- 40 percent of consumers today will pick a mall to visit primarily based on the restaurants located there, according to a report from Jones Lang LaSalle.
- Shoppers who eat at the mall will then spend more time there and spend more money at stores there, JLL found.
- Consumers should expect to see more food halls, with healthier options and local restaurants, popping up at U.S. malls.
You might`ve noticed more and more mall food courts are changing, ditching fast food chains for local eateries. And that`s not an accident.Mall owners say they`ve been steadily increasing the percentage of retail square footage at any given property dedicated to food and beverage, creating new food halls. The push to make these changes is compelling, industry experts have told CNBC. The goal is to drive traffic to the property and keep shoppers lingering longer...
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 ...moreCirex 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...
Note from RSK: At our CBG Madison meeting on Wed. April 11th, CARW and Catalyst gave a demonstration on their property data system. To find out more go here. It is no charge for a few months. Actually, there is no charge to list properties on the system... just to use the data and view properties. This is the opposite of Property Drive which charges for a listing but allows anyone to view the data and properties. We are neither endorsing or directing you to join Catalyst but want you to have the information to make a choice on your own company`s needs.
See More Here:
carw.com/wisconsincommercialdataexchange
Next Event:
CBG Sporting Clays Event on 5-22-18
Date: Tuesday, May 22nd, 2018 Time: 03:30 PM
Event Details:
CBG Sporting Clays Event on 5-22-18 Please register for our 4th CBG Sporting Clays summer social event at the Waunakee Gun Club on Tuesday, May 22. Shooting is optional and all are welcome to come out and socialize. Schedule will be shooting from 3:30 - 6:00 p.m. followed by food and drinks.
CBG Meeting and CE -(course TBD)
Date: Wednesday, June 13th, 2018
Time: 7:15 AM
Event Details:
Save the date for hosting our breakfast meeting and & CE (course TBD) on Wednesday, June 13, 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. 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.
Congrats Deal of the year winners... Presentation Here! ...more
Dave Franchino is no longer avoiding East Washington Avenue.
For years, his office was located in the American Center Business Park north of Interstate 39-90-94. So when clients from out of town would visit Madison, trips Downtown were taken via the interstate, southeast to the Beltline with an exit onto John Nolen Drive. The route would give his customers a picturesque view of the city’s Capitol skyline with Lake Monona and Monona Terrace in the foreground.
It also would bypass the blight of the isthmus with its empty manufacturing facilities, vacant car lots and overall depressing vibe that stood in contrast to the city’s overall reputation...
...moreRSK: Some interesting ideas and concepts on East Wash. Just a few of the tenants that chose the strip for their business and more to come...not just apartments.
- Gross Lease/Full Service Lease
- Net Lease
- Single Net Lease:
- Double Net Lease:
- Triple Net Lease:
- Absolute Triple Net Lease:
- Modified Gross Lease/Modified Net Lease
RSK: Just a quick review of the basic CRE leases. I think in our market a modified gross is most common and absolute triple net the least.
Ken Notes: Do not forget you can search CirexNews for past articles... So a nice primer could be had by searching for commercial lease for example....
RSK: You may want to read this.
The Gialamas Company`s premier development. The park has over 57 buildings containing 200+ companies, occupying over 3.0 million square feet.
One of my favorite arguments with colleagues concerns the state of the
overall retail industry. 2017 was actually a banner year for overall
retail sales, with a strong holiday season propelling overall retail
sales up 4.2%. True, sales of online retail grew at a significantly
faster rate of nearly 13% but on a smaller base. So, everything must be
great for retail, right? Not really.At the same time, there were a record number of retail bankruptcies in 2017, followed by a number of prominent bankruptcies in 2018 (Toys "R" Us, Claire`s, Bon-Ton). Overall, there was roughly two times the amount of store closures versus openings in 2017, driven by bankruptcies and mass closures. Critically even, those openings tend to be concentrated in the value retail segment, with chains like Dollar General, Dollar Tree, Aldi, Lidl and TJ Maxx making up the lion’s share. These are not mall-based retailers... ...more
RSK: More creative retail needed like restaurants and entertainment? How many restaurants can a city have? Almost every retail center and mall has a food court or restaurants in them now...
RSK: If this is true, and I have no reason to doubt it, certainly good news for the retail sector. It seems be the case here in Southern Wisconsin as well.
Ken Notes: I have been traveling a bit and have noticed successful growing retail is more event / festival like. Think live music, food, shops, theatre, Hilldale (needs more entertainment) may be on the right track and State Street is very close (needs more retail).
Amazon.com Inc.
has looked at the possibility of expanding its retail footprint by
acquiring some locations from bankrupt Toys “R” Us Inc., according to
people with knowledge of the situation.The online giant isn’t interested in maintaining the Toys “R” Us brand, but has considered using the soon-to-be-vacant spaces for its own purposes, said the people, who asked not to be identified because the talks are private...
...moreRSK: Again...why not Amazon? Getting closer to the "last mile" of fulfillment.
ken notes: who own the actual brick and mortar?
Another weekend, another major retail bankruptcy. This time it was
privately held Nine West Holdings Inc., a women`s shoe and apparel
wholesaler, which filed for bankruptcy after racking up about $1.6
billion in debt, the second-largest amount of debt on rating agencies`
list of `loans of concern` last year.
Coincidentally, the company also reported $1.6 billion in revenue in fiscal 2017.
Private equity firm Sycamore Partners Management acquired the company and affiliated brands in the 2014 for $2.2 billion...
...more
Food halls have become the hottest trend in retail, and a new report projects the market will nearly triple in size by 2020.
When Cushman & Wakefield first began tracking food halls, open eatery concepts developers across the country are putting into mixed-use projects, in 2015, it found 70 projects across the U.S.
That number had grown to 118 by the end of 2017. Based on
under-construction and planned projects, the firm`s 2018 report projects
there will be 180 food halls by year-end and 300 by the end of 2020....
RSK: Is this a Food Court on Steroids or a way to cut down on employees. It does have merit though.
Ken Notes: we keep talking about entrepreneurial support and failing retail. Why not turn struggling malls into startup hubs for retail, meeting, office, dining, and co-working spaces. It beats the hell out of EMPTY...
Rare opportunity to purchase a downtown commercial condo ideal for office or retail use. Prime first floor location one block off the square with an unobstructed view of the Capitol building. The space was originally occupied by a design firm and offers an abundance of architectural detail...
...more
In one of his first jobs after college, Luke Saunders happened to take a sales job that required driving 1,000 miles a week through Indiana, Ohio, Michigan, and Kentucky. Dinner, most of the time, meant fast food. Lunch might be a bag of chips or a soggy burrito from a convenience store. Saunders realized there needed to be a better way to access healthy food anywhere....
RSK: I am sure Madison will be next. They will do well here and no doubt cut into some restaurant lunch business. Maybe restaurants will have a $7 or $8 salad lunch to go themselves. Lots of salabilities here.
The Bon-Ton Stores Inc., a department store chain that filed for Chapter 11 bankruptcy protection nearly two months ago, says it may have found a buyer, though much is still unclear and the company’s long-term outlook remains hazy.
In a news release late Friday, Bon-Ton announced it is in “active discussions with interested parties in respect of a going-concern bid to acquire the company in a Bankruptcy Court-supervised sale process.” But Bon-Ton, which did not identify the potential buyer, noted there are no assurances the discussions will lead to a definitive agreement...
...moreRSK: I hope so and preferably not Amazon.
Our focus is your focus, our goals are your goals.
You can get everything from food and clothing to tools and toys at Walmart. Now, add packing and shipping to that list.
FedEx announced Tuesday that it will open 500 FedEx office locations in Walmart stores across the country over the next two years.
The move is yet another way for Walmart to compete with Amazon, leveraging its stores to offer customers more convenience and making their stores destinations that can then lead to more sales.
People receiving packages will also have the option of having them sent to a Walmart-based FedEx office, where they`ll be held for five business days...
...moreRSK: Talk about keeping up with the Jones`s (Amazon) this will help. But somehow I believe Amazon will win the "Last Mile" race. Heck, Office Depot has Fed Ex in the stores too.
Ken Notes: Watch for Amazon to have a distribution point in every city and town soon.
Toys R Us Downfall Reiterates Changing Retail Climate; Potential Retail Replacements to Emphasize Experiences
New age of retail forces adaptation. The rapidly evolving retail landscape bypassed Toys R Us, resulting in a bankruptcy protection filing and ultimately the announced closures of roughly 800 locations. Well-established brands shuttering stores have become a common theme in recent years as companies who fail to adapt to the new retail reality operate with outdated strategies. The company’s weakened balance sheet hampered efforts to make investments to modernize its business model and compete with Amazon, Walmart and Target. Due to the firm’s limited online capabilities and inability to transform into an experiential retailer, consumers soon found quicker and cheaper ways to purchase toys that bypassed this traditional toy powerhouse. Strong Internet competition led to Toys R Us’ diminishing market share and the competitive gap slowly widened until it was beyond the company’s ability to bridge.
Access Full Report...RSK: The more scientific reasons other retailers should take a hint from the Toys R Us bankruptcy...
Approximately 20,000 sq. ft. single tenant NNN investment property located in Reedsburg, WI (only 50 miles from Madison). Roughly 5 years remaining on the lease with no Landlord responsibilities. Tenant has recently replaced the roof and all the HVAC units. Rare opportunity to purchase a single tenant investment property with a credit tenant at a 10% cap rate!
Despite the growth of open floor plans and creative workspaces, the U.S. office environment has been curiously resistant to change in recent decades. Many workers across the country still toil away in cubicle-oriented space, which was designed without regard to actual human beings.
Christopher Kelly, a co-founder of workplace hospitality platform Convene, writes in Forbes that commercial real estate professionals need to forget "office" and think "workplace." ...
RSK: I like the line "Forget office...think workplace"!
Despite the strong growth in retail sales in 2017, the retail real-estate market continues to be roiled by trends that look to pick up steam in the future. U.S. mall vacancy rates through the first quarter of 2018 are at the highest level since the end of 2012. Overall retail real-estate vacancies stood at 10% in the first quarter, according to data compiled by Reis.
Filling those retail vacancies will only get harder, suggests a report from the Advisory & Consulting group of Green Street Advisors. The report focuses on trends for in-line tenants, rather than anchors. Since in-line tenants have the greatest impact on mall net operating income, the report states “their performance offers a preferred indicator of mall health.”...
...moreRSK: Yes it will take creativity but what most Malls have going for them is location and parking.
New Member Orientation
April 19 @ 8:30 am - 3:30 pm
To register, send an email to Beth@wisre.com.
Casino Trip
May 9 @ 8:45 am - 5:00 pm
Join the Membership Networking Committee for a trip to Diamond Jo’s Casino!The bus will load at 8:45 am and leave promptly at 9:00 am from the parking lot between AMC Fitchburg and PDQ, on McKee Rd. The bus will leave Diamond Jo’s at 3:30 pm, and return to Madison by 5:00 pm. The cost of the event is $20. Reservation must include payment by April 25th, space permitting....
Capitol Square location! 850 SF suite has three private offices, reception, storage and in-suite kitchenette. Very nice space in an exclusive location...
...more
MILWAUKEE — CBL Properties has unveiled plans for the redevelopment of
the former Sears building at Brookfield Square in Milwaukee. The first
phase of the redevelopment calls for new dining and entertainment
options that will include WhirlyBall and BistroPlex from Marcus
Theatres. Construction is expected to begin this month with planning
underway for additional phases of redevelopment. WhirlyBall will include
indoor entertainment paired with a chef-inspired menu and rotating
craft beers and seasonal cocktails. The two-story venue will feature two
WhirlyBall courts, eight bowling lanes, a four-lane VIP bowling suite
and a multi-level LaserTag arena. BistroPlex will feature in-theater
dining with recliner seating and a full-service bar and lounge area... ...moreRSK: Great idea. As is the Dave & Busters 30,000 sf going into part of the Sears at West Towne Mall. That is one large restaurant people. Give them 5 years max.
View Our March 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.
Fed raises benchmark interest rate, plots path for additional increases.
The Federal Reserve increased the federal funds rate by 25 basis
points, lifting the overnight lending rate to 1.5 percent. While the Fed
noted that the inflation outlook had moderated in recent months, an
upgraded economic forecast factoring in recent tax cuts and a rollback
in regulation strengthened growth projections for the next two years. As
a result, the Fed has guided toward two additional rate hikes this
year, while setting the stage for as many as four increases in 2019... ...moreRSK: From what I see here, investors want a slightly higher rate of return for the future risk in their real estate investments. Asking prices are softening...
/cdn.vox-cdn.com/uploads/chorus_image/image/59175501/shutterstock_738939634.0.jpg)
One in 11 Americans pays for space to store the material overflow of the American dream
Despite recessions and demographic shifts, few building types have boomed like self-storage lockers. In fact, they’ve proven to be one of the surest bets in real estate over the last half century, while malls, starter homes, and even luxury commercial space in big cities, once safe and steady investments, have struggled. Behind the combination locks and roll-up doors lies a $38 billion industry...
...moreRSK: Some interesting facts here. I believe there is room for growth and the last mile concept is in play as well. Ahhh, the marginal propensity to consume (space).
Affordable. Versatile. Excellent visibility. A unique gem tucked alongside Madison’s West Beltline Highway 12/14...
Imagine walking through a dark room where everything you knock over
costs your company $100,000. Urban site selection feels like this right
now – dependant on out-of-date traffic studies, data aggregators with
clunky algorithms, and best guesses from industry experts. But what if
we could just flip the lights on, let real data lead, and remove bias
from the site selection process?
Urban living is becoming the new normal — already 87% of people in the US live in urban areas according to the US Census Bureau. Brands want to be where people are, but suburban demographics and population data doesn’t hold true when expanding into urban market. So the urban site selection process relies on slivers of data to estimate the potential for new locations but does not give a comprehensive picture:
- DOT offers a snapshot of traffic but doesn’t count pedestrians.
- Hand Counting is only as accurate as the person counting is vigilant.
- Data Aggregators that pull data from everywhere they can: Twitter, Weather, DOT and Tarot Cards. Building black boxes put out nice reports but little of it verifiable.
What is this data-gap costing you?...
...moreRSK: I cannot tell if this is a true Dukester rant or an advertorial. What is your take? Non the less interesting.
Reports of Amazon’s desire to purchase some Toys R Us stores to expand its retail footprint may be good news for retail landlords looking to fill vacant space, but some experts say empty boxes in tertiary or rural locations could have a harder time finding life after liquidation.
“We looked at Toys R Us, and 35% of the stores that are closing have very strong demographics, and landlords should be OK re-tenanting that space or converting [it for] different uses,” CoStar Director of Research Suzanne Mulvee said. “Thirty percent of stores I wonder if they’ll be able to find a tenant or backfill. What’s in the middle is a gray area.”...
...moreRSK: I wouldn`t hold my breath on some of these conversions. As they said rural areas will be the toughest. Not all retail big boxes will make good Industrial or office buildings. Maybe mini strip centers or malls?
INSIGHT ARTICLE
The final tax bill agreed to by the House and Senate conferees–likely to be signed into law by the president this week–makes several significant changes for real estate investors. Assuming an individual taxpayer in the highest marginal rates, here is a summary of the key provisions.
Tax rates may come down for top bracket investors
Today, net income from rents is taxed at 39.6 percent, plus a 3.8 percent Affordable Care Act (ACA) tax for passive investors. All in that is 43.4 percent for passive investors, 39.6 percent for active investors....
...moreRSK: Find out your bracket and see what lies ahead for your 2018 Taxes.
Retail/ Office available Schenk`s Corner/Atwood/Willy St. Area Front space (suite 101) has been a chiropractic office for 50+ years, equipment available. Back (suite 102) was an addition about 1995 and is now a separate unit with bathroom and kitchenette.
...more
Whether it’s for office, retail or industrial properties, the preparation of common area maintenance (CAM) reconciliation statements—those charges recoverable by landlords for maintenance costs under a lease—is often done not by accountants, but by property managers; in other words, professionals who typically focus on leasing and tenant operational and relationship matters are less likely to focus on accounting issues. The preparation of CAM reconciliations can be time-consuming and cumbersome, and certain less-common lease clauses can be easily forgotten. This can result in the landlord leaving money on the table.
Every tenant lease is unique and costs are variable; amendments can change them from year to year... ...moreRSK: Good article on a few things you may forget about CAM`s. Such as interest for one.
If you have a home equity line of credit, private student loan, commercial mortgage or business loan, your payment may be tied to LIBOR. The London Interbank Offered Rate serves as the starting point for figuring out how much borrowers owe. But the interest rate underpinning trillions of dollars of loans will be changing.
In the week ahead, the Federal Reserve Bank of New York begins publishing the SOFR. The Secured Overnight Financing Rate aims to be more reliable and less contrived. It also begins a new chapter in the massive move away from LIBOR and its lock as a fundamental price of borrowed funds..
...moreRSK: Another acronym we laymen will not understand that will be used for financing. Hmmmmm...
4005 Felland Road, Suites 116 & 117, Madison, WI, 4194 square feet total with a 1704 square foot office and 2490 square foot warehouse, 16’ clear ceiling and dock loading.
...moreWith 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.
RSK: Now that is what I call taking the task at hand and getting it done.
Ken Notes: The margins have to be good for MB -- high price point for just ok meat and produce.
RSK: Food can draw more people to malls, but what if they are going just to eat food and not shop? That is probably what I would do. Possibly if there was a waiting list, I might browse a shop close to the restaurant...
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.
Amid a retail bloodbath last year and the first two months of 2018, the U.S. still has far too many shops, and their numbers need to shrink — 1 out of 5 need to close to reach the historical average, according to Costar, a research firm.
By the numbers: Ryan McCullough, senior real estate economist with Costar, said the U.S. has 18% too much retail space when compared with the historical average.
- To return to where they should be, U.S. retailers would need to maintain current sales, but close almost 1.6 billion square feet of selling space.....
RSK: So will they be big box stores or ma and pa franchises. Hard to say but betting on a mix. Amazonization....you will be hearing that word quite often.
The world’s biggest e-commerce firms are not really thinking about big-box logistics any more. They are firmly focused on how to best get their goods as quickly as possible into big, dense, urban environments. And that leads their thoughts to taking over space that is now not needed by retailers.
That is according to Zalando Vice President of Corporate Real Estate Raimund Paetzmann. Berlin-based Zalando is one of the world’s largest fashion-focused e-commerce firms, with a market capitalisation of €11B and 2017 revenue of €4.4B. It sells products directly to consumers and also acts as an online platform for other retailers...
...moreRSK: Ken and I have been saying this for a long time. It will happen here soon not just China and the UK.
STURTEVANT, WIS. — The Dickman Company Inc./CORFAC International has brokered the sale of a 187,000-square-foot industrial building in Sturtevant, about 28 miles south of Milwaukee. The sales price was not disclosed. The property is located at 2620 90th St. Gallo Business Center Investments LLC purchased the building from 90th Street Industrial LLC. Samuel M. Dickman Jr., Samuel D. Dickman and Zach Noble of Dickman brokered the transaction.
...moreRSK: S.E. Wisconsin is sizzling hot and Dickman is servicing the CRE sector.
- San Francisco`s metropolitan area lost more residents than it attracted between 2016 and 2017, according to US census data.
- People are leaving San Francisco because of the out-of-control housing prices. The city`s median-priced home now costs $1.5 million.
- The nation`s tech capital risks losing talent if they can`t afford to live there.
People are leaving San Francisco because, as they say, the rent is too damn high.
...moreRSK: Well this might help some of the smaller tech centers in the Midwest...including Madison. When it is less expensive to fly to San Fran, stay in a hotel for two weeks and then fly back to Madison well that says something. Young Tech employees renting Vans and staying in their office parking lots for the week? Wowsers. Almost like being homeless....except you have money. Strange!
Work, Stay, and Play! Prime time business location in the heart of Sun Prairie! Zoned G2 (Urban Commercial) w/the option to live onsite! 3 to 5 car heated and air conditioned shop (11` ceilings), black top parking lot - up to 15 parking spaces (2 333 ft office space currently rented to upgraded electric & R50 insulation. Grow your business here!
...more
Available sf: 1,105 Max Contig sf: 1,105
Rent PSF (Annual): $13.50
Lease Type: Modified Gross...
...more
It was 2007 and I just started a commercial construction company in what
became the beginning of the worst economic downturn since the Great
Depression. Seeking additional revenue streams, I sat at my desk reading
the application for the Small Business Administrations 8(a) Business
Development Program. As I searched for the program qualifications I
found Section 124.103 which identifies “Who is Socially Disadvantaged.”
After reading the paragraph I concluded that the paragraph includes
essentially every other group save one, white males. The SBA makes quite
a general assumption to conclude that people in this county defined, as
“white males” could not also be socially disadvantaged... ...moreRSK: A must read!
The construction world rarely sees such devastating failures as Thursday’s collapse of a $14.2M pedestrian bridge at Florida International University in Miami.
A 174-foot, 950-ton section of the bridge had been put up just five days earlier. It collapsed on cars underneath, killing six people. Now, everyone wants to know: Why did it fail?...
...moreRSK: This sounds like the perfect storm in bridge construction. Many will be liable. Will be a lot more coming out about this over the next few months. It did.t have to happen is what is so disturbing.
When SL Green Executive Vice President and Director of Leasing Steven Durels starts working on an office building, he begins by asking a simple question: “Who do we want to move in here?”
From there, Durels said he thinks about how a building should look from the outside, what kind of interiors are best, what type of amenities should be included and what retailers should take up the commercial space.
“There’s strong tenant demand across the market overall,” Durels said. "[It’s a matter of] how do you excel within the market?"...
...moreRSK: I like this for two reasons. Not everyone needs or wants open office, Foosball and free mimosas in their work space. You need to tailor your space to the type of tenants you want and how they want to present themselves. No one size and amenities fits all. Good article...
The U.S. apartment market’s performance stumbled during Q1, with occupancy sliding to 94.5% in March, down from 95% a year earlier, according to data by real estate tech and analytics firm RealPage.
Rent growth cooled as well, coming in at a 2.3% increase year over year, the company said. That is the slowest pace of increase since the market started its long run of prosperity in 2010...
...moreRSK: I don`t think will come as much of a surprise to people in the business....we all knew it was coming.
Retailers looking for a reprieve from struggling malls are finding homes in U.S. airports.
A combination of consistent foot traffic and travelers who have extra time and money with few other places to go have made airports an ideal alternative to the traditional mall, and retailers are beginning to take note, the Wall Street Journal reports.
While Singapore, Dubai, London and Beijing have long offered mall-like facilities in their airports, the U.S. has been slow to pick up on the trend...
...moreRSK: Hmm...upscale restaurants next? Hey Honey, let`s go to Fly Over`s at Dane County Regional for dinner and watch a few flights come in as we have a flight of vino. What do you say? Parking will probably cost as much as dinner but what the heck..
4618 S. Biltmore Lane, 1475-13553 sf. New Construction, build-to-suit offices. Divisible to 1475 sf. Available for occupancy Now. Floor plan attached.
...more
Moody`s said in a report on Tuesday that retail sector defaults hit a record high during the first three months of 2018 as the rise of e-commerce and decline of malls continues to eat away at profits.
Struggling Sears and bankrupt Claire`s are among the nine retailers that defaulted on their debt during the first quarter despite the healthy overall economy. All but one of the retailers are based in the United States.
Retailers accounted for one-third of all corporate defaults this year, underscoring the pain this pocket of business feels as customers flock to Amazon (AMZN) and other online shopping hubs...
...moreRSK: There will be more as retail has a major shakeout. A new model of retailing is emerging and retailers need to get on the wagon or risk falling by the wayside. As a landlord be wary of retail leases and protect yourselves.
APRIL 2018
April 18 | 8:30 AM – 6:30 PM
ICSC/ CARW Retail Conference
Potawatomi
April 23 – 26 | 8:30 AM – 5:00 PM
CE Credits / CI 103
CARW Training Room
RSK: A list of CARW Events and CE.
It may make for intriguing headlines, but physical retail is clearly not dead. Far from it, in fact. But, to be sure, boring, undifferentiated, irrelevant and unremarkable stores are most definitely dead, dying or moving perilously close to the edge of the precipice.
While retail is going through vast disruption causing many stores to close — and quite a few malls to undergo radical transformation or bulldozing — the reality is that, at least in the U.S., shopping in physical stores continues to grow, albeit at a far slower pace than online. An inconvenient truth to those pushing the "retail apocalypse" narrative, physical store openings actually grew by more than 50% year over year. Much of this is driven by the hypergrowth of dollar stores and the off-price channel, but there is also significant growth on the part of decidedly more upscale specialty stores and the move of digitally-native brands like Warby Parker and Bonobos into brick and mortar...
...moreRSK: I have been saying this for years. But as a guy I know I do not have to be entertained to shop. I want in, find what works, and out. But I agree. The store should not be boring and the same old same old. Just make it easy to find my size in what I want and maybe some new trends in clothing...
/cdn.vox-cdn.com/uploads/chorus_image/image/59249787/GettyImages_566060655.0.jpg)
You should always be skeptical when a company releases data about its own industry, but ThredUp’s annual report on the state of the secondhand clothing world is too interesting to pass up. Last year, ThredUp predicted that the resale market would grow to $33 billion by 2021. In numbers released Tuesday, it says that by 2022, the market will hit $41 billion..
...moreRSK: I found this interesting for two reasons. First because these stores were brick n mortar and then added on line.. Secondly the online resales decided they needed some brick and mortar as well. Morphing indeed.
With the largest Real Estate Practice of any law firm in Wisconsin, Reinhart offers clients custom-tailored real estate insight.
In its first policy meeting under new Fed chief Jerome Powell, the U.S. central bank indicated that inflation should finally move higher after years below its 2 percent target and that the economy had recently gained momentum. ...more
RSK: Get ready for a ride. Lock in rates for as long as you can and keep paying down loan balances. Fed says there will be larger increases in the future.
LOS ANGELES (Reuters) - Shoppers are making more quick trips to Whole Foods stores that have installed Amazon.com (AMZN.O) lockers, giving the natural and organic retailer a new way to boost sales, research from location data advertising firm inMarket showed on Monday...
...moreRSK: And soon Walmart will team up with Kwik Trip ha...
- The average age of a U.S. warehouse is 34 years, a CBRE survey finds.
- Many of them lack modern upgrades: ceilings are low, flooring is uneven and space is tight.
- As Amazon and other retailers move sales online, demand for warehouse space is skyrocketing and supply is still limited.
...In surveying facilities across 56 markets throughout the country, CBRE found most warehouses built before about 2005 lack modern upgrades: Ceilings are low, flooring is uneven and space is tight...
RSK: This may not bode well for the old Oscar`s plant.
Amazing opportunity to lease office/retail space along desirable Monona Drive in building anchored by the Medicine Shoppe Pharmacy. Built in 2010, this property boasts large windows, two private offices, waiting area, and open work space. Ample rear storage space allows this property to be easily converted into retail space...
...moreWednesday, May 23, 2018
Host: MIG Commercial Real Estate
Landmark Oaks
2921 Landmark Oaks, Madison
Registration: 1:00 pm
Program: 1:30 pm
Welcome: Brad Hutter
Commercial Development Updates
Verona
Fitchburg – Michael Zimmerman
Mount Horeb
Tax Reform Josh Ganshert, Baker Tilly (confirmed)
Key Legal and Regulatory Updates
Cori Lamont, Director of Corporate and Regulatory Affairs (confirmed)
Tom Larson, Senior Vice President, Legal and Public Affairs (confirmed)
Networking: 4:30 pm
Bonfyre
Sponsors
Baker Tilly – State Bank of Cross Plains - First American Title - CIREX - RASCW
register at registrations@wisre.com.
...moreHost: MIG Commercial Real Estate
Landmark Oaks
2921 Landmark Oaks, Madison
Registration: 1:00 pm
Program: 1:30 pm
Welcome: Brad Hutter
Commercial Development Updates
Verona
Fitchburg – Michael Zimmerman
Mount Horeb
Tax Reform Josh Ganshert, Baker Tilly (confirmed)
Key Legal and Regulatory Updates
Cori Lamont, Director of Corporate and Regulatory Affairs (confirmed)
Tom Larson, Senior Vice President, Legal and Public Affairs (confirmed)
Networking: 4:30 pm
Bonfyre
Sponsors
Baker Tilly – State Bank of Cross Plains - First American Title - CIREX - RASCW
register at registrations@wisre.com.
A market analysis
provides useful information needed to evaluate the supply and demand
conditions for particular types of real estate. For example, investors
considering the purchase or development of office space value the property based on future expected cash flows generated from rent. In order to forecast future rental income,
the investor or developer must evaluate how much supply exists in the
market and how demand conditions will change over time. The demand must
be high enough to keep occupancy and rental rates high enough so that
the return meets or exceeds the investment hurdle rate... ...moreRSK: The best thing about this analysis platform is the the free course at the end of the article. Basic CCIM courses here wrapped into one overview.
Business Insider was recently invited to check out LinkedIn`s gorgeous
new office building in downtown San Francisco. The building has been
open for just over a year and is decked out with an open office floor
plan, interactive art installations, a gourmet cafeteria (where
employees eat for free), rooftop deck, and an impressive gym. With all of those perks, it`s no wonder why employees have ranked LinkedIn as one of the best companies to work for in 2017... ...moreKen Notes: Wow they out did EPIC....
16 Unit Motel on Wisconsin River in downtown Tomahawk. 14 rentals + 2 live-in suites + office. Walking distance to restaurants, bars, bait shops & grocery store. Ample parking for trailers & boats. Furniture, electronics & equipment included in purchase price of $465,000. www.thebridgeinnmotel.com...
...more
Retirement is set to present one of the biggest challenges for businesses in decades. With Baby Boomers fast leaving their careers for retirement and reports that the ‘Snowflake’ generation will make up 75% of the workforce by 2025, businesses are faced with two significant challenges. The first is to transfer and retain the knowledge their businesses are built on, and the second is to ensure that working styles and environments meet the needs of the most transient and tech-savvy generation of all...
...moreRSK: First of all "Generation Snowflake" does not seem to fit Millennials that I work with. Secondly as a "Baby Boomer" I have no plans in the foreseeable future to retire. So, like it or not we will be commingling these two generations for some time to come.
Currently Signature Graphics space. Available within 30 days. Part of the Odana Plaza Shopping Center. Retail/office/work space...
ALSO _ Business for Sale: Signature Graphics
Signature Graphics is the current tenant and would like to sell his business and equipment. Idea for a company/individual who wants to expand their graphic/printing business. Call the owner Steve Spengler at 608-575-9600 for details on the business.
...more
71,750 S.F. industrial with 3,850 S.F. office. Separate cold
storage building of 8,000 S.F. Eight (8) docks and one (1) drive-in
door.
Also For Sale
New Listing Portage WI - sale or lease. Available July 1st 2018.
71,750 SF manufacturing (3,850 S.F. of office), cold storage building
of 8,000 S.F. Eight (8) docks and one (1) drive-in door.
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!
...more
Retailers are considering new alliances as they combat an Amazon/Whole Foods behemoth.
Target and Kroger are discussing a possible merger, several people with knowledge of the matter tell Fast Company. The talks come as the grocery industry grapples with Amazon’s increasing hold on the market.
The two companies first started conversations last summer about a partnership that could improve Target’s grocery business and give Kroger customers more access to merchandise and e-commerce. Target and Kroger spoke again in the fall and talks are ongoing this year. The companies appear to be struggling to decide whether a merger is the best path forward. Last year, Target and Kroger’s combined annual revenue added up to $195 billion...
...moreRSK: Everyone chasing Amazon? Why not create something new.
There is dire news coming out of the American retail industry these days. Malls that once teemed with eager shoppers are slowly dying, big-box stores are losing ground to e-commerce, and many legacy chains are shrinking their numbers in a too-little-too-late strategy to save themselves. Experts say it all points to a revolution that has been sparked by a sea change in consumer behavior, thanks to the ease of online shopping...
...moreRSK: This time it is "Sellers Beware"!
RSK: This all started with Food Carts where there was or is no overhead for seating patrons. Now these Ghost Restaurants are becoming big business and if you read the article you will see how little overhead is involved making it viable. Existing restaurants are getting in the act as well. I happen to know a few personally.
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...
- A handful of Toys R Us stores are scheduled to be bid on later this week.
- Companies interested in the locations include Target, Aldi, Big Lots and some real estate investment trusts.
Several Toys R Us stores are scheduled to be auctioned off later this week, according to court documents filed Tuesday that were reviewed by CNBC.
Out of the 58 "qualified bids" being considered, Target and Aldi both are looking at one location in Kendall, Florida, which is near a handful of college campuses. Big Lots is bidding on five stores — in Fresno, California; Exton, Pennsylvania; Durham, North Carolina; Woodbridge, Virginia, and Indianapolis. Furniture chain Raymour and Flanigan is looking to bid on three stores — two in New Jersey and one in New York. Golf & Tennis Pro Shop, which owns PGA Tour Superstore, will bid on the same Indianapolis store as Big Lots, along with a store in Vernon Hills, Illinois...
RSK: I am sure in our area they will be very selective as not to undermine their existing customer base. Both stores in Madison are on out lots at East & West Towne Malls.
Contact Information
Luther TorgersonPeterson Management Company Inc.
Phone: 608-256-1183
Mobile Phone: 608-444-1113
Email: petersonmgt@sbcglobal.net ...more
Essex Square Shopping Center has 2,180 sq. ft. of prime retail space available. Essex Square is located on East Washington Ave directly in front of East Towne Mall. Come join Pier 1 Imports, Half Price Books, Penzeys, Great Clips and others.
...more
I get sent many pitch decks and am always asked to comment on how to make any part of the deck better.
I thought I would showcase and comment on WeWorks pitch deck since it’s a great example of how to raise BILLIONS.
-Scrolling past the usual logo and the very first slide says what? Here’s who we are here’s the money we are making and here are the markets we are in and here’s how fast we are growing. All on slide 1. Ok, that’s how to get someone’s undivided attention. Slide 1 Do It!
...moreRSK: I like this one...simple model...we make money.
Ken Notes: I may be in love with these guys....
Offering real estate services and design-build construction solutions for growth oriented clients... ...more
The commercial real estate industry has a reputation for being slow to adopt new strategies and technologies. Some might even call it “stodgy” or “set in its ways” or “downright mumpsimus.” In the interest of our continued readership, I’m going to curtail the list there.
In the last few years, though, there has been a sea change in CRE firms’ willingness and enthusiasm for everything new. Partly, that may be because the stereotype was never really accurate in the first place – buildings are already far more complex and technology-laden than most people are aware – and partly it’s because of the plethora new technologies hitting the market in a form that can be profitably applied to the industry’s needs.
...more
I’m sure it’s a given in this day and age that we as in WE are all living in the digital world of business. Throw out the names, Apple, Google, Samsung, Nokia and maybe add in Nike, Sony, Dell and you are nodding in agreement. Yes, it is indeed the digital world we all live in.
Within commercial real estate, it is the exact same thing correct?
Let’s throw out those well known digital companies and brand names of commercial real estate………….
...moreRSK: The Dukester with some language. My comment is...some people just like the process as much as the end results. Sometimes the journey along the way is more rewarding then the destination itself.
Here’s something to think about as you carry your lunch from the kitchen to your desk.
A new research paper shows evidence that hand dryers generate invisible “bacterial highways” inside buildings. The study builds on other recent research about how these devices suck up and disperse contaminated air, suggesting that these germs go on a much longer airborne journey from Paula’s favorite bathroom near accounting to, say, the coffee machine in engineering’s open kitchen... ...moreRSK: Just an FYI...paper towels may be a better alternative...then again not.
Two story office Building with 15,360 square foot floor plates. High parking ratio: 6 per 1,000 sf. Located in The American Center, this building offers excellent exposure form 90/94/39....
Ben Hurd
IA Management LLC - HC
Phone: 608-422-5665
Mobile Phone: 608-213-3106
Email: bhurd@iamgtllc.com
Well located industrial site available for sale or build-to-suit. Excellent proximity and access to interstate system makes this location ideal for users serving multiple communities. The parcel is currently identified as 4906 Femrite and the newly created tax parcel will maintain a shared driveway. The site can accommodate a building footprint of approximately 10,000 sf. Sale price $190,000...
...more71,750 S.F. industrial with 3,850 S.F. office. Separate cold
storage building of 8,000 S.F. Eight (8) docks and one (1) drive-in
door.
Also for Sale: 2855 Smith Rd Portage WI 53901
Price: $2,100,000
Size: 83,600 sf
Parcel Size: 9.59 acres
Zoning: M3
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
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.
Professional Real Estate Management and Sales
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.
Expect Professional Management with a Personal Touch
with every T. Wall Urban Village.
(608) 575-1018 or Contact@TWallEnterprises.com
...more