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Brick-And-Mortar Retailers Rush to Open More Fulfillment Centers As They Strive to Keep Pace in a Changing Landscape
Retailers Are Focused on Faster Delivery, Transportation Costs
Sam’s Club plans to spend the coming months converting closed stores
into distribution centers to fill online shopping orders, joining other
national retailers in scrambling to grab up warehouse, industrial or
even former big box store properties in response to the boom in
In another sign of a rapidly changing retail landscape, the rush to
seize these properties is prompting developers to revitalize industrial
areas across the country. Retailers are seeking to cut delivery times
and transportation costs, raise their e-commerce capabilities and
compete with a changing landscape driven by Amazon, which operates more
than 300 distribution and delivery centers that process shipments from
other parts of the country to get individual packages to the homes of
RSK: Even talk of one in SE Madison...just talk but at least the idea has been born...betting it will happen...
Ken Noes: The next billion dollar idea will be the last mile solution...
CINCINNATI (Reuters) - Kroger Co and Silicon Valley startup Nuro will
begin this autumn what they call the first real-world road test of an
unmanned delivery vehicle, as the largest U.S. supermarket operator
battles Amazon and others for U.S. dominance in fresh grocery delivery.
The test of Nuro’s “R1” van, which is shaped like a rounded, silver
lunch box, comes as Kroger and other store-based food retailers are
racing to catch up with or gain an advantage over online retailer
Amazon.com Inc, which sent grocery sellers scrambling to add home
delivery after its $13.7 billion acquisition of Whole Foods Market last
RSK: At a max speed of 25 mph, this could be a road hazard.
Ken Notes: This will be a HUGE hit if we legalize cannabis -- Wow man I could really go for some Doritos right now... (I am sorry but I could not resist the opportunity)...
Office sharing giant WeWork has
launched WeMrkt in New York City, which is a reinvention of the
company`s Honesty Market. The first of the new stores is located at the
205 Hudson WeWork location in Lower Manhattan, with plans to expand to other locations in New York and then nationally soon after.
The shop offers a small but curated array of items, including snacks,
office supplies and WeWork-branded apparel.... ...more
RSK: Self-serve self-pay, not so sure how that will work out but I do like the concept...
Ken Notes: It will be interesting to see if the private sector can replace the Public Market, I believe this may be the new mall and a great retrofit for the old mall. "Test your retail concept here!" Self-serve self-pay could easily be updated with an auto pay that is supervised like every big box now offers...
CBG Summer Social
Date: Wednesday, August 8th, 2018
Time: 4:00 PM
It`s that time of year again for our annual August afternoon meeting
with hors d`oeuvres and alcoholic refreshments! Please join us at
Pontoon Porch from 4:00 - 7:00 p.m. We`ll have a short meeting and then
it will be time to enjoy the food & drink. We hope you can join us!
Congrats Deal of the year winners... Presentation Here
!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.
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: ...more
HARTLAND, WIS. — Carter Validus Mission Critical REIT Inc. has sold its
Milwaukee Data Center in Hartland, about 30 miles west of Milwaukee, for
$21 million. The 59,516-square-foot property sits on nearly eight
acres. Landmark Infrastructure Operating Co. LLC purchased the asset.
The company also recently sold a data center in Alpharetta, Ga., for $64
million. Carter Validus Mission Critical (CVMC) REIT I owns one
remaining data center in Andover, Mass., but CVMC REIT II owns 27 data
center properties as of the end of the first quarter... ...more
Ken Notes: Data centers could also be huge for Wisconsin. If we have the right backbone, we have the rest in spades - reliable power, secure locations, good construction, strong workforce, desirable living, affordability.
It has been one of the pillars of modern office design
theory: open offices, with fewer walls, doors and spatial boundaries, encourage interaction and collaboration
A central tenet of the coworking
phenomenon is the prevailing assumption that mingling with
co-workers will expose you to a bounty of new ideas — and large
corporates in all fields have taken the bait to tear down office walls,
dismantle cubicles and remove any sense of workplace solitude... ...more
RSK: Like this is a real shocker? Duh. But I do believe open office makes the worker feel better and more comfortable and even if productivity drops a bit you are having a hard time finding talent, you are better off with the concept of some sorts.
Ken Notes: If you give all your employees the Myers–Briggs Type Indicator or any other personality survey you will find we all thrive in different environments and work best in a variety of office configurations. We unfortunately all think our personal idea is best. This is why we tend to develop for our personal interests when we really need to develop for the array of personalities and skills that best serve our company. The title should be some workers hate open offices, I promise other do not.
Many are in testing stages, trying to find the right size in the right market as they compete in a crowded sector.
Some well-established,casual-dining chains are rolling out more modern, fast-casual concepts to try to attract younger diners.They include Cracker Barrel, Tony Roma’s, Hooters and Denny’s.
These older chains want to capture market share in the hot
fast-casual sector.After all, millennials dine out or get takeout five
times a week, according to a study by Bankrate.com. That’s compared with just 2.5 times for boomers.
Since these chains have decades of experience in the restaurant
business, spinning off a fast-casual concept to help revitalize their
brand may be a natural progression...
RSK: I agree that at times you need to start from fresh rather than trying to change something old into a new concept. Why so many restaurant owners cannot understand why someone doesn`t want to pay the price. It is usually because the concept is old or dying out.
The Gialamas Company`s premier development. The park has over 57 buildings containing 200+ companies, occupying over 3.0 million square feet.
The industrial market is enjoying a moment in the sun throughout
the West. Much of this is due to the retail sector’s continued
technological advances, which have placed increasing demand on speedy
delivery as manufacturing, distribution and warehousing needs are more
important now than ever.
“The market fundamentals for
industrial properties are the best they have ever been,” says Bob
O’Neill, senior vice president of acquisitions at CapRock Partners in
Newport Beach, Calif. “Industrial absorption, lease rates and sales
prices are at all-time highs, while market vacancies are at historic
lows and construction in the Western United States remains in check.”... ...more
RSK: Not just the West but all across the USA!
Ken Notes: If Wisconsin were serious about economic development, we would focus on becoming the Midwest distribution hub for all retailers (both brick and mortar and E-commerce). We could work with the big players, rail, and logistic companies like Schnieder, to create turnkey solutions for the industry.
It feels to me like we are in extra innings, running on borrowed time.
Over the last eight years private equity real estate
has witnessed some of the best total returns in its history. This has
also coincided with the longest stock bull market in U.S. history. Some
investors feel as if the current expansion can continue unabated. More
disturbingly than that, and perhaps spoiled by the astounding returns in
this cycle, many investors are still reaching for IRRs they achieved in
the near past, blithely ignorant of the fact that most of the
appreciation was the result of mean reversion and record low interest
rates. Investors remain aggressive today when they should be defensive...
RSK: David is right on here. Investing will see its returns in cash flow, depreciation and debt reduction in my book. Appreciation if any will be a plus.
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... ...more
Ken Notes: Now this is a destination property!
Strong demand for industrial space is pushing developers to undertake
speculative projects like Hays Commerce Center in metro Austin. Hillwood
and HPI are co-developing the facility.
Demand for industrial space is soaring and the growth of e-commerce has
opened the doors for more competitors to enter the freight and logistics
spaces. In addition, the latest data from the Bureau of Labor
Statistics (BLS) notes that year-to-date, the United States has added
200,000 new positions in the manufacturing sector, greatly increasing
the demand for new industrial space... ...more
RSK: Very interesting. Cross-docking is coming and going at the same time. Self-driving trucks will also change the scene.
Ken Notes: When I was Mayor in Neenah we had a developer in our industrial park that built 4plex industrial spaces that cash flowed when half (2 of 4) were rented, the businesses then knew they had the ability to expand in place. Brilliant and he did very well because as they expanded is was pure profit.
The future of office space will be about more than square footage or
open-office floor plans. Rather, office managers will have to focus on
creating an attractive user experience, from free coffee to lounge
space, for every occupant. In the U.S., around 1.2 million employees
worked in a coworking space last year. With flexible office space now
the main driver of office occupancy growth, many landlords have started
to convert conventional office space into coworking and flexible space....
...Coworking giants like WeWork have built entire brands based on the needs of its members,
many of whom are smaller tenants who would not have the space or skill
set to design spaces around individual employee needs. Having the
ability to adapt to office trends and provide the appropriate amenities
has shifted the value chain in office leasing...
Coworking giants like
WeWork have built entire brands based on the needs of its members, many
of whom are smaller tenants who would not have the space or skill set to
design spaces around individual employee needs. Having the ability to
adapt to office trends and provide the appropriate amenities has shifted
the value chain in office leasing. ...more
Read more at:
RSK: Quite a few landlords and building owners and operators are going to have to get with it pronto. However, if you are not a startup company you may want to negotiate a longer-term lease.
Ken Notes: We-Work, Regus, and even the new spaces in Madison are catering to the array of work environments that serve the varying needs of the individual.
The big picture when it comes to data centers, according to the speakers at Bisnow`s Data Center Investment Conference & Expo South, is very big indeed.
Increasing connectivity and other factors mean that roughly 600 zettabytes of new data is created each year (that is 600 trillion
gigabytes), which is about 200% more traffic than current data centers
can handle. To keep pace with the growth of data, the industry is going
to have to build about 4,000 new facilities — on average 200K SF, 25
megawatt facilities — by 2020, the speakers said.... ...more
RSK: The only problem is they do not tell you where they are needed....just that they are needed.
Ken Notes: Where is where the fiber is, and FYI Verona and Fitchburg have an abundance of it. Also they are just rural enough, close to a metro, and priced right. I can help you market this if you are interested...
Warehouse ceilings may be reaching farther into the sky, but it is not necessarily because tenants are demanding it.
“We are building 40-foot clear [ceiling heights]. We have not had a tenant to date utilize that,” Core5 Industrial Partners Managing Director Lisa Ward said.
Developers have been raising ceiling heights and overall warehouse
sizes for the past few years, especially as companies rely further on e-commerce
to drive sales. Between 2012 and 2017, the average warehouse was 185K
SF, 143% larger than the typical warehouse built between 2002 and 2007, according to a recent CBRE report. On top of that, ceiling heights climbed 4 feet to an average of 32.3 feet in the same period...
entrepreneurs start small delivery companies will let Amazon further
ramp up its e-commerce engine–and might be the start of something even
RSK: Very interesting. I think the street level drive-in doors for Uber and Lyft deliveries would be more important than 40` high ceilings.
Ken Notes: Amazon is now offering $100,000 to independent last mile providers (see second article) and in dense areas up will be the only affordable option.
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.
For a fifth consecutive year,
millennials led home
purchase activity, comprising 36 percent of the buyers in 2017. The
oldest millennials are now 37, and as this generation ages and starts
families, a wave of potential new buyers are moving into the market.
Approximately two-thirds of first-time buyers in 2017 were millennials,
but housing affordability remains a concern in 2018 as home listings
under $200,000 continue to shrink. Homes in this price tranche have
fallen 59* percent since May 2012... ...more
RSK: You know the rest of the story. Where people live and concentrate, retail and other services follow.
Ken Notes: I would add that many millennials are looking for non traditional homes, more amenities, less maintenance, smaller, affordable, turnkey, in great neighborhoods...
In 2017, $69.51 billion was spent
on pets in the U.S., according to the American Pet Products
Association. That’s up 69 percent from one decade prior. As a whole, the
global pet market is estimated at $109 billion. A share of that goes to veterinary care, which is a $17 billion industry in the U.S. alone.
So it’s no surprise that the increased spend on pets is reflected in increased funding for pet-related startups... ...more
RSK: Right up my tech/dog alley.
The Ella’s Deli carousel may whirl again.
Systems Corp. has bought the former Madison restaurant’s historic
outdoor carousel and the collection of whimsical art and toys inside
that made Ella’s Deli a favorite of children and adults alike before it
closed in January after 41 years.
really good news. It all happened very, very fast,” said Ken Balkin,
who owns the Ella’s Deli building and business with his wife, Judy.
“Epic Systems has purchased the carousel and the art collection and
they’re going to carry it forward into their campus in a real positive
Ken Notes: This is perfect for the EPIC campus but will be missed on East Wash...
We’ve been hearing and talking a lot about the Last Mile distribution
and logistics, especially Amazon HQ2 over the past few months, so I’m
excited to introduce this issue of SIOR Report, featuring a cover story
on how the last mile is impacting the warehousing and delivery world.
SIORs are always at the forefront of information and activity in the
industry, and this topic is no exception. This "new" dynamic has been
pushed particularly by Amazon, and its creativity in the swiftness of
transport. Suddenly, old, multistory, and infill buildings have a
potentially resurrected life to fulfill the need for speed in
RSK: Worth the quick read here.
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- P.F. Chang`s owner said Friday it has retained
Bank of America/Merrill Lynch and Barclays to explore a possible sale
of the Chinese food chain.
- Centerbridge acquired P.F. Chang`s in 2012 and recently separated it from Pei Wei Asian Diner, creating two distinct businesses.
- Centerbridge said it received "multiple unsolicited indications of interest" for P.F. Chang`s...
RSK: I believe the one out in Middleton is still open.
It’s getting a little easier to find a construction loan
to build a new apartment property, compared to the end of 2017.
“Banks are getting more aggressive,”
says David Webb, vice chairman of debt and structured finance with CBRE
Capital Markets, based in Washington, D.C. “It is getting easier to get
deals done.”... ...more
RSK: This seems to be contrary to everything we have heard lately but it may be the answer to why all the new projects keep coming online.
Ken Notes: I get nervous when banks start making it easy to get money that particular market segment may have run its course. Think condos, commercial land, big homes, golf courses...
Real property ownership comprises a group of rights, sometimes referred
to by lawyers as the “bundle of sticks” theory. This means that
property owners can retain the entire bundle of rights together, or they
can separate out some of the rights and sell, lease, gift, or otherwise
convey those rights to others. Among the bundle of sticks is the right
to use the surface of the land and the right to own and use the
minerals underneath the surface of the land. This ability to separate
the minerals and related mineral rights from ownership of the surface
causes confusion for many Wisconsin landowners; do I own these minerals
or not?... ...more
RSK: Good question. One of our RE CE instructors from Reinhart, Maya, explains.
Thanks to Amazon and Whole Foods, a new
kind of locker talk could be sweeping the grocery sector, and it centers
on how much can be bagged in a five-minute window.
Micro-shopping trips, defined as trips that take less than five
minutes, are becoming increasingly common thanks to grocery services
that let customers order online and pick up in-store. The development
made national news when such trips were reported to have climbed 8.7% at
Whole Foods stores after Amazon acquired the grocery chain in August
2017, according to research by data-analyzing firm InMarket. The increase is attributed to its Amazon Lockers, where shoppers can pick up preordered items... ...more
RSK: I am a big believer in micro shopping trips to grocery stores. That way I can get in an express lane for a quick check out. That is the one thing I really dislike is waiting in line to check out. Wasting time.
Ruedebusch Development & Construction, Inc. is a highly qualified,
vertically integrated full service commercial construction, and real
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Sears Holdings, which owns Sears and Kmart, has for the first time
brought the two brands together under the same roof by opening a 10K SF
Kmart inside a Sears store at 2307 Beverley Road in Brooklyn.
The retailer, which is beleaguered by falling sales and rising debt,
is presumably testing the new initiative to see if the combined brands
can spark some kind of turnaround, CNBC reports... ...more
RSK: Now Sears Exec`s are starting to put on the thinking caps instead of just closing stores. They need to adapt and be able to morph.
Ken Notes: Sears needs / needed to become the "Appliance Amazon" -- they had it all delivery outlets, brand names, good relations wilt other players, show rooms, repair... Alas it may be far to late...
respond well to those that are sure of what they want,’ Vogue editor
Anna Wintour once remarked. ‘What people hate most is indecision.’
In essence, that’s the role of a great editor: to take a point of
view on the world and clearly express it through the pages of a
magazine. It’s about bringing a singular vision to life and selling that
vision to as many people as possible. It is not just about chasing
what’s popular, reflecting public opinion or playing to generic trends.
It’s about having a clear message that helps their publication stand out
from the crowd. ...more
At first glance, this may not seem to shine much light on today’s retail landscape, but at Appear Here we believe shopping destinations could massively benefit from an editorial eye...
RSK: When you reach the bottom read about this editor. He has an amazing thing going on.
Fantastic site for just about anything w/ hard to beat exposure
& visibility. Perfect for LOTS OF OFFICE applications, but can be
built to suit for many retail uses. Located on ideal corner of Boomer
& Church St, w/ high traffic count to benefit large variety of
business options. Ample parking off Utah St, w/ wide range of
neighboring successful businesses to compliment your venture. Call
The commercial real estate data sector is rapidly and fundamentally changing before our eyes.
Startups like VTS, Reonomy and CompStak
are launching new services, charting nationwide expansions, landing
venture capital investments and securing institutional partnerships. As
they widen their product offerings and user bases, these companies are
beginning to resemble young versions of the industry`s Goliath: CoStar.... ...more
RSK: The only serious player in our market area is Catalyst and for S.C. Wisconsin is Property Drive.
Ken Notes: I hope we realize that PropertyDrive and Cirex are different animals in that they are local, have a different pay model, and actually provide the lions share of the data now used in the state system...
The annual “The State of Retailing Online” study conducted by NRF and
Forrester examines the impact of ecommerce and provides key metrics for
benchmarking. The survey examines retailer attitudes and investment
levels for critical digital commerce issues. This year’s results
demonstrate that the line between the digital and physical worlds is
blurring as the retail landscape continues to evolve, with many
retailers focusing on digital store initiatives in 2018.
Key findings from this year’s report include:
- Net-net, stores are growing:...
- Omnichannel remains a key store investment area: ...
- Digital retail continues to be the bright spot it’s been for years:..
RSK: This seems a bit contrary to what is actually happening. Good news if it is true.
Fresh takes on mall anchors, entertainment and more are driving strategy at the REIT`s properties, CEO Stephen Lebovitz reports.
“Experiential” is the buzzword in retail as consumers shift their
focus and overextended retailers in waning categories downsize or shut
down. The shift—perhaps not entirely unusual in the ever-changing retail
sector but seemingly more extreme in its redirection—is forcing owners
of malls and shopping centers to rethink their tenant mix.
Just how significant is the shift in tenancy? In a Q&A session during the National Association of Real Estate Editors annual real estate journalism conference
in Las Vegas dubbed “The Retail Armageddon—Is It Real?”...
RSK: Again this is happening right here right now at West Towne.
Ken Notes: Add destination to the buzzwords for retail. Ask yourself, "Why would I go to the mall for something Amazon will place on my doorstep." Answer - "It is fun."
RSK: This is so right on. Both online and brick and mortar are complimenting each other and you really need to do both...even Amazon is finding it needs physical retail space...if for last mile delivery if nothing else.
With over 200 experienced real estate professionals, Knight Barry provides exceptional support and service. Visit us online for more information about our 40+ commercial and residential offices throughout Wisconsin and Michigan.
Two tenant commercial condo perfect for first time commercial investor. Long term tenants anchored by Edward Jones... ...more
I talk to and get pitched by startups constantly and a major part of
the pitch is about their business model and how they make money. It’s
obvious. In some way shape or form, it’s ALWAYS charge the broker or the
building owner. PERIOD! WITHOUT FAIL!
But I have a little hint, ok maybe not so little hint for them. Yes, it’s about revenue and then some.
And of course…….
You need to make money....
RSK: You may have to read this one twice to have the concept sink in.
The commercial real estate industry is evolving, but not everyone is keeping up.
What was the norm only a decade ago has been upended by two key factors: The use of technology has made processes, investment strategies and properties more efficient and the health of the U.S. economy is experiencing its second-longest period of economic expansion in history... ...more
RSK: I like this.
Tech giants Google
have partnered up with two retailers, which will see them push further
into the grocery and department store retail space, respectively.
announced a tie-up with French supermarket giant Carrefour, which will
see the company sell its groceries on Google’s new dedicated French
shopping site starting next year. Carrefour groceries will also be
available via Google-operated connected speakers and voice-assisted
RSK: A few of us were just talking about Amazon and is it becoming a behemoth and monopoly. Many are trying to combat it. Eventually, I think Amazon will implode somehow.
Ken Notes: I think Amazon is here to stay, watch for them to enter new and larger item markets in the future as they solve last mile delivery issues.
Walmart is testing the waters of cashier automation, first by letting
customers scan and pay for items within an app, and now, giving
in-store reps the ability to help customers pay on mobile devices.
It’s also studying customer comfort levels with automated payments.
At this point, it’s not ready to get rid of cashiers — they’ll just be
part of a bigger menu of customer checkout choices, according to Walmart
rep Ragan Dickens.
Dickens would not comment on whether fully automated stores are in
its plans. But for the past two months, it’s been testing an Apple-store
type concept called “Check out with Me” at 350 stores. It gives the
agent the ability to check out a customer on a mobile device... ...more
RSK: This might be an answer to my pet peeve of waiting in line to check out.
4001 Felland Road, 100% warehouse with drive-in door. Available November 1, 2018. ...more
With the largest Real Estate Practice of any law firm in Wisconsin, Reinhart offers clients custom-tailored real estate insight.
Brian Jacob admits that at first it might seem like he has “a
horrible business plan” for his coworking space in Fort Lauderdale. But
when all its parts work together, “it can create amazing opportunities
for our customers," he said...
...Often, he said, the clients who came to him for consulting would be
bright individuals with ambitious plans, but lacked a piece of the
puzzle that would make their companies successful. Some of them needed
funding. Some needed apps or software. Some just didn’t have a good
handle on marketing. Once he connected resources, a few of those
businesses found success, so Jacob thought, “Let’s create a facility
where all that magic can happen.”... ...more
RSK: Just love this concept. How about the Uber of trucking? Why not. Really a fun read.
Ken Notes: I would make one observation, we need a more professional co-working space. I would love to see marketing firms or temp firms enter this space, both have product to offer the tenants immediately. I rand my technology consulting business in alliance with both a temp firm and the local Tech college - These were great partners...
The restaurant industry was the perceived saving grace of shopping centers
the retail apocalypse. When mall owners were faced with the conundrum
of how to fill vacant spaces, food and beverage concepts were a viable
solution. But now even restaurants are facing a wave of closings
due to overexpansion, especially midpriced casual
chains like Applebee`s and Ruby Tuesday.
While the formerly reliable sector suffers, continued
consumer demand for locally sourced, small-scale fast-casual restaurants
is garnering the attention of developers looking for new tenants — even
if they aren’t as well-known as the industry’s bigger, high-credit
RSK: Just not sure how many Hu Huts and Subways we can have or should I say we need...
Amidst the steep bluffs of southeastern Wisconsin, in a shallow valley where three rivers join before flowing into Lake Michigan,
lies an unexpected gem. It’s a small but glittering one, a city that,
despite its old world charm, geographical beauty, and longtime liberal
leanings, has somehow been underrated for decades—either overshadowed by
the megawatt metropolis of Chicago 90 miles south or wrongly cast as just another decaying, rust-belt ghost town.
Milwaukee is neither. Ever since its early days as an agricultural port
and brewing capitol, Wisconsin’s largest city has been a magnet for
industry, immigrants, and intrigue.. ...more
RSK: Love this. Not only the cool aspect of "Mawaukee" but there is so much going on in CRE as well. A happening place.
Landlords could start charging per person instead of per foot if co-working advocates have their way.
As the industry’s office space continues to evolve rapidly, executives
of companies that creatively fill space office market and its valuation
model needs to catch up.
“If you think about a building whether it’s a retail or office as a
marketplace with a captive audience, the ways you start to think about
how to monetize that audience can be tremendous,” said Ryan Simonetti,
co-founder of fluid meeting space company Convene... ...more
RSK: New concept, but no matter what or how you call or charge for it you still need X at the end to pay for expenses and give a bit of a return on investment and risk.
Starbucks might finally be realizing what stand-up comedians have been saying for years: There are too many Starbucks.
The coffee titan announced that it will be closing 150 locations
in fiscal year 2019, after years of averaging about 50 closures
annually, the Wall Street Journal reports.
Starbucks CEO Kevin Johnson acknowledged that the strategy of rapid
franchising, with locations within supermarkets, airports and the like,
had overextended the company and reduced profitability.
Starbucks has reportedly opened 3,000 new locations in the past three years, passing McDonald`s in terms of store count in the U.S. But sales have slowed in that same time, with the company reporting flat traffic in this year`s second quarter and predicting 1% growth in Q3... ...more
RSK: I still laugh when I see a Broker who has a strip mall for lease say "Great location for coffee shop"....right.
Ken Notes: but great location for co-working coffee shop might be just the ticket...
RSK: To me it depends on the size of the retail space and again location, location, location.
Ken Notes: I mentioned earlier, is it a destination...
RSK: Honored to make the list once again at #35
Exceptional opportunity to own a quality built professional
building on the Wisconsin River in downtown Prairie du Sac. Three levels
overlooking the River and the new Great Sauk Trail walking/biking path.
Reception area, 9 private offices, 3 restrooms, plus showering area.
Walk out basement. Owners would lease back, or consider dividing the
space. Call Carole Lukens for details at 608-393-1784. ...more
Successful Restaurant - been in operation for over 40 years
seller to retire - Located in the historic Wauona Trail - across from
the Veteran`s Memorial Fields many events - fully equipped - turnkey
business - over 4,000 sq. ft., large dinning/banquette room - oval bar -
spacious kitchen, plenty of parking... ...more
July 26 | 5:30 – 10:00 PM ...more
RSK: A list of CARW Events and CE.
Fed raises benchmark interest rate; additional increases anticipated.
Federal Reserve increased the federal funds rate by 25 basis points,
lifting the overnight lending rate to a range of 1.75 percent to 2
percent. Citing stronger consumer spending, and a highly optimistic
business community, the Fed laid out the potential for two additional
rate hikes in 2018. The Fed noted strong job growth, accommodative
fiscal policy and above-target inflation as reasons for continuing to
normalize monetary policy over the coming months. ...more
RSK: If you are a seller this is good news as the increases are low but steady. Asking prices will remain strong.
is a lot of talk about how much the landscape has changed in the
commercial office sector, with the rise of the creative office at the
forefront of the conversation. Global brokerage firm Cushman & Wakefield recently released a report, Space Matters, detailing
the reasons for some of these changes to traditional office spaces and
how space decisions are being made by occupiers today.
to Cushman, there are four main factors that are highly important to
today`s commercial real estate executive when making space decisions.
Read on for the breakdown...
#1. Office Density... ...more
#4. Rent Concessions...
RSK: Good study. When it comes to CBD office space the problem with the older buildings are not enough on-site parking. The newer buildings all have sufficient underground and/or bi-level ramps. With a few large buildings on the books on East Washington, some of these older buildings may suffer in occupancy or rent concessions.
Affordable. Versatile. Excellent visibility. A unique gem tucked alongside Madison’s West Beltline Highway 12/14...
High Point Office Park is pleased to announce a new broker incentive program from now through the end of September 2018.
- Lease 8,000 or more square feet for 5 years and receive $5,000.
- Lease 2,000 or more square feet for 5 years and receive $1,500.
- Lease 2,000 or more square feet for 7 years and receive $2,000.
- Lease 2,000 or more square feet for 10 years and receive $3,000.
- Lease under 2,000 square feet for 5 years and receive $750.
- Lease under 2,000 square feet for 3 years and receive $500.
Ben Hurd High Point Office Park LLC
email@example.com ph: 608-213-3106 mobile: 608-213-3106 ...more
been a commercial real estate broker for over 30 years. I`ve used
CoStar and LoopNet for many of those years, and yes they have a lot of
data, but I have gotten fed up with their inaccuracy and expense.
I started QuantumListing to address those problems. It has lots of user
friendly features and once your 3 month free trial is over, it is
reasonably priced ($79.99/year for an individual user)... ...more
RSK: Yet another supposed solution to pay for your own data. To me, the model that will survive is the one that is free and will collect revenue from advertisers...like a FaceBook model.Ken Notes: Keep it simple... PropertyDrive lists what brokers want to list, it is current and accurate because brokers are paying for it, it is free to both the public and other brokers, it is a direct link between the broker and client...
Where we stand today.
Commercial real estate data has long been left abandoned in dark
recesses and behind firewalls, either forgotten or hidden. Mostly for a
perceived competitive advantage. Today that may no longer be a choice....
The Big Questions:
1. Will data availability and portability, done well, help create a defined commercial real estate brand?
2. What new audiences will the data attract?
3. Will we need commercial real estate data, advisors?
4. Will we manage our data daily, weekly or monthly?
5. What do “innovative” data mining and monetization methods now in use by Google and others, mean to commercial real estate?
6. Will this affect commercial real estate locally, at a regional level or on a global scale?
7. What happens to commercial real estate data when it’s collected and syndicated into “the cloud”?
7. What happens if there is a monetization of the data without the knowledge and permission of the rightful owner?
8. Can commercial real estate be stupid enough to go back to square one?
9. How do we, as an industry, determine the real value of data beyond the context of that data is just property data?
10. Do we need only need “comps” to build upon or to derive a valuation model?
11. What exactly is the Commercial MLS’s/ CIE’s role?
12. Does this create a new kind of data marketplace?
13. Do we understand how business intelligence and analytics
are being applied to the data generated by commercial real estate
14. How should the commercial real estate industry confront this data challenge?
15. How should we do it?...
RSK: Timely and gives you something to ponder on...how can you make your data perform in your business? Click on the story to see Dukes answers...
Cindy Strange Memorial Golf Outing
July 18 @ 10:00 am - 6:00 pm
Register your team today -
space fills up fast! Deadline is July 9, but don`t wait. This event
traditionally sells out earlier than the deadline. Not a golfer? Join
the fun by attending the after golf reception only. Be sure to register
by July 9. Click on the link below for the registration form...
July 21 @ 7:00 am - 1:00 pm
Please join Team REALTOR® Riders! Sign up to ride or make a donation to the team today!
July 26 @ 5:00 pm - 10:00 pm
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 Fitchburgclick here for presentation
Mike Davis, City Administrator, City of Middletonclick here for presentation
Tax Reform, Josh Ganshert, Baker Tillyclick here for presentation
Key Legal and Regulatory Updates, Tom Larson and Cori Lamont, Wisconsin REALTORS® Associationclick here for presentation ...more
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
Sears Holding Corp. continues to gasp for air. However, the struggling company just got some breathing room from creditors after receiving more time to refinance its debt.
In a June 4 Securities and Exchange Commission filing
Sears says it has two additional years to pay back its lenders,
including Sears CEO Eddie Lampert. The company consolidated three loans,
including two real estate loans, totaling $593 million, which were due
next month. The new consolidated loan’s due date has been pushed out to
July 20, 2020... ...more
RSK: Seems like we are beating a dead horse here. Maybe they should get back into mail order inexpensive homes.
Ken Notes: It amazes me that a company that had today`s marketplace dialed in in the 20,s, 30`s, 40`s, 50`s, 60`s can now be so clueless...
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
Pizza Shop ready for use with included walk in freezer and
industrial oven. Space is ready for lease and showings are available
upon request. Some seating in restaurant available but mostly for
take-out and delivery. Monument signage is also available to tenants.... ...more
Second Quarter 2018
Access Full Report ...more
Economic Momentum Propels Occupancy to New Heights;
Private Investors Fuel Bidding in Secondary and Tertiary Markets
Hotel sector on track for exceptional room demand. Healthy
employment growth and increased consumer spending continue to drive
hotel performance nationwide. Occupancy rose to a 30-year high in March,
driving increases in ADR and RevPAR. The trend will continue as the
stimulative effects of the new tax laws drive economic growth and
unemployment remains low. Several markets with large development
pipelines, however, may face supply pressures, reducing occupancy and
slowing RevPAR growth.
- Record consumer and business confidence levels support
expectations of strong consumption and business spending this year.
These rising confidence levels will likely buoy room demand through the
remainder of the year, keeping occupancy at a historical high.
- A healthy pace of hiring, rising wages and a low unemployment
rate are underpinning strong summer travel expectations, with travel
associations expecting travel expenditures to increase by 5 percent this
year. Rising expenditures will bode well for hotel occupancy, ADR and
- The accelerating economy and improving property performance
metrics have boosted supply additions in many markets, like Nashville,
which may begin to weigh on occupancy improvement. The metro has more
than 5,200 rooms underway, about 12 percent of its existing room
inventory. Increased supply has outpaced room nights, with occupancy
falling 60 basis points during the past 12 months.
RSK: Quality labor and shortage is always a problem in hospitality and restaurant areas.
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...
Building has Fastenal as anchor tenant with additional regional
tenant, Aerospace and two other local tenants. Tenants in end cap of
5,000 sq. ft. on month to month lease with option to owner occupy if
desired. Quality building in great corner location. ...more
Malls across the country, having lost millions of customers to online rivals, hope to win shoppers back with a rather odd marketing plan: pay for parking.
In partnership with an app called MyPark, malls and outlet centers are starting to reserve the best parking spots — those nearest the stores — and will allow shoppers to reserve those spots, for a fee.
Woodbury Common Premium Outlets is the latest shopping center to sign a deal with MyPark. Shoppers who want to reserve a spot near the entrance or by popular restaurants can pay $3 for two hours — plus $3 an hour thereafter — to reserve a spot as much as six months in advance.
Serious shoppers are already scooping up spaces for Black Friday, according to MyPark CEO Luis Mayendia, who is eyeing airports and hospitals as expansion targets... ...more
RSK: Great idea...but wonder what problems will arise from this. Why not just Uber or Lyft there?
Hours after the indie fashion house Telfar presented its Spring/Summer 2016 collection during New York Fashion Week, the brand hosted an afterparty at an unexpected venue: a White Castle in Hell’s Kitchen.
White Castle had been a recurring theme for the brand’s
founder, Telfar Clemens, for years, and the iconic slider chain has even
catered his fashion shows. “There is a White Castle a block from the
apartment where I was born and still live in Queens — that was where my
parents would take us if we had been good,” Clemens says. “When I was a
teenager I DJed to pay for my [early fashion] collections, and that
White Castle was the only thing in my neighborhood that was open past 3
RSK: Hey my friends at Food Fight let`s get with this....not exactly a money maker but the advertising alone would be worth it.
With food retailers increasingly looking to
differentiate their shopping experience by opening stores within indoor
shopping malls, including Wegmans’ recent debut of what it called a “unique” multilevel location
within a mall in Natick, Mass., it seems that consumers are
increasingly warming to the idea of being able to shop at a supermarket
along with such mall staples as Auntie Anne’s and Yankee Candle... ...more
RSK Maybe Sears needs to get in the grocery business as an option. They certainly have the locations...or better yet partner with a grocer.
Ken Notes: If I had empty mall space I would be begging for a Trader Joes or other great destination grocer to fill my space...Remember the old downtown with a butcher, baker, produce market, hardware, clothing, notions, cafe, office supplies, electronics, soda counter, and drug store... This is what a mall should be... It is by the way the model Walmart uses in thinking about their stores and Amazon is the e-version...
Offering real estate services and design-build construction solutions for growth oriented clients... ...more
Retail sales accelerate as unemployment rate tumbles.
spending posted another strong month with help from an incredibly tight
labor market. The 3.8 percent unemployment rate has placed upward
pressure on wages as many companies compete for quality employees. This
trend has supported modest but steady wage growth, driving the annual
pace of wage gains to 2.7 percent in May this year, in turn supporting a
5.1 percent increase in core retail sales. With a number of tailwinds
propelling retail sales, spending has been strong in several categories,
particularly building materials, which grew by 5.0 percent over the
past year. Elevated discretionary income has empowered homeowners to
tackle home improvement projects, which many are undertaking instead of
selling their homes and buying new ones. This has in turn weighed on
home sales activity.... ...more
RSK: There you have it another reason Sears should get into the Single-Family Home business...
of the best parts of my job is having the opportunity to sit down with
some of the world’s most forward thinking, innovative and successful
landlords and brokers on a regular basis. In an industry that is
changing as fast as ours, these conversations provide invaluable insight
into the macro trends that are driving change, and how CRE’s leading
minds are positioning their businesses to adapt and thrive.
Over the last few months I’ve been on the road pretty frequently,
going to major conferences including ICSC ReCon and RealComm, and
visiting clients and partners across North America and Europe. The
bottom line – I’ve spoken with A LOT of people...
Here are the three change agents that asset managers are focused on right now...
#1. The tenant is now in charge...
#2. Amenities are a given, but what’s the ROI?...
#3. Data-driven decision making is finally here...
RSK: We building owners better heed these trends.
Thanks you for sponsoring CIREX and Cirexnews.com ...more
Professional Real Estate Management and Sales
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.
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
Our focus is your focus, our goals are your goals.
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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