CirexNews - CRE and Investment News
Click to View Online...


This Week - Notes - Search - Index - Share Menu

Ralph
Kamps
Editor CirexNews
608.345.2880
Ken Harwood
Publisher CirexNews
608.334.2174

This Weeks Articles for 5/31/2023 ...

  1. Dane County Regional Airport to open new south terminal expansion...
  2. Amazon pulls back from planned Bridgeport warehouse previously opposed by community groups...
  3. These are the amenities renters prefer most...
  4. June Lease Asking Rates...
  5. When Will CRE Deals Rebound?...
  6. Gen Z: How a world-changing generation is set to transform the workplace....
  7. Thinking Inside The Box: Data Centers Offer Creative Revenue Streams For Some Stressed Office Buildings...
  8. What Office Users Want in Flex Space Now...
  9. New Properties...
  10. Companies Scale Back Their Logistics Ambitions Amid Industrial Slowdown ...
  11. Office Loan Losses Could Reach 8%...
  12. Small-time multifamily investors go belly-up...
  13. Office to Multifamily Conversions – how attractive is this conversion strategy for Commercial Real Estate (“CRE”) investors? ...
  14. Are Suburban Offices Strengthening Their Comeback?...
  15. The Purpose and Power of Letters of Intent...

   ...Full Story Here

Cirex News is emailed weekly to over 2,000 CRE Brokers/Agents and people interested in commercial real estate. Email Ralph or call 608-345-2880 to feature your business or properties in CirexNews...

Social Links


Dane County Regional Airport to open new south terminal expansion


MADISON, Wis. (WMTV) - The Dane County Regional Airport will be opening a new south terminal to pave the way for more flights, larger planes and more.

The south terminal will officially be opened June 5 in anticipation of the first flight from the terminal the next day, the airport announced.

Dane County Executive Joe Parisi, Airport Director Kim Jones and local leaders will hold a media event June 5 to cut the tape on the terminal.

The airport began construction in 2021 on the $85 million project to expand the airport and allow for more and bigger flights...

   ...Full Story Here

RSK: Good news for Greater Madison! MSN airport is very well run.

Social Links


Artis REIT












About


Madison Office Lifestyle Portfolio is a portfolio of 16, Class A amenity-rich office properties ranging from 14,000 square feet to over 300,000 square feet in size, and is home to over 130 tenants. Nine of the properties are located in Greenway Office Center, a 325,000 square foot retail and specialty development, with just under 40 shops and restaurants within walking distance of all properties. Six of the properties are located in the City Center West Office Park, which is five minutes east of Greenway. This office park has 17 restaurants within walking distance and is minutes from the West Towne Mall, one of the largest enclosed malls in Madison with over 130 retailers, specialty shops, and restaurants. The remaining property is located in Westfield Center, directly across the street from West Towne Mall.
   ...Full Story Here

Social Links


Amazon pulls back from planned Bridgeport warehouse previously opposed by community groups


A planned Amazon warehouse in Bridgeport that faced community opposition when the project was reviewed by city officials in 2020 has been made available for sublease by the company.

Amazon signed a deal for the Bridgeport site in 2020, according to CoStar. Its lease on the 112,000-square-foot facility at 2420 S. Halsted St. began in August 2022. According to planning documents, Amazon had planned to operate the facility as a distribution center.

   ...Full Story Here

RSK: Looks like Amazon has changed its mind on many last mile warehouse/distribution and banking on larger facilities at the moment...but things could change.

Ken Notes: Kohl`s seems to still be a bargain with built in storage and distribution. I wonder if Amazon will make an offer?

Social Links


ABSTRACT Commercial Real Estate LLC











7 W Main St
Madison, WI

316 W Washington Ave
Madison, WI

115 State St
Madison, WI

704 Williamson St
Madison, WI


409 N Lake St
Madison, WI

638 University Ave
Madison, WI

313 W Johnson St
Madison, WI

8 S Carroll St
Madison, WI


2 S Carroll St, Madison, WI

114 E Main St, Waunakee, WI

203 E Main St, Waunakee, WI

5955 McKee Rd, Fitchburg, WI

See All Listings Here...

   ...Full Story Here

Social Links


These are the amenities renters prefer most



The strong appeal of single-family rentals comes both from renters by choice looking for convenience and from would-be home buyers who have, for one reason or another, been shut out of the for-sale market, according to Kelly Mangold, principal with RCLCO...

Dive Brief:

  • While the majority of U.S. renters live in high-density apartments, more than half of them would actually prefer to live in a single-family rental home, according to a new survey, which also found that security features have become a top priority among renters.

  • Fifty-one percent of those surveyed said their ideal rental unit type is a single-family home and an additional 21% said they prefer a townhouse or duplex, according to Bethesda, Maryland–based real estate consultant RCLCO’s 2023 National Renter Consumer Preferences Report, released in March.

  • New kitchen appliances, walk-in closets and oversized kitchen pantries were the most popular unit features among the survey’s respondents, while the two most popular building amenities are security-related: a front desk attendant or gated community and a secure package receiving system.
   ...Full Story Here

RSK: These amenities keep changing as years and different generations come into play. Cost is still the number 1 factor. More of a wish list than an actual "I will pay more for these amenities"...

Social Links


June Lease Asking Rates



   ...Full Story Here

RSK: Copy of the June Lease Asking Rates where landlord pays some or all CAM.

Social Links


Commercial Real Estate Summit 2023


Join us for engaging presentations and updates from our local governments, conversation on Commercial Real Estate in Dane County and beyond.

Thursday, June 22, 2023 (1:00 PM - 6:00 PM) (CDT)
Friday, June 23, 2023 (12:00 AM - 4:00 PM) (CDT)
  • National Speaker Josh Cadillac will guide agents interested in commercial real estate.
Concourse Hotel
1 W. Dayton Street
Madison, WI 53703 United States

Paid parking can be found W. Dayton & N. Carroll or E. Dayton & N. Pickney

   ...Full Story Here

Social Links


When Will CRE Deals Rebound?


It will get worse before it gets better. But ULI’s latest forecast sees an improvement over the next couple of years.

As concerns about a recession grow and headwinds for some CRE investors turn into downturns, the Urban Land Institute’s latest semi-annual Real Estate Economic Forecast provides a longer-term view than most such forecasts. And despite high inflation, much of the forecast is positive—though there’s more pain in the meantime.

For example, ULI’s analysis predicts that GDP growth and CRE transaction volume, both currently under their long-term averages, will be exceeding those averages by 2025...


   ...Full Story Here

RSK: LIke anything, it takes time to settle down all the forces of change. Eventually all the factors involved in cre will come together. Rates are up but then asking prices may drop some until it all settles down. This crystal ball sees a return to a new normal in a few years.

Social Links


Investors Associated



p1
4901 Eastpark Blvd

p2
2323 Crossroads Dr

p3
2310 Crossroads Dr

p4
2418 Crossroads Dr



5201 Eastpark Blvd
Madison, WI

5601 Manufacturers Dr
Madison, WI

2128 City View Dr
Madison, WI

5310 Wall St
Madison, WI


2801 Crossroads Dr
Madison, WI

5325 Wall St
Madison, WI

5315 Wall St
Madison, WI

Manufacturers Dr
Madison, WI

See All Listings Here...

   ...Full Story Here
One area of expertise for Investors Associated is first class property management. To keep our properties running smoothly, we focus on the little things with the big picture in mind. Our team is comprised of a group of individuals that oversees the day-to-day operations such tenant retention, lease negotiations and property maintenance costs. Bottom line, if you’re not happy, we’re not happy! Check out our properties today and see why you should lease with us.

Social Links


Gen Z: How a world-changing generation is set to transform the workplace.


Our brand new white paper explores the idiosyncrasies of a generation that is growing in the workforce. Find out what makes Gen Z tick and how to attract and retain the best young talent.

Gen Z will make up 27% of the workforce by 2025, and they bring with them a unique set of talents and insights. They are digital natives who have never known a time without the internet. They are strident when it comes to ethics (and they want their employer to be too), and while the paycheck is important to them, there is a lot more that enters the equation when choosing a role.                                                

“In a recruitment world that increasingly values skills over qualifications, Gen Z has much to bring to the table,” says IWG CEO Mark Dixon. “By better understanding them, we can begin to understand what the future holds for business.”...

   ...Full Story Here

RSK: A bit of an advertorial but a good read on Gen Z and what they want in office nspace and how they want to work. The future of the office sector.

Social Links


Wisconsin Commercial Real Estate





75 Gasser Rd
Wisconsin Dells, WI

400 Viking Dr
Reedsburg, WI

1400 Commerce Pl, Plover, WI

426 Gammon Pl
Madison, WI


5806 Co Rd Q
Waunakee, WI

4711 Farwell St
McFarland, WI

505 S Gammon Rd
Madison, WI

808 Industry Rd
Sauk City, WI


330 N Century Ave
Waunakee, WI

See All Listings Here...

   ...Full Story Here

Social Links


Thinking Inside The Box: Data Centers Offer Creative Revenue Streams For Some Stressed Office Buildings


Commercial real estate owners and managers are under more pressure than ever to show creativity and uncover new sources of revenue as office occupancy continues to underperform its pre-pandemic levels. Few options are off the table, from community-oriented flex space to rooftop restaurants and party venues. Add to this mix data centers, which are increasingly seen as a potential path to office building profitability.

There is a growing need for digital infrastructure, driven by near-universal internet access, mobile phone subscriptions, smartphone-based applications and even adoption of artificial intelligence, according to recent research...
   ...Full Story Here

RSK: This has some potential to put a small chink into the office market vacancy problem but not a cureall that`s for sure.

Social Links


CARW 2022 Events and Resources


CCIM | SIOR Golf Outing – The Legend at Merrill Hills

June 5 @ 10:00 am - 5:00 pm
The Legend at Merrill Hills, W270S3425 Merrill Hills Rd
Waukesha, WI 53189 United States
+ Google Map

Join Wisconsin’s premier commercial real estate designees for an exciting and unique networking opportunity and a fantastic day of golf on Monday, June 5th. Golfers of all skill levels are invited to network with CCIM and SIOR Designees, Candidates, and CRE industry professionals. Bring a foursome or come on your own and let us introduce you to some new colleagues. Proceeds benefit the CCIM & SIOR scholarship funds. This is a scramble event. 10:30 AM: Registration | 12:00 PM: Shotgun Start | 5:00 PM: Reception…

   ...Full Story Here

Ken Notes: Thank you Tracy Johnson President and CEO of CARW for keeping me in the loop.

Social Links


The Gialamas Company, Inc.




1255 Fourier Dr
Madison, WI

8040 Excelsior Dr
Madison, WI

1289 Deming Way
Madison, WI

1 Erdman Pl
Madison, WI


8025 Excelsior Dr
Madison, WI

8030 Excelsior Dr
Madison, WI

1200 John Q Hammons Dr
Madison, WI

1111 Deming Way
Madison, WI


918 Deming Way
Madison, WI

8000 Excelsior Dr
Madison, WI

1241 John Q Hammons Dr
Madison, WI

8020 Excelsior Dr
Madison, WI

See All Listings Here...

   ...Full Story Here

The Gialamas Company`s premier development. The park has over 57 buildings containing 200+ companies, occupying over 3.0 million square feet.

Social Links


What Office Users Want in Flex Space Now


JLL’s Jacob Bates on the growth of new product types in the sector.

Companies of all sizes have been growing their flex office footprints in the past few years. Today, providers are seeing improved occupancy rates approaching pre-pandemic levels, according to CommercialEdge data. CBRE research found that demand from medium- and large-sized companies is bound to help the flexible office market scale even further in the future. Meanwhile, JLL expects the amount of flex spaces to increase and the monetization of the product for investors to return to pre-pandemic levels or higher in 2023.
   ...Full Story Here

RSK: Do not confuse flex space with ...it is what is taking shape in the office sector right now.space...they are two separate entities but are often combined. It can be within one`s own company or several companies sharing the amenities spaces...

Social Links


RASCW Events


2023 Commercial RE Summit-Day 2

June 23 @ 9:00 am - 4:00 pm

RASCW/SCWMLS Conference Room -

Save the Date, Details Coming Soon!

Day 2 is intended to support our existing members in learning how to succeed in Commercial Real Estate!

   ...Full Story Here


Social Links


New Properties



Warehouse Building For Sale

Looking to expand or in need of more space? With over 20,000 sqft footprint and ceiling height range from 24 ft -28 ft high, space is not a problem! This well-built building provides two bathrooms, 6 Exterior overhead doors, and insulated for conditioned space all year long storage. Two loading docks are located on the South side of the building. With 2.5 acres there is plenty of room for expansion and parking. Currently leased with established tenants and great cash flow with the NNN lease. This well-maintained building is fit for all of your commercial needs or provides a great investment opportunity.

Nelson Road Business Center

6000 SF with dock loading. 95% food grade. Former R&D facility with 480v power. Nelson Road Business Center is located at the far-east side of the City of Madison, in Dane County. Thebusiness center is one-half mile east of Highway 151 and Nelson Road Intersection and one-half mile north of the Intersection of Highway 151 and I-90, I-39, I-94.


   ...Full Story Here

Social Links


St. John Properties





Madison East Business Center

Nelson Road Business Center

Madison East Business Center

Hoepker Corporate Center


4009 Felland Rd, Madison, WI

4602 S Biltmore Ln
Madison, WI

6504 Ronald Reagan Ave, Madison, WI

4602 S Biltmore Ln
Madison, WI

See All Listings Here...

   ...Full Story Here

Social Links


Companies Scale Back Their Logistics Ambitions Amid Industrial Slowdown


Companies that set out to compete with the likes of Amazon by building their own fulfillment operations are now having second thoughts as disruptions to worldwide supply chains have eased and their efforts have proven to be more difficult and expensive than expected...
   ...Full Story Here

RSK: The scale back is real...even Amazon has stopped plans for many last mile delivery distribution centers.Companies are finding out that it is easier and p[ossibly less expensive to hire this out to logistic companies.

Social Links


Key Commercial Real Estate, LLC


   ...Full Story Here

Social Links


Office Loan Losses Could Reach 8%


How empty are offices in major cities? Not everyone agrees on the exact numbers, but vacancy rates fall between 15% and 19% nationally. Numbers from JLL Research pegged the national office vacancy rate for metro cities at 18.7% at the end of 2022. San Francisco’s was the highest at 26.4%. (See chart.)

The weekly worker occupancy report from Kastle Sytems, a building-access swipe card provider, shows the number of workers in offices in the 10 largest U.S. cities plateauing at about 49% the past few weeks. ..
   ...Full Story Here

RSK: It is not all smoke and mirrors ...once you clear the smoke you can see that well positioned and higher class buildings will survive. But there will be some losses.

Social Links


Colliers International





6250 Nesbitt Rd
Madison, WI


122 W Washington Ave,
Madison, WI


Sugar Creek Commons
501 W Verona Ave, Verona, WI

3591 Anderson St
Madison, WI 53704



316 W Washington
Madison, WI


Village Crossing
114 E Main St, Waunakee, WI

16 N Carroll St
Madison, WI 53703


1102 N Sherman Ave
Madison, WI 53704


2987 Yarmouth Greenway Dr


2917 International Ln
Madison, WI


316 W Washington Ave
Madison, WI

Former Foremost Farms
E10889 Penny Ln, Baraboo, WI

See All Listings Here!

   ...Full Story Here

Social Links


Small-time multifamily investors go belly-up


Interest rate hikes crush syndicators and their investors

Commercial real estate investors have been suffering under the weight of rising interest rates, but the pain is acute for some small-time multifamily players.

Small investors are losing mounds of cash after bets on the rental market were soured by the Federal Reserve’s fiscal policy, the Wall Street Journal reported. Some are losing their life savings after trying to grab a piece of the multifamily pie...

   ...Full Story Here

RSK: I do not believe this is the case in our market...at the moment. Small or big time investors and syndications can go belly up if too highly leveraged, short term loans and high up front fees coupled with bad management practices. Again, always do your homework and do not invest needed funds into these types of investments. Normally, there are good returns if you have good syndicators and management.

Social Links


ARTIS REIT / Madison Lifestyle Office Portfolio



See All Listings Here...

   ...Full Story Here
Madison Lifestyle Office Portfolio comprises 14 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.

Social Links


Office to Multifamily Conversions – how attractive is this conversion strategy for Commercial Real Estate (“CRE”) investors?


Converting office space into multifamily residences is a change that could benefit both developers and residents. Office buildings that are outdated, vacant or located in areas with high residential demand could be transformed into modern and attractive apartments with many amenities and functions. The pandemic changed the way we work and live, affecting the real estate sector. As more employees work remotely or adopt hybrid models, the demand for office spaces decreases, resulting in higher vacancy and lower turnover.

As the pandemic and the shift to remote work reduce the demand for office spaces, the global rate of speculative-grade investment in office buildings rose from 2.6% in November 2021 to 2.8% in December 2021 and is projected to reach 5.1% by the end of 2023. At the same time, office property valuations in some markets fell to 45% from 28% due to declines in rents, occupancy and rentals. Tighter financial conditions also make it harder for investors to find financing or reinvest in office space. These conditions may cause some investors to move to multifamily or other desirable and profitable properties.
   ...Full Story Here

RSK: This is a very risky investment in my estimation. Try to find lending for the build out, plus holding cost while it`s being worked on. You will need to buy the office building at a low price in order to make this work. Possibly, tax incentives might play a role.

Social Links


Commercial Brokers Group


CBG Social & CE-2

Event Information

Thanks to our sponsor, JP CULLEN, for hosting our afternoon social following CE-2 on Wednesday, June 14, 2023 at the US Bank Building, 1 South Pinckney Street, Madison.  The CE portion will be held in the US Bank Plaza Conference Center followed by our meeting/happy hour outside on the US Bank Terrace.  The schedule is:

  • 1:00 – 4:00 p.m. CE-2 at US Bank Conference Center
  • 4:00 – 6:30 p.m.  Happy Hour/Social at US Bank Terrace
From 1 to 4 p.m., CBG is offering CE-2. 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   ...Full Story Here
Hey Ralph and Ken – I’ve updated the website & Eventbrite, but thought I’d better give you a heads up in case you publish in CIREX, etc. – Our 6/14/23 afternoon CE & meeting/happy hour that was supposed to be at Camp Randall has been moved to US Bank Plaza, 1 South Pinckney Street.  Apparently, there was a scheduling conflict with Camp Randall, and JP Cullen is sponsoring us at US Bank instead.  The board is still seeing if we can have a future meeting at Camp Randall, though!  Thanks.

Social Links


Reinhart



Milwaukee: 414.298.1000
Madison: 608.229.2200
Waukesha: 262.951.4500
   ...Full Story Here

With the largest Real Estate Practice of any law firm in Wisconsin, Reinhart offers clients custom-tailored real estate insight.

Social Links


Are Suburban Offices Strengthening Their Comeback?


"The biggest trend...will be the urbanization of suburban spaces," predicts Ralph Zucker of Inspired by Somerset Development.

The appeal of improved work-life balance, more cost-effective housing alternatives and the opportunity to easily access nature and outdoor spaces have all served as driving forces behind individuals’ decision to relocate to smaller cities or suburban areas.

Today, many Americans enjoy the flexibility that comes with their newfound lifestyle. And although they no longer want to waste time on long commutes, they still long for in-person interactions and need dynamic office spaces that boost their productivity and creativity. This has been fueling demand for suburban offices across the country, strengthening the sector’s comeback following the pandemic. ,,

   ...Full Story Here

RSK: Metroburbs, as the author has named them, will probably fare better than CBD offices. The mixing in of lifestyle amenities and short commutes is promising.

Social Links


Mullins Group LLC




2 E Mifflin St
Madison, WI

2550 University Ave
Madison, WI

152 W Johnson St
Madison, WI

1400 E Washington Ave, Madison, WI


10 W Mifflin St
Madison, WI

1457 E Washington
Madison, WI

212 E Washington Ave
Madison, WI

22 E Mifflin St
Madison, WI

See All Listings here...


   ...Full Story Here

Social Links


Food Fight


Food Fight is a locally owned and operated restaurant group with an ever-growing family of unique and diverse restaurants in the greater Madison area. Founded in 1994 by Monty Schiro of Monty’s Blue Plate Diner and local real estate investor Peder Moren, Food Fight Restaurant Group combined their creative vision and business sense with a mission of providing the best possible service and experiences for the greater community.

Food Fight gift cards make a great gift for anyone

Gift cards can be redeemed at all of our restaurants for dine-in visits or call-in carryout orders, and they never expire   ...Full Story Here

Social Links


Park Towne Realty LLC




   ...Full Story Here

Social Links


Knight Barry Title Group



                       608-255-2700  www.KnightBarry.com
   ...Full Story Here
With over 350 experienced real estate professionals, Knight Barry provides exceptional support and service. Visit our website for more information about our 50+ commercial and residential offices throughout Wisconsin, Michigan, and Minnesota.

MADISON: 2450 Rimrock Road, Suite 204, 608-255-2700
CAP SQUARE: 44 E. Mifflin Street, Suite 101, 608-255-2700

Social Links


Crown Commercial Real Estate/Development, LLC




   ...Full Story Here
Offering real estate services and design-build construction solutions for growth oriented clients...

Social Links


The Purpose and Power of Letters of Intent


Question:

The listing firm received a letter of intent. Can this be presented, and does it need to be presented by an attorney? Once this letter of intent is signed, is it binding on both parties, or do the parties have to wait until the offer is submitted? The buyer corporation said the seller needs to sign it first and then they will have their attorneys draft an offer to purchase.

Answer:

A listing broker who receives a letter of intent (LOI) will, per Wis. Admin. Code § REEB 24.13(3), present the LOI to the seller for consideration. All written proposals must be presented.

The LOI may begin the negotiations between the parties. The broker can give a general statement about what the LOI, but the seller may very well want to discuss this with their legal counsel.

LOIs give potential parties to a commercial transaction a nonbinding way to propose terms for a possible future transaction. An LOI is an agreement to agree in the future.

Under Wisconsin law, an agreement to agree is not an enforceable contract. An LOI reflects the parties’ preliminary negotiations and provides a tangible indication that the parties are serious about entering into a potential transaction in the future. It gives the parties a nonbinding picture of what a transaction between the parties might look like and may give them a sense of possible key terms.

An LOI can be used to propose a purchase price and earnest money amount in a contemplated sale or a rent amount and basic lease terms in a contemplated rental. An LOI presents an opportunity to see if the parties can even agree on basic business and economic issues without an intention to be bound.

LOIs are not binding. Neither party is required to proceed even if they were able to agree on basic terms in the LOI. The parties do not have an enforceable contract unless they proceed to actually enter into a lease or offer...
   ...Full Story Here

Social Links


Properties for Lease or for Sale By Company


Company









ABSTRACT Commercial Real Estate LLC
Artisan Graham Real Estate








Artis Reit









Baum Revision







Berkshire Hathaway Home Services Matson Real Estate

Black Gate Partners











CBRE







Century 21 Affiliated - Roessler
Colliers International / Dina Stetler








Cushman Wakefield Beorke / D Ferron







Conrad Real Estate Services LLC







Crown Commercial Real Estate & Development, LLC

DSI Real Estate, Inc.









Evans Properties, LLC









First Weber Group, Inc - Capitol







First Weber Group, Inc - Prairie Du Sac







First Weber Group, Inc - West Towne







Flad Development & Investment Corp.















Grosse Real Estate Services LLC
















IA Management, LLC
















Keller Real Estate Group







Key Commercial Real Estate, LLC
















MIG Commercial Real Estate, LLC







Mullins Group, LLC









Opitz Realty, Inc.









Park Towne Realty LLC







Peterson Management Company Inc.









Restaino & Associates







Ruedebusch Commercial Investments, Inc.









Scott Faust & Associates







Shamrock Real Estate Services, LLC







Slinde Realty Company







St. John Properties







Stark Commercial - East









Targa, Inc







The Fiore Companies







The Gialamas Company, Inc.







The Lenhart Company, Inc







The Rifken Group, Ltd.









Urban Land Interests







   ...Full Story Here

Social Links


About CirexNews.com


Ralph Kamps
Editor CirexNews
608.345.2880

Ken Harwood
Publisher CirexNews
608.334.2174

Cirex News is emailed weekly to over 2,000 CRE Brokers/Agents and people interested in commercial real estate. It is online at CirexNews.com. All of our articles are archived and searchable. So a search for "opportunity zone" will bring up dozens of articles on the subject.


In our weekly News & Views you can promote your clients properties and your services
call 608-345-2880 for details...
   ...Full Story Here

Social Links