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President Trump — a noted fast-food fan — is creating an economic recovery plan that puts the country`s chains front and center.
This week, Trump announced the formation of the "Great American Economic Revival Industry Group" for the restaurant industry. The group is one of a number of industry representatives organized to advise the White House on reopening the US during the coronavirus pandemic.
The council is made up of men who founded or lead organizations including:..
RSK: Not good people...if you have a favorite non chain restaurant or two you want to survive...please get some take out and/or buy gift cards from them because if you do not, many will not be around after this and a large group of employees unemployed!
In the span of a week last month, both of Nick Kokonas’s businesses ground to a halt. His restaurants, which include Chicago’s award-winning Alinea and Roister, were forced to close their doors to stop the spread of COVID-19. And Tock, his restaurant reservation platform, which was used by more than 3,000 restaurants, came to a virtual standstill. So Kokonas pivoted both businesses by turning his restaurants into carry-out venues and transforming Tock into Tock to Go, an ordering platform for restaurants that want to offer customers pick-up or delivery options. Here, he talks about how he’s future-proofing his businesses for the COVID-19 era and why he thinks other restaurants should follow his lead.
I gathered my team in early March and said, “This is coming, and we need to get through it.” Before I became involved in the restaurant industry, I was a derivatives trader, so I follow markets and worldwide events. Tock, our reservation management platform, also has clients in 30 countries. I could see the restaurants in Hong Kong that we serve going from 96% full to zero in a week.
We decided to turn the five restaurants in the Alinea group into carry-out places...
RSK: Now that is a doer rather than a complainer and woe is me person. Making lemonade out of lemons.
Heather Ewing - 608.239.4781 - Heather@ABSTRACT-CRE.com
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SUMMARY: Yes, under the circumstances, the government should extend lifelines to airlines, hotels, and other industries hammered by the crisis, rather than just let them go bankrupt. But the money should not be free. And the companies` stockholders should not be protected. They knew the risks and took them...
RSK: Telling it like it is. Investing is all about risk and reward otherwise put your money under your mattress.
Once the coronavirus reached rural Bristol, N.H., the effect on the local economy was devastating.
BRISTOL, N.H. — The coronavirus itself was slow to arrive in Bristol, a lakeside town of 3,300 people. The economic destruction came swiftly.
By the end of March, with just a few local cases confirmed, gift shops, yoga studios and restaurants had all shut their doors. Hundreds lost jobs, contributing to a record surge in national unemployment claims...
RSK: This is very sad indeed. I feel for our Door County Wis because they thrive on tourism and a Shipbuilder.
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.
As the CEO of Kitchen United, Collins is seeing his three ghost kitchens performing well during the coronavirus pandemic. But he also owns and operates a separate restaurant, which he had to close the dine-in portion of, as part of a state and local order to prevent the spread of the contagious disease COVID-19.
Also known as cloud kitchens and virtual food halls, a ghost kitchen is a single facility that houses multiple restaurant operators to prepare food for takeout or delivery only. In a way, it is sort of a coworking spot for restaurant operators, except there is no need for a wait staff...
RSK: Yes, this was the hottest trend before covid 19...now it is survival and you will see more of this even when limited dining in restaurants comes back.
In March, the COVID-19 pandemic forced large chunks of the U.S. economy to a halt.
The retail and personal services industry bore the brunt, initially as a result of social distancing and reduced foot traffic, then ultimately by mandated store closings, reducing operating hours and the size of public gatherings.
When the calendar turned to April, however, there remained one constant of doing business for most retail tenants: Rent was due whether circumstances halted income or not. And it’s billions of dollars at play. CoStar Group, which tracks commercial real estate information, estimates U.S. landlords collect between $15 billion and $20 billion from commercial tenants in a typical month...
RSK: Again, it is pretty out there. Landlords and tenants must keep the line of communications open and be realistic...can they come back after this is over? Pouring good sand down a hole may not be the best choice.
Before shelter-in-place orders were issued across the country and people started working from home en masse, I used noise-cancelling headphones a lot at the office. Whether to block out colleagues talking about their weekend plans, building construction, or a neighbor’s enthusiastic chewing, I sometimes found myself wishing for a quieter place.
But you know what they say: Absence makes the heart grow fonder. At least that seems to be the case for I Miss the Office, an “office noise generator” that plays all the background noise you used to work with back in ye olde office days. (“Close your eyes and imagine you’re in the office. Beautiful, right?” the website says, encouragingly.) Sounds from a printer, the squeak of an armchair, the glurg of the water cooler; the chatter around said water cooler. Remember those? The difference here is that you have some control over the ambient noise. In fact, you create it by adjusting the tool’s settings....more
RSK: If you are working from home and miss all that wonderful office background sounds...well this is for you...way to cool in my book.
Ken Notes: I have a real solution that is pretty close to perfect. Get an Amazon Echo Dot and a pair of great speakers (I like the Bose Companion 2), and say Alexa play Nora Jones, or Billy holiday, or John Prine, or Tracy Chapman, or Dinah Washington or Janis Joplin, or Sarah Vaughan, or Ella Fitzgerald or, Coltrane, or billy Preston, or ...
High Point Office Park is an 11-building, 217,418 square foot office park located in one of Madison, Wisconsin’s finest western locations.
The coronavirus is more like an earthquake, with aftershocks that will permanently reshape the world.
If we are lucky, the world will pass “peak virus” within the next six months. But the economy, governments, and social institutions will take years to recover in the best-case scenario. Indeed, rather than even speak of “recovery,” which implies a return to how things were, it would be wise to project what new direction civilization will take. That too will be a bumpy ride. The next 3-5 years will remind us that COVID-19 was the lightning before the thunder.
Of course, it is difficult to draw straight lines between cause and effect. ..
RSK: I am not sure if this is doom and gloom or just telling it like it is. I do agree, we need to start planning for the New Normal.
Congrats to all the winners and nominees.
Announcement: CBG has cancelled all meetings and activities through 2020, including their famed Holiday Gathering. See you next year hopefully.
Only 8% of homeowners in San Francisco would be able to cover their monthly mortgage payment with the amount they receive in their stimulus checks
Paying off debt such as a mortgage is one of the best ways to use your coronavirus stimulus check, according to financial experts. Unfortunately, for some Americans, their stimulus checks will barely make a dent in their housing costs....more
A new report from real-estate brokerage Redfin RDFN, -4.23% examined how much stimulus checks will help offset housing costs for homeowners and renters in the largest metropolitan areas nationwide. The most recent stimulus package, known as the CARES Act, mandated that Americans receive up to $1,200 in a stimulus check for single taxpayers and up to $2,400 for joint filers....
RSK: Milwaukee is #10 on the list.
Ken Notes: I was wondering about this. San Fran vs. Madison no comparison. Also has anyone noticed the lack of thought that went into the stimulus package???
The coronavirus outbreak is already causing a spike in commercial mortgage delinquencies in the hotel and retail sectors, a new analysis finds.
The data speaks to a bigger fear haunting the commercial real estate industry: That Covid-19 could spark an even bigger mortgage crisis than the one in 2008, which devastated American homeowners...
RSK: And wait until May 1st comes around...
‘Everybody needs help,’ says Ann Hambly, founder of 1st Service Solutions, about commercial property owners
Hotel rooms sit empty. Office buildings have gone dark. Families cook in their kitchens instead of dining out at restaurants and stream movies at home.
The coronavirus pandemic has turned the $4.4 trillion U.S. commercial real estate finance market upside down, even as states start to explore ways to safely reopen parts of the economy after imposing strict lockdowns that cut landlords off from monthly rents.
“We can’t compare it to 9/11. And if you go back to 2008, that was more about overleverage and looser underwriting,” said Ann Hambly, the founder of 1st Service Solutions, a firm that helps commercial property owners navigate loan workouts...
RSK: As of this dater JC Penney`s declared bankruptcy...many more will follow....especially smaller businesses and chains. Neimen-Marcus is next.
For many of us, virtualizing or “Zooming” through our daily work has become the new normal. The very nature of what we do—from the C-suite to the classroom and medical visits—requires person-to-person contact, even if it’s via webcam. Right now at least, only 30% of us get to work from home, which is a devastating blow to our society. Just witness the growing unemployment numbers.
There are ways more businesses and organizations can adapt and virtualize. We have no choice. The coronavirus has caused a seismic shift in industries across the board. So, we must take a wider, holistic approach to understand how we can use online tools and our own innovative capabilities to stay connected, productive, and hopefully recover our businesses...
RSK: Yes, I can see this happening to a degree. I do know the restaurant venue will change dramatically and if you don`t mind working out at home just like the old Jane Fonda tapes, (and you know the other little guy) it will probably work...
WeWork’s buildings are open for business amidst the coronavirus, and that is unlikely to change for the foreseeable future.
“I gather that the decision to stay open has been a highly debated one but I stand 100% behind this management decision. In fact, every decision that has been and is being made has been very thoughtful,” said WeWork executive chairman Marcelo Claure in prepared remarks to employees, obtained by Yahoo Finance, at a virtual town-hall on Tuesday. “We are minimizing the impact on our employees. And we need WeWork to continue to be ready for the future.”
WeWork operates more than 730 locations around the world. During the coronavirus, WeWork has handed out bonuses to employees as an incentive to continue showing up to work......more
RSK: Well, sometimes a heartless and soulless business attitude makes you money....in the short run. Why is WeWork plagued with this attitude? There is a middle ground here.
Careers in Commercial Real Estate Q&A Panel
April 13 @ 4:00 pm - 5:15 pm
Do you know students who are interested in Commercial Real Estate? If so, this is an opportunity to get their questions answered by inspirational industry leaders. They will discuss perspectives from brokerage, investment, finance, and property management. Students will have the opportunity to interact in breakout rooms and gain insight into what a future in Commercial Real Estate may hold. Register today and learn more about this fast-growing industry in Wisconsin!
When: Tuesday, April 13 at 4 PM
Commercial Real Estate Resources:.........
REALTOR CV Addendum:
Ken Notes: Thank you Tracy Johnson President and CEO of CARW for keeping me in the loop. Note CARW events have all moved online and I have not found another organization that has reacted as effectively as CARW to the new realities....
Across the country, businesses are coming to grips with economic pain on par with the Great Depression and social distancing requirements stretching for months, if not years.
For office landlords and their tenants, this new world order is particularly uncertain as extreme lockdowns roll into a second month in major markets like New York. Both sides are keen to protect their financial interests, and delicate, tense conversations about rent payments are taking place...
RSK: I have to agree with the landlords somewhat on this one. They have mortgage payments, taxes, utilities and other ongoing expenses to pay as well. Show me the proof!!
Amidst the massive pivot to ecommerce during the coronavirus crisis, providers of last mile delivery services are seeing huge growth in demand from various kinds of merchants, as house-bound consumers are ordering away for both essential and nonessential items.
Three different providers contacted reported demand coming from a variety of sources, from traditional store-based retailers to small businesses as well as CPG companies and home improvement centers.
“The volume is off the charts,” said Marc Gorlin, founder and CEO of on-the-way delivery app provider Roadie. “We’re seeing many multiples of volume. Most of the demand is part grocery, part pharma and part home improvement.” Major clients include Home Depot, Tractor Supply and L’Oreal...
RSK: Always interesting about the "last mile". I think people are getting used to having their goods shipped in 3 to 4 days and not the Amazon 1 to 2......as sign of the times.
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RSK: If you hold open houses or property tours this is for you....very clever.
With the largest Real Estate Practice of any law firm in Wisconsin, Reinhart offers clients custom-tailored real estate insight.
The coronavirus pandemic is straining McDonald’s relationship with its U.S. franchisees once again.
The fast-food giant is pushing for franchisees to do more to protect their workers, while franchisees are asking for more financial relief to keep them afloat. Franchisees operate 95% of McDonald’s 14,000 U.S. restaurants.
McDonald’s is deferring rent for three months for franchisees to lessen the financial blow of social distancing measures. Only about one-third of its U.S. franchisees will be asked to pay March rent. Operators who have seen the sharpest sales drops are also receiving deferrals on service fees.
I mean if Ronald McDonald is having problems as the largest take-out drive through operation...whoa!
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Starbucks Corp. is making plans to re-open stores as it readies for a phase it called “monitor and adapt.”
Beginning May 4, Starbucks said it will re-open as many stores as it can with modified operations and best-in-class safety measures. Similar to its experience in China, where more than 95% of its stores have now re-opened, Starbucks said it will gradually expand and shift its in-store customer experiences....
RSK: Your morning brew may be back sooner than later.
Cornonavirus-cornered Americans expect to be busting out in June, or at least soon after.
The International Council of Shopping Centers (ICSC) polled 1,004 Americans this week about their expectations of the pandemic’s demise and found them eager to be back at their usual haunts before summer.
Seventy-seven percent of those surveyed said they would feel comfortable going to stores to buy non-essential items within or sooner following the lifting of the National Emergency. More than seven out of 10 also said they would feel the same about visiting open-air shopping centers and dining at restaurants within that time frame, as well......more
RSK: Interesting...no mention of going to restaurants however. Can`t wait for the hair salons myself.
Office space just off Whitney Way on Medical Circle. Easy access, 1st floor = 1649 S.F. and lower level = 1620 S.F. available ( 1041 s.f. finished area). Parking on site. Good visibility. For more details or to schedule a tour contact Konrad C. Opitz......more
Great opportunity for your business and gaining additional rental income. Building is set up for daycare use but can easily be converted into office space. Perfect for that entrepreneur that is looking for a building that is in need of some repair and has deferred maintenance. Owner may accommodate price or credit depending on the terms of the offer....more
Excellent retail location stop light corner on Mineral Point Rd. next to Cuna Mutual Ins. and across Mineral Point Rd. from the UW Research Park. This is an end cap location with a patio. Come join: Bella Salon, Jimmy Johns, Discover Life Chiropractor, Contours Lingerie, Z Boutique and others......more
Large Corner retail/office space. Loads of glass. Eclectic space in an eclectic neighborhood. High traffic count. Mezzanine, plus finished lower level. 3,500 on main level extra 2,000 lower level. Tenant pays only for main level and pays 25% of cams water/sewer etc....more
West Beltline Commercial property with large lot and plenty of parking. Basement. Many uses permitted. Former bicycle sales and repair. $800+/mo billboard income. Price based on $11/NNN at 7% Cap Rate.
Solid retail/office building on W. Beltline. Formerly bicycle shop. Basement space for storage included at no extra cost. Large parking lot. $11 NNN......more
Offering real estate services and design-build construction solutions for growth oriented clients... ...more
Eclectic Schenks Corners. A bit of old and new mixed in the build out. Up to 2 bays remain 940 sf &1,680 sf. 1,680 sf is perfect for a coffee shop with old brick & beams exposed. Spaces can be combined. Tenant pays utilities. Exposed brick, heating, wood, skylights and more. 2 Units have basement for use.
Just off E. Washington behind the new Hy-Vee. Many suite options ranging from 150 sf to 1,880 sf with rates from $10.00 to $14 gross, depending on size term and TI`s. Landlord pays all. On bus line. Great for non profits, small office/service reps. Interstate and airport a minute away. Agent interest. Controlled storage also available for pharmaceutical reps, suppliers etc......more
Beginning Thursday, April 16, the WRA will launch a new "Legal Update Live" series of online, open and interactive meetings that cut through the noise and distill key business and practice-related information that you need to know during this coronavirus pandemic. This series will feature the WRA legal team addressing the latest business issues, procedures and programs you need to know. Subject matter experts from Wisconsin law firms, government agencies and the National Association of REALTORS® also will be featured to provide updates and answer your questions.
Let the WRA help you navigate the novel business challenges you face during these difficult times. We hope you`ll join us for our first Legal Update Live at 2:00-2:30 p.m. on Thursday, April 16. The WRA will provide more details -- including the video link to access Legal Update Live -- next week in WRA emails and on the WRA`s social networks.
In the meantime, the WRA has a wealth of resources, including information on SBA programs and programs you may qualify for, such as PPP, PUA and EIDL; coronavirus real estate forms; Q&As and more. Find these on our resource webpage at www.wra.org/coronavirus.
Stay safe, stay healthy and stay informed!
WRA President & CEO
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Former KFC location. Property only. Vacant. Being sold in”As Is “ Condition. Corner of Oak and E. Wash.. Drive through window. Madison Metro stop at corner. On major E/W route to the Capital. 2nd Picture in Attachments is as it appears today. Co-listed with Ralph Kamps....more