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Commercial Broker News and Project Notes...

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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New Generation Of Office Tenants Prefers A Flexible Office Environment

The office landscape has changed.

Gone are the days of sitting for hours behind a line of desks and in compartmentalized cubicles in front of bulky computers....

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RSK: Even at the Class B & C space tenants want more luxury...but do not want to pay for it. Therein lies the difference.

Ken Notes: Class B & C may soon mean smaller footprints with shared amenities rather that worn carpet and older buildings.

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Why office design is changing so fast

The career patterns of those fresh-faced office recruits who might stay with the company for a couple of years – maybe – is one of the newest challenges for workplace designers.

As a design conference heard this week: “43 per cent of millennials expect to leave their jobs in two years. It’s now about keeping people and keeping them motivated. And the magic of work spaces is that we can help out with that”.

So posited Christine Candido, of the University of Sydney’s School of Architecture, at the future-focused Work Place/Work Life conference in Melbourne, one of the regular Design Speaks forums hosted by Architectural Media...

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RSK: Definitely a hay day for designers. This needs to translate over to existing office buildings as well. A bit more challenging but there is more empty existing space that needs this than new space being built.

Ken Notes: EPIC continues to suggest that design is an integral part of their productivity and and ability to attract key employees.

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‘A resurgence of physical retail’: Retailers report upticks in store sales

It wasn’t too long ago that analysts bemoaned the onset of the “retail apocalypse,” but retail earnings reports coming out in the past two weeks have them singing a different tune.

On Wednesday, Target’s earnings presented investors with hope for the future and probably granted them a sigh of relief — the retailer flew past Wall Street’s expectations and saw its biggest sales growth in 13 years. Target reported that comparable sales increased by 6.5 percent, buoyed by stronger foot traffic at physical stores, and e-commerce sales have grown by 41 percent since a year ago...

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RSK: This helps but won`t save the day. Retailers will still have to morph into the new retailer...

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Robots Take On the Final Mile
Will Sidewalk Delivery Bots Help Fix Urban Logistics?

Imagine if the next time you place an order for delivery from your favorite local restaurant, you’re greeted at your door not by a person but by an urban delivery robot.

It’s an odd-looking little vehicle that resembles a cooler with wheels, but with an antenna and sensors. The top of the box pops open, and you retrieve a bag with your Mongolian beef, cashew chicken and pot stickers. The top closes, and the little robot putters away on the sidewalk...

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RSK: This so cool but has a long way to go and many obstacles in its path. I am not sold. There will probably be a better method to evolve.

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CBG NOTES: events...
CBG Meeting and CE-A New Construction
Date: Wednesday, October 10th, 2018
Time: 07:15 AM

Event Details:
Save the date for hosting our breakfast meeting and & CE-A New Construction on Wednesday, October 10, 2018. More details to follow. The breakfast meeting schedule is: 7:15 to 8:00 breakfast and networking 8:00 to 9:00 meeting 9:00 to noon CE-A New Construction. This continuing education class will be taught by Reinhart Boerner & Van Deuren, s.c. This approved course will count towards the credits needed for Wisconsin licensee renewal. If you have any questions, please contact Wendy Sullivan at 608/772-0060 or wendy@advantageosborne.com


CBG Annual Holiday Party & Meeting
Date: Wednesday, December 12th, 2018
Time: 04:00 PM

Event Details:
Save the date for our annual Holiday Cocktail Party & meeting with hors d`oeuvres and alcoholic refreshments. More details to follow. We hope you can join us from 4 p.m. to 7:00 p.m. on Wednesday, December 12. 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. ...

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

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Medical Office Building Research Report

National Report, Second Half 2018

Shifts Toward Outpatient Care Encourage Off-Campus Medical Office Development; Investors Optimistic About Market Outlook

Industry consolidation prompts medical office development. Mergers among healthcare companies and providers has been a driving force behind changes in the industry and how physicians interact with patients. Emerging technologies and a shift in the care delivery model are spilling over into the development of medical offices. A rise in outpatient services and procedures has encouraged medical office development in off-campus locations over the past few years...   ...more

RSK Greater Wisconsin is so into this. Medical is a big player in leasing that is for sure.

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Building For Sale: The Varsity Apartments - 405 N Lake St Madison WI

Great location! 4 story, 27 unit apartment building with office/commercial space on the 1st floor and lower level. 10,785 sq/ft of office/commercial space. Built in 2005

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Post-disaster, business owners find varied paths to recovery

NEW YORK (AP) — As small business owners in Hawaii and California clean up following Hurricane Lane and wildfires, they’ll find there’s no one formula for recovery.

The same disaster can devastate businesses in divergent ways — a hurricane might tear the roof off one restaurant, flood another and leave a third with little damage.

Whether a business recovers often depends on how prepared it is, such as whether it has insurance and its computer data is backed up remotely. Owners should also find out what resources are available to them from the government, their communities and other entrepreneurs, says Craig Markovitz, a professor of entrepreneurship at Carnegie Mellon University’s Tepper School of Business. Communication with customers and vendors is also crucial, Markovitz says...

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RSK: This one hits home. We had a fire in our office building that put us out for 6 months and many of you have had flood damage last week or two. You never know...

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This Startup in WeWork’s World Is Targeting the 10- to 100-Worker Company
Convene, which provides flexible meeting and working space, enlarged its midtown Manhattan footprint with its biggest lease ever, expanding a partnership with RXR Realty LLC and going after the small to medium-size tenant that industry leader WeWork Cos. has just begun to court.

The New York-based startup has leased 116,000 square feet (nearly 11,000 square meters) of office space spanning four floors at RXR’s 530 Fifth Ave. The target is businesses with 10 to 100 employees.

“This is mainly for companies looking for under 10,000 square feet that have outgrown a co-working environment but are not yet ready to commit to a long-term lease with a building owner,” Ryan Simonetti, co-founder and chief executive officer of Convene, said in an interview. “We feel that whole segment has really been forgotten about.”...

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RSK: Another player in this sector. And all the time Regus just keeps doing what they do best and growing with no hype or fanfare. Love it.

Ken Notes: Was meeting with a broker from Minneapolis / St. Paul. over the weekend, she suggested that some of her major companies were moving into WeWork spaces for flexibility and convenience. They were taking full 20K floors in 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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Using Real Estate to Retire Early

I connected with real estate investor, entrepreneur, writer, and educator Chad “Coach” Carson in 2015 when we were both getting into blogging about financial independence and retiring early (FIRE). We’ve developed a friendship around our similar values, family situations, and philosophies for life. We also are in a similarly fortunate financial situation early in life. However, our paths to FIRE could not have been more different.

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RSK: This does not have to be residential income either. I have mostly commercial properties in my portfolio.

Ken Notes: One more time, we would love to develop a weekly newsletter on investing in real estate for your clients...

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FIS Signs 124,550 SF Office Lease in Milwaukee
MILWAUKEE — Fidelity National Information Services Inc. (FIS) has signed a 124,550-square-foot office lease at Parkland Center in Milwaukee. The financial services technology and outsourcing services company will occupy the second and third floors of the Class A building, which was formerly home to Molina Healthcare of Wisconsin Inc.

The building underwent an extensive renovation in late 2016, including a complete update of the lobby and the addition of a fitness center and full-service cafeteria. FIS joins neighboring tenant Global Industrial to bring the 222,704-square-foot building to an occupancy level of 67 percent. Ned Purtell and Patti Stevens of Founders 3 Real Estate Services represented the landlord, Griffin Capital Essential Asset REIT Inc., in the lease transaction. Erik Ozolins of Orion Realty Group and Kate Hanson of Founders 3 represented FIS.
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Building For Sale: Paoli Creamery -- 6858 Paoli Rd

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

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Ken Notes: Now this is a destination property!

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Retail Earnings: The Best Of Times And The Worst Of Times

This is a big earnings week for retailers. As the reports roll in, it`s increasingly clear that it`s both the best of times and the worst of times for retail.

While performance overall is, on average, much better than a year ago, what continues to come into sharper relief are three inescapable conclusions. First, as I have been saying for years, the idea that physical retail is dying is abject nonsense. Second, retailers that are stuck in a cycle of boring are getting crushed, and the middle is collapsing. Third, as our friends at Deloitte have recently outlined in depth, the bifurcation of retail is becoming more pronounced. The overall conclusion is that the difference between the haves and the have nots is ever more distinct...

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RSK: He is preaching to the choir here. I have been saying this for some time now.

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Tax uncertainties remain for real estate and other pass-throughs

Pass-through businesses, and the real estate industry in particular, were generally pleased with the results of the 2017 Tax Cuts and Jobs Act (TCJA), as well as the upbeat economic atmosphere that continued after its enactment. However, a number of important areas of the new law continue to be unclear, as the IRS has been slow to issue guidance. Here are our latest observations on major areas of tax uncertainty.

Carried interest and section 1231 gains...

Business interest limitation and the tax shelter rules...

199A W-2 wage guidance...

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RSK: Some not so good news.

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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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These are the fastest-growing retailers in America right now

...A recent ranking in the National Retail Federation`s Stores magazine used sales data from Kantar Consulting to take a look at the top 100 fastest-growing retailers in America. It found that the fastest-growing companies, based on year-over-year domestic sales growth, were Primark, Bass Pro Shops, and Build.com, with Amazon and Wayfair rounding out the top five....

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RSK: Need a retailer or two to fill some empty space? Here is a list of the top 20 fastest growing retailers. Yes, Duluth Trading Co. is on the list.

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Ikea’s Small Stores: A Win for Retail CRE Landlords?

When one thinks of an Ikea store, the last thing that likely comes to mind is small.

After all, its mega furniture stores average about 300,000 square feet in the United States, and due to its selective store footprint, some people travel from long distances to shop at Ikeas and even plan a whole day to shop there.

That could change if plans the retail giant has across the Atlantic come to fruition in the United States, though...

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RSK: Might mean one in Madison. Make my daughter happy.

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A second Amazon Go cashier-less store has opened in downtown Seattle

Amazon today opened its second Amazon Go store in Seattle — just a bit earlier than the projected fall timeline that was reported last month. The opening is part of Amazon’s gradual rollout of its cashier-less convenience stores that are expected to launch in other cities including Los Angeles, San Francisco, and Chicago...

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RSK: It must show promise or they would not open up two more. I love no lines, no checkout. I might even enjoy grocery shopping again.

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Younger shoppers love these companies the most
  • Victoria’s Secret, Sephora, Nike and Nordstrom are among the retailers that millennial and Gen Z shoppers are flocking to shop at in 2018, according to the annual Love List Brand Affinity Index from Goldman Sachs and Conde Nast.

  • Millennials are defined as those people born between 1981 and 1996, according to the Pew Research Center. Gen Z shoppers are typically referred to as those consumers born thereafter.

  • These younger consumers are shopping online but also looking for in-store experiences that allow them to connect to the brand.

Retailers need to pay attention to younger shoppers and where they’re spending money, because those destinations are constantly changing...

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RSK: This not just for younger shoppers...at least half the list is on my list.

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september 2018 - Cirex Digital Version

View Our May Digital Version Online Here

Subscribe to Real Estate CIREX Digest

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

  • Hundreds of property listings, organized for easy browsing.
  • New properties are featured every month.
  • Property/Drive CIREX Members alphabetically listed in our extensive directory.
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Three Degrees Of Separation. Or More To The Point, What Are You Really Paying For?

Conversations, conversations, conversations, thank whatever deity you want for the basic sit down face to face conversation.

There are some of us and I may be one who thinks that it has become somewhat of a lost art. The art of sitting in front of someone smart and experienced and asking questions. On top of that asking the right questions and listening.

It’s also been my observation that some of the times those conversations are a “who is smarter” conversation. It’s can that person “win” the conversation by showing the other person that they are indeed smarter...

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We Are Throwing Billions Of Dollars at #CRETech But Are We Missing The Most Important Target?

I travel a bit out and about on the planet as some you may know. So with that comes the ridiculous hassle of the ever dreadful security line. Yes, some of you may see it as a necessary evil that we all must endure for the better of all. I get that but we still are asked to take our shoes off seventeen years after one isolated incident. Has anything like that happened since? No, so accordingly it must be working? Really, I seriously doubt that. One personal comment I will make about that is that if the intent of that one person was to make a mark on the world they certainly have done something along those lines, just think about that the next time you reach down and pull your shoes of in front of the conveyor belt. I did say seventeen years...

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RSK: All it takes people is two dogs to save billions....and I have two Goldens I can lend to you MSN!

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A Year Later, Assessing the Extent of Property Damage from the 2017 Hurricanes

It remains to be seen how long the complete recovery of the real estate industries, both commercial and residential, will take in the impacted markets.

A year ago, three devastating hurricanes struck the United States. Since then, commercial real estate professionals in the affected regions have been dealing with the aftermath.

In many cases, commercial properties in the storm-ravaged areas of Texas, Florida and Puerto Rico either did not sustain significant damage or were able to bounce back. Some in the industry also say that investor interest in these markets continues to be high, pointing to the need to fuel recovery efforts or proof that some places were able to withstand brutal storms.

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RSK: Timely.

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Wisconsin Commercial Real Estate

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

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A New Home for $90,000? Manufactured Housing Is Making a Comeback

While others walked away from manufactured homes, Don Glisson Jr. stuck around.

He’s seen the industry’s ups and downs in his 36 years working at Triad Financial Services, the third-biggest lender to buyers of factory-made houses in the U.S. The rock-bottom was in the early 2000s, when rival firms were getting fat on subprime loans...

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RSK: Might this alleviate some of the pressure on housing? A step up is the old Wick Homes. I am dating myself here.

Ken Notes: We need to rethink our housing stock options and become fare more creative and diverse. Also communities need to reexamine their ordinances to allow for new innovations in the marketplace...

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9 brands come together under one roof in Brooklyn to test new retail shop

Key Points

  • The space, called HiO, opens this week inside Acadia Realty’s City Point shopping complex in downtown Brooklyn.

  • It features nine businesses, including eight that are making their U.S. store debut.

  • More HiO stores are set to open in the U.S. in the future, the co-founders tell CNBC, helping fill a glut of empty real estate.
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RSK: This will be interesting to see how it plays out. You think it would work in college towns near campus or downtown areas.

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Appear Here CEO Ross Bailey on Why Retail Real Estate Needs a New Operating Model

VTS Innovators Spotlight is a VTS blog series that profiles the leading minds in commercial real estate, showcasing how they are transforming their organizations through technology and innovation.

Ross Bailey is founder and CEO of London-based startup Appear Here, which is an online marketplace for short-term retail space. The company offers businesses and retailers the opportunity to rent, or as Bailey says “book,” stores flexibly online. The company has raised more than $20 million and has found space for thousands of retailers in London, Paris, and New York. More than 150,000 global brands and entrepreneurs have signed up to use Appear Here’s platform.

VTS sat down with Ross, who was a speaker at VTS’ global user conference Accelerate, to find out more about his platform, the importance of physical space in the world of e-commerce, and what inspires him as an entrepreneur...

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RSK: Ross nails it here. But I do think retail does want to change and is showing signs of morphing into what it needs to be. Not quite there yet but on its way. And who knows it may never be a stagnant option but an ongoing morph to satisfy retail customers...

Ken Notes: We need to understand retail is in a state of flux, companies we thought would be around forever are boarding up the windows and new companies we thought would never have a chance are growing. We need to provide space for retailers to try new ideas without the risk of failure being the lion at the gate. This is one reason I support a Public Market in Madison, we may need a market for other retail products as well...

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The evidence is in on a cost-effective way to build affordable apartments

There’s a long-running argument in American politics about whether the private sector or public sector is the most cost-effective delivery system for products and services society needs. New evidence reminds us that, when it comes to creating homes affordable to low-income families, seniors, veterans, and individuals with special needs, this is a false choice.

A new study by Abt Associates and analysis by the National Council of State Housing Agencies (NCSHA) reveals that affordable apartments financed by the Low-Income Housing Tax Credit—commonly referred to as the Housing Credit—cost about the same, on average, to develop as all apartment buildings, despite complying with a host of policy constraints that don’t apply to market-rate developments...

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RSK: This always a tough call. I think the Enterprise Zones are a piece of the puzzle but not the whole.

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Building For Lease: 303 S Paterson St Madison WI

Downtown, Central Park East office space available, on bike path. Off Williamson St.

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Building For Sale: - The Varsity Apartments 405 N Lake St Madison WI

Great location! 4 story, 27 unit apartment building with office/commercial space on the 1st floor and lower level. 10,785 sq/ft of office/commercial space. Built in 2005

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Ask These 8 Questions to Decide Whether It’s Time to Open a Second Retail Location

In 2017, we read a lot about big retail chains closing stores. But for small retailers, it may be a different story. A whopping 98% of all retail locations are small businesses, according to the National Retail Federation. If your store is thriving, could now be the time to expand into a second location?

Knowing When to Open a Second Location

In a shifting retail landscape, it’s vital to consider all the factors carefully before you open a second store. Here are some questions to ask yourself.

How strong are your sales?
Have you maxed out your current market?

Do you have customers coming from far away?
Is your store in a market area large enough to support a second store, without cannibalizing your first location?
Can you afford a second location?
Do you have time for a second location?

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RSK: This pertains to service business as well.

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Knight Barry Title Group

                       608-255-2700  www.KnightBarry.com
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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

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The open plan office sucks–it’s also good for you

Here’s the indirect way your open plan office may be making you healthier.

You may hate your open plan office. It may negatively affect your productivity. It may engender sexism and gender inequality in your office. It may reduce collaboration and increase emails. But, like most design issues, offices are complicated–and a new study suggests there is one very good reason to embrace the open plan: It’s making you healthier...
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RSK: I am all for this.

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Marcus & Millichap Mid Year Reports

Office Outlook

Apartment Outlook

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RSK: Here is what is going on according to Marcus & Millichap.

Ken Notes: These are great, but if you want to establish your expertise in the investment marketplace, you should consider a newsletter of your own for your clients and potential investors. We can put this together for you and make you the M & M of commercial investing in South Central Wisconsin.

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(AI) Artificial Intelligence Is Not The Commercial Real Estate Future.
I sit in front of my computer and Google: Office Space Chicago. Up pops several generic companies.

I click on Maps and zoom into a specific area of The Loop that I am interested in. I click Earth and then 3D.

Moving my finger around the pad, I focus in on one specific building. It’s near The Willis Tower, and I click on the address.

It shows me a property specific website that has all the basics. Pretty pics, information about the owners and what is available to lease. I click on one of the 20,000 +sq ft spaces. Up pops the PDF and then something else. It shows me three potential layouts of the space in 3D. At the bottom, it has a box pop up that asks me a couple of questions.
Notes:
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RSK: Prime example of going the extra mile. Not just the broker involved but the owner of the property and its management.

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Where Millennials Are Moving (And Where HQ2 Might Send Them)
If you look at the latest data, Millennial homebuyers aren’t flocking to the big cities or urban centers like most would assume. They’re heading to the outliers — smaller, more suburban towns where a slightly longer commute means more affordable housing, safer streets and a lower cost of living.   ...more

RSK: Of course they are going where the jobs are. But what is interesting is the trend from downtown and city to suburbs.

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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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WeWork Looks To Siphon Tenants From Competitors Using Hefty Broker Commissions

In the battle for tenants, WeWork is offering commercial real estate brokers 100% commission on the first year`s rent paid by a tenant who moves from a major competitor.

It is a short-term offer, however: to qualify, the lease with WeWork has to be signed by Oct. 1.


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RSK: This is getting interesting. Seems like WeWork is beefing up so they can do an IPO and be using not so scrupulous methods.

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Multifamily Rents Have Stopped Growing In Major Markets Across The Country

Relentless multifamily construction across the country has finally hit landlords in the pocketbook.

Rent growth has slowed nationwide for the fourth straight year ending in July 2018, and the fast-growing cities of the past few years that propped up those numbers have fallen back down to earth, according to a Zillow study as reported by Bloomberg.

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RSK: It may have stopped its acceleration but it is still costing nicely here in Greater Madison, WI

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Land for Sale: 2010 Main St WI

Site to be divided from existing parcel. Approximately 90 feet of road frontage. Great for Retail/Office site. TIF monies available. Access & parking located at rear of property on Mill Creek Pkwy. MSMU zoning with Main Street Design guidelines. Zoning allows for commercial on the main level and residential above.

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Office Depot just opened a coworking space inside one of its stores. Take a look inside.
Office Depot just opened a coworking space called the Workonomy Hub in Los Gatos, California. The space is located inside an Office Depot store and offers services like DIY copying, printing, packing, shipping, and tech support.

It`s part of a larger Workonomy concept from Office Depot that is meant to help small businesses. The initiative includes tech-support kiosks that the company says will be in 141 Office Depot stores by the end of the month as well as self-service printing and copying kiosks that it says will be in more than 1,000 stores in the same period. Staples also has a coworking space, but unlike Office Depot`s space, it isn`t free to use.
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RSK: Very interesting. I am not sure that the free space model will last for long. People would have to make a lot of copies to make up for that in rent. Plus I guess I would rather have a more prestigious address than Office Depot address. Regus has a much better model and so does WeWork. But interesting enough. There are Office Depot and Staple locations all over the country. Stay tuned on this one. Maybe Regus & WeWork will open up office supply stores in their space?

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Tax Reform: The Strategies You Need To Know Now
Presented by Bradford and Company, Inc.

Hosted by the RASCW
Professional Development Committee

Tuesday, September 11, 2018

2:00 pm - 4:00 pm
Registration starts at 1:30 p.m.
WRA Education Center
4801 Forest Run Road, Madison

Tax Reform Law affects your business! The good news is, we will help you. Here’s just a sample of what you can expect from our informative, fast-paced program…

  • Learn what’s left of your 2018 entertainment deductions after tax reform – and how to claim them.

  • Learn what you need to do to claim the New 20% 199A deduction.

  • Learn little known nuggets in Tax Reform that benefit your business.
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Coworking And Kids: New Company Inks Deal In D.C. For First Space With More To Come

A new concept from two recent graduates of Georgetown`s business school combines a coworking space with a day care center, and the company has just signed a lease for its first location.

Two Birds, previously branded as Hatch, signed on for 12,800 SF at 4001 Brandywine St. NW, a Douglas Development-owned building in Northwest D.C.`s Tenleytown neighborhood. Cushman & Wakefield`s Theo Slagle and Mark Wooters represented Two Birds in the deal...

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RSK: Will be interesting to see how this works out. The concept seems viable but logistics may be a problem.

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Commercial real estate prepares for the era of blockchain

Imagine a world where property transactions were fast, efficient and free of cumbersome contracts.

Five years ago, this may have seemed like a pipedream that was light years away. However, as new technology begins to seep into the business and commercial real estate landscape, this dream could soon become a reality. Blockchain, the technology that allows information to be stored and distributed through a digital ledger, will begin to impact commercial real estate. Blockchain functions on a decentralized system, meaning transactions can be completed without intermediaries. Instead, digital contracts allow users to exchange anything of value, from property to shares, through an encrypted ledger that can be stored and shared.

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RSK: Something we need to stay on top of and learn to understand....it is coming and gaining momentum.

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Amid Affordable Housing Crisis, Micro-Housing Development Picks Up Steam

Patrick Kennedy, the owner of San Francisco-based development firm Panoramic Interests—which in June 2015 completed the first high-rise micro-unit building in the U.S. with The Panoramic in San Francisco—has an unusual take on housing.

“We had a revelation about six years ago that we should approach development the way In-N-Out Burger approaches hamburgers,” Kennedy said. “That is—simplify the menu, focus intensely on quality and lower the price. That’s what we want to do for housing.”...

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RSK: Many people think they can live in these small units...not sure I could with 2 Golden Retrievers but the concept needs to be developed somewhat. Like putting 2 or 3 of the units together in one for those like me.

Ken Notes: We need diversity in the housing market. There are few if any starter homes in the Madison market, and there is almost nowhere to site an upscale micro or small home. We need to change this, remember there is a much larger buying market out there. What we may want to live in is not for everyone.

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New Florida Keys Cottages Are Storm-Proof Affordable Housing

The Florida Keys are known for their appeal to tourists eager to escape to Margaritaville and fish or snorkel in turquoise waters. Like other tourist destinations, the Keys—a string of islands off the southern tip of Florida—require workers to staff their restaurants, hotels, and glass-bottom boats.

Big Pine Key is a bedroom community where many people who live and work in the Keys year-round reside. The island between Key West and Marathon, Big Pine Key has a population of over 4,000. Monroe County, encompassing all the Keys, has a permanent population of slightly over 73,000. The median monthly rent in Monroe County is $3,500, according to Zillow—too expensive for much of the county’s workforce. (The median household income in the county is $60,000.)...

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RSK: Might not be an idea here in flood-ravaged Southern Wisconsin.

Ken Notes: We should be able to do a sub 150K 800 sq ft starter home in an upscale walkable neighborhood in Madison somewhere. Shouldn`t we????

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Industrial REITs Boosted by Logistics Demand
Industrial REITs own a variety of types of warehouse properties that support the global supply chain for the manufacture, storage, and shipment of goods. Of particular note is the rapid growth of logistics facilities used for the delivery of products bought on the internet.

Demand for logistics real estate has surged with the growth of e-commerce. Net absorption has been more than double over the past two years compared to the average pace of six years ago, according to data from CoStar. New facilities currently under construction equal 2 percent of the existing stock, a rapid pace of growth that is barely able to keep up with demand...

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RSK: And this my friends is all part of the morphing of retail and online commerce.

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IA Management

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IA Management is a full service property management company located in Madison, Wisconsin. Our objective is to be a profitable leader in both commercial and residential real estate.

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LegalTalks: Reasonable Accommodations and Assistance Animals (2018 Revision)

RSK: One of my pet peeves is people getting fake assistant animal certificates online with no regard to those who really need one and spend the tens of thousands on the training of that animal...especially dogs.

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Legal Update January 2018 - Commercial Case Law Update 2018
... as you might expect we have a whole host of case law summaries about topics including conditional use permits options flood damages and a list of different topics as well I`m going to start out and tell you about the energy corporation versus Trempealeau County environmental and youths committee case and this is the case about a conditional use permit application for a 550 acre...

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RSK: Some Commercial updates from WRA.

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Industrial Cap Rates Will Continue to Compress, Brokerage Firms Predict
The average cap rate for industrial assets has dipped to a record low of 7.0 percent.

Demand for industrial space continues to outpace supply, resulting in higher rent growth and compression in cap rates.

Industrial real estate is so hot, investors “just can’t get enough,” says John Chang, senior vice president of research services with brokerage firm Marcus & Millichap. 

With investors acquiring $30.5 billion in industrial assets in the first half of 2018, JLL’s H1 2018 U.S. Investment Outlook report notes that the industrial sector is on pace for a new record year in terms of transaction volume and is expected to surpass the previous high point of $67.8 billion in 2015. That momentum, coupled with $20 billion in large scale transactions that are under contract and set to close in the second half of 2018, serves as evidence of the intensity of investor competition for industrial assets....


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RSK: 5 years ago who would have predicted this?

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Building For Sale: Watts Rd Design Center - 6709 Watts Rd Madison WI 53719

Superb investment opportunity first time on market. Stone and block construction, new parking surface for this west side building. Business NOT INCLUDED either store. Long term leases in place with a true NNN to owners. This property is perfect for a 1031 exchange or a passive investor. Please contact listing agent for CAP RATE and copy of leases. Asking price $5,300,000.00

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Notes:

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2018 Event Calendar

SEPTEMBER 2018

September 19
Rainmaker
HUB640

OCTOBER 2018

October 15 | 11:45 AM-1:15 PM
Lunch and Learn
CARW Training Room

October 18
CARW Sponsor & Thank you

October 24
Deal of the Year & Annual Meeting

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RSK: A list of CARW Events and CE.

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Retailers Ramp Up Industrial Presence to Service Their Stores, Customers, Say InterFace Panelists

ATLANTA — While the development pipeline for industrial real estate is at peak capacity, retail’s new store inventory is taking a back seat. Paul Xhajanka, division real estate manager of Kroger, said that his company is breaking from the past when it would open hundreds of stores a year.

“If you look at our store count for the next three to five years, we’re only going to open 20 to 25 stores across our various platforms,” said Xhajanka, referring to Kroger’s portfolio of grocery brands, which include Mariano’s, Harris Teeter and Ralphs. “Target is opening 10 to 20 smaller stores a year, and even Walmart is down to 10 stores a year. All of us are shrinking our inventory of new stores down. Retailers are building more distribution centers, not stores.”...

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RSK: Instead of more retail locations retailers are opening up more distribution centers. As I said retail will morph into something and this is all part of it.

Ken Notes: Remember the milk man?? It amazes me that the New Retail is really a reboot of the old retail...

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Building For Lease: 1861 Ludden Dr Cross Plains WI

Easily accessible, professional Office/Flex space, owner occupied, 35,000 SF building - Can be divided. Lease could include office furniture, loading dock & leasehold improvements. $8.00/SF Gross rent. Professional space, well maintained. Located on 3.5 acres with over 100 parking spaces. 10 minutes from Madison`s west side.


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Big Retailers Shrink Stores to Boost Sales
Major Retailers Open Lean Outlets to Cut Costs As They Appeal to Millennials

Fast-food chain Taco Bell`s plan to open 300 new small-format restaurants across the country in the next four years is the latest by a slew of major national brands experimenting with smaller stores to cut real estate costs and cater to urban millennials.

Taco Bell, Barnes & Noble Inc., Whole Foods Market, Kohl’s Corp., Nike Inc., Target Corp. and Nordstrom Inc. are just a handful of major brands looking to increase market share and wring out more dollars per square foot of space in expensive urban markets by opening smaller brick-and-mortar stores..
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RSK: I am not totally sure that "convenience" is the sole or major factor in the success of a small store. Location still plays a large role as well as the product being offered.

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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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Building For Lease: 351 Peller Rd Lake Geneva WI

Join Qdoba and Noodles & Co. at this new retail development in Lake Geneva. The property benefits from a strong national presence within the trade area. It is excellent for service-based retailer or office/medical users.

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Cushman & Wakefield: The Coworking Industry Could Withstand A Downturn

Cushman & Wakefield (C&W) recently published the report “Coworking and Flexible Office Space: Additive or Disruptive to the Office Market?”, which examines the coworking sector and what we can expect for its future.

As has been extensively documented, the coworking industry is booming. The flexible workspace market is the fastest growing industry in Manhattan; in Asia and Australia the industry is growing at an incredible pace; large corporates have started to embrace coworking, and coworking, in general, has become the new normal. Moreover, the industry has taken up more than 5 million square feet of new space in each of the past three years.

  • Key findings from Cushman & Wakefield’s latest report (August 2018) into the US coworking market.

  • In the first half of 2018, coworking space accounted for over 10% of all new leasing deals in Washington DC, San Francisco, and Manhattan.

  • The majority of locations are managed by large and well-capitalized providers, which C&W says reduces risks to the industry as a whole.

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RSK: Maybe yes but in the long run it is still the future.

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RASCW Events and updates

Silent & Live RPAC Auction

October 4 @ 5:00 pm - 8:00 pm

Park Hotel - 22 S. Carroll St.

...............................

New Developments for Commercial Brokers 2018 Review

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

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

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

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

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

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

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Land for Sale: County Road B Beaver Dam WI

Just annexed to City of Beaver Dam. Adjacent to Menards and Walmart. Ready for Development. Location Location Location. Rapidly growing commercial business corridor, near Hwy 151 interchange. Note good access to Hwy 151 Interchange. Many Attributes for successful development in a great area of potential growth...

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Building For Lease: 2912 Syene Rd Madison WI

Office / Warehouse space available January 1, 2019. 900 sqft of office space includes reception area, conference room and large office. 2,700 sqft of warehouse space includes overhead drive-in back door entrance. Ample parking and 19` ceilings. Currently a furniture upholstery company. Monthly rent (includes CAM fees) $2,625. Call Robin Koth for showings: 608-836-0500 office or 608-575-5555 cell...

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Are There Going To Be Robot Commercial Real Estate Brokers? Hell No, But…

If you happen to click on the article it covers a broad spectrum of commercial real estate and makes some pretty stout observations.

I thought I would take it even further and drill it down specifically for brokers and answer John’s question which was “Are #CRE #Brokers safe from automation?

To the first point, I would say yes they are safe for now. Safe in the sense that what a broker does right now on a daily basis is not that far removed from what that same broker did 5-10 years ago. Therein lies what some outside of #CRE sees as a huge opportunity...

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RSK: Great comment!

Ken Notes: you need to be aware of how your clients are looking for space and you need to be the gateway to facilitate this while keeping your name in front of them...

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Real Estate Cycle “In a Good Place,” Strategist Says
Jacques Gordon, global head of research and strategy at LaSalle Investment Management, was a recent guest on the Nareit REIT Report podcast.

Gordon will be speaking on the economic outlook for real estate at

on Sept. 24.

In terms of the real estate cycle, “we’re in a good place,” Gordon said.

“Fundamentals are healthy. There’s a lot of new supply but there’s also a lot of demand. Rent growth is steadily upward,” Gordon noted. “There’s a lot of good news already registered in 2018 and we expect steady as she goes, positive for the rest of the year,” he added....

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RSK: Yes but for how long? No one wants to predict that so ride the wave but be wary.

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Building For Lease: Heritage Square 5511 Odana Rd Madison WI

1,550 sq.ft. space at Odana Road and Whitney Way. Currently New Concepts Hair Salon. (Possible to purchase all existing equipment). 2 offices & 1 bathroom. Easily converted for new tenant`s needs. Ample parking and private back door entrance to space. Excellent location with high traffic & visibility. Available October 1, 2018...

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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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What To Know About the Common Area

When you’re considering how much it will cost to lease a space in an office building, you must look beyond the office space that you plan to occupy. You’ll also be responsible to pay Common Area Maintenance or CAM for the right to use shared areas in the building. Read on to learn more about CAM and how to evaluate it.

What Is the Common Area?

Why Do You Pay CAM?

How Is CAM Determined?

How Can I Make Sure That My CAM Rate is Fair?...

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RSK: Just a little primer on CAM...
Ken Notes: Remember we archive all articles in CirexNews.com, so when a client asks a question you can send them an articles from our archives. You look like the pro and we do all the work...

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Finding A New Purpose For Old Buildings: Adaptive Reuse Is On The Rise

Ever since nationally renowned preservationist Dana Crawford saved Denver’s historic Larimer Square from the wrecking ball in the 1960s, adaptive reuse projects have become part of the city’s fabric.

In addition to Denver’s most famous adaptive reuse projects, such as Union Station, The Source, REI and Stanley Marketplace, there are some newer, lesser-known examples...

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RSK: This works well where you have a good amount of old industrial inventory. We do not have that luxury except.....how about the Oscar Meyer site?
Ken Notes: I have been preaching the adaptive reuse sermon since I was a mayor in 1998-2002, we are going to see lots of available brick and mortar as retail giants fall. How quickly we adapt will define our community...

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Millennials Are So Last Year: Commercial Real Estate Developers Build With Gen Z In Mind

Welcome to Generation Z’s influence on commercial real estate.

Multifamily and coworking locations will be earth-friendly. Increased food delivery demands will require larger commercial kitchens. Retail spots will become a place to do something rather than buy something.

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RSK: I can tell you that the part about food delivery services is so true for Madison. We are fortunate to be a test market as well....or should I say we are way ahead of the curve with smart entrepreneurial spirit abounding. Good article.

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Dawn Of The Bitcoin Age Has Apartment Landlords Wondering Whether To Accept It For Rent

The rise of cryptocurrency in the real estate world began with a house here and a condo there.

Now the largest affordable housing developer in Florida is considering accepting bitcoin and other virtual currencies for rent payments in what may be the next frontier for commercial real estate....

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RSK: Not sure I would accept it myself. Anyone reading this that does? Please drop me an email and tell me why you do and how it has worked out for you.

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Can Outlet Centers Continue to Succeed by Luring Shoppers with Bargains and ‘Experience?’
While many CRE pros agree that outlet centers are today’s best-performing retail asset, some say the sector may be losing some of its appeal.

As regional malls continue to grapple with tenant bankruptcies and store closings, outlet centers by many accounts have been thriving.

Shopping centers offering an “experience” and value retail are faring well overall. Outlet centers boast both the “bargain hunting thrill” and deals that are often difficult to find through e-commerce channels.

“Because of the bargain hunting of outlet centers, you cannot necessarily get that same experience on your computer or smart device,” says Mark Hunter, managing director of retail asset services leading CBRE’s mall business...
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RSK: Can there ever be too many? Only if they are all selling the same products.

Ken Notes: Remember the key takeaway is that retail is now about the experience...

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Land for Sale: 39.41ac County Rd. B 39.41ac County Rd. B County Road B Beaver Dam WI

Just annexed to City of Beaver Dam. Adjacent to Menards and Walmart. Ready for Development. Location Location Location. Rapidly growing commercial business corridor, near Hwy 151 interchange. Note good access to Hwy 151 Interchange. Many Attributes for successful development in a great area of potential growth.

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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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MRP Delivers Apartment Building On H Street With One Of D.C.`s First Hello Alfred Service Platforms

With so many new apartment buildings coming to the H Street corridor, developers need to stand out to lure tenants away from the competition, and MRP Realty is looking to do just that by introducing a new technology platform at its latest project to help residents manage their lives....

...A New York-based startup company, Hello Alfred in March raised $40M in funding led by real estate firms DivcoWest and Investco. Just one other D.C. building has introduced Hello Alfred: Capitol Riverfront`s One Hill South building from Related Cos., which partnered with the tech company nationally...

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RSK: Love innovation. This won`t be limited to apartment buildings but office complexes as well.

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Building For Sale: 2002 Zeier Rd Madison WI

Freestanding location adjacent to East Towne regional mall. Sale price is for the building only. Purchaser must assume the existing land lease. The land lease has approximately 14 years remaining with one, ten year renewal option...

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After closing its stores, Bon-Ton is ready for its comeback as new company buys its brand

Bon-Ton, the bankrupt retailer that shut its stores last week after being in business for over 100 years, is poised to reopen now that a new owner has scooped up its brand.

A subsidiary of the tech company CSC Generation Holdings told USA TODAY that it has signed a deal giving it the rights to Bon-Ton and its subsidiary department store chains, Boston Store, Bergner`s, Carson’s, Elder Beerman, Herberger’s and Younkers. The agreement will need to get the green light from the Delaware Bankruptcy Court to become final....

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RSK: I hope they can get it back together myself. But I am betting their new lease rates may prohibit that from happening.

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National Report On CRE Brokerage Revenues And What It Means To You

For the 15th year in a row the National Real Estate Investor (NREI) magazine reported that CBRE is the top firm in the world with over $300 billion in leases and sales transaction volume in 2017. That’s Billion, with a “B”.

This year NREI ranked the top 64 brokerage houses. The article notes that “Overall, four firms cracked $100 billion in deals, while nine exceeded $20 billion in volume and 15 were over $10 billion.” Note: Cushman & Wakefield and NAI Global elected not to report information for NREI’s article...

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RSK: So true! You look at how many Brokerage services and companies there are just in Madison alone. However when you look at the amount of commissions there is major separation.

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Investing in Land

Most financial experts will tell you that investing in land is a bad idea. And they’re probably right. At best, on average, in many cases and places, land will only appreciate at the rate of inflation. And it won’t produce any income while sitting there. Worse still, it will cost you in property taxes every year.

So buying vacant land probably shouldn’t be your first, second, or third investment choice on the way to financial independence. If you’re early in the investing game, and not interested in the stock market, then rental property is a much more predictable avenue for real estate investing. Though it’s one that will require more of your time to manage...

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RSK: Great overview on this topic. You should read it.

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Building For Lease: Nelson Road Business Center - 4009 Felland Rd Suite 114

4009 Felland Road, Suite 114, 3000 square feet total with a 250 square foot office and 2750 square foot warehouse with Air Conditioning and a drive-in door.

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7 Days To Your Best CRE Year Yet

Download the free PDF and Workbook by entering your email below:

  • Understand what worked and what didn`t in 2017
  • Start 2018 on purpose with a plan
  • Spend 20 minutes a day for 7 days...and set 2018 up to be your best year yet!

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Recent sponsors below...
Thanks you for sponsoring CIREX and Cirexnews.com
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Ruedebusch Development & Construction

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

  • Commercial Real Estate Development
  • Design Build Construction
  • Commercial Real Estate Brokerage
  • Economic Development, Commercial Real Estate, and Facility Consulting
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Evans Properties, LLC.

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Professional Real Estate Management and Sales

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Newmark Grubb Gialamas

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

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T. Wall Enterprises





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

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

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Madison Commercial


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

call Mike Herl

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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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