CirexNews - CRE and Investment News | |||||||||
This Week - Notes - Search - Index - Share ...Full Story HereRalph Kamps Editor CirexNews 608.345.2880 Ken Harwood Publisher CirexNews 608.334.2174 This Weeks Articles for 3/19/2024 ...
March Madison Lease RatesCirex 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... | |||||||||
Why Madison plans `proactive rezoning,` an idea with critics and fans | |||||||||
The city’s proposals for Madison`s west side have some homeowners fearing they`ll be surrounded by high-rises and other unwelcome developments to create room for newcomers — and other residents worrying the West Area Plan doesn`t go far enough. Critics of the plan dominated an an in-person meeting at Memorial High School on March 12, while supporters formed the majority during a virtual meeting Monday night where planning division staff focused on one portion of the plan called proactive rezoning. The West Area Plan is a draft proposal for an area spanning from Midvale Boulevard to the Beltline that provides the groundwork for specific physical improvements over the next decade. City staff contend the plan will simplify Madison’s land-use planning and make it more equitable, especially as more people move to the city... RSK: With all the uproar of the West Madison Development Plan, here is a great synopsis of what is going on. | |||||||||
The Gialamas Company, Inc. | |||||||||
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. | |||||||||
Expanding housing opportunities in rural Wisconsin | |||||||||
Projects in Ladysmith, Elkhart Lake and Rhinelander highlight efforts to address workforce needsMADISON, WI. FEB. 28, 2024 – Like many smaller Wisconsin communities, Ladysmith has struggled with finding and attracting workers due to a lack of affordable housing. But this small city in the Northwoods has found a solution a that was in plain sight for years — a now vacant elementary school. Later this year, the former Ladysmith Elementary School will begin a new life, providing 40 rental units for workforce housing. The Wisconsin Economic Development Corp (WEDC) has awarded the city a $200,000 Idle Site Redevelopment (ISR) grant, providing the final piece of a $13 million public-private sector partnership. ...Full Story HereRSK: In larger metro areas, converting office space to residential is no doubt more helpful. | |||||||||
ABSTRACT Commercial Real Estate LLC | |||||||||
See All Listings Here......Full Story Here | |||||||||
Recent Legal Hottips | |||||||||
Question:
Answer: An agent has a question about buying a property as a principal when the agent`s spouse will also be a buyer on the offer to purchase. Does the agent need to have a signed buyer agency agreement with the spouse and draft the offer as "Agent of Buyer" but also add language that the drafting agent is also a principal? Or does the agent strike all the choices on lines 1-2 and indicate the agent is drafting as a principal and not do buyer agency with the agent`s spouse? The
first step when a licensee is contemplating a personal transaction is to check
company policy on the matter and follow that. Outside of any applicable company
policy, the agent could draft the offer in either way described. ... RSK: First Hot Tip is about buying a property for yourself or your entity and receiving a buyer incentive rather than a commission...read it. | |||||||||
Federal Reserve Still Sees 3 Rate Cuts In 2024 But Holds Rates Steady For Now | |||||||||
The Federal Open Market Committee on Wednesday didn`t budge on interest rates, noting that it “does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” the central bank said in a statement. Nine FOMC members said they believe three interest rate cuts this year are appropriate, in line with what the committee indicated in December. Five other members indicated that two cuts would be the correct course, according to materials released by the Federal Reserve Wednesday... ...Full Story Here RSK: I do not see much of a decrease as long as the Fed keeps printing money to give away. I wish they would admit that this current administration is the reason rates remain high and to stop using other scenarios and causes. | |||||||||
ARTIS REIT / Madison Lifestyle Office Portfolio | |||||||||
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. | |||||||||
How Flight-to-Quality Is Leading the Flex Office Evolution | |||||||||
Experience-driven workplace destinations are outperforming the rest, says Convene CEO Ryan Simonetti.The flight-to-quality trend that has been driving the office sector for the past several years is also fueling growth in the flex office space. With an increased emphasis on quality over quantity, workspace providers have been experimenting with different new elements to attract tenants, including the addition of community-building events, elevated design and wellness amenities. And the hospitality industry serves as a source of inspiration for many of these enhancements, according to Ryan Simonetti, CEO & co-founder of Convene. Focusing on designing, building and operating flex and meeting spaces in 39 locations across nine cities in the U.S. and the UK, Convene’s approach is hospitality-driven. What does that mean exactly? We asked Simonetti to expand on why tenants have come to expect the office to be more of an experience than simply a space to get work done, and how landlords are adapting to the flight-to-quality trend... RSK: I have often said office flex space will be more like an office hotel space. You will pay a premium when you want to use it, but it offers flexibility for your business. There will also be amenities galore besides possible restaurant, pool and exercise areas etc. | |||||||||
Investors Associated | |||||||||
See All Listings Here......Full Story HereOne 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. | |||||||||
Private Capital, Major Tenants Supplant Institutional Investors as Primary Office Buyers | |||||||||
Both Recent and Long-Term Trends Reshape the Landscape of Office Investment SalesFrom the vantage point of 2024, it is easy to forget that office space was once the crown jewel of the commercial real estate investment market. That picture was changed considerably by the long-rising fortunes of other property types, combined with the uncertainty about the future of office demand. In 2007, as the industry unwittingly hovered on the brink of a severe downturn, office properties made up $187 billion, or 44% of all commercial property sale transactions, by far the most among the five major property types. By comparison, multifamily trades constituted 20% of activity, while retail deals accounted for 16%, outpacing industrial at 13% and hospitality at 8%... RSK: They say the trend was on its way before the pandemic...probably because office space was a bit over built at the time. Covid was just the nail in the tire that let all the air out. | |||||||||
RASCW Events | |||||||||
Caffeinated Collaboration: Economics & Diversity in Real EstateWednesday, April 3, 2024 (9:00 AM - 10:00 AM) (CDT)DescriptionPlease join us for this FREE event where networking meets collaboration around diversity, equity & inclusion in the real estate industry. This month we are co-sponsoring the event with the Rock-Green REALTORS® Association, and the focus of our conversation will be on the impact of local ?economics and community diversity on housing, the industry, and your business. ...Full Story Here | |||||||||
Madison Commercial Real Estate LLC | |||||||||
SEE ALL LISTINGS HERE...Full Story Here | |||||||||
Is the Negativity Around CLOs Really Warranted? | |||||||||
Recent headlines have hyped up an "obscure" investment called Collateralized Loan Obligations (CLOs), citing a spike in delinquencies as a sign of doom for commercial real estate. But a closer look reveals this is a temporary blip, not a sign of an impending crash. First, CLOs aren`t exactly obscure. With a US market value of... ...Full Story Here RSK: I like the authors train of thought...most CRE loans are CLO and not CDO | |||||||||
CARW 2023 Events and Resources | |||||||||
CARW Wisconsin
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Key Commercial Real Estate, LLC | |||||||||
See All Listings Here... | |||||||||
Technology May Be Able to Add Flex Space to the Valuation Equation | |||||||||
While the failures of co-working giants like Knotel and WeWork may have highlighted flex space’s challenges, the demand for flexible real estate options remains strong. These failures were largely due to business model weaknesses, not a lack of market interest. In a recent occupier survey conducted by CBRE more than half of the respondents want flexible access to shared building services and amenities and nearly two-fifths want the ability to structure their lease and manage costs based on actual utilization of space. Flex space offers occupiers the adaptability they need in today’s dynamic economy. But, there hasn’t been the wide-scale adoption of flex offices that many have expected. One reason for this is that traditional valuation methods don’t include revenue generated by flex spaces as part of the long term cash flow due to their perceived risk. Fortunately, new advancements in valuation technology are providing solutions to understand and quantify the value of flex space. Commercial real estate values typically rely on the predictability of long-term leases. With flex space, month-to-month rentals create uncertainty for investors and lenders, as tenants can easily leave during economic downturns. This perceived risk often devalues flex spaces, even though they can generate higher margins and increase building density.... RSK: Wonder why everything is based on what the tenant wants and needs and what is feasible for the owner/landlord? Unless there is a win/win it isn`t going to happen. Hard to have it both ways. | |||||||||
Commercial Brokers Group | |||||||||
`We Are Buying As Much Office As We Can Swallow`: One Shark Is Circling Chicago’s Depressed Office Market | |||||||||
There are many reasons for investors to be bearish on Chicago’s office market at present. Occupancy rates are sagging, companies are downsizing their footprints and a potential new transfer tax could impact the prospects of virtually every city office property. But Quintin Primo III isn’t shying away. Primo’s Capri Investment Group has inked office deals in Chicago and Washington, D.C., over the past year, and is closing in on one in Los Angeles, part of a major bet on the future value of the discounted asset class. “We love the office market right now,” said Primo, the keynote speaker at Bisnow`s Chicago Capital Markets & CRE Finance event Thursday at Swissôtel Chicago. “We are buying as much office as we can swallow.”... ...Full Story Here RSK: A whole lot of risk here but a lot of potential upside. | |||||||||
Knight Barry Title Group | |||||||||
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 | |||||||||
All Hub, No Spokes: The Death of the Suburban Office | |||||||||
As the pandemic waned and in-person work resumed, there was widespread speculation about which office strategies would gain traction. Reports surfaced that cities with longer average commute times were seeing lower office attendance rates. Here`s an excerpt from the Wall Street Journal in May 2022: "The New York metropolitan area had the longest average commute... ...Full Story HereRSK: I think this all depends on the size of the metro area and varying degrees. Logistics still plays a major role and if there are suburban centers near the office parks, the office market will still be viable and a shorter commute is desirable. If they are isolated office parks and no urban services i.e. shopping, day care and retail, they will have more of a vacancy problem. | |||||||||
St. John Properties | |||||||||
See All Listings Here......Full Story Here | |||||||||
AI Is Learning the Secret Language of Pipes To Detect Water Leaks | |||||||||
Water conservation is a building feature that is sometimes overlooked. Energy efficiency steals the spotlight since electricity is so much more expensive than water. But now, building owners are starting to pay more attention to water consumption. Drought conditions in many U.S. regions are pushing the price of water up in many parts of the country. Water conservation also intersects with carbon emissions. About 80 pounds of carbon emissions are generated for every thousand gallons of water used in commercial property since electricity is needed to pump water. ...Full Story Here | |||||||||
Reinhart | |||||||||
With the largest Real Estate Practice of any law firm in Wisconsin, Reinhart offers clients custom-tailored real estate insight. | |||||||||
Kwik Trip plans center | |||||||||
DEFOREST - A new Kwik Trip distribution center may soon rise from an empty farm field in DeForest. The convenience store company paid $14.1 million for 151 acres in the village in the southwest quadrant of the intersection of Highways 51 and 19, and is in talks with village officials about using 60 of those acres to build a new distribution center that could serve about 350 stores. The remaining 91 acres will likely be considered for future development, according to DeForest Administrator Bill Chang. Kwik Trip has been in talks with DeForest and the Wisconsin Economic Development Center since late fall, when the convenience store chain bought the land proposed for the distribution center. The field, south of the UW-Health DeForest-Windsor Clinic and west of the UnityPoint Health-Meriter DeForest-Windsor Clinic, was in the town of Burke before it was annexed to DeForest. ...Full Story Here RSK: No mention of size or number of employees but I am sure that information will be coming down the pike soon. | |||||||||
Wisconsin Commercial Real Estate | |||||||||
See All Listings Here......Full Story Here | |||||||||
Does a “Trophy” Building Classification Help Boost Leasing Numbers? | |||||||||
When it comes to office real estate, building classes matter more than ever. The amenities, location, and quality of space between Class A office buildings and Class B and C properties can have a huge impact on the demand for a workspace right now. But what about trophy buildings? These are buildings that are either advanced, new, or famous enough to be considered the cream of the crop in their market. It’s a designation that one would think would make it easier for landlords to lease up their space. However, beyond the top-tier offerings that trophy buildings offer, does the trophy tag alone help move the needle? Like building classifications in general, trophy properties are an unofficial class that is sometimes lumped together with Class A buildings in research reports, but there are key factors that separate them from the rest, the main one being prominence. “They’re the ones in the sky that everyone recognizes,” said Brian Schwagerl, a professor of real estate at New York University’s Schack Institute of Real Estate. New York City has a number of obvious ones, including the Chrysler Building, the Metlife Building, and the Empire State Building. Chicago’s Willis Tower (formerly known as the Sears Tower) and San Francisco’s Transamerica Pyramid are certainly part of the crowd, too. In addition to being famous parts of the skyline, trophy buildings are typically landmarked, giving them greater historical status as well as stricter guidelines on how they can be changed... RSK: Even Trump Tower and the Empire State Building have their rent limits. | |||||||||
Park Towne Realty LLC | |||||||||
See All Listings Here... | |||||||||
Small Industrial Spaces Are in Short Supply Across the US. Here’s Where They Are Scarcest. | |||||||||
Tenants Tied to Construction Trades Swallow Up Space in Many Sun Belt MarketsSmaller industrial properties have maintained impressive occupancy rates and rising rents for several years, and in recent months they have increasingly stood out as one of the best-performing categories of commercial real estate. Other property types typically favored by investors, namely luxury apartments and big-box distribution centers, are facing headwinds as the large amount of new development started during the pandemic reaches completion in record numbers, helping to drive up vacancy rates. In contrast, the recent outperformance of smaller industrial properties owes mainly to their insulation from supply-side risk. Securing land and entitlements for industrial projects near most major cities is challenging and few developers are willing to invest the time needed to clear these hurdles unless the projects involved and the corresponding payouts for completing them are large... RSK: It is now the hottest property type. | |||||||||
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 | |||||||||
Mullins Group LLC | |||||||||
See All Listings here... | |||||||||
From offices that look like Apple stores to private call booths, here are 5 ways your workplace is changing | |||||||||
The office might not look the same as a few years ago, but it`s still kicking. In the four years since the pandemic shut down many workplaces, there has been more than a little speculation about the prognosis for the office`s recovery. Yet, in many cases, the land of carpet squares and fluorescent lighting has proven resilient. Sure, many sites aren`t as full as they once were. US office visits in January were down 42.1% from January 2020 — not long before pandemic lockdowns began — according to figures from Placer.ai, which provides data on foot traffic...
RSK: The bottom line is "The office isn`t the ghost town many believe it is" | |||||||||
Properties for Lease or for Sale By Company | |||||||||
...Full Story Here | |||||||||
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 |