and snowboarders love snow. So do dogs. When you hit the slopes out West this winter, you may notice Man’s Best Friend riding the lifts, cruising around piggy-back on snowmobiles, running behind a skier, or just chilling out. Take the time to give them a good petting. After all, they are there to save your life.

Virtually every Western (and European) ski resort has a canine staff, a team of highly trained rescue dogs who use their speed, on snow agility and incredible sense of smell to locate buried avalanche victims faster than any known alternative. It is believed that one dog and its handler can do the job of 150 trained human searchers in the same amount of time. For much of skiing history, this canine safety net has been hidden behind the scenes, but resorts have given them an increasingly public persona in recent years - and guests love them...

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RSK: I couldn`t resist forgive me.

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Building For Sale: 6116 Darlin Dane W

9,000 SF Commercial Building; Zoned C-2 - Easy access to Hwy 12 & Hwy 19. 6,750 SF available, white boxed ready to finish for you or your future tenants needs. Current tenant paying $49,140 in annual rent. Seller will condo the building in half. 4,500 SF on main level with 1,500 SF of mezzanine for $575,000.

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2016 / 2017 Event Calendar


DECEMBER 2017

December 4 | 5:00 – 8:00 PM
CARW Holiday Party
Pfister Hotel

December 14 | 3:00 – 7:00 PM
Market Update
Pfister Hotel

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RSK: A list of CARW Events and CE.

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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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Are You Adapting to Commercial Real Estate Technology Quickly Enough?

This is a statement that has been asked so many times over the past few years. You are told to get tech, be tech or perish.

But for some reason, that statement when put within the context of commercial real estate goes unheeded.

Why is there still so much resistance?

Why do you want to be the last one to have to change?

Ask yourself this simple question: Are you keeping up just to keep up or are you truly trying to use technology as an edge to win?...

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RSK: A hard question to answer but I think there is a split on this depending on age...

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Building For Sale: Erickson Building 188 W Main St 194 W. Main Street Stoughton WI

100% Rented. 8-1 bedroom apartments and 1 commercial space make up this historic building on busy Main St. in Stoughton. Walking distance to shopping, library, theater, dining and more. Building has been remodeled over the last 5 years and the last 2 units were completed in Aug 2017. Chicago Style Warehouse makes these easy to rent. Call Julie Flint 608-279-4247 to schedule showings...

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Building For Lease: The Shoppes at Walnut Grove - University Ave

The Shoppes at Walnut Grove is anchored by Chipoltle, Park Bank et al. For the first time ever we have a 1,501 sq.ft. space available. Located on University Avenue, directly across from Super Target in the Hilldale Shopping Center. There is 194 units of upscale apartments (The Lodge) located adjacent to the Walnut Grove Shoppes.

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Business for Sale: Sky Line Resort Sky Line Resort 1900 13th Ct Friendship WI

AMAZING INVESTMENT OPPORTUNITY! The Skyline Ski Resort is FOR SALE! Restaurant/Bar, Chalet, Rental Shop and Warehouse. So many options with this spectacular 176 acre property! Ski Hill, Camp Ground, Concert Venue, Extreme Sports Ground....the possibilities are endless. Location is key, only 25 miles North of WI Dells, extremely close to Castle Rock Lake and Northern Bay Resort.

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Open Letter To Duke Long. “Are You Adapting to Commercial Real Estate Technology Quickly Enough?” Bradford Harries.

Duke- In response to your article Are You Adapting to Commercial Real Estate Technology Quickly Enough?

I always enjoy your perspective on the CRE Tech world. Your piece on “Are You Adapting to Commercial Real Estate Technology Quickly Enough?” brings me back to a historical perspective that I have frequently told over my almost four decades as a technology investment banker.

In 1982, the world was abuzz with the arrival of the IBM PC the year before. What I remember hearing was how “astonished” the world was at how quickly these new machines were appearing on the previously expansive and uncluttered desk space of corporate executives. Some tech watchers proclaimed the impending widespread adoption by corporate chieftains of this new and powerful tool...   ...more

RSK: Good account and perspective to the above. But I see the good old boys using technology but mainly just for emails and printing material. They do a bit of surfing and some analytics but usually get lost and need someone to help them through it. If something goes awry they really have no clue how to look for solution. Something as simple as "is the cord plugged in" is beyond them. So the ones that are curious and bold enough to try and understand a problem if it arises are the one who will go forward. I am sure we all have one or two of these people in our offices.

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NEW NOVEMBER 2017 - Cirex Digital Version

View Our 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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J.C. Penney suffers worst stock drop ever after predicting loss
J. C. Penney Co. shares tumbled the most since they began trading in 1980, hurt by deeper losses and a sense among investors that department stores are stuck in an intractable slide.The rout followed a warning by the company that a massive inventory liquidation would bring a flood of red ink in the third quarter, renewing the sense that department stores are losing ground to e-commerce. The shares fell as much as 25 percent in the wake of the forecast....

SEARS catalogue homes 1908 - 1940

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RSK: JCP leases and owns some prime real estate locations in Malls and cities. They may be taking a look at that to right the ship and boost their online promotions.

Ken Notes: It blows my mind that the big guns in home delivery and catalogue stores are being destroyed by Amazon who has to build its distribution system from scratch. From 1908 through the 1930s you could buy a house from Sears (see above) now you can`t even get an appliance anymore. Go figure.

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Land for Sale: 5567 Odana Road

This is a 1.2 acre site available for a new commercial project or using the existing building. The existing building is approximately 1,200 SF. Zoning is CC-T. This zoning includes anything from commercial to multi-family. 14,000 cars per day. Great visibility. Lots of room for a new project. Asking price is $775,000. The owner would ground lease the site for $60,000/year NNN

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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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RCM and SIOR ask: Do you have an Amazon strategy?

The industrial market has been on a hot streak since 2012? Is it time for an inevitable slowdown? Or will the good times continue?

Brokers, it seems, lean toward the latter. And many of them have a warning for investors: Whatever you do in industrial real estate in the future, you need to have an Amazon strategy to deal with the growth and increasing reach of the online giant.

The majority of brokers who responded to a recent survey from Real Capital Markets and the Society of Industrial and Office Realtors said that investors will remain active – either at current levels or slightly elevated ones – in this commercial sector for the next 12 to 18 months. These same respondents said that e-commerce – and especially activity by Amazon – continues as the most important factor influencing this commercial sector, for both good and bad...

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RSK: We know we are seeing this pressure since Amazon started expanding....do you have your strategy in place?

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Americans Increasingly Get News From Multiple Social Networks

Where do you get your news? Television? Newspapers? Friends?

According to a new report from the Pew Research Center, even more Americans are likely to turn to social media to read about what`s going on in the world around them. Just around one-in-four of US adults, or 26 percent, say they get their news from at least two social media sites—up from 15 percent in 2013 and 18 percent in 2016.

It should come as little surprise that America`s largest social network, Facebook, is where plugged-in users are most likely to get their news. According to Pew`s study, about 45 percent of Americans turn to Facebook for news, and half of those getting their news from Facebook only got their news from Facebook. Around 30 percent said they received their news from two social networks; 20 percent said they got news from three or more social networks....

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RSK: You say you don`t believe it? Well, you are reading this so it is true my friends.

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Tax Reform / 1031 Exchange Update - November 7, 2017

Last week, House Republicans released H.R. 1, their long-awaited 429-page tax reform proposal.  The bill, which is titled the ‘Tax Cuts and Jobs Act (“TCJA”) leaves 1031 “like-kind” exchanges intact!   

The TCJA proposal calls for Section IRC 1031 to apply to only “real property” (i.e., investment properties).  As the IRS Code reads now, investors can do 1031 exchanges on virtually any type of property (without the word “real”), which includes rental car fleets, heavy machinery, airplanes and even works of art. In essence, this change means that investors would no longer be able to do like-kind exchanges of personal property.   

Other Tax-Reform Considerations for Real Estate Investors...

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Ken Notes: Tax update a good reason to read to the bottom...

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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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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 Sale: 2014 Main St Cross Plains WI

Located in the Village of Cross Plains on Hwy 14. 12,000 cars a day exposure. Wonderful retail center. Currently has Coffeehouse, Dry Cleaner & Cosmetic Firm/Retail. Addition & Remodel completed in 2004. Site offers ample off street parking, room for expansion and/or additional building. Cross Plains has undergone extensive renovation of Main St. TIF money available...

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Building For Sale: 1400 Peebles Dr WI

Excellent opportunity for Owner Investor or Owner Occupant. Large commercial building with oversized asphalt & lighted parking lot with loading dock. Large enough to handle semi-trucks. Plenty of room to expand. Updated building includes recently buried utilities, new heating/cooling & new rubber roof. Corner lot property fronts HWY 14. Seller may consider a Land Contract.

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Land for Sale: Kettle Ridge Condominium Kettle Ridge Condominium 3102 S Highpoint Rd Madison WI

The successful Kettle Ridge Condominium currently has 18 units owner occupied, and there are sites remaining for 3 buildings of 6 units each. Great for the builder/developer looking for the proven project that still has opportunity. Priced to sell!

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Walgreens to Shutter 600 Stores as Part of $4.38B Rite Aid Acquisition

DEERFIELD, ILL. — Walgreens Boots Alliance Inc. (NASDAQ: WBA), a global pharmacy-led enterprise comprising brands such as Walgreens and Duane Reade, plans to shutter 600 of its stores as part of its $4.38 billion purchase of rival Rite Aid Corp.

During a conference call on Wednesday, Oct. 25, Walgreens spokesman Michael Polzin said the 600 shuttered stores will mostly be Rite Aid locations within close proximity to existing Walgreens stores as the company looks to optimize its retail store footprint.

On Sept. 19, Walgreens announced it had secured regulatory clearance for its acquisition of 1,932 stores, three distribution centers and related inventory from Rite Aid.

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RSK: You saw this coming. More opportunity for someone to buy or lease some choice locations for other than a Walgreens.

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Watch out: GIBON enters the ransomware space
Researchers have dubbed a new strain of ransomware GIBON, although its origin remains a mystery. Last week, ProofPoint researcher Matthew Mesa discovered the ransomware, which is being distributed in the common fashion of phishing campaigns...   ...more

RSK: My "Be careful" article of the week. As Holidays approach this malware, ransomware etc. becomes big business.

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Business for Sale: Brothers Three - 614 N Fair Oaks Ave Madison WI

Successful restaurant with 31 years of positive revenue growth is available on the east side of Madison for only $595,000. Upon sale, the owner is retiring, but is willing to assist during the transition to the new owner. This property has income in place and is a solid performer with upside potential. Sale includes all inventory and FF&E, along with the website, name, and real estate.

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Building For Lease: 8301 Murphy Dr Middleton WI

5,200 sq. ft. of divisible retail space is available at 8301 Murphy Drive in the city of Middleton. Co-tenants include Sherwin Williams, Massage Envy and Embrace Nutrition. Neighboring businesses include Costco, Verizon, Sport Clips, Monks, Arby`s, Subway and Great Clips. Motivated Landlord!

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Land for Sale: 437 S Junction Rd Madison WI

This site is approximately 2.5 acres zoned CC. Located directly across Junction Road from University Research Park 2. Great visibility to all the traffic traveling between Verona and west Madison. Zoning uses include commercial to multifamily. Asking price $1,250,000.

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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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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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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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