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Join us for the Career Fair and you will meet with talented young
real estate professionals who are ready and eager to make significant
contributions to your company through internships and entry and
mid-career levels positions. Our goal is to host more than 60 employers
all eager to hire Badger Real Estate Students for both full-time and
internship positions.
Students and employers are now able to register for the Spring 2025 Real Estate Club Career Fair.
As the number of animal healthcare facilities in the U.S. has grown in recent years, more spaces vacated amid a wave of high-profile retail closures are going to the dogs.
Operators behind new facilities are looking for sleek, high-tech spaces that are more reminiscent of human healthcare spaces than the homey converted residences that used to define pet healthcare. It`s a response to a new generation of pet owners with increasingly rigorous veterinary care expectations.
“These look like minihospitals,” Terravet Real Estate Solutions CEO Dan Eisenstadt said of the modern facilities his company builds. “[Pet owners] want healthcare settings because they’re viewing their pet in more of a human way.”...
RSK: This has happened in the Greater Madison area. Certain Vet clinics were bought out by private equity firms and went corporate. This made them more profit oriented rather than pet care coming first. In turn, certain Veterinarians left that corporate culture and started their own clinics. This also increased the number of clinics in the area and in turn forcing better quality care. I happened to be part of the real estate transactions for these.
Central bank’s quarter-point cut not as big as Trump hoped
Key Points
The Federal Reserve cut its benchmark interest rate by a quarter point, the first such cut in nine months, though it was not as drastic as President Donald Trump desired.
The real estate industry hopes lower rates could stimulate commercial transactions and help address the housing affordability crisis.
While mortgage rates recently dropped, they do not directly follow the Fed`s interest rate changes and it`s uncertain how much further they will fall.
RSK: Probably will not have much of an effect on commercial rates, as much of that had already been discounted in. But residential mortgage rates took their steepest drop.
The latest return-to-office update shows how seasonal factors came into play.
Chicago and San Francisco enjoyed significant increases in office visits by tenants since August of last year, besting every other major U.S. metro tracked by Placer.ai by that metric. Chicago experienced a 12.1 percent increase year-over-year, while San Francisco turned in a 10.2 percent increase.
The average annual increase in visits among the 10 cities forming the Placer.ai Nationwide Office Building Index was 2.9 percent. The only other city better than that average was Boston, which eked out a 3.1 percent increase, just above the index average.
The seven remaining cities—Miami, New York, Atlanta, Dallas, Houston, Los Angeles and Washington, D.C.—each turned in weaker visit growth than average.
The short-term robustness of Chicago and San Francisco shows recent momentum in office visits for the two cities. In Chicago, the report called the increase “encouraging progress for the Windy City, though it remains to be seen whether this signals the beginning of a lasting turnaround.”...
“The single rate cut is not going to dramatically change the valuations on properties and things like that, but it will affect movement and momentum in the marketplace,” said Courtney Stanford, managing director at SVN Dunn Commercial. “Anytime you can change even a small lever, it helps people feel more confidence in their investments.”
The shift in Fed policy reflects a shift in the central bank’s view of the country’s overall economic health. A major revision to jobs data this month erased 911,000 new positions from the federal count and hinted at weakness in the labor market that hadn’t been factored into Fed policymaking.
“In the near term, risks to inflation are tilted to the upside and risk to employment to the downside, a challenging situation,” Federal Reserve Chair Jerome Powell said during a press conference Wednesday...
Deptford Mall in New Jersey has rolled out a “Premier Parking”
option. It allows patrons to pay $10 to park closer to the mall
entrances via QR-coded spaces. On its face, it’s a small experiment,
roughly 40 of the mall’s 5,000 spots, less than 1%. The free lots
remain, so this is optional, but as shoppers pointed out, the principle
of paying for what’s always been free feels like a shift.
It’s not
the first mall to try charging for parking, especially premium spaces.
Cherry Creek Mall in Colorado faced backlash years ago when paid parking
was introduced. Sales reportedly dropped and many said they simply
stopped coming in. And in Deptford’s case, some of the premium spots are
sitting empty, suggesting shoppers aren’t buying the value proposition
yet. From what we’ve seen, the success of paid parking depends heavily
on context: the density of competition, the walk from free lots, whether
customers perceive the fee as reasonable for convenience, and local
consumer sentiment...
CBRE hired a former Facebook executive to launch the innovation-focused CBRE x Industrious Building Experiences Lab.
Annie Dean, who previously led workplace experience and flexible work efforts at Facebook and software developer Atlassian, will head the new department, CBRE announced this week.
“The lab will aim to transform offices, logistics centers, storefronts, and other commercial settings — the buildings that power the global economy — into more human-focused, empowering and delightful places to work,” the global brokerage and real estate services firm said in a statement
Dean will also serve as CBRE’s global chief strategy officer for its building operations and experience business segment. She’ll lead the newly established lab in developing and implementing “real-world products, rather than abstract research” focused on the future of work, CBRE said....
A&E’s new series The Real Estate Commission follows
Albany-based broker Todd Drowlette as he makes the commercial side of
real estate—strip malls, offices, warehouses—feel as dramatic as
luxury-home TV. The eight-episode run, premiering October 12, aims to
hook the same audience captivated by side hustles and DIY investing, but
through deals typically reserved for corporate giants and billionaire
developers.
The show leans into real-world uncertainty: Drowlette
alternates between leasing assignments (like placing a national discount
retailer) and sales efforts (from a Syracuse-area apartment building to
a troubled Albany office). Cameras roll through wins and stalls,
including a fully scouted owner-occupied office purchase that collapses
late, forcing a fresh search and storyline. As Drowlette puts it, “A
good deal falls apart three times before it actually happens.”...
This class will familiarize you with the
basics of commercial real estate leasing. Understanding the flow, what
you need to know, and how to best prepare.
Lets face it, the world of commercial real estate is complicated and you’re lucky if you get a call back!
This class will familiarize you with the basics of commercial real estate leasing. Understanding the flow, what you need to know, and how to best prepare. No two deals are the same although there are fundamentals that are important to be aware of as well as expectations from both tenant and landlord.
For nearly 150 years, the Mitchell Building has been a fixture of Milwaukee’s downtown business district. Now, its next chapter will reflect a broader trend reshaping cities nationwide: converting aging office towers into badly needed housing. Plans by developer J. Jeffers & Co. to redevelop the vacant office building into 60 apartments cleared a major hurdle this week, as the city’s Zoning, Neighborhoods and Development Committee unanimously backed a $1.9 million tax incremental financing request.
The redevelopment, pegged at $24.2 million, will mark the end of the Mitchell’s continuous use as office space since its completion in 1876. Designed by prominent architect E. Townsend Mix for financier and politician Alexander Mitchell, the five-story Second Empire landmark was a statement of power and permanence. With its granite base, limestone trim, mansard roof, and central tower, the Mitchell quickly became one of the city’s most recognizable structures...
Gov. Tony Evers and Microsoft officials on Thursday announced
that Microsoft is investing an additional $4 billion to expand its
planned datacenter campus in Mount Pleasant, raising the company’s total
investment in Wisconsin to more than $7 billion.
Last
May, Microsoft confirmed that it would invest $3.3 billion by the end of
2026 in the Mount Pleasant datacenter, bringing thousands of union
construction jobs to the area, as well as providing long-term employment
opportunities over the next several years.
The company
is on track to complete construction and bring this first artificial
intelligence datacenter online in early 2026, and it has begun hiring
full-time workers for the operation.
According to
Microsoft officials, the company has also committed to building a second
datacenter, which will be similar in size and scale and in the same
area at a cost of approximately $4 billion by the end of 2028...
RSK: Good for temporary jobs. Wonder how the center will affect the electric rates in the area. Supposedly, it will be the most powerful AI center to date...that means a lot of electricity to power it.
Sacramento is once again weighing a tax on vacant commercial
property. City officials want to push owners of blighted buildings and
long-empty parcels into action, and the City Council’s Law and
Legislative Committee has now opened the discussion.
On Wednesday, members emphasized that the talks are still in the very
early stages, but they began laying the groundwork for either a vacancy
tax, stronger code enforcement, or a mix of both.
Councilmember
Caity Maple called it “the very, very, very beginning of the
conversation,” adding that while the council could technically vote as
early as January to place a measure on the June 2026 ballot, such a fast
track is unlikely. Senior planner Greta Soos told the committee that
narrowing which properties are targeted could improve voter support,
which currently polls below the two-thirds threshold required. Business
groups spoke against a tax, saying demand is market-driven, while
activists argued it could finally force long-neglected lots into new
use...
RSK: They must be careful on penalizing landlords because of market conditions and other varying factors. I get the idea behind it, but no need to punish someone if they are following what the market gives them.
Electric vehicles may have captured the consumer market, but the real test of electrification lies in freight. Trucks move the economy, and transitioning them to battery power requires more than just better vehicles — it requires a new kind of infrastructure. That’s the bet EV Realty is making. The company just raised $75 million to roll out charging hubs for electric trucking fleets, including a 76-stall site in San Bernardino capable of serving hundreds of Class 8 trucks per day. What makes this story relevant to the real estate industry is not just the tech, but the possibility that these hubs represent a brand-new property type, blending logistics, industrial land, and energy infrastructure.
The appeal for real estate investors is clear. EV truck charging hubs don’t need prime downtown addresses; they need acreage in industrial corridors, preferably near warehouses, ports, or distribution centers...
RSK: I see convenience/fuel stores such as Kwik Trip installing most of these, as well as other truck stops. The key is having the power or megawatts to charge these trucks fast enough.
The potential redevelopment of a Middleton property has
placed the future of American-Chinese restaurant Imperial Garden in
doubt, the Wisconsin State Journal reports.
The 44-year-old spot belongs to Henry Chen, who founded Imperial Garden in 1981.
Tom
Sanford of Madison-based commercial real estate company Sanford
Enterprises submitted a zoning change request to allow the construction
of a building up to 10-stories tall on the site.
He also
requested an amendment to Middleton’s comprehensive plan, which
currently only calls for buildings up to five stories there.
Sanford’s
proposed development, called “The Imperial,” would include a 10-story
condo building and a five-story apartment building with 195 units and
three commercial spaces for restaurants or retail stores...
Nepotism is a hot topic these days: So-called "nepo babies" seem to be everywhere, riding the coattails of their rich and famous parents to land starring roles in movies, record Billboard hits, and wield power in Washington. The housing market isn`t Hollywood, but as long as families have had a few dollars to pass down from one generation to the next, youngsters have relied on help from parents to get their foot in the door. Over the past three decades, about 30% of first-time homebuyers each year used a gift or loan from family and friends, data from the National Association of Realtors shows. For buyers of all types, family swooped in to help about 16% of the time.
Conditions would appear ripe for nepo buyers` numbers to spike — with prices high and borrowing rates still steep, lots of home shoppers could use a hand. Many baby boomers are sitting on piles of home equity or bulging investment portfolios that they could theoretically tap to aid their millennial and Gen Z offspring. Yet the nepo homebuyer is actually in decline. The past few years of NAR data have shown a significant dip from the historical average: In 2024, only a quarter of first-time buyers got help from friends and family. For all buyers, this share has slipped to just 10%...
PUBLIC NOTICE – STATE OF WISCONSIN SALE OF SURPLUS STATE-OWNED REAL PROPERTY
1 W Wilson Street Madison Wisconsin
Human Services Building Issuance Date – Wednesday, December 3, 2025 Offer Due Date & Time – Monday, March 16, 2026 no later than 3:00 PM CT
Under the Authority of s. 16.848, Wis. Stats., the Wisconsin Department of Administration (DOA) is soliciting offers for the sale of State-owned real property.
Public Offer Solicitation
The State Human Services Building was the first state office building built outside of the Capitol. Built in phases starting in 1930 (Unit 1), Unit II in 1939, the Penthouse in 1952, and Unit III in 1959. Upon completion, the building was home to over 2,000 state employees. It occupies 422,087 GSF of space, and it has 11 stories above ground and 4 below ground.
Ken Notes: I have been advocating for this for many years. This is a special property that will become a landmark conversion to a Grand Hotel. Not an easy project by any measure, but for the right developer and construction team this will be the premier hotel in Madison and possibly the State. The link includes all the details for submitting a bid. Good luck and Ralph and I will follow and share this development closely.
A pair of 7-story apartment buildings, totaling nearly 500 units with commercial space, are proposed near the Madison Public Market by developer New Land Enterprises, aimed at revitalizing the area with mixed-use housing and retail, featuring income-restricted units and a 10-year tax abatement to boost affordable options in a growing district. Key Details of the Proposal:
Developer: New Land Enterprises.
Location: Pennsylvania Avenue, near East Johnson and North First streets, close to the Public Market.
Scale: Two 7-story buildings.
Units: Approximately 500 apartments.
Features: Ground-floor commercial space and residences with potential for income generation.
Incentives: A 10-year property tax abatement is part of the plan.
Goal: Address Madison`s housing needs with a vibrant, mixed-use development in a growing neighborhood.
This project, reported in late 2025, is a significant addition to the
downtown area, aiming to blend new housing with local commerce, near the
popular Public Market.
RSK: Doesn`t say how many will be market rents and how many subsidized units. Good project for a messy corner triangle....but i`m sure people will complain about the trains going through even though they say the tracks when they rented. An Amtrak station at the site is a possibility and the new Public Market is kitty Korner from the building. Lots of possibilities here if it moves forward.
It’s been a tumultuous year for the commercial real estate industry, as companies spent months waiting for the interest rate cuts that finally arrived in September, and the market faced uncertainty around an election that is now poised to spark a substantial shift in federal policy.
Not everyone was able to survive to ‘25, but for those that did, things may be starting to turn around.
Bisnow spoke to several economists and market experts to hear their predictions for 2025, and they largely see clearer skies ahead, including falling vacancy in office and multifamily and a resurgence of investment.
On the flip side, some banks could see a “reckoning” as distressed assets increasingly become a major strain on balance sheets and lenders come to terms with write-downs. And there may be pain in the retail markets if more mergers lead chains to close stores.
Here are six predictions for the commercial real estate industry in 2025:
Office Vacancy To Start Decreasing...
Banks To See More Write-Downs, Particularly From Office Loans...
Multifamily Vacancy To Decline...
New Administration To Boost Retail M&A, Spurring More Store Closures...
Alternative Power Sources To See ‘Exponential Growth’ To Fuel Data Center Expansion...
RSK: I cannot say that I disagree with any of these predictions. The one that is troublesome is the retail occupancy. If there is a pent up demand for mergers, that could create a glut of retail space available.
With the new year comes the start of a new real estate cycle.
There are potentially stellar returns to be made over the next few years — if investors buy right. For the sector as a whole, it will be a period like few working in the market today have experienced in their careers.
“This is not a V-shaped recovery — base rates certainly have an impact on the slope of the recovery, but it`s a recovery nonetheless,” Blackstone Global Co-Head of Real Estate Nadeem Meghji said.
“When we have conversations with our investors, the conversation has shifted from if we should invest to when we should invest.”...
The year 2024 brought big changes to the Madison-area business and labor scene, including new projects adding lab space for science companies, a court ruling that could restore union rights to public sector workers, and big wins for the region’s nuclear fusion researchers.
And all of those developments could lead to more news this year.
Here are seven local economy and worker-related stories to watch in 2025...
What will happen to Act 10?
What else might happen in local union news?
Will Madison add enough space for science startups?
Will Madison become a hub for rechargeable batteries?
What’s next for southern Wisconsin’s nuclear fusion companies?
Will Fetch achieve the `hypergrowth` it seeks?
How far will a Madison friend-making startup expand?
Preliminary
marking plans for the project are available to view ahead of the
upcoming Public Information Meeting. Note that the plans are
preliminary and subject to change as the project team receives feedback
and progresses through design.
Project Overview
The City is planning construction on Midvale
Boulevard from Mineral Point Road to University Avenue. The project
includes intersection safety improvements, pedestrian crossing
improvements, bike lanes, and partial replacement of asphalt pavement.
Curb and gutter and sidewalk will be spot replaced as needed.
To
accommodate driving, biking and continue to offer some street parking,
the City is proposing to narrow a portion of the median and reduce
street parking...
RSK: This is not just a resurfacing project. The strip from Mineral Point Rd to University Ave. will have more dramatic changes. If you use this route for commuting please voice your input.
Surge in office lending leads all property sectors
Survive to ‘25. That has been the prevailing sentiment in real estate for the past few years, especially in the struggling office sector. Reduced demand due to the persistence of hybrid and remote work, combined with rapidly rising interest rates, has put fear into nearly every office portfolio manager. By late 2024, conditions remained bleak—interest rates showed no signs of dropping, and nearly a trillion dollars in commercial mortgage debt was set to come due in 2025. Many had begun shifting their mindset from “Survive to ‘25” to “Survive through ‘25.” But now, just a few weeks into the year, there are signs that office real estate may finally be poised for a turnaround.
The first positive sign comes on the lending front. The Mortgage Bankers Association released a report showing that lending for office had increased by 105 percent, leading all property categories. Lending is up across the board with commercial mortgage-backed securities having the most dramatic increase...
We Energies on Monday proposed a special electric
rate aimed at data centers including the Microsoft center under
construction in Mount Pleasant and a proposed facility in Port
Washngton.
The rate is meant to ensure that
other ratepayers are not saddled with costs associated with building
power plants and electric infrastructure necessary for power-hungry data
centers, according to the state`s largest utility.
We Energies proposed a new electric rate specifically designed for very large customers, primarily data centers.
This rate aims to cover the costs of building power plants and infrastructure for energy-intensive data centers, like the Microsoft facility in Mount Pleasant.
Data centers, crucial for online activities, require massive amounts of electricity, with the Mount Pleasant facility projected to need as much power as 300,000 homes.
This proposal reflects growing national concerns about the energy and water demands of data centers, particularly with the rise of artificial intelligence technology.
Concerns remain about the environmental impact of data centers and potential risks of overbuilding if demand decreases.
The chief executives of both Google and Amazon said this week that their companies will continue their unprecedented spending on data centers and other infrastructure for artificial intelligence despite tariff concerns and lingering questions around the future of AI computing demand.
On Wednesday, Alphabet CEO Sundar Pichai reaffirmed Google’s previously announced plans to invest $75B in total capital expenditures this year, telling a conference audience that the firm’s capital spending remains focused on building new data centers and acquiring the computing equipment to go in them...
As trees leaf out and patio umbrellas go up around the greater Madison area, a new crop of restaurants, cafes and bars has sprung up from Waunakee to Monona.
This spring, try new spots for Southern-style barbecue, Turkish takeout, iced vanilla lattes and Korean corn dogs. Visit a beer garden in Paoli, a paleo bakery on Park Street and a bubble tea shop near campus.
In addition to this list, some establishments have changed ownership (Kavanaugh’s Esquire Club, Ohio Tavern). Others closed (Hodge Podge in Verona, Taberna Tacos, Cafe LaBellitalia). ...Full Story Here
RSK: Most if not all of these establishments are leased real estate. The odds of surviving 2 or more is years is about 60% for various reasons. We shall see. Hospitality is a tough, tough business. But if you make it, it can be very rewarding.
Americans are born with an entrepreneurial streak. It’s in our DNA. From the Gold Rush to the Industrial Revolution to the Internet Age, intense periods of innovation have molded our economy and sparked important societal advancements. That said, the past few years have been some of the toughest ones ever for business owners in the U.S. due to the COVID-19 pandemic, the Great Resignation and high inflation.
In order to help aspiring entrepreneurs — from restaurant owners to high-tech movers and shakers — maximize their chances for long-term prosperity in the current difficult economic situation, WalletHub compared the relative startup opportunities that exist in 100 U.S. cities. We did so using 19 key metrics, ranging from the five-year business-survival rate to labor costs to office-space affordability...
First Business Financial Services Inc.
announced that Corey A. Chambas will retire from his role as chief
executive officer on May 2, 2026. The company will name David R. Seiler,
its president and chief operating officer, to succeed him as CEO
effective the same date. Chambas will remain on the board of directors.
Chambas
joined the company in 1993. He has been CEO of First Business Financial
Services Inc. since January 2006 and served as its president from
February 2005 to January 2023.
Seiler
has been president and COO of First Business Financial Services Inc.
since January 2023, following seven years of service as COO. Prior to
joining the bank in April 2016, Seiler served in various leadership
roles with commercial banking firms in the Midwest. Most recently, he
served as managing director of the Correspondent Banking Division at BMO
Harris Bank...
RSK: Congrats on your service and retirement in the industry. As a neighbor, workout buddy and friend, I salute you and hope you enjoy your slightly diminished role...and the Grandkids...
Madison’s first “skyscraper,” a nine-story, downtown building opened in 1915 and formerly known as the Churchill Building or the Gay Building for developer Leonard Gay, is set to be transformed into a boutique hotel, the Wisconsin State Journal reports. The building, at 16 N. Carroll St. on the Capitol Square, prompted the city’s first building height limits to preserve views of the state Capitol. It was later bought by Hovde Properties, its current owner, and was recently listed in the Wisconsin and U.S. registers of historic places.
Hovde Properties’ plans would substantially renovate the structure, removing drop ceilings and years of wallpaper, paneling, paint and more, and reopen the Churchill Building in late 2026 as an 84-room Marriott Tribute Portfolio hotel with an early 20th century ambience.
The building’s surviving original elements, including iron railings along the staircase and mosaic entryway tiles, will be preserved throughout the renovation. Hovde Properties is working with historic preservation officials and seeking state and federal tax credits to offset the additional costs...
Apex Real Estate Holdings and Walter Wayne Development are
seeking to double the size of a proposed five-story apartment building
on University Avenue almost a year after the project received city
approval, the Wisconsin State Journal reports.
The
original plans would have replaced a pair of commercial buildings
between 3535 and 3553 University Avenue near Hilldale with 71
apartments, 76 covered parking stalls and around 1,400 square feet of
commercial space.
The
development team, which has now reached an agreement with a neighboring
property owner to acquire two single-family houses on North Meadow
Lane, is now bringing a new proposal before the city. Plans include a
six-story, 146-unit building with 166 parking stalls and 4,000 square
feet of commercial space...
Schluter shared his career insights with In Business Madison this month.
What are the most challenging and rewarding parts of your job?
As a contingent fee business, time management is one of the most challenging aspects in commercial real estate brokerage. You can be super busy in this industry but not productive. Effective time management and a laser focus on high impact activities is critical.
Commercial real estate is 100% a people business. The most rewarding part of being a broker is forming long-term relationships with clients and helping them grow their business or investment portfolio.
Who do you admire in business and why?
Craig Culver. Craig and his family started Culver’s in 1984 and have grown the brand to over 1,000 restaurants throughout the country. I’ve been fortunate to represent Culver’s corporate and several Culver’s franchisees with site acquisitions over the years. They are a people-focused company from the top down and have experienced tremendous success yet maintain small town Wisconsin values.
I sat in a meeting with Craig years ago and will never forget his advice: “Surround yourself with people that say please and thank you.”
What has been the high point of your career so far?...
RSK: In case you missed it. Knowing Jesse for a long time , he is a true professional and outstanding person. Get to know him. Your life will be a bit richer in more ways than one.
Ken Notes: The answer to the last question must be, "Being the lead story in Cirex news!" congrats...
In the second quarter of 2025, Madison office vacancy fell to 15.7% from 16.1% in the first quarter, according to a report by Chris Caulum, vice president of commercial brokerage at Oakbrook Corp.
Vacancy was just 8.8% in late 2019 but rose to 12.2% by late 2021, past 14% by mid-2024, and up to 16.1% earlier this year.
Class A space drove much of that rise — from 5.5% vacancy in Q4 2019 to 18.9% in Q1 2025, easing slightly to 18.3% this quarter.
Class B was 11.8% pre-pandemic and is now 14.4%. Class C was 11.1% and is now 13.3%.
Leasing activity slowed from Q1 but stayed healthy, with 41 leases totaling 149,000 square feet in Q2.
Average asking rents ticked up slightly to $22.13 per square foot on a full service gross basis. That’s up 12% since late 2019, even with much higher vacancy — largely due to elevated buildout and remodeling costs..
The city of Madison
is continuing its efforts to create more housing with another round of
initiatives, unveiled by Mayor Satya Rhodes-Conway, members of the
Common Council and several community groups on Tuesday .
Three new proposals will be introduced on Sept. 16, and two additional proposals are scheduled for consideration in October.
The
new slate of proposals will make it easier to build smaller, more
affordable homes and simplify the permitting process to create more
housing opportunities across Madison.
Proposals to be introduced on Sept. 16 will:
Increase the maximum allowed heights in height transition areas;
Make adjustments to lot area, lot width and alley attached garage rear setback minimums; and
Allow two accessory dwelling units in a detached building and simplify accessory structure rules.
Proposals to be introduced in October will:
Allow “cottage court” developments in residential zoning districts; and
Make updates to the Transit Oriented Development Overlay Zone.
A
public meeting will be held virtually on Sept. 30 for residents to
learn more about the proposals. More information about the initiatives
being introduced in October will be available in the coming weeks...
RSK: Good ideas but a drop in the bucket I am afraid. And to put it simply, builders won`t build if they are going to lose money and buyers will not buy or rent if they cannot afford it.
On November 10, 2025, Madison Mayor Satya Rhodes-Conway and Council
leadership introduced an amendment to the 2026 city budget. The
amendment aims to limit property tax increases. The proposal is
co-sponsored by Council President Regina Vidaver, Vice President MGR
Govindarajan, and several alders. It would result in an average property
tax increase of $2.50 per month, or $30 per year, for homeowners. This
is the lowest increase in at least forty years.
The amendment
proposes using $218,037 from the city’s unassigned fund balance to pay
for specific expenses. This approach avoids adding these costs to the
property tax levy...
Now
the entire building is in foreclosure. Eight of nine food vendors who
had signed leases remain in limbo. If a buyer can’t be found by the end
of the month, the bank will take the property, according to a
representative of the developer...
RSK: In case you missed it. I would think you would have checked with the city of Middleton before construction if the TIF money could be used for the Food Hall build out.
With Donald Trump heading back to the White House, the country will once again be helmed by a so-called developer in chief.
Trump has alluded to several early policy decisions that could touch commercial real estate, and he returns to the Oval Office as a delicate recovery takes root in CRE. The first days of Trump’s presidency are expected to include executive orders that will provide both opportunities and challenges for the sector.
Homebuilding regulations could be loosened, but mass deportations could make it harder to find construction labor to build new homes. Questions swirl around what kind of tariffs Trump plans to impose and what they would mean for inflation. Battle lines are already being drawn over remote work for federal employees, while Fannie Mae and Freddie Mac are on the path toward privatization.
Here’s a look at what nine early policy decisions could mean for commercial real estate.
Madison-based Findorff
announced it’s transitioned to an employee stock ownership plan (ESOP)
after over 135 years in business. The ESOP, a qualified retirement plan,
gives employees 100% ownership of the company through stock
allocations.
Findorff
leadership believes that transitioning to employee ownership will
bolster a culture of engagement and collaboration and support sustained
growth. Its operational structure and leadership team will remain in
place...
RSK: Certain Industries lend themselves well to this. I know Barne`s Inc. did this several years ago and seems to be doing fine...especially with employee retention and collaboration...
Plans at Epic Systems Corp. would expand its Deep Space
conference center, adding a new, smaller auditorium and dining room, the
Wisconsin State Journal
reports. The proposed addition would help accommodate the company’s
annual conference, which draws thousands of attendees to Verona.
The
proposed 23,218-square-foot expansion could reportedly be open in time
for Epic’s User Group Meeting in August 2026. Plans include an
underground space with a 66,000-square-foot grass roof, and a 750-seat
auditorium situated above a dining room space.
The
existing Deep Space infrastructure features an 11,500-seat auditorium
and multistory lobby facing out toward the farmland surrounding Epic to
the west. The new and existing spaces would be connected by a skybridge
tunnel.
The plans will go before Verona’s planning commission for consideration at its March 3 meeting...
Plus some unexpected takeaways from Trammell Crow’s latest research.
In the real estate industry, development has to take the longer view, since with few exceptions, the process is a longer-term undertaking. In its new research note, Development in 2025: Five Key Trends Shaping the Industry, Trammell Crow Co. details five current and unprecedented forces shaping real estate development within the broader context of longer-term change in tech, demographics and global economic growth.
The five include the realignment of global supply chains, shifting generational housing preferences, the rise of data centers as critical infrastructure, the continued importance of life science clusters and the need for localized strategies in fragmented markets...
RSK: I believe Greater Madison has the potential to be one of those micro-markets in the health sciences area...and possibly is already noted that way.
Bear Development, a Kenosha-based developer known for low-income housing projects, plans to replace the Wisconsin Manufacturers and Commerce (WMC) headquarters at 501 E. Washington Ave. with a seven-story, 223-unit apartment building, according to the Wisconsin State Journal. The project, located just five blocks from the Capitol Square, will include studio to two-bedroom apartments and a 68-stall parking garage.
All units will be rent- and income-restricted, serving residents earning 50% to 80% of the area median income, according to project manager Nick Orthmann. In 2024, Dane County’s median income was $88,000 for a single person and $126,000 for a family of four. The developer aims to break ground by late 2025 or early 2026, with completion expected in 2027.
The site, which wraps around a neighboring lot, sits next to another redevelopment project by LZ Ventures — an eight-story, 70-unit building operated by Porchlight Inc. to provide housing for the homeless...
U.S. construction costs notched higher in February, and a leading industry group is warning that the price hikes are likely to continue.
“Nonresidential input prices increased at a rapid pace in February and have risen at a far-too-hot 9.0% annualized rate through the first two months of 2025,” Associated Builders and Contractors Chief Economist Anirban Basu said in a statement...
Development to help city meet goal of creating 15,000 new homes by 2030, with 25% offering long-term affordability
As Madison grapples with an ongoing housing crisis, a new low-income apartment development will aim to provide affordable housing in the heart of the city.
Bear Development, a Kenosha-based firm with a history of constructing income-restricted housing, has unveiled plans for a seven-story, 223-unit residential building at 501 E. Washington Ave. in Madison, northeast of the Capitol, according to the City of Madison.
Bear Development is committed to creating high-quality properties that add value to the community, according to the firm’s website.
The new development will replace the longtime headquarters of the Wisconsin Manufacturers and Commerce on Washington Ave., which will relocate to 2 Buttonwood Ct., according to In Business.
All units will be rent and income-restricted to accommodate individuals earning 50-80% of the area median income, according to In Business...
On the heels of a couple of feverish years, Madison’s housing market is showing signs of cooling, with the city reporting the most modest rise in the value of the average single-family home since 2020.
Madison saw a double-digit percent jump in its average home value in 2022 and again in 2023 as high demand pushed sale prices skyward. The rate of increase then slowed to 7.8% in 2024 and to 5.2% in 2025, according to a new report from the city assessor’s office.
The average single-family home is now valued at $481,300. In 2020, that number was $315,200.
“What we’re seeing now is sort of a shift to, in my opinion, a steady and sustainable growth,” said Michelle Drea, Madison’s city assessor. “I think we’re moving away from pandemic impact.”
The report shows assessed real estate value up by 9.1% overall, driven in part by a record $1 billion in new construction over the previous year. Total assessed value went up by 10.9% for commercial properties — including a 13.1% rise for apartment buildings — and by 8% for residential properties. The change in assessed value as a whole is slightly below last year’s 9.3% increase but well below the 14.4% increase in 2023...
Madison’s first mass timber high-rise is now on the market.
The 14-story mixed-use Bakers Place tower at 849 E. Washington Ave. — seven blocks from Capitol Square — finished construction and moved in its first tenants Friday. Madison-based developer Neutral built the apartments on top of the former Gardner Bakery building, the apartment’s namesake.
Neutral restored the oldest part of the bakery, which was built in 1928 and closed in 2019. The rest of the building ranges from nine stories on the facade facing Main Street to 14 stories on the side facing East Washington Avenue.... ...Full Story Here
RSK: You are going to see more and more of this mass timber construction. However, tariffs may affect the pricing premium for now.
Colliers|Wisconsin is expanding its Madison, Wisconsin, office with the addition Jesse Schluter.
Schluter, a 20-year Madison-area commercial real estate veteran, has joined the firm as a partner and will be based in Madison, bringing a proven track record of success in the Wisconsin restaurant and retail real estate market.
Prior to joining Colliers|Wisconsin, Schluter was principal at Wisconsin Commercial Real Estate, a Madison-based firm he founded in 2016. He is an active community member in the Greater Madison area, serving as a volunteer firefighter and Battalion Chief with the Middleton Fire Department since 2004...
The city of Madison’s initial plans for the plazas at the
top of State Street feature tables, planters and programming aimed at
drawing more people to the area and addressing public safety concerns, Isthmus reports.
The
design concepts come as Madison makes ongoing investments in
placemaking, a process that works to draw pedestrian traffic to
underused areas and create safe, shared spaces.
In April
2024, city planners began a process to find uses for spaces that are
currently surrounded by redevelopment projects like the Wisconsin
Veterans Museum, the Wisconsin History Center and the Churchill
Building. For more than a decade, these spaces have seen increased
criminal activity compared to surrounding areas...
The
current surge in energy demand is virtually unprecedented since the
mass effort to electrify America immediately following World War II.
Time for a pop quiz: Halfway through 2025, which company is the second-best performer on the stock market so far this year?
The top spot, of course, belongs to Palantir, the AI-powered data
analytics firm co-founded by venture capital titan and
friend-slash-financial-backer of the White House Peter Thiel, which has
secured a slew of high-profile government and defense contracts under
the current administration. But you already knew that.
Second place, however, is a little more obscure. That title belongs to a little (well, $28 billion market cap, so not that little) or rather little-known Texas-based firm, NRG Energy...
RSK: The demand in not only CRE Data Centers but for all of us is increasing exponentially. We touched on VPP before but here is a good explanation of how they might work and keep CRE and all of us out of the dark.
The City of Madison’s Economic Development Division is announcing the
release of a Request for Proposals (RFP) for the redevelopment of Block
113 in downtown Madison, formerly known as the Brayton Lot, presenting a
rare chance to repurpose a full city block in the heart of downtown.
"This is an exciting opportunity for Madison and the downtown community — and one that doesn’t come along very often. Downtown Madison provides great opportunities for sustainable living, and we hope this project will provide even more options for people to live, work and play in the heart of our city."
RSK: We shall see what the City considers a good plan. Great Location.
Ken Notes: I would try first floor retail, second floor (3rd???) "workforce housing", with some great upscale on the 3rd or 4th. Ties into new plans for city...
Back in January, the pregame talk echoed with bravado. Fifty-six industry titans had just told us that once the U.S. presidential election dust settled, interest rates would drift lower, capital would unfreeze and 2025 would be the year to thrive.
Six months, 166 executive orders, a flurry of ever-changing tariffs, frozen interest rates and one big, beautiful bill later, the mood has clearly shifted. Everyone knows who to thank — or blame.
The tariff roller coaster and ensuing economic uncertainty have replaced election anxiety as the nagging headline, interest-rate cuts are still a mirage, and the bid-ask gap has barely blinked. ..
MADISON , Wis.– The Wisconsin Housing and Economic Development Authority (WHEDA) announced today that Erin Libecki is the new leader of the Commercial Lending team.
As Director of Commercial Lending, Libecki and her team will focus on deploying capital and resources to finance multifamily affordable housing and business development projects throughout Wisconsin. The commercial lending team is responsible for reviewing and allocating housing tax credits, and administering the financing cycle for multifamily developments....
To learn more about the Agency and its programs, visit wheda.com or call 800-334-6873...
With several projects in the works, a big
question is who will foot the bill for their power needs. Watchdog
groups are eyeing the proceedings, but utility company reps have said
they intend to protect consumers.
(TNS) — A roughly 500-acre data center in the works for Dodge County
would add 150-plus megawatts of energy demand to Wisconsin’s electrical
grid — or enough to power tens of thousands of homes — and immediately
become the state’s largest single energy user.
Not to be outdone,
plans in Port Washington are underway to build a data center campus
that, when it opens in 2027, would need more than 1 gigawatt of power.
That’s enough to power roughly 800,000 residences, or several hundred
thousand more homes than in all of Milwaukee, the state’s largest city.
Discussions
are also underway to add other hyperscale data centers, including a
615-acre proposal in Dane County and facilities eyed for Mount Pleasant
and Kenosha, with several of the projects spearheaded by some of the
nation’s largest companies like Meta and Microsoft...
RSK: I have been saying this for months and now the chickens come home to roost....hopefully not on us resident ratepayers.
Ken Notes: Wisconsin is very attractive to data centers because we are on the energy super highway between Western renewable production and Eastern demand. There are hidden "costs" as new lines are built like the 345 kV Cardinal-Hickory Creek transmission line and upcoming 765 kV lines to transfer the load. This means we: lose prime ag and rec land, pay some of the cost, will see massive solar arrays and other renewable projects, will see an influx of new power intensive businesses, and profits will will shift to stakeholders in other part of the country like Microsoft and Meta. Our rates should go down and we should see more jobs, revenues and tax dollars for the state but so far that has not happened.
Georgia-based Landmark Properties, a student housing developer, is proposing a 16-story apartment building in downtown Madison, the Wisconsin State Journal reports.
The project, with a planned location at the intersection of State Street and West Gilman Street, would demolish existing buildings at 411-433 W. Gilman St., including the Fugu Asian Fusion restaurant, the Master Hall and Stratford Atrium apartments and a smaller building in between.
The new building would offer 261 residential units — ranging from studios to five-bedroom units — and 974 total beds.
The facility would also include 1,500 square feet of retail space, a rooftop pool, 77 vehicle parking spaces and 431 long-term bike parking spaces... ...Full Story Here
RSK: I`d be surprised if they are able to build 16 stories but there is a trade off if they have so many under market rental rates.
Missouri-based developer Drury Southwest has brought a new
proposal for a 205-room hotel on the downtown site formerly home to a
Madison College campus, the Wisconsin State Journal reports.
The
news comes seven years after Madison originally approved plans for a
310-room Drury Plaza Hotel between North Carroll Street and Wisconsin
Avenue, which was set to open in early 2021.
While demolition began in 2019, work at the site was halted during the COVID-19 pandemic and never resumed.
The
new project, an eight-story building, will be a separate structure from
the six-story Madison College building, parts of which date back to the
1920s. Drury plans to recruit another developer to repurpose it, likely
for housing.
The new hotel would feature a bar and
restaurant, a meeting room, a fitness area and a pool. There would be
212 parking spaces as well...
Madison-based developer Willow Partners broke ground
Wednesday on Seven20, a 14-story apartment building along East
Washington Avenue, the Wisconsin State Journal reports.
The
project at 720 E. Washington Ave. will offer 244 apartments, multiple
levels of parking, several high-end amenities — including a pool, a
private movie theater, fitness and wellness centers, a dog park, a
14th-floor lounge and a viewing deck overlooking lakes Mendota and
Monona — and space for four businesses.
There will be 65
studio apartments, 111 one-bedroom units, 55 two-bedroom units and 13
three-bedroom units. Rents are anticipated to start at $1,800 for
studios, just under $2,000 for one-bedrooms, just under $4,000 for
two-bedrooms and just under $5,000 for three-bedrooms...
RSK: Take a look at those rents...$4000/mo for a 2 bedroom. Having 2 people per bedroom would be $1000/mo each just for rent. I doubt ant HVAC is included in that. If you bought a $400,000 condo at 6% interest rate for 30 years your payment would be approx. 2,300/mo. But, that is the prevailing rate for downtown apartments...and they seem to be getting it. That`s a lot for a dog park on the premises.
The Conway at Huxley Yards is expected to be completed by the third quarter of 2026.
Project includes fitness room, community room and 63 parking spaces.
Designed for Green Built Homes Gold and Energy Star certification.
An affordable apartment community with 50 units is coming to Madison.
Rosemont, Ill.-based McShane Construction Co. on Wednesday announced that its Wisconsin office will build The Conway at Huxley Yards for developer Lincoln Avenue Communities, an affiliate of Lincoln Avenue Capital. This will be McShane’s fourth project with the developer, said Alison Gorham, vice president and director of Wisconsin operations at McShane.
“We’re excited to watch this development come to life and provide much-needed affordable housing in Madison,” she added.
The project is located on a 1.7-acre site at 1846 Commercial Avenue. It will feature 50 units, 63 parking spaces, and the complex will be 72,446 square feet, the contractor said. The Conway is expected to be completed in the third quarter of 2026. The project cost and rents weren’t shared...
A 16-story student apartment building located at the intersection of
West Johnson and North Frances streets was approved by the city of
Madison, the Wisconsin State Journal reports.
It is the sixth project by Chicago-based student housing developer Core Spaces in downtown Madison.
A
residential building at 305 N. Frances St. and 533 Conklin Place will
be replaced by the new structure, which will house 387 apartments
spanning one to five bedrooms, and 1,347 beds.
A city zoning incentive requires that approximately 10% of the beds be offered with a 40% discount.
The development will include 56 parking spaces and 2,800 square feet of retail space...
Dane County and Madison’s property taxes are rising faster
than the rest of the state’s, according to a Wisconsin Policy Forum
analysis of state tax data.
The Cap Times reports
a countywide tax levy grew 5.7% to about $1.9 billion last year, with
Madison’s portion growing 5.1% to $894 million. Tax levies are one
factor in how individual property taxes are determined.
Statewide, tax levies increase by 4.2%. This smaller rate increase is a trend for the rest of the state.
Madison’s
property taxes grew by 11% to $318 million. Taxes for the Madison
Metropolitan School District increased by 2.1% to $402 million...
RSK: This was a bad referendum...no accountability for seeing if the students increase their test scores and learning. For all of you who voted for it, this increase will happen each year weather learning gets better or not.
Although vacancy rates rose quarter over quarter (QoQ), the 0.1% increase was the smallest gain recorded in the post-COVID cycle. Slowing vacancy rate increases are signaling a return to stability after a tumultuous past year marked by uncertainty around U.S. federal elections, trade negotiations, fiscal policy, and taxation.
While some uncertainty remains, confidence is growing in the U.S. industrial sector, which is expected to be underpinned by continued growth in e-commerce sales, as well as a surge in manufacturing investment heading into 2026...
RSK: This is one heck of a report. Not just industrial, but many other facets of the economy...plenty of graphics and charts to analyze the data and easy reading. Read this one.
Campus set to be hub for OpenAI, Oracle ‘Stargate’ program
Port Washington is moving forward with a tax incremental financing plan for a massive $15 billion data center campus despite pushback from local residents.
The Port Washington Common Council unanimously approved a resolution Tuesday to create Tax Incremental District, or TID, No. 5 for the data center campus.
The decision comes around two weeks after Vantage Data Centers, the developer behind the project, announced OpenAI and Oracle would be the users of the site as part of the companies’ Stargate program, a $500 billion national push to expand AI...
As many as 15 buildings could be developed, with three to five built in the initial phase. Each building would require an investment of around $300-500 million. Further details weren’t shared, but the project is listed on QTS’ website.
With promises of millions of dollars in tax revenue, thousands of construction jobs and hundreds of full-time positions, QTS Data Centers has submitted plans for a data center campus in northern Dane County.
At the same time, the environmental group Clean Wisconsin claims QTS data center buildings will require “far more” energy than all the homes in the county combined and is calling for full transparency on its energy and environmental impacts as the project is evaluated.
RSK: This will be worth watching. Since the city approved it despite the objections of many residents, other planned data centers will have a better shot at getting approval.
Project team members and public officials gathered
Thursday afternoon to celebrate breaking ground on a 197-unit workforce
housing development inUniversity Research Parkon Madison’s west side — a project six years in the making.
The$65 million development,
called Element Collective, is located on Element Way along the new,
east-west bus rapid transit (BRT) route and close to major employers,
including Exact Sciences, Element Labs and Thermo Fisher Scientific.
It’s the first ground-up development in Madison for Milwaukee-based
luxury apartment developerMandel Group.
Element Collective is slated to be move-in ready by summer 2027, Mandel
Group senior partner Bob Monnat told In Business Madison....
As another year wraps up, we like to look at our top article to undershatnd which stories mattered most to you, our readers. From federal lease cuts and housing policy to AI, architecture, and even a look inside the lifestyles of real estate’s wealthiest players, this year’s most-read articles reflected a market in transition. Uncertainty around government spending, pressure on housing affordability, and rapid advances in technology shaped much of the conversation. At the same time, readers showed strong interest in stories that pulled back the curtain on how the industry really works, whether through data, design, or culture.
Below are the top the articles of the year, ranked by readership, with a look at why each one captured attention... ...Full Story Here
The Federal Reserve cut interest rates by 25 basis points Wednesday, the third consecutive meeting where monetary policy was loosened.
Despite the trend, there’s a wider-than-usual range of opinions inside the Fed about the best path forward as central bankers grapple with their dual mandate of price stability and maximum employment.
Uma Moriarity, senior investment strategist at CenterSquare: The interest rate cut is in line with market expectations, but it doesn’t determine...
Garret Weyand, partner at Cedar Street Partners: A 25-basis-point cut may sound small, but on a $40M construction loan, it adds up fast...
Michael Lee, partner at HKS Real Estate Advisors: Today’s 25-basis-point cut was widely expected, so the bigger story is what the Fed signals...
Ronald Dickerman, founder and president of Madison International Realty: While the Fed`s rate reductions are a positive signal for commercial real estate markets...
Alex Pette, president and director of research and ETFs at Hoya Capital Real Estate: Today`s decision to cut interest rates by 25 basis points is clearly warranted...
Scott Hensley, principal at Corfac International: The timing of these rate cuts is good news not only for developers and CRE buyers...
Alex Redfearn, founder and CEO at Redfearn Capital: A 25-basis-point cut is helpful, but what matters for owners...
Alyssa Soto Brody, co-founder at Powered by DMT:A 25-basis-point cut will act as a psychological boost more than anything else...
Jay Roberts, CEO at Prosper Group: As rates come down, Miami and the broader Florida market will accelerate faster than anywhere in the country...
Ryan Severino, chief economist at BGO: People root for
the Fed to cut rates in the hopes that those cuts will ultimately impact
CRE in a positive way, but reality is more complicated...
Real estate company Redfin predicts Madison will have a hot housing market in 2026.
It joins a list that includes Minneapolis, St. Louis and Cleveland.
The Wisconsin State Journal reports that Redfin’s analysis on the region said the Midwest is “fairly affordable” and provides relative safety against climate change events affecting other places, such as wildfires or floods.
Redfin also predicts mortgage rates will sit around 6.3%, wages will grow much more quickly than home prices and home prices will rise about 3%... ...Full Story Here
RSK: Not only job opportunity, quality of life but climate change protection. Hot in the summer and cold in the winter. However, little flooding, no hurricanes, earthquakes (seldom and if any low key) just an occasional tornado or two.
Some of the vast expanses of land held by the federal government could be opened up for residential development through the Trump administration’s new housing initiative.
The Department of the Interior and the Department of Housing and Urban Development are working together to identify “underutilized” federal land where homes can be built to address the nation’s 7-million-unit affordable housing shortage.
“The Interior Department oversees more than 500 million acres of federal land, much of it suitable for residential use,” Interior Secretary Doug Burgum and HUD Secretary Scott Turner wrote in a joint Wall Street Journal op-ed published Sunday...
The AI boom is reshaping the Midwest, driving a wave of data center development, straining energy systems, consuming millions of gallons of water — and triggering a new debate over who benefits.
Why it matters: Data centers power the AI boom — but their soaring energy and water demands often go unreported, with unclear benefits for local communities and few permanent jobs created.
Data centers used 4.4% of U.S. electricity in 2023 and could consume up to 12% by 2028, per the U.S. Department of Energy.
Data center construction is at an all-time high, increasing 69% year over year from 2023 to 2024, per CBRE, a commercial real estate firm.
Yes, and: The Midwest is emerging as one of the nation`s fastest-growing data center hubs, with development stretching from Kansas and Iowa to Great Lakes states like Ohio, Michigan, Indiana and Wisconsin...
Amazon CEO Andy Jassy sent a memo to employees this week saying that the tech giant will likely shrink its head count in coming years as AI chatbots and agents take on more of the workload.
Jassy said that artificial intelligence will allow the company to be more innovative, increasing demand for specific jobs. But, in general, he expects that there will be less need for human workers. The statement was met with grumbling from folks who might find themselves on the corporate chopping block, according to internal employee messages seen by Business Insider:
Some complained that Amazon plans to use efficiency gains from AI to reduce head count and keep output the same, rather than grow the business.
Many Amazonians might’ve already been upset after the company recently told some employees to relocate to be closer to their teams—which is commonly used as a tactic to accelerate resignations.
Amazon insiders told the Wall Street Journal that though layoffs are possible, much of the AI-driven head count reduction is expected to happen through slower hiring.
Amazon isn’t alone
Salesforce CEO Marc Benioff recently said that the company likely won’t hire software engineers this year since AI is making its existing workers more productive. Similarly, ...
Federal Reserve Chair Jerome Powell used his final speech at an annual central bank summit to highlight how tariffs and changes to immigration and tax policy had added significant uncertainty to the economy.
“Changes in trade and immigration policies are affecting both demand and supply,” Powell said in the closely watched speech from Jackson Hole, Wyoming. “In this environment, distinguishing cyclical developments from trends or structural developments is difficult.”... ...Full Story Here
RSK: Hard to plan with uncertainty but my gut feeling is once the tariff situation settles down, the Feds will start dropping rates...ever so slowly.
A proposed development at 139 W. Wilson St.
would have no on-site parking. Its narrow footprint has raised questions
about building access.
A proposal for a 320-unit apartment complex on West Wilson Street is moving toward an up or down vote by the end of the year.
An
existing apartment building would be demolished and replaced with 16
stories of “micro units,” which has caught the eye of both
decision-makers and the public for the lack of on-site parking.
“I
only want to do this project to create more affordable housing downtown
for those that otherwise couldn`t afford to live there, but want to
live there or need to live there because that`s where their employment
is,” developer Randy Alexander of Torque Companies said during a Nov. 3
meeting of the Plan Commission. “And there are huge numbers of people
now that don`t own a car, don`t want to own a car or can`t afford a
car.”...
RSK: I understand the concerns here, but if anyone can address them, it is Randy.
Ken Notes: What Madison needs is an on street trolley system downtown that easily shuttles people around downtown. I have been advocating for a terrace to terrace system for years now. Also use the mostly vacant parking at the Alliant Energy Center for parking with shuttle to the capitol and downtown and a bike barn for those who want to pedal the last mile.
Park Towne is a family run Madison-based real estate company serving southern Wisconsin for over 50 years. Led by second generation brothers Mike, Jim and Joe Ring, Park Towne has a portfolio of for-lease commercial properties and offers development, management and brokerage services.
Only 11% of the $755M in office CMBS loans that matured in September were paid off, with roughly half of the remaining debt securing extensions from special servicers.
It was a paltry payoff rate even compared to the 31% rate for the year through September, according to Moody’s. And it was a sign of the times.
Property owners are avoiding transacting in today’s market,
instead carrying forward the year’s dominant strategy of securing
short-term extensions and other loan modifications as both sponsors and
lenders wait for capital conditions to improve.
The widespread practice, commonly referred to as
extend-and-pretend, is available today for the owners of the
highest-quality assets that can afford to pay the fees to wait for
better days, but time is wearing thin for everyone else. For many asset
holders, that means the pretending could come to an end in 2025.
Where are these trends heading? The latest update from Northmarq.
In third quarter 2024, the single-tenant industrial market remained
on a path of reporting increasing sales volume. With $6.35 billion
logged in the last three months, third quarter’s performance brings the
year-to-date activity level to more than $16.2 billion.
If current momentum stays flat in fourth quarter, the sector would be
on pace to just narrowly miss last year’s annual total, but with
another 12 percent quarterly jump in activity, as was witnessed this
reporting period, the sector will easily surpass last year’s
performance.
Average cap rates for net lease industrial transactions have, at
least temporarily, leveled off. In the past two years, the market
witnessed a series of sharp quarterly increases, taking the average from
a low of 5.22 percent at mid-year 2022 to a recent high of 6.51 percent
in first quarter 2024. Since then, rates have fluctuated only a few
basis points each quarter and now sit at an average of 6.48 percent. By
region, the industrial market has a narrower spread than other net lease
sectors of just 99 basis points between the Northeast’s low average of
5.84 percent and the Southwest region at 6.83 percent...
MOUNT PLEASANT, Wis. (CBS 58) -- Microsoft has halted construction on
aspects of its multibillion-dollar data center in Mount Pleasant.
But it`s unclear why.
The
company told CBS 58 they are "fully on track" with construction on the
$3.3 billion data center set to open in 2026, but said work has stopped
on two expansion sites.
"We have expansion sites in Mount
Pleasant where we intend to build additional infrastructure, and we’ve
already done preliminary work for those future builds," a Microsoft
spokesperson said.
The opportunity zone program — the tax break for businesses investing in economically distressed communities — was a key pillar of the Trump administration’s economic policy the first time around.
Passed with the Trump tax law in late 2017, the program has fueled tens of billions of dollars of investment. The pace of funding has slowed as the program sunsets at the end of 2026, meaning investors are nearing a deadline to deploy funds into one of the nation`s 8,764 qualified opportunity zones.
But now, following Donald Trump’s election for a second term, the real estate community that has made a business out of taking advantage of the program is ramping up for a likely renewal.
RSK: Hope the new administration outlines a few more or expands the Zones. I know a few people who have to invest or pay their capital gains...including myself.
Limited listings could drive competitive property pricing
CBRE has released the results of its latest Investor Intentions Survey, revealing mostly positive findings. Among the firms surveyed, 54% expect investment activity to recover in the first half of 2025. Optimism about individual portfolios was even higher, with 75% of respondents anticipating their own investment activity to rebound during the same period.
The greatest obstacle to investment, according to respondents, remains “elevated and volatile long-term interest rates.” Despite former President Trump’s recent declaration that he would push for interest rates to decrease, CBRE forecasts that rates will stay above 4% through the end of the year. Even if the Federal Reserve lowers the base rate, it may not significantly reduce rates for commercial property loans. Many banks that ceased lending to commercial real estate when rates rose have yet to return. Their replacements, such as debt funds and private lenders, typically charge higher rates, further increasing borrowing costs...
RSK: The last paragraph hits the nail right on the head. There are very few properties on the market and most of them do not make economic sense...even for a user. One of our investor groups had a building burn down and received the insurance proceeds. Looking to build with the high construction costs didn`t seem to make sense. But even with the substantial large down payment, nothing currently on the market breaks even. Seems better off to pay the cap gains and keep the cash.
The gap between new supply and tenant demand narrowed during 2024 as
developers stepped off the gas, and new occupancies picked up in the
year`s second half. The U.S. industrial vacancy rate increased by 126
basis points to 6.8% and is nearing its peak as construction activity
normalizes to pre-pandemic levels below 300 million SF. While rent
growth decelerated, it remained positive at 5% year-over-year, though
some markets experienced rent declines following a period of
extraordinary growth...
The U.S. industrial vacancy rate is nearing its peak as construction activity normalizes to pre-pandemic levels and demand gradually recovers. Vacancy increased during all four quarters of 2024, climbing by 126 basis points to 6.8% — the highest level since 2015. The increase, however, was more moderate compared to the previous the year, when vacancy jumped by 194 basis points.
Although vacancy rose by just 42 basis points in the second half of 2024, some regions and markets experienced faster increases than others. The West region saw the largest jump, with vacancy climbing 220 basis points to 7%, while the Midwest had the smallest increase, up just 29 basis points to 5.3%. The highest vacancy rate was recorded in the South region, reaching 8%....
RSK: Vacancy is highest on the coasts but that is whether most of the structures are located. Construction is down, so those vacancies should start to fill.
Whether you’re an experienced investment team expanding your portfolio
or a newcomer entering the real estate market, fundraising is a critical
skill. This webinar will explore key strategies, essential tools, and
the role of the right data and tech stack in navigating the complexities
of commercial real estate fundraising. Successful fundraising requires
financial expertise, interpersonal skills, and strategic thinking. Our
experts will share hard-earned insights on leveraging data-driven
decision-making, adapting to market shifts, and building lasting
investor relationships.
As part of thecity of Madison’songoing
efforts to create more housing of all types, Mayor Satya Rhodes-Conway
on Tuesday announced new housing goals, an interactive housing tracker
for the public to monitor progress, and an update to her Housing Forward
initiative to guide city actions over the next two years.
In
order to keep up with Madison’s current pace of growth and address one
of the lowest rental vacancy rates in the United States, the city is
setting a goal to support the creation of 15,000 new homes by 2030, with
an additional goal of at least 25% of those homes having long-term
affordability at below-market rates for those making 60% of the area
median income or less.
To track progress toward these goals and share that information with the public, the city is launching theCity of Madison Housing Tracker.
The tracker is a new public dashboard that will show how many homes are
currently under construction or have been completed since the start of
2025, where those homes are being built, and how many are affordable. It
also includes the historical context of how many new homes have been
added in the past decade. Data for the Housing Tracker will be updated
monthly...
RSK: And of mcourse this will raise our real estate taxes since the city in and of itself does not make money but depends on tax revenue. I hope there are plenty of checks and balances in this program.
Nearly two years after announcing plans to come to the
U.S., a European company known for its massive wellness-focused resorts
has found a partner to help accelerate its expansion across the pond.
Therme Group formed a joint venture with New York-headquartered The Georgetown Co. for the ownership and development of its U.S. business. The companies plan to build 10 projects of around 500K SF each in key U.S. cities, according to a release announcing the deal.
Georgetown acquired a 25% equity stake in Therme U.S. and will serve as its exclusive development partner for all projects in America.
Therme Group operates four locations in Romania and Germany, and it has plans for locations across Asia, Europe and Canada. The resort operator offers pay-as-you-go retreats with waterpark features, saunas, dining, exercise facilities, and arts and culture programming...
Madison’s Apex Property Management and design firm Kahler Slater are looking to develop a spot situated between houses near the start of East Gorham Street near the Capitol Square, the Wisconsin State Journal reports. They presented a preliminary concept for an apartment building to the Landmarks Commission on Monday.
The facility would be a five-story, 22-unit apartment building constructed in front of an existing carriage house at 124 Gorham St. and include 33 underground parking stalls. The development team is also interested in restoring and using the carriage house, built in the 1860s, but for a new purpose.
The renovated carriage house would provide community space and, if the structure allows, a couple more housing units. As the site is located in the Mansion Hill Historic District, architectural changes there are subject to more scrutiny than in most other areas of the city.
Commissioners voiced concerns regarding whether or not the new building would blend with the rest of the neighborhood, be too big, or sit too close to the street. The development team will be required to bring a formal proposal back to the Landmarks Commission before the redevelopment can move forward...
The Department of Government Efficiency, billionaire Elon Musk’s agency tasked by President Donald Trump with slashing federal bureaucracy, now plans to keep 135 leases totaling 2.2M SF that it had targeted for termination.
The General Services Administration`s termination list now consists of 657 leases totaling 8M SF across the United States and Puerto Rico, according to an updated tally from JLL, which tracks supposed savings posted to the DOGE website.
“GSA is reviewing all options to optimize the federal footprint and building utilization,” a GSA spokesperson said in an email. “We are actively managing lease contracts by leveraging existing contract cancellation rights.”... ...Full Story Here
RSK: 50 of these seem to be Social Security Offices. There will probably be more.
Analysts predict higher prices for consumers, lower margins for chains
President Donald Trump accelerated a global trade war this week in a
move that`s expected to dramatically disrupt the U.S. retail industry, a
major user of commercial real estate.
Wall Street overall didn`t
react well to the "Liberation Day" news that Trump announced Wednesday.
The stock market plunged, with the Dow Jones Industrial Average dropping
Thursday nearly 1,700 points. It was no secret that the president was
going to increase the tariffs he imposed on China and Canada in
February, but the scope of the new round and their size — and immediacy
of their impact — left some in the retail industry surprised and two
industry trade groups spoke out against the new policy.
In a live
earnings call Wednesday, the CEO of furniture retailer RH, formerly
Restoration Hardware, uttered an expletive when he saw how his chain`s
stock tumbled after Trump`s announcement. RH`s shares were down about
40% end-of-day Thursday, the top loser among U.S. stocks. Also among the
day`s worst performing stocks were VF Corp., the footwear maker behind
such brands as Vans and Timberland, as well as home furnishings retailer
Wayfair and apparel firm Gap...
Some of the data centers may never even
materialize, sticking ratepayers with the bill for overbuilt fossil-fuel
infrastructure, advocates argue.
An anticipated data-center boom is driving utility plans for massive natural gas investments in southeastern Wisconsin, raising objections from customer and climate advocates.
Critics say they’ve seen big development plans fail to pan out before, and they don’t want to be stuck paying for overbuilt fossil-fuel generation based on increasingly uncertain growth projections.
Wisconsin Electric Power Co. (WEPCO) says it needs to build new gas generation to power a planned $3.3 billion Microsoft data center near Mount Pleasant. The project is on the site of the failed Foxconn LCD screen factory, a proposed megaproject that President Donald Trump promised during his first term would become ?“the eighth wonder of the world” but that never materialized as planned...
RSK: SOrt of a catch 22 here. Data Centers use huge amounts of power. WHat you do not want is surges in the power stream which could ruin the lines and basically fry the grid. SO, you over power for the demands. Wind and solar are not reliable enough in my mind. The other problem is data centers are mostly automated.....few new jobs are created.
Downtown Madison’s Capital Fitness would be razed to make way for a 12-story housing facility with an expanded gym space under plans from Erik Minton, the gym’s owner, and his company, Butler Plaza LLC, the Wisconsin State Journal reports. Minton said the current three-story building at the intersection of East Washington Avenue and North Butler Street needs an update, as does the two-story office building next door.
Butler Plaza LLC about 25 years ago renovated the building on the corner, which had formerly housed The Capital Times, and constructed the attached, six-story Butler Plaza building. The latest redevelopment plans would allow Italian restaurant Naples 15 and many other businesses at the plaza to remain open and eventually be connected to the new building. The restaurant’s back patio would be expanded as well.
The first two floors of the proposed new housing facility would house the gym, while its upper 10 floors would offer around 77 studio, one- and two-bedroom apartments. Two levels of underground parking would connect to existing parking under the plaza...
RSK: Smart idea by allowing the businesses to remain open during construction. Will be interesting to see if they get the extra 2 stories....I seem to doubt it.
The company behind the Huggies, Kleenex, Depend and Poise brands is ramping up its U.S. manufacturing.
Kimberly-Clark plans to expand its operations over the next five years with over $2B in investments, it announced Thursday. The investments are centered around two major projects in Ohio and South Carolina.
The projects — in Warren, Ohio, and Beech Island, South Carolina — are expected to create more than 900 jobs in industrial automation and advanced manufacturing.
"This landmark investment represents a strategic bet on the American consumer and our ability to drive innovation-led sustainable growth for Kimberly-Clark," Russ Torres, group president of Kimberly-Clark North America, said in a statement. ...Full Story Here
RSK: Having grown up in the Fox Valley, Kimberly-Clark was a huge part of the local economy.
One of Madison’s most luxe apartment buildings yet — a high-rise with a food hall and expansive views of the Isthmus and Lakes Monona and Mendota — is opening this summer a few blocks from Capitol Square.
Rising 14 stories from 109 E. Wilson St., where a squat office building previously stood, One 09 contains 340 apartments, a top-floor fitness center, a rooftop pool and private lounge and dining areas. Coming soon on its ground floor are a 9,000-square-foot food hall with space for seven vendors, an upscale steakhouse and a cocktail lounge, separated by a 35-foot-wide outdoor promenade passing though the middle of the ground floor that stretches 160 feet from East Wilson Street to an open-air dining area overlooking Lake Monona...
Adjustments by Amazon and Microsoft
reflect harsh realities: power grids that take years to expand, land
speculators inflating prices, and overwhelmed utilities
When Microsoft (MSFT) pulled the plug on planned data centers in Ohio last month and a Wells Fargo (WFC) report suggested Amazon (AMZN) Web Services was reconsidering some leases, market watchers quickly diagnosed the symptoms: AI bubble concerns, demand uncertainty, and the inevitable cooldown after years of breakneck expansion.
There was just one problem with that analysis: The companies building these data centers say it’s wrong...
RSK: I have said all along...data centers eat huge amounts of electricity. Yes, speculators have driven up the price of land but the real stepping stone is power and the grid.
On May 22, 2025, the House of Representatives passed H.R. 1,
the budget reconciliation bill known as the One Big Beautiful Bill Act
(the Tax Bill). The Tax Bill proposes amendments to the Internal Revenue
Code (the Code) that could have significant consequences for both
individuals and businesses. Below is a summary of the key changes under
the Tax Bill that would impact the real estate industry and real estate
funds.
The Tax Bill has now moved to the Senate for consideration, where
further modifications to the tax provisions discussed below may be made.
We will continue to provide updates as the bill advances through the
legislative process in Congress.
I. Qualified Business Income Deduction (Code Section 199A)... II. Deduction for Qualified Production Property... III. Bonus Depreciation... IV. Increased Limitation for Expensing Certain Depreciable Assets... V. Excess Business Losses Limitation Extended... VI. New Round of Qualified Opportunity Zones... VII. Low-Income Housing Credit... VIII. Revisions to REIT Asset Test... IX. Increased Taxes, Including Withholding Obligations by Real
Estate Funds, on Income Allocated to Foreign Investors From Certain
Countries...
Major office landlords, after a cautious start to the year, are now
shedding some of their wariness as leasing momentum across the country
heads back to pre-pandemic levels.
Some of the nation`s largest
owners, such as Piedmont Office Realty Trust and Highwoods Properties,
are reporting an amount of leasing not seen since COVID-19 sent workers
home and upended demand for the office sector.
Data backs this up. A CoStar analysis shows
new leasing volume in the first three months of the year neared 2019
levels, providing "the clearest signal yet that the office market has at
last entered the recovery phase." Construction starts are at historic
lows, limiting the buildingsupply and leading executives to
expect that a national vacancy rate that remains at a record high of 14%
will eventually head lower...
RSK: It has been a slow steady increase and mainly class A and small single offices. The cost to rehab and bring up to date class B space with construction cost being so high makes it difficult for those spaces to be appealing.
The Department of Workforce Development recently developed WisConomy, a new product/service that improves the way Labor Market Information (LMI) is shared and accessed. WisConomy is a new LMI web application that helps users with different experience levels explore, share, and analyze LMI data with its interactive tools. Users can access an integrated data query that can create LMI datasets; Tableau dashboards can be customized, saved, and shared; and career exploration tools can be accessed. WisConomy provides the ability for users to create an account allowing them to save their queries and dashboards. Users can also share them through multiple formats including email. WisConomy makes LMI data more accessible and easier to understand for job seekers and connects them to career exploration tools like DWD`s Skill Explorer. WisConomy can be found at WisConomy.com...
Virginia-based QTS Data Centers has proposed a 615-acre, $3
billion campus along Highway V west of DeForest that could include as
many as 15 buildings, the Wisconsin State Journal
reports. The project, which could create 450 permanent positions along
with thousands of temporary construction jobs, would also generate
millions of dollars in property tax revenue.
Data
centers provide businesses with computing capacity without necessitating
that those businesses invest in the physical facilities necessary for
storing and maintaining computer servers, which require large amounts of
power and cooling systems. With artificial intelligence (AI) on the
rise, the demand for server capacity has increased, spurring a boom in
data center construction....
Twenty-five acres of farmland on Madison’s east side may soon become more than 1,000 new units of housing, including 20% for high-demand, affordable housing.
But
fulfilling those plans could rely on an unusual, tax-funded deal
brokered this year by the property’s developer and city leaders.
The city has essentially agreed
to designate the Milwaukee Street property a special tax district and
then buy part of the property with increased taxes generated by its
development. While most of the property could turn into market-rate
homes, the city’s part would be reserved for affordable units...
A four-story apartment building, Chase Bank, Crew Carwash, McDonald`s and Chick-fil-A are expected to open in the Fitchburg development by early next year...
...Fitchburg Partners aims to finish about $3.5 million worth of public improvements, including grading, utilities and a new service road, at the retail properties in the next couple of months so construction can start on the four coming businesses, Hundley said...
...The developer has yet to finalize plans for the remaining 19 or so acres in the middle of the Jamestown Quarry site. The next stages of the project could bring more housing, more retail or a mix of the two, Hundley said...
Whether it`s in the for-sale or rental market, the affordable housing crisis is only getting worse. There is simply not enough supply, especially in the apartment market, where developers have said it`s just too expensive to put up quality, low-income housing.
They cite rising costs for land, materials and labor, as well as increasingly restrictive zoning regulations. So-called NIMBYism (an acronym for "not in my backyard"), is also on the rise, with residents fighting affordable housing in their neighborhoods, where home values have soared in the past five years.
Housing developers have said it`s too expensive to put up quality, low-income apartments.
They
cite rising costs for land, materials and labor, a well as increasingly
restrictive zoning regulations. So-called NIMBYism (an acronym for "not
in my backyard"), is also on the rise.
Jonathan
Rose, founder and CEO of the Jonathan Rose Companies, said there`s
support for affordable housing and relief may be on the way.
RSK: The article says the US is behind 10 million housing units. My question is where are these people living now and who are they. Is the mass flux of immigration part of the problem? Homelessness?
On Monday, Google announced in a blog post that it has signed demand response agreements with Indiana Michigan Power and Tennessee Valley Authority, major utilities that together serve more than 10 million customers across nine states.
Rather than simply consuming hundreds of megawatts of electricity, some Google data centers will now become “flexible loads” capable of curbing their power consumption on command when utilities determine that excessive demand is pushing the grid toward failure.
The hyperscale cloud provider will cut power when needed by curtailing machine learning workloads, a type of AI computing. Google has provided few details regarding the financial terms of the deal or the participating data centers, although Monday’s announcement specifically mentions the company’s $2B Project Zodiac development underway in Fort Wayne, Indiana.
Executives at Google and the utilities touted the demand response efforts as a critical tool that will expedite access to massive blocks of power for data center firms amid an AI-fueled building boom while helping mitigate increasingly dire reliability risks and rising costs for utilities... ...Full Story Here
RSK: You will begin to see more and more of this. I`m almost certain the new data center near DeForest will use this method.
In the past year, U.S. companies made more progress in getting employees back to the office than at any time since 2020, when the pandemic fundamentally changed the traditional work paradigm. This is according to a forthcoming report from CBRE, due out next week. While some employers have gone fully remote and some offer hybrid work opportunities, the push is on to get more workers back to the office...
Key Points
In
the past year, U.S. companies made more progress in getting employees
back to the office than at any time since 2020, according to a
forthcoming report from CBRE.
Nearly three quarters of the 184 companies surveyed by CBRE said they have met their attendance goals, up from 61% last year.
More companies said they expect to expand their office footprints, rather than contract, according to the survey.
RSK: More conflicting reports but I do believe people are returning to the office more and more. It is probably not on an everyday basis...hybrid is still viable.
PORT WASHINGTON - The data center project valued at $8 billion
proposed to the City of Port Washington got the green light to move
forward.
The Port Washington Common Council approved on Tuesday
the developer’s agreement with Vantage Data Centers Management Company,
LLC, a Denver-based company with extensive experience building and
operating data centers. The data center campus would span 1,900 acres
west of Interstate 43 near Lake Drive.
Though the vote was
unanimous among the council, there were residents and people from
neighboring communities who spoke in opposition to the project.
RSK: Here is a case right in our backyard. Large data center approved but no real information on how the electrical needs will be handled and who will pay for them.
Ken Notes: Read This One! Port Washington, WI, is the proposed location for a massive, multi-billion dollar data center campus, potentially spanning up to 2,000 acres, developed by Cloverleaf Infrastructure and with major development plans also by Vantage Data Centers. The project was recently approved by the Port Washington Common Council, though local residents have expressed concerns about its impact
Ravenous demand for computing power has made data centers an increasingly large and important part of the commercial real estate market, with billions in investments planned from coast to coast.
With so much growth, CRE brokerages are increasingly turning to data centers to drive business, with larger and larger chunks of their revenue tied to the property type. Longtime stalwarts like office leasing and capital markets have run into challenges in the last few years, but data centers keep growing.
”There is about to be more data center development in process versus office, that`s just where a lot of the dollars in capital is flowing in real estate,” said Ryan Dobratz, co-lead portfolio manager for Third Avenue Management’s real estate value fund. “And so these real estate services companies are transitioning to take advantage of that.”
Data centers are simply becoming “a more important part of their overall profitability and overall investment proposition,” Dobratz said.
Growth this year has been so expansive — outpacing consumer spending for the first time — that it has raised concerns about overbuilding and even an AI bubble...
The major brokerages are using their multipronged businesses to profit from various aspects of the data center business, including capital financing, facilities management and consulting.
The services aspect of the business can be less capital-intensive for these brokerages and offer higher returns and recurring cash flows without the substantial capital investment required, Dobratz said.
None of the five major brokerages contacted by Bisnow — JLL, Colliers, CBRE, Newmark and Cushman & Wakefield — provided much additional commentary beyond statements made during earnings calls and in the public record. None broke down exactly how much of their revenue came from data centers...
Middleton restaurant has been open for more than 40 years
The Middleton Chinese restaurant Imperial Garden and an
adjacent Asian grocery store would be razed if a plan to construct a
195-unit mixed use housing development along University Avenue proceeds.
The development, which Sanford Enterprises Inc., a real estate
business acting as a consultant on the project, calls “Imperial,” would
comprise two buildings, according to a letter of intent
submitted Sept. 9 to the Middleton Plan Commission: a 10-story
residential condominium projected to have to have four penthouses, six
townhouses, 75 two-bedroom apartments and 51 one-bedroom apartments; and
a five-story apartment building with 23 two-bedroom apartments and 36
one-bedroom apartments...
RSK: Great location. Used to frequent Imperial Gardens. Seems like an ambitious plan but good luck to all involved. Need a developer to come forward and take action and move this forward.
Dane County is seeking a partner from the private sector to lead major renovations to the Alliant Energy Center’s 58-year-old Veterans Memorial Coliseum, according to the Wisconsin State Journal.
The “transformative renovation” outlined in the county’s request for proposals, issued Monday, includes building system upgrades and modernization of guest spaces.
The RFP said the county is looking for a partner that can help the Coliseum compete with similarly sized venues in the region and turn a profit.
The partner, while making the facility more attractive for events like concerts, would also need to continue accommodating major annual events like World Dairy Expo and the Midwest Horse Fair...
RSK: Oh yes, the Colosseum is so outdated. How about some naming rights? The Exact Science Expo? Losing 1 million per year and the renovations will cost 125 million....hmmm, if my math is correct that would be 125 years. Will it earn a profit if the renovations are done? We need to know that.
Ken Notes: If an engineering firm says the building is sound, I would focus on acoustics, facade and interior renovations, seating updates, and landscaping. We have other venues why create one we may not need. As is the AEC is FLEXIBLE, affordable, multi tasking, great parking, and a cash cow for the community. Cash "Cow" get it?
Real estate development and investment firmCRGon
Tuesday announced the start of construction on Chapter Mifflin, a
six-story, 516-bed student housing community in Madison’s Mifflin
District, adjacent to the University of Wisconsin-Madison.
The
project is situated on a 1.5-acre site of 12 contiguous parcels at
416-436 W. Washington Ave. and 413-417 W. Mifflin St., which were
rezoned for higher-density residential.
Chapter
Mifflin will offer 162 fully furnished units — with a mix of studio,
one-, two-, four- and five-bedroom apartments — and amenities including
outdoor terraces and a public walking path connecting West Washington
Avenue to West Mifflin Street.
Broadwing Advisors is pleased to present Dane County’s second life science real estate market report for mid-2025. Madison’s robust biotechnology market continues to be a key part of the economic future for Dane Couny. ...Full Story Here
RSK: Broadwing`s Q2 Life Science and Biotech Real Estate Report. If there is only a 2.6% vacancy rate, why hasn`t Velocity Station started construction? Seems to me they would fill at Least 90% of it? Good report.
Port Washington plan commission approved a TID for the data center Thursday
A $1.4 billion transmission line project is being proposed to help support a planned data center development in Port Washington.
American Transmission Co. wants to build new transmission lines, rebuild existing lines and build new substations across several counties, according to a recent application with the Public Service Commission of Wisconsin. The project would help meet the energy demand for a data center development in Port Washington.
“The Project is needed to reliably serve a load interconnection request by We Energies to serve a new large load addition in the Port Washington area,” the application said...
RSK: The continued controversy of Data Centers and pristine countryside along with power demands. Data centers do not require many employees to operate and they often drive up utility rates for local residents
More details have been released on the Dane County Advisory Committee on Data Centers.
The
committee, which is set to be introduced by Dane County Board Chair
Patrick Miles with representatives from the Dane County Cities and
Villages Association and the Dane County Towns Association on Thursday,
aims to bring more transparency to data center development.
The
committee will study numerous areas focused on data centers, such as
energy and water usage surrounding their developments, infrastructure,
economic effects and more...
Traditional models shifting toward platform-based strategies
Artis Real Estate Investment Trust was once the kind of diversified
property owner that embodied the Canadian REIT model. Its portfolio
spans more than nine million square feet across industrial, retail, and
office assets, split between Canada and the United States. With a market
capitalization of around $650 million, Artis isn’t one of the giants,
but it has long been seen as a steady, asset-heavy operation focused on
rent collection and incremental growth. That makes its decision to merge
with RFA Capital Holdings all the more notable.
The merger will
see Artis absorbed into RFA’s banking and mortgage business, effectively
transforming a traditional property owner into part of a financial
platform. This is more than a structural reshuffling, it’s a signal that
the future of real estate might be found on the balance sheet rather
than in the skyline. By swapping physical assets for a share of a
mortgage origination platform, Artis is betting that returns will come
faster and more predictably from financing deals than from collecting
rent on office or retail space in a slow-growth environment...
RSK: Artis merging is very interesting but it seems to be the trend these days. I`ll have to find out more.....spoke with Kyle at Artis and they will remain the property management arm.
WEDC offering up to $16M in tax credits to support expansion, bringing total contract to $96M
Foxconn plans to spend $569 million to expand its manufacturing
operations in Racine County over the next four years, the Wisconsin
Economic Development Corp. announced Tuesday.
The agency says Foxconn will expand its Wisconsin manufacturing
footprint in Mount Pleasant and create more than 1,300 new jobs,
including both factory and office workers.
The company says it makes artificial intelligence servers in Mount
Pleasant. Jerry Hsiao, chief product officer at Foxconn, said in a
statement the expansion is in response to rising demand for “data
infrastructure.”...
Here are some of the most notable M&A deals from 2025
Though 2025 wasn’t much to write home about for the restaurant industry, there was one faint silver lining in that mergers and acquisitions picked up compared to a remarkably slow 2024.
Many of the deals have occurred in the middle market where the risk is a bit lower as the industry remains choppy by most definitions. That said, a choppy industry makes a strong case for consolidation and scale... ...Full Story Here
RSK: Okay, I lied. Another look back at mergers & acquisitions in the restaurant world. You`ll recognize many. The one that interested me the most was Keurig/Dr. Pepper acquiring Pete`s Coffee, but it makes sense.
Holiday shopping has always been a make-or-break period for
retailers. The final weeks of the year often determine whether brands
close strong, clear inventory efficiently, or enter the new year under
pressure. For retail real estate, the holidays are equally revealing.
They show which locations still command foot traffic, which formats
resonate with consumers, and how physical retail fits into an
increasingly digital shopping journey. Black Friday and the broader
holiday season are no longer just sales events. They are stress tests
for the modern retail ecosystem.
This year’s holiday season is
delivering a cautiously optimistic signal. Early forecasts pointed to
modest growth, shaped by inflation fatigue and consumer uncertainty.
That outlook has improved as the season unfolded. “We forecast a 3.1
percent increase this year. We are now resetting that number closer to 4
percent. It isn’t too much because of price increases, it is an
increase in overall spend,” said Anjee Solanki, National Director of
Retail in the U.S. for Colliers. That distinction matters for landlords.
Growth driven by volume rather than price suggests consumers are still
willing to shop, not just absorbing higher costs...
RSK: Some good news for Brick n Mortar. Although foot traffic was down a bit for small shops, major malls saw an uptick and the trend has positive signs.
Ken Notes: We have to change our retail focus, retail is no longer passive, but must now be considered a entertaining destination. If tapping "Buy It Now" is easier than getting in the car -- why get up. We are seeking elements that turn shopping into an outing rather than an errand...
The Madison City Council approved two housing-focused ordinances on Tuesday night.
One proposal will allow four-home structures to be built in residential areas along major transportation corridors.
The
other allows for the development of three to four dwelling units on
single lots. The transit corridor is an area of the city designed for
company developments around the bus rapid transit routes.
The second proposal allows smaller homes around a courtyard or greenspace to be constructed, also known as cottage courts.
“We’re
making real progress on creating more housing opportunities in Madison
and it’s very encouraging to see how this is a shared priority of our
community and our elected leaders,” Madison Mayor Satya Rhodes-Conway
said in a statement. “There is still work to be done to ensure every
resident can find a home in Madison that works for their family.”..
The Art-Deco-style State Office Building at 1 W. Wilson St.
is up for sale in a bid to reduce the state’s physical footprint in
downtown Madison, the Wisconsin State Journal reports.
The building most recently housed the state Department of Health Services.
Bids for the building will be open through mid-March.
The
state is intent on selling three buildings within a block or two from
the state Capitol building. It would save around $7.4 million annually
in operating costs and $541 million in deferred maintenance costs...
RSK: You knew this was coming at some point. The old historic building has a ton of deferred maintenance. Conversion to hotel or apartments would be costly and being historic will be hard to demo it. Be interesting to see what comes about.
The only thing hotter than the record temperatures across the Midwest the last couple of weeks is the region’s multifamily sector.
Rent growth in Chicago and other major central U.S. cities is sizzling, topping reports analyzing the metric in markets across the country.
And big multifamily and investment executives are making big plays, betting conditions are ripe for the asset class`s regional resurgence, despite macroeconomic headwinds hitting the sector at large.
“We`ve been the poor stepchild for a long time, and it seems now there`s some interest,” said Tim Anderson, CEO of Chicago-based developer Focus.
“Places where people flooded to [during the pandemic] have been overbuilt, and I think the demographics and the job growth in those areas will self-correct over time. But right now, Chicago looks pretty attractive.”.
Chicago saw 4.2% year-over-year rent growth in May, the third highest in the nation, behind Brookline, Massachusetts, and Hollywood, Florida, according to CoStar data. Other Midwest cities also far surpassed average national rent growth of 1% last month, with Indianapolis posting 2.6% growth and Madison, Wisconsin, hitting the 2.3% mark...
Dollar General’s third-quarter results took a hit as multiple hurricanes impacted its business, but it still managed to top sales estimates.
“We are pleased with our team’s execution in the third quarter, particularly in light of multiple hurricanes that impacted our business,” said Todd Vasos, CEO of Dollar General. “While we continue to operate in an environment where our core customer is financially constrained, we delivered same-store sales near the top end of our expectations for the quarter.”
Conversions, once considered unrealistic for the vast majority of
Manhattan office buildings, have become increasingly possible solutions
with the combination of new legislation and interested lenders.
That is especially important for longtime family owners,
who until now may have struggled to see a future for their now-futile
office buildings, panelists said Thursday at Bisnow’s New York Conversions and Adaptive Reuse Conference...
The median asking rent dropped 0.6% year over year to $1,610, the 13th-straight month in which rents have been fairly stable. New tariffs could increase rental demand and hamper rental supply, which would cause rents to rise.
The median U.S. asking rent fell 0.6% year over year to $1,610 in March, and rose 0.4% month over month.
Asking rents have stabilized below their 2022 record high of $1,705. March marked the 13th-straight month in which asking rents barely decreased or increased, with a year-over-year change of less than 1% during each of those months.
Redfin economists have been saying for months that it’s only a matter of time before rents tick up again. That’s because apartment construction is slowing, which will likely motivate landlords to raise rents because there won’t be as much supply, meaning they won’t be competing as fiercely for tenants. Now there’s a new twist that could expedite this process: tariffs...
Office tenants in search of new space know what they want, and they are leveraging today’s market conditions to get exactly that.
Five years after the start of the pandemic, many tenants have enacted policies to bring their employees back to the office and are increasingly making long-term leasing decisions. More than 54M SF of office leases closed during the first quarter, according to CBRE, up 18% from last year.... ...Full Story Here
RSK: Good article and 4 tests cases. Read this one...
The commercial real estate industry has never lacked data. But it has
long lacked clarity. And now, amid a wave of AI hype, that gap is
widening.
Every property owner today wants to claim they’re using
artificial intelligence. Most are not. They’re layering automated
workflows on top of disconnected systems and calling it innovation. What
looks like a digital strategy is often just a better spreadsheet.
But
AI isn’t a dashboard or a plug-in, it’s a discipline—one that demands
not just technology, but operational courage. As with any discipline,
the real advantage lies in how you practice it...
Redesigning offices is no longer just a real estate decision. It can
be a leadership strategy to retain talent and strengthen culture with
hybrid work. I`ve noticed the way leaders approach workplace design
often reflects how organizations value people, belonging and long-term
sustainability.
Hybrid work is a common expectation
for many employees these days. The question for leaders is not whether
offices are necessary, but how to redesign them so they deliver value in
a flexible and competitive environment. Offices must now justify their
existence by supporting experiences employees cannot replicate at home,
with spaces that foster innovation, trust and connection.
QTS Data Centers presented its data center project to the DeForest Village Board on Tuesday, detailing the nearly 1,600-acre project, the Wisconsin State Journal reports.
The newspaper said a few hundred people showed up from DeForest and the nearby town of Vienna to speak against the project.
Farmland and water concerns were brought up, as well as a distrust of QTS and energy concerns.
QTS said in the first phase of the project, it would spend $12 billion to build five data center buildings on 650 acres of land along Highway V. It said the first phase would generate $20 million in property tax revenue annually.
Land for the project is currently in Vienna, and QTS said it wants the land annexed into DeForest... ...Full Story Here
RSK: I wouldn`t expect anything less from the neighbors. It is always NIMBY but in this case they may have legit concerns that need to be answered. That being said, if the questions are answered satisfactorily, it would be a great boon to the community.
Michelle Bowman and Christopher Waller, members of the Federal Reserve`s board of governors, gave separate speeches Monday during which they said that slow progress on getting inflation down to the Fed`s 2% target rate is forcing the central bank to keep rates where they are.
“I would like to gain greater confidence that progress in lowering inflation will continue as we consider making further adjustments to the target range,” Bowman said in a speech at the American Bankers Association, CNBC reported.
January’s inflation numbers came in higher than analysts expected, with the consumer price index rising 50 basis points from the end of 2024. It now sits at 3%...
The world’s largest tech companies aren’t slowing down their data center development plans.
Microsoft, Amazon, Google and Meta are collectively ramping up investment in data centers and other infrastructure to support artificial intelligence, their executives said on quarterly earnings calls over the last week, quelling widespread fears of an imminent slowdown in hyperscale data center demand. ..
The Trepp CMBS Special Servicing Rate rose for the second consecutive month in May, up 13 basis points to 10.30%.
In 2025, year-to-date, the rate has risen 41 basis points and since the beginning of 2024, the rate has risen more than 350 basis points. In May, the balance of loans in special servicing rose by $1.3 billion, while the overall balance of CMBS loans outstanding climbed more than $5.6 billion as well.
When looking into property type specifics, four sectors were minimally changed, with monthly movements of five basis points or less. Only two property types saw substantial changes to their respective rates: lodging and office.
The lodging rate experienced some relief, receding 64 basis points to 9.57%, after spiking to a three-year high the month prior. On the flip side, the office rate surged another 86 basis points in May to 15.76%, pulling the overall rate higher along with it. Just one year ago, the office rate was over 500 basis points lower at 10.52%. ...Full Story Here
RSK: Trepp`s report on Commercial Loans in the special servicing category( read most likely delinquent). Bright spot is Hotels which fell some while office loans rose some.
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.
AI data centers are multiplying across the US and sucking up huge amounts of power. New evidence shows they may also be distorting the normal flow of electricity for millions of Americans. This map shows readings from about 770,000 home sensors, with red zones indicating areas with the most distorted power.
Every day, Americans reach into their refrigerators or turn on their dishwashers without much thought given to the electricity flowing through their homes. But a hidden problem now threatens these seemingly mundane tasks: distorted power supplies.
The term for the issue is “bad harmonics.” It may seem a bit esoteric, but you can think of it like the static that can be heard when a speaker’s volume is jacked up higher than it can handle. Electricity travels across high-voltage lines in waves, and when those wave patterns deviate from what’s considered ideal, it distorts the power that flows into homes. Bad harmonics can force home electronics to run hot, or even cause the motors in refrigerators and air conditioners to rattle. It’s an issue that can add up to billions of dollars in total damage...
RSK: This is a very interesting report....and it could be a serious problem if the power grid consumption by data centers goes unchecked. Worth the read.
President Joe Biden issued an executive order Tuesday enabling a pair of federal departments to lease sites for developers to build artificial intelligence infrastructure powered by clean energy “at speed and scale.”
The order directs the Department of Defense and Department of Energy to make federal sites available for data centers and clean power facilities, facilitate the infrastructure’s interconnection to the electric grid, fulfill permitting obligations quickly and advance transmission development around those sites.
As uncontained wildfires plagued Los Angeles on Thursday, the vice chair at Colliers Los Angeles had opened her Brentwood home’s doors to three evacuated families. And she knew that if the Palisades blaze kept developing, her household — which now consists of 12 people and two dogs, thanks to the flames — could be the next to evacuate.
Still, there was business to attend to. On Friday, she’s scheduled to close the sale of three multifamily buildings in Glendora, about 17 miles east of the Eaton fire, as part of a 1031 exchange. The buyer is a local player who watered his house, evacuated and got back to signing contracts via Docusign. The deal must go on, she said...
RSK: This and other disasters has pushed the insurance industry to the brink. It will effect everyone and not just homeowners but commercial property as well.
When Triple Five Senior Vice President of Development Kurt Hagen sat down at a local municipality meeting in early 2021, he was ready to burn down the $5B house.
A year of stop-start pandemic lockdowns and restrictions had turned the opening of the long-delayed American Dream mall into an American nightmare. Pretty much the moment Triple Five had thrown open the 3M SF complex`s expensively manufactured doors, it had to slam them shut again, and Hagen could no longer hide his emotions.
“Not opening and not being able to generate any cash for six months created some very significant problems,” Hagen told his audience, a group of Bloomington, Minnesota, City Council and Port Authority officials, with whom he was discussing the fate of another of the group`s big properties, Mall of America...
A proposed Midvale Boulevard project that would have increased bike lanes and cut on-street parking has been suspended after receiving opposition from some area homeowners, according to The Capital Times. City officials announced this week that alternatives will be taken under consideration, delaying the target construction date.
Nearly all parking on the boulevard from Mineral Point Road to University Avenue would have been eliminated under the city’s initial plans, which would have implemented additional bike lanes, improved pedestrian crossings at intersections, and resurfaced the entire section for the first time since 2005. ... ...Full Story Here
RSK: Good call...I hardly see any bikers on north Midvale. I wonder if the funds for this were frozen by the Trump Admin being the real reason?
CEDAR RAPIDS, Iowa — Iowa is emerging as a magnet for massive data centers owned by Google, Meta, Microsoft, and Apple—companies that have invested over $17 billion statewide, according to the Iowa Economic Development Authority. But officials and energy experts warn that growing electricity demands could outpace capacity and strain water resources, especially as artificial intelligence and cryptocurrency mining expand.
A newly obtained draft bill from Gov. Kim Reynolds appears to pave the way for a nuclear comeback in Iowa—an old solution returning just as momentum builds to restart the state’s only nuclear plant.
Reviving a reactor amid a data center surge
NextEra Energy, which operates the shuttered Duane Arnold nuclear facility near Palo, confirmed to Iowa’s News Now that it has filed notice with the Nuclear Regulatory Commission to request a licensing change that could allow Duane Arnold to restart by 2028...
RSK: As data centers expand in Wisconsin, I wouldn`t be surprised to see the state`s nuclear reactors back in action.
Ken Notes: I am a fan of Small modular reactors (SMRs). These could be built on site, off load excess capacity, and are safer than larger units. How safe you ask every US Submarine and many large ships use them. No failures so far... nyse: BWXT
Supply in primary data center markets increased by 34%
year-over-year to 6,922.6 megawatts (MW), far surpassing the 26%
increase in 2023.
Primary markets had a record 6,350 MW under construction at the
end of 2024, more than double the 3,077.8 MW at year-end 2023. This
surge was driven by robust demand and extended construction timelines
due to power constraints and supply chain delays.
The overall vacancy rate in primary markets fell to a record-low
1.9% at year-end. Only a handful of facilities with 10 MW or more are
slated for delivery in 2025 and are not yet leased, reflecting the
scarcity of large-scale available inventory.
Atlanta led all primary markets for net absorption in 2024 with
705.8 MW, well above perennial leader Northern Virginia’s 451.7 MW. This
was the first time any market surpassed Northern Virginia in annual net
absorption.
The average monthly asking rate for a 250-to-500-kilowatt (kW)
requirement across primary markets increased by 12.6% year-over-year to
$184.06 per kW, reflecting continued demand amid tight supply.
The rise of artificial intelligence (AI) workloads is
transforming the data center industry, driving unprecedented demand for
power-intensive infrastructure. AI-related occupiers are increasingly
influencing site selection, design and operational requirements,
prioritizing markets with scalable power capacity and advanced
connectivity solutions.
Markets like Charlotte, Northern Louisiana and Indiana are
seeing significant investment due to tax incentives, available land and
greater power accessibility. These markets are poised to grow as they
attract hyperscale and colocation providers alike.
RSK: Look at the 3rd chart.....lease asking rates for data centers shooting up like a rocket. We shall see what the Cinese ai program does to this. Many think it is not all that it`s cracked up to be.
The COVID-19 pandemic, which began in March 2020, brought profound and unprecedented changes to how people lived, worked and played. These shifts reshaped the way businesses, customers and employees interacted with physical spaces.
While some economic disruptions were negative, many opportunities emerged that benefited the economy and the commercial real estate sector. Five years later, certain behavioral changes remain, while other aspects of daily life have gradually returned to pre-pandemic norms. ...Full Story Here
RSK: Cities are cool again...especially for living and social needs. Hopefully this will carry over to office use.
The real estate market could feel the consequences of these policy decisions
In recent months, President Donald Trump has increased the tariffs on Chinese imports and announced plans to place a 25% tariff on all goods coming from our two largest trading partners, Canada and Mexico.
Beyond that, the Trump administration has talked of placing 25% tariffs on all aluminum and steel imports, as well as implementing “reciprocal tariffs” on U.S. trading partners as soon as this month.
It’s unclear whether the currently proposed tariffs will become reality. For instance, Trump had implemented tariffs on all Canadian and Mexican imports in March, only to announce a one-month delay a few days later.
Whatever the outcome of these announcements, the Trump administration has decided that tariffs are an important part of its trade strategy. The administration’s approach to tariffs is grounded in the belief that these trade restrictions would benefit the U.S. economy by reducing trade imbalances, protecting American jobs and stimulating domestic industries...
RSK: The operative word here is "can". We will have to see how all this shakes out but without knowing the actual tariffs and what they hope to produce. So, we wait and it seems most people say they are not good yet every other country has imposed them on us and they seem to be doing fine.
And other considerations on companies’ employee mandates.
More firms are setting stricter in-office expectations, including
minimum in-office requirements, with larger companies leading the shift.
As of early this year, nationwide office traffic remained at 59
percent of pre-pandemic levels, but that could change if corporate
pressure intensifies, according to a new report from Savills.
“We were surprised to discover that flexible-hybrid models—where
employees choose where to work—made up a smaller share of company
policies than office-first models,” Devon Munos, senior vice president,
head of Americas research at Savills, told Commercial Property Executive.
“We’ve seen more office-first announcements recently, but it was interesting to see the trend clearly reflected in the data.”...
Corporations’ increasing need for short-term and flexible space is driving greater demand.
As a sociology fan, I find it interesting to observe patterns of
adaptation in business as well as society. Historically, individuals
have had to adapt to business much more than the other way around (with
the obvious exception of larger social movements like campaigns for
workplace protection laws).
More recently, business has become more sensitive to the workplace
preferences of large incoming generations, notably Millennials and Gen
Z, which have bucked previous generations’ willingness to just fit in.
But the shifts in how and where work is conducted have been much more
significant in the past few years, as individuals and companies alike
have responded to the necessities and flexibilities brought on by the
pandemic.
The coworking sector has been a big beneficiary of this more recent
shift, and its continued ability to adapt is expected to result in even
greater expansion. The industry will nearly triple by 2028, according to
CommercialEdge projections, to $37.4 billion from $14.3 billion last
year. What’s more, it’s likely to become a much more significant player
in the office space, comprising 30 percent of all office inventory by
2030, up from just 2 percent currently..
Heather: Long gone are the days of endless cubes for many businesses as experiences are desired not only in retail but in office as well. Amenities, comfort, proximity, connection. We are entering a “softer” side of real estate. Part of me thinks this could increase “ownership” of roles and at other times, that efficiency could be a thing of the past. Time will tell. Long gone are the days of endless cubes for many businesses as experiences are desired not only in retail but in office as well. Amenities, comfort, proximity, connection. We are entering a “softer” side of real estate. Part of me thinks this could increase “ownership” of roles and at other times, that efficiency could be a thing of the past. Time will tell...
Kimco
Realty CEO Conor Flynn told Jim Cramer that the changing business
environment at shopping centers features services in addition to
traditional retail storefronts.
“Services is all about in
person, all about the e-commerce-resistant type use, and that’s what’s
driving vacancy rates to all-time lows,” Flynn said, adding that service
businesses are often related to health and wellness, like urgent care
and veterinary facilities.
In a Monday interview with CNBC’s Jim Cramer, Kimco Realty
CEO Conor Flynn described the changing business environment at shopping centers, saying “it’s all about services” rather than just traditional retail storefronts.
“Services is all about in person, all about the e-commerce resistant type use, and that’s what’s driving vacancy rates to all-time lows,” he said, adding that service businesses are often related to health and wellness, like urgent care and veterinary facilities...
RSK: Although I find Cramer very entertaining I take his advice with a pinch of salt. But this Kimco interview is right on.Malls used to have more retail with some service providers mixed in. Now the tide is turning and they will become more service and entertainment than retail.
The sector also leads the CRE pack in property value growth, according to Newmark’s latest research.
Potential tariff-driven inflation and a worsening job market have households subdued and uncertain about their financial outlook and expectations, according to Newmark’s new retail trends report.
However, wage growth is solid and continues to outpace inflation, according to recent hard data. Consumers continue to dine out and spend on books, sporting goods, hobbies and personal care services.
Discount grocers and warehouse clubs are well-positioned to capture consumer demand should the economy slow significantly due to tariffs. Investors love them, too.
Meanwhile, in the first quarter of 2025, retail investment sales volume was up 13 percent from the first quarter of 2024 and 15 percent from the first quarter of 2023... ...Full Story Here
Notes: RSK: We will see how long retail remains strong if the tariffs keep rolling on.
President Donald Trump is eyeing the nation’s nuclear capacity and not exclusively from a defense perspective.
Trump late last week signed a series of executive orders meant to streamline the construction of nuclear power plants as demand for energy skyrockets amid the artificial intelligence boom.
“It`s a brilliant industry,” the president said before signing the orders Friday, NBC News reported. “You have to do it right."
The suite of orders would speed up the review process for new nuclear projects, including forcing the Nuclear Regulatory Commission to make decisions on new licenses within 18 months. The orders would also expand uranium mining and enrichment, promote nuclear energy research and allow the U.S. Department of Energy to build reactors on federal land...
Amid this decade`s boom in data center development, conversions of existing buildings have become more rare than they were previously. But now, an emerging shift in demand for artificial intelligence computing may trigger more adaptive reuse projects.
With other CRE sectors suffering from higher vacancy, the idea of converting underperforming warehouses, offices and retail properties into data centers has been frequently floated but rarely executed.
Such adaptive reuse projects may sound intuitive, but a consensus emerged across the data center sector over the past half-decade that, with few exceptions, demolishing an existing structure and building from scratch is faster, cheaper and easier than attempting a retrofit...
RSK: You will be seeing more and more of this. It all makes sense for the delivery of last mile data tech and AI. That office building next to you may be housing a data center soon.
Burlington Stores is continuing the rollout of its refreshed in-store shopping experience.
The off-price retailer’s new store format is designed
to enhance the customer experience, offering Burlington’s product
assortment in a more streamlined, easy-to-shop space. It features
“thoughtfully organized” aisles, an open layout that makes it quicker
and easier to find brands, and bold signage that showcases the latest
must-have trends.
Half of Burlington’s 1,115 stores
have already been converted, and most remaining locations are expected
to transition to the new format by the end of 2026. All future new
stores will feature the updated branding and smaller, more efficient
layout. (At about 18,000 sq. ft. to to 25,000 sq. ft., the new stores
are significantly smaller than traditional Burlington outlets.)
And what’s behind these shifts, according to JLL’s latest research.
Calling the life science sector’s start to this year “disquieting,” a
just-released report from JLL examines the multiple uncertainties that
are making investors and pharma companies cautious and leasing deals
smaller on average.
One measure of this is that the U.S. lab market, which totals roughly
200 million square feet, would need about 20 million to 25 million in
net absorption or supply reduction to reach equilibrium, according to
JLL’s latest study.
“Barring an unforeseen and substantial growth spurt of demand,” JLL
writes, “the likeliest outcome of this period of oversupply is that
well-built and well-located buildings will gain market share, while
buildings without those aspects will face increased odds of distress in
the next 12-24 months.”...
Despite office demand still recovering more than five years
since the pandemic, developers are considering the unthinkable in
the not-too-distant future: building a new office building without a
commitment from a tenant.
Office vacancy across the U.S. hit a record-high 20.4% in the first quarter, according to Moody`s. But vacancy in prime buildings is less than 15%, according to CBRE.
In two years, CBRE projects that rate will be cut nearly in half to 8.2% because of how little office construction has taken place since the pandemic and how coveted the top-quality buildings are.
“Along with this insatiable demand that`s going into this very small cohort segment of the trophy product, it begins to make you realize that we`re going to run into a challenge,” CBRE Global Head of Occupier Research Julie Whelan said during a panel discussion at the National Association of Real Estate Editors convention in New Orleans last week.
“Our best estimate is that by 2027, we`re effectively going to be out of prime trophy space,” she said. ...Full Story Here
RSK: I have a hunch they are right on...at least I am hoping so.
The national retail vacancy rate rose to 4.3% in the second quarter, up 10 basis points as late 2024 closures began to hit the market. Availability is increasing but remains just 15 bps above its Q4 2023 low and well below the 10-year average, signaling limited impact on overall U.S. retail fundamentals...
RSK: Great report. Retail has slowed down mainly for lower tired spaces. If you have a newer space with a decent location, things are still leasing up.
For the first time since the pandemic redefined work habits, a majority of Fortune 100 companies now require full-time office attendance, according to a new report by JLL. Hybrid models, once embraced by 78% of top firms, have plummeted to just 41%. Meanwhile, 54% now mandate full in-person work, a significant increase from just 5% two years ago.
This shift is reshaping the commercial real estate landscape. Office occupancy climbed 1.3% year-over-year in April and May, and the demand for high-end office space is surging. JLL reports that trophy buildings in markets like Miami, NYC, and San Francisco are achieving record-breaking rents, with newly constructed office space averaging $92.38 per square foot.
Vacancy rates remain high, though, over 22% nationally, prompting a wave of conversions and demolitions that shrank the U.S. office inventory by 700,000 square feet last quarter...
Our research experts’ perspectives on the impact of economic and
geopolitical trends on the global real estate outlook and regional and
country prospects.
Mid-year update
The first half of 2025 was more disrupted and less predictable than anyone anticipated despite our expectations of heightened uncertainty at the start of the year. Changes to U.S. trade and tariff policy have dominated the global economic and geopolitical narrative, while regulatory, fiscal and tax policies have also shifted rapidly. Additionally, there remain ongoing and potential conflicts around the world. Despite this, real estate markets have proved resilient, albeit with a diverse range of impacts and effects across geographies, markets and asset types....
Wisconsin has long been a tourism destination, with generations of families renting cabins to tourists for weeklong stays to enjoy lakes, woods and small-town charm.
Short-term rentals (STRs) play a crucial role in Wisconsin’s busiest destination communities: Door County, Lake Geneva, Oneida County and Vilas County ...Full Story Here
RSK: Interesting...Door County leads the way in people renting out their single family homes. I was just up there for a long week and the place was hopping. The quaint little villages were bustling.
The housing market is cooling fast. Are you ready?
Resale pricesare down compared to one year ago in 53 of 150 markets we track, with declines spreading beyond Texas and Florida.
New home prices, including builder concessions and incentives, have fallen -1.5% versus last year as builders have been caught with too many completed, unsold homes for the first time in many years.
Resale prices have risen in 65% of the country over the last year,
so pay attention to local dynamics. For our clients, we produce 70-page
reports and have user-friendly dashboards with just about every stat we
can think of on 100+ metro areas every month.
Price drops spreading
With new home construction exceeding job creation in most areas, the supply of newly built homes is outpacing new demand. Homebuilders are lowering prices and payments to find demand.
Price weakness has expanded across the Southeast, Southwest, and West Coast. Even some markets in the Midwest and Northeast, where tight supply previously supported strong pricing power, are seeing price appreciation slow rapidly. This geographic spread signals a widespread shift in pricing power...
RSK: Midwest still has rising prices but the rate of growth is falling. Same is happening in multifamily.....even with less construction in that sector, this means higher rents which will eventually make construction profitable.
If hyperscale data centers pose a competitive threat to smaller data centers, one local operator of the latter version does not appear too worried.
Bryan Schenker, president of 5NINES Data, a local internet service provider offering colocation to dozens of customers from its 4,000 square foot data center, is among those who don’t see much overlap between big and small.
And even though it’s now part of a larger operation, 5NINES would be in the small but scrappy category.
Schenker also is the president of ResTech Services, an internet service provider for multiple tenant properties (about 20,000 apartment units in the Madison area use the service). ResTech acquired 5NINES, located in the Network222 building, at 222 W. Washington Ave., in October 2023. ResTech also acquired LiteWire, a rural wireless ISP based in Evansville, at that time.
With that combination of internet service and data storage, the company addresses the technical needs of small- and medium-sized businesses, municipalities and others...
It was all but inevitable last week that the Federal Reserve would make its first rate cut of the year, and the decision came as no surprise to the commercial real estate sector. Still, after holding its collective breath for nine months, the industry let out a sigh of relief at the decision.
Interest rates and the cost of capital have been the looming giant in the heads of commercial real estate decision-makers this year, and transaction volumes had already started to tick up ahead of the widely expected 25-basis-point cut to the federal funds rate... ...Full Story Here
RSK: Only if there is another drop in rates will CRE take heed, however, this small cut brings hope.
As large, “hyperscale” data centers needed to run
artificial intelligence applications pop up in the state, fears about
what these developments mean for climate change and water usage have
surfaced.
Because such data centers and their AI
servers require more powerful chips and intense cooling systems due to
the heat they generate, some believe the only path forward is the
continued reliance on fossil fuel sources.
Under that
scenario, there is still a role for clean energy to play, but it may be a
supporting role. The multiple business benefits of AI and the
international race to lead in this transformative technology could mean a
fully green energy economy will happen later rather than sooner...
RSK: Just an excellent article on the state of the state of Data Centers in WIsconsin...pros, cons, benefits and problems. If you only read one article this week...it is this one.
JPMorgan Chase’s new headquarters at 270 Park Avenue is more than a ribbon-cutting. It’s a declaration that the largest bank in the United States intends to shape the next chapter of Midtown. The Norman Foster–designed tower will begin welcoming teams this month, marking the culmination of years of surgical demolition, complex urban engineering, and a deliberate rethinking of what the modern office should feel like for the people who use it.
The opening comes at a telling moment. Midtown East is rewriting its future as older towers age out and demand shifts toward healthier, smarter, more flexible workplaces. JPMorgan is meeting that shift with scale. The new headquarters consolidates thousands of employees into a single vertical campus while anchoring a broader urban footprint that includes 383 Madison Avenue and 250 Park Avenue. With nearly six million square feet concentrated within a few blocks, the bank has effectively created a self-contained neighborhood in the heart of Manhattan. ...Full Story Here
RSK: Thought you might want to read about the future of corporate offices.
The city of Portage approved the construction of housing units for the city’s north side, according to the Wisconsin State Journal.
Portage
Preserve is a 60-unit, tax increment-financed development. Each unit
will have two bedrooms, two bathrooms and a one-car garage. There will
be a total of five buildings with 12 units in each.
PRE/3
Real Estate Management, a Brookfield-based developer, is managing the
project. The company is also building a 72-unit development in Baraboo...
The facility will house more than 1 million square feet of
manufacturing and warehouse space and allow customers to see its
automation and digital solutions in action on-site.
Dive Brief:
Rockwell Automation said it plans to build a factory
equipped with advanced automation, robotics and digital systems in
Wisconsin as part of a larger $2 billion bid to strengthen its U.S.
operations.
The facility has the potential
to be Rockwell’s largest manufacturing campus with more than 1 million
square feet of production and warehouse space. A company spokesperson
declined to say what exactly would be manufactured there.
Construction and site planning
are underway with local and state officials. The Milwaukee-based company
said the factory will be near its headquarters. Job creation and cost
details were not disclosed in the company’s news release.
Dive Insight:
The project is part of Rockwell’s previously announced plans last quarter to invest in its production plants, digital infrastructure and workforce in an effort to boost its margins over the next five years...
RSK: That is one nice expansion. It does not say exactly where or how many new jobs will be created but it may be near New Berlin in the Milwaukee area.
Tech giants keep ramping up their artificial intelligence spending,
but the blistering growth of the AI data center construction boom may
not last much longer.
The pace of data center construction has accelerated to unprecedented
levels as Big Tech companies increase investments in the infrastructure
to support their AI ambitions. The combined capital expenditures of the
world’s largest tech firms jumped 73% year-over-year last quarter, and hyperscalers Amazon, Google, and Microsoft project it will grow even faster in the months ahead.
Overall data center construction spending doubled between 2024 and 2025 and
is expected to nearly double again in 2026. But the data center
sector’s stunning skyward growth trajectory may have an imminent
expiration date...
RSK: My thought is this; instead of large mega centers, there will be more smaller centers strategically located so as not to put such high demand on the grid. Just my thought.
Stocks on Wall Street were elevated slightly Monday as
traders anticipate the Federal Reserve’s decision on interest rates
later this week, according to the Associated Press.
Futures
for the S&P 500 were up 0.2% in the premarket, while Dow Jones
Industrial Average futures were flat and Nasdaq futures rose 0.3%.
Auto
retailer Carvana shot up nearly 9%, building materials company CRH
jumped 7% and construction contractor Comfort Systems USA rose 1.4%.
Berkshire
Hathaway lost less than 1% after the Warren Buffett-led conglomerate
announced investment manager and Geico CEO Todd Combs is leaving the
company and heading to JPMorgan Chase...
With a week left until Christmas Day, holiday sales are trending upward from last year.
New analysis from Salesforce indicates that during the first 45 days of the 2025 holiday season (Nov. 1 and Dec. 15), global
online sales have risen 7% year over year, reaching a total of $1.033
trillion from $849 billion. In the U.S., online sales are up 4% year
over year to $238 billion.
While average selling price has increased 6% globally and 7% in
the U.S. from the 2024 holiday season, order volumes are also seeing
slight increases compared to last year of 3% globally and 1% in the
U.S...
RSK: As it became closer to Christmas, brick n mortar sales started to increase. Malls became busier and it helped bolster their sales. Nothing like having last minute gifts in hand rather than worrying about shipping.
The city of Madison will use more than half of its 2025
budget surplus to cover $5.75 million for Metro Transit due to an
increase in salaries and benefits, as well as fare revenue that did not
meet fiscal predictions, the Wisconsin State Journal reports.
Madison
originally budgeted $18.4 million on Metro Transit for 2025, but did
not expect a rise in costs from the new transit line and an updated
contract with union bus drivers.
Madison is ending the year with more than $10.62 million in surplus, of which the $5.75 million will come from...
Office buildings finally started trading hands this year
after a long dry spell brought on by elevated interest rates and a
gaping gulch between buyer and seller price expectations.
While thousands of office sales in some of the country’s
hardest-hit markets were welcomed as a sign that a long-awaited rebound
might finally be on the way, the sales also represented sometimes
bone-deep discounts for sellers trying to offload underperforming
assets. As 2025 draws to a close, however, the tide might be turning...
RSK: The office sector certainly had a rough year. However, it is near the bottom but may have some way to go down before coming back up...I see the upside coming....the deals are out there now but won`t last long.
Big Lots is almost out of options now that its white knight has left the table.
The
off-price retailer said it does not anticipate completing its
previously announced sale to Nexus Capital Management, “though it
continues to work toward completing an alternative going concern
transaction with Nexus or another party” with a goal to complete a sale
by early January. In September, Big Lots filed for bankruptcy protection as part of a deal to be acquired for about $760 million by private equity firm Nexus Capital.
In his first few days in office Trump has already made a lot of major
changes, some of which will have implications for how the federal
government will deal with its office real estate. Besides his twenty six
executive orders, President Trump issued an executive menu that said,
“Heads of all departments and agencies in the executive branch of
Government shall, as soon as practicable, take all necessary steps to
terminate remote work arrangements and require employees to return to
work in-person at their respective duty stations on a full-time basis,
provided that the department and agency heads shall make exemptions they
deem necessary.”...
RSK: This is probably good for the US Government but may put even more stress on the already troubled office market. I assume a private sale will influx better taxes for the affected cities.
The Trump administration is swiftly executing new space reductions by the day.
The administration has canceled 22 leases, equating to $44.6M in cost savings for the federal government, the Elon Musk-led Department of Government Efficiency posted on X Sunday evening.
The post didn`t say which buildings were part of the termination.
On Jan. 27, DOGE posted that three leases of “mostly empty office space” had been terminated, equating to $1.6M in savings, a post that new General Services Administration acting Administrator Stephen Ehikian retweeted.
Sunday’s post says the uptick in lease terminations from three to 22 had occurred in the six days between the posts.
“It’s got the market on edge right now,” a federal real estate leasing veteran told Bisnow on Monday...
A growing number of businesses are struggling to find smaller warehouse spaces, even though the pandemic-era uptick in warehouse demand has cooled. According to real-estate services firm Cushman & Wakefield, the vacancy rate for U.S. warehouses under 100,000 square feet was 3.9% in the fourth quarter, much lower than the 6.7% overall vacancy rate.
This is partly because in the past five years, developers have focused on constructing buildings larger than 100,000 square feet to accommodate growing e-commerce operations, and small warehouses are often in urban and suburban areas where space is tight and land is expensive.
“Marketplace” host Kai Ryssdal spoke to Liz Young at The Wall Street Journal about how businesses are having trouble finding small warehouses to lease. Below is an edited transcript of their conversation. ...Full Story Here
RSK: Reason? Simple supply and demand. Most new construction has been in the larger buildings and spaces. Plus many companies have scaled back on leases for large spaces and what the versatility of growing or scaling back and small spaces allow for this.
Self-storage development activity has continued to slow and is expected to drop to 2% of inventory by 2027 and 1.5% of inventory through 2030. This is according to Yardi Matrix’s latest self-storage report and forecast.
Full-year construction starts are on pace to contract by 20% compared to 2023, and the deceleration in starts has begun to show up in the under-construction pipeline, which contracted by 1.8% during the fourth quarter, according to Yardi Matrix. On an annual basis, the under-construction pipeline has declined by 6.7% after peaking in December 2023, and Yardi Matrix said most of the current under-construction pipeline will be completed this year or by early 2026...
Space market fundamentals can differ markedly across property types. Net absorption (demand) and net deliveries (supply) for the four traditional property types (retail, apartments, industrial, and office) highlight the ups and downs of the space markets and can illustrate excess net demand (net absorption less net deliveries) for each sector.
Recent data from CoStar showcase the supply and demand differences across property types. In the fourth quarter of 2024, retail was the only sector where quarterly demand exceeded supply. For the other property types, net absorption continued to fall short of net deliveries. Despite these shortfalls, each sector has been making progress toward reaching its equilibrium... ...Full Story Here
RSK: Some interesting graphs....I might have done it a bit different and simplified it a bit.
The D.C. office market was just starting to stabilize when the federal government threw a wrench in the plan, fueling a new sense of uncertainty across the city. But the top echelon of the market is facing a vastly different reality, new data shows.
The market for trophy office space is getting tighter every quarter. With the construction pipeline nearly dry, it is only getting more constrained, and tenants vying for the limited available space are pushing rents to new highs... ...Full Story Here
At the third annual In Business Madison Real Estate & Construction Symposium on
April 16, Madison development leaders shared sharp, often candid
insights on everything from municipal approval frustrations to
post-pandemic office trends and the intensifying pressure on industrial
and lab infrastructure.
In a wide-ranging evening
featuring an intimate keynote conversation with developers as well as a
discussion among a panel of experts, three themes stood out: the need
for local leadership in shaping growth, the demand for flexibility and
community engagement, and the increasing complexity of delivering
housing and innovation-ready space in a changing economy.
Local developers, local values
During
the keynote session, sisters Anne Neujahr Morrison and Sarah Neujahr,
both principals of New Year Investments, discussed their development
philosophy, shaped by deep roots in Madison and a shared legacy at Urban
Land Interests. Their company developed the Ella on East Washington
Avenue — a vibrant mixed-use building with 135 income-restricted
apartments and several locally owned Black- and women-owned businesses —
on the site of the former Ella’s Deli.
Their approach,
they explained, is grounded in long-term investment, neighborhood
engagement, and design that reflects the city’s character....
RSK: Mostly the basics that are problems in CRE. The city approval bottleneck is one of the more important ones. A more complete synopsis will be in the May InBusiness Edition...
Shippers of all stripes have scrambled for the last month as the Trump administration’s blistering tariff regime came into clearer focus, seeking ways to blunt the impact of steep levies imposed on every major trade partner.
One solution in particular has emerged, with industrial users hunting for access to a small and dwindling pool of property. The sought-after spaces are called bonded warehouses and offer the ability to store goods for up to five years without paying tariffs until the inventory leaves the warehouse.
But while importers clamor for these spaces, bonded warehouses are widely seen as a short-term solution for short-term problems, and those who haven`t locked in space may already be too late...
The U.S. Life Sciences Property Report reveals six trends highlighting current lab market dynamics. Market
equilibrium faces significant challenges that will require substantial
absorption while leasing patterns undergo dramatic shift and market
consolidation. Despite these challenges, there are opportunities for
well-positioned landlords and investors to capitalize on the inevitable
market correction and position themselves for the next wave of
innovation......Full Story Here
RSK: Because of reshoring, life science leasing will probably attract to increase.
When visiting another city, you have likely spotted some notable differences from the one you call home.
From well-paved roads and less traffic congestion to a noticeable
change in crime rate that makes you feel safer walking down a street
alone, many factors contribute to the way cities run.
WalletHub
looked at nearly 150 cities across America to determine which are the
best-run cities and which are the worst in terms of "the effectiveness
of local leadership," looking at a variety of factors like financial
stability, safety, education and economy. According to the site:...
Among the list are two cities in Wisconsin, one of which is ranked in the bottom half among the worst: Madison (No. 31) and Milwaukee (No. 109)....
RSK: Well it could be worse...we are only #31 worst city....except Milwaukee is #109....yikes Madison.
Ken Notes: Madison has lots of opinions which can make it difficult but the end result is usually pretty good. Rank the same cities as to livability, workforce, and quality of life and we will do well...
President Donald Trump on Wednesday said his administration will not approve solar or wind power projects, even as electricity demand is outpacing the supply in some parts of the U.S.
“We will not approve wind or farmer destroying Solar,” Trump, who has complained in the past that solar takes up too much land, posted on Truth Social. “The days of stupidity are over in the USA!!!”
The president’s comment comes after the administration tightened federal permitting for renewables last month. The permitting process is now centralized in Interior Secretary Doug Burgum’s office.
Key Points
President Donald Trump said the U.S. will not approve wind or solar power projects.
Trump has tightened federal permitting for renewables with Interior Secretary Doug Burgum now having the final say.
Renewable companies fear that projects will no longer receive permits that were once normal course of business.
RSK: I get where the President is coming from, but it may be bad news for data centers since they draw electricity in huge chunks from the Grid. Solar and wind can help ease that demand. The answer is for data centers to develop their own solar and wind farms if feasible.
Ken Notes: This will get interesting because solar and wind are now the most affordable way of producing power. I personally am a fan of Small Modular Reactors (SMR) or microreactors but they have yet to gain any traction. As of August 2025, there are no commercially operating Small Modular Reactors (SMRs) on land in the United States
. While several projects have been proposed and funded, none have completed construction and received regulatory approval to begin operating.
Four years since the pandemic sent people home to
work, companies have been intensifying their desire for a return to the
office. Yet for many workers, flexible work arrangements are a
must-have.
Peter Cappelli, a professor of
management at the University of Pennsylvania`s Wharton School, has a new
book co-written with Ranya Nehmeh, a workplace strategist. "In Praise of the Office: The Limits to Hybrid and Remote Work" lays out the business case for employers pushing for workers to get back to the office...
After showing resiliency in recent years, the U.S. apartment market saw the return of mild annual rent cuts in August as occupancy softened.
U.S. apartment occupancy eased a bit to 95.4% in August, according to data from RealPage Market Analytics. That was down 10 basis points (bps) from the July showing but still matched the market’s five-year average. Year-over-year, occupancy was up 130 bps...
Federal Reserve officials in September were strongly inclined to
lower interest rates, with the only dispute seeming to be over how many
cuts were coming, meeting minutes released Wednesday showed.
The meeting summary
indicated near unanimity among participants at the Federal Open Market
Committee that the central bank’s key overnight borrowing rate should be
cut due to weakness in the labor market.
Key Points
Fed
officials in September were strongly inclined to lower interest rates,
with the only dispute seeming to be over how many cuts were coming,
meeting minutes released Wednesday showed.
The “dot plot” of
individual members’ expectations showed the group split 10-9, with the
slim majority expecting two more cuts before the end of the year.
Officials
grew concerned with the state of the labor market, which they saw as
weakening as upside threats to inflation continued though they still
expected it to ease back to the Fed’s 2% target.
America’s affordable housing crisis has reached a breaking point. According to the National Low Income Housing Coalition, the nation faces a shortage of more than seven million affordable homes for extremely low-income renters. Rents continue to outpace wages, and federal subsidies are stretched thinner every year. Meanwhile, another part of the built environment is quietly falling behind: the low-end hotel sector. Many budget and roadside hotels that once catered to business travelers or tourists are now facing lower occupancy and higher operating costs. A growing number of them sit partially empty, unable to compete with newer chains or short-term rental platforms. This collision of excess rooms and unmet housing need is prompting developers to consider a creative solution—turning old hotels into new homes.... ...Full Story Here
RSK: As far as I know, in Madison, we have had one motel converted to apartments for the homeless and low income housing.
Ken Notes: I have always been a fan of adaptive reuse but the key to solving homelessness is far more converting buildings you need a social network to develop a support community. Jobs, mental and physical health, housing, food and more to solve the problem.
For decades, industrial real estate was treated as commercial property’s workhorse—functional, cheap, and largely ignored. The sector’s reputation as the “poor cousin” of office space was cemented by its utilitarian design: cavernous boxes on the edge of town, prioritizing loading bays and clear heights over comfort or connectivity. But as industrial tenants shift from storage and distribution to high-tech production, those unglamorous boxes are undergoing a quiet transformation. Today’s advanced manufacturing users want spaces that look less like logistics centers and more like modern workplaces—digitally connected, comfortable, and flexible enough to attract specialized talent.
That shift is being fueled by both economics and workforce dynamics. According to CBRE, demand for U.S. industrial space tied to manufacturing has grown nearly 15% year-over-year, outpacing logistics for the first time in decades...
For over 45 years, The Gialamas Company has brought real estate development, brokerage, leasing and building management expertise to the City of Madison and the State of Wisconsin.
The e-commerce titan plans to triple its network of rural distribution hubs to help deliver another 1 billion packages annually across 13,000 ZIP codes, CoStar News reported.
“[Amazon will] build out our same-day delivery sites and add additional robotics and automation throughout our buildings,” Amazon CEO Andy Jassy said during the company’s Thursday earnings call. “You`ll also see us expand the number of delivery stations that we have in rural areas of the U.S. So, we can get items to people who live in less densely populated areas much more quickly.”
The $4B investment is expected to be disbursed through 2026, the company said...
RSK: Do not be mistaken. These distribution centers are close to metro areas and are a boost to the small communities. Good example is the Cottage Grove Center which is a few miles from metro Madison.
Ken Notes: I still believe that Kohls may still be in play. They have the stores and a distribution network and could be purchased outright for around 4 billion.
Commercial Property Executive is excited to launch its
first ever Guide to CRE Brokerage Success, an essential, comprehensive
resource for those seeking to discover and polish the real estate skills
needed to close any deal like a true pro.
Though 2022 seems a blink away, its golden days of deals almost
closing themselves are long gone, and so is the insatiable capital flow
of the time. The challenges a CRE broker faces today, especially an
up-and-comer, are as unique, complex and sometimes confusing as the
economic realities of today. As such, a rift in the market also marks a
shift of skills needed in real estate. This is where the idea—and the
need—of such a guide stem from.
In putting together this guide, we’ve spoken with more than a dozen
top dealmakers from Avison Young, The Boulder Group, CBRE, Coldwell
Banker, Colliers, Cushman & Wakefield and Matthews who have
distilled, for our readers, their top advice and the main takeaways from
their real estate success stories and challenges...
Struggling discount retailer Big Lots has secured a last-minute rescue deal that could save hundreds of stores and thousands of jobs, just weeks after the chain filed for bankruptcy.
The Ohio chain made an agreement with Gordon Brothers and Variety Wholesalers that should help keep hundreds of stores open and save thousands of jobs.
Under the agreement, Gordon Brothers would purchase the retailer and then transfer between 200 and 400 Big Lots stores and two distribution centers to Variety Wholesalers, which operates discount chains including Roses, Maxway and Bargain Town.
The stores would continue operating under the Big Lots name...
RSK And just like that, someone comes in to pick off the good producing stores and will know doubt sell off the ones that are marginal. Will be plenty of those becoming empty boxes for lease or sale...I`m betting on it.
Sodexo is increasing its convenience store footprint on college campuses.
The foodservice giant has set a goal of opening nearly 100 “Food Hive” markets at colleges nationwide by 2026, with its current goal of opening around 30 sites during the 2024-25 academic year now underway. Described by Sodexo as a modular, scalable and “white label-ready” campus convenience store, Food Hive provides students with a quick and cashless payment convenience experience with a community focus. The format supports local partners and minority- and women-owned businesses by featuring their products... ...Full Story Here
RSK: Kwik Trip seems to have the market in Madison at UW but I wouldn`t be surprised to see one sneak in somewhere in Wisconsin.
The data center industry’s skyrocketing energy needs became
front-page news last year, and those power woes aren’t going away
anytime soon.
But industry leaders expect that in 2025 a clearer picture will emerge of how power shortages and artificial intelligence
are combining to redraw the data center map. It will also be a
make-or-break year for AI as tech giants look to make money from the
products and services driving the data center boom...
The Madison restaurant carousel revolves into 2025 with new opportunities to try a variety of cuisines across the area.
Newly opened spots include a Korean barbecue-style spot on State Street across from a Japanese izakaya (a casual bar with hearty snacks). Mineral Point Road has a new cafe for Middle Eastern desserts. We have a fresh Detroit-style pizzeria on East Johnson, a new American place with a Norwegian name in Stoughton, and a Mexican restaurant now on Atwood.
The end of the year always brings a flurry of restaurant closings, too, as business owners shift priorities (and some cut their losses). Recent weeks have seen closing announcements from Taco Local on Williamson Street, Reunion in Spring Green (temporary, owners say) and Short Stack Eatery (closing in May). Hong Kong Cafe is for sale. Bar Manzo closed in December, and The Wedge, a bar on Atwood Avenue, closed this month...
Many of the nation’s largest airports have recently undergone multi-billion-dollar transformations that reimagine outdated terminals as modern, innovative, and sustainable spaces for the millions of travelers that pass through them every year. These ambitious renovations—like those at Portland International Airport (PDX) in Oregon and LaGuardia Airport in New York City—offer valuable lessons for office facilities managers and designers. From energy management and sustainability to improving occupant experience and space optimization, these airport projects demonstrate how thoughtful design can meet the needs of modern users.
RSK: This is not just for airports but for office structures as well. The idea of thermal heating and cooling is a bit more difficult because the office footprint is usually much smaller than the airport which has many acres to make geothermal a cost effective option.
Shares of U.S. tech, data center and energy firms plummeted Monday morning following the unveiling of DeepSeek, a Chinese artificial intelligence model that rivals those of U.S. tech giants — and was produced at a fraction of the cost while using far less computing power.
The emergence of DeepSeek’s R1 model has raised questions about the hundreds of billions of dollars in investments that tech giants like Microsoft, Amazon, Google and Meta are making on high-performance AI chips, data centers and the energy infrastructure needed to support them.
While the best models from U.S. tech firms still outperform R1, the efficiency of the Chinese model reportedly had Meta engineers “in panic mode” and has generated amazement from tech leaders like venture capitalist Marc Andreessen, who wrote on X that it is “one of the most amazing and impressive breakthroughs I’ve ever seen” and AI`s “Sputnik moment.”...
RSK: And plunge they did...but I would be very weary about what a Chinese company has to say until proven true. ChatGPT is still a much better program. Maybe they can figure out how to use less power and chips as well.. In either case, the Data Centers sector of CRE will cool off for now until this is all settled out. If you are involved in any of the speculation I would take heed.
When President Trump announced that he would follow through on his promise to enact tariffs on China, Mexico, and Canada, stock market futures immediately sank. When the markets reopened, the anticipated sell-off had already begun. Investors seemed to be offloading stocks across nearly every sector, from tech to commodities to REITs. While some believed the tariffs and the potential trade war could have broad negative impacts, others speculated that multifamily real estate might serve as a safe haven.
Analysts suggested that residential real estate owners could benefit from the trade war, as higher construction costs would limit new supply, making existing multifamily properties more valuable. Slowing the construction of new homes—already in short supply across the country—could, in theory, drive up the value of multifamily buildings. But, other economic effects might counteract this decrease in supply, introducing uncertainty into the market...
The COVID-19 pandemic ushered in a new era of remote-work policies—and led to a drastic downturn in the demand for office space in the United States. Research by New York University’s Arpit Gupta, University of North Carolina’s Vrinda Mittal, and Columbia’s Stijn Van Nieuwerburgh finds that office occupancy in major US office markets tumbled by 90 percent from the end of February 2020 to the next month, as buildings emptied out. Occupancy rates recovered by the end of 2023, but were still at about half of their pre-pandemic levels.
Today, the uncertainty around working from home continues to depress office occupancy, lease revenue, and lease renewal rates in commercial real estate. But hybrid work creates some reason for hope. The researchers find that office-space demand from 2019 to 2023 fell by about 41 percent for companies whose workers were expected to be in the office only one day per week...
RSK: This is a robable spiral for large cities with a major downtown office presence. The tax rolls will diminish significantly....and will the rest of the taxable real estate be able to make up for it? Look for service cuts in the near future.Madison Is not immune to this scenario.
Whether one uses the term life sciences, biotech, or
biohealth, facilities that make up Greater Madison’s “bio” market have
more square footage than the same markets in several of the nation’s
largest metropolitan areas, including New York, Atlanta, and Houston,
according to the first Madison-focused “Life Science Real Estate Market
Report” published by Broadwing Advisors.
With an
inventory of 4.8 million square feet of lab space in 89 lab facilities,
Madison also has a much lower life science market vacancy (2%) than most
large markets, a sign that it has avoided overbuilding even though more
than 40% of local industry growth has occurred during the past 10
years.
Yet there are some aspects of the local market
that could be improved, especially the development of a more robust
population of mid-sized companies, according to Craig Stanley, founding
principal of Broadwing Advisors. Broadwing is a commercial real estate
advisory service that has worked with local life sciences firms such as
Aldevron, Exact Sciences, and Nimble Therapeutics...
At the close of Q4 2024, the U.S. industrial market recorded its 60th consecutive quarter of positive net absorption, though demand softened compared to the previous two quarters. While market vacancy is likely to hover around a cyclical high of 6.9% in 2025, this easing of supply-side pressures sets the stage for future improvement....
Both Mexico and China announced retaliations to new tariffs imposed by U.S. President Donald Trump, according to the Associated Press.
Mexican President Claudia Sheinbaum said Tuesday that Mexico will respond to 25% tariffs imposed by the United States with its own tariffs on U.S. goods. Sheinbaum said she will announce the products Mexico will target on Sunday, perhaps indicating Mexico still hopes to de-escalate the trade war set off by Trump.
China said it will respond to new U.S. tariffs by imposing additional tariffs of up to 15% on imports of key U.S. farm products, including chicken, pork, soy, and beef, and expanding controls on doing business with key U.S. companies. ...Full Story Here
RSK: Even though this is indirectly related to real estate, the key word here is China, Mexico and even Canada are imposing "extra" tariffs on our goods....where we had little to none on theirs. So will this drive up construction prices in the long run? I doubt it but one never knows. Lots of opportunities here for US companies.
Retail kicked off 2025 with solid momentum: January retail sales grew 4.8% year-over-year, driven by inflation and volume gains. Core retail, excluding food service, gas stations, and autos, saw a 4.0% increase. However, maintaining this growth throughout the year may be challenging amid economic uncertainties.
Grocery and home furnishings led to spending gains: Grocery sales surged 5.0% year-over-year, partly due to reduced holiday discounts and colder weather driving stock-up behavior. Home furnishings saw 5.2% growth, with consumers eager to refresh their spaces post-holidays. Meanwhile, home improvement retail remained sluggish, up 0.7% as consumers held off on big projects.
Apparel and department stores saw steady in-store growth: Clothing store visits rose 4.81% year- over-year, aligning with 3.6% sales growth, boosted by cold-weather purchases and post-holiday discounts. Department stores saw a 3.62% increase in visits, indicating continued consumer interest despite a challenging sector landscape...
From price increase warnings to confidence that vendor
relationships will help ride out the storm, here’s how the retail
C-suite plans to weather tariffs.
Retailers have been responding to the recent onslaught of tariff changes by the Trump administration.
C-suite members on recent earnings calls have clarified their company’s operations and answered inquiries about their approach to navigating the current environment.
While talking with analysts on Feb. 20, Walmart’s response to questions regarding tariffs was relaxed, even nonchalant, with CEO Doug McMillon stating they’ve managed tariffs for years. But, by March 6, Bloomberg reported that the big-box retailer was pushing suppliers for price cuts to mitigate their impact...
RSK: Kind of a mixed bag on the implications with most saying it will help in the long run. My question is, how will it affect warehousing space in the US? Up or down in terms of rent costs and square footage.
With steep new tariffs
bearing down, a travel ban in the works and persistent talk of annexing
foreign land, hotel owners are wary of the potential travel impacts of
President Donald Trump’s policies.
Additional uncertainty has
piled on as companies work to complete their recoveries in the face of a
growing wave of loan maturities set for this year.
“As is with a lot of things
going on in the economy, it`s very hard to forecast what the president
is going to do, and it is conceivable that this isolationism could have a
longer-term impact, which is something we`re monitoring carefully,”
said Mitchell Hochberg, president of The Lightstone Group, a private
real estate firm that developed the Moxy hotel group.
The area around Amazon`s downtown Seattle headquarters is bustling, with employees lining up at restaurants and food trucks at lunchtime on a recent Wednesday.
Groups of badge-wearing workers chat as they carry bags of food back into the tech giant`s high-rise offices along Lenora Street between 6th and 7th Avenue. Some stop by the popular banana stand at the base of The Spheres — glass conservatories serving as employee and tourist hubs at the Amazon campus — where “banista” Jessamyn Reichmann hands out free fruit from a silver Airstream trailer on weekdays.
“Activity has picked up universally," Reichmann said. "There’s more foot traffic and commuters, and it’s more crowded in the buildings since January."
After three full months of Amazon`s requirement that workers come to offices five days a week, downtown Seattle foot traffic — especially in the area around its headquarters — has reached daily averages not seen since before the pandemic hit in early 2020, the latest data from the Downtown Seattle Association shows. ...Full Story Here
RSK: A bit of conflicting reports here. Some businesses say the foot traffic is helping them while others say inflation has raised prices and people are complaining and not coming to their establishments. I would say it is a good thing.
Sublease availability and new construction deliveries continue to
decline, creating the conditions for “cautious optimism” in the sector,
Cushman & Wakefield says.
Despite economic uncertainty, office demand remained resilient in the first quarter, showing negative absorption in the period but increasing 30% quarter-over-quarter and 48% year over year on a four-quarter rolling total, according to Cushman & Wakefield’s Q1 2025 office marketbeat report released Monday.
Net absorption was positive in the first quarter for a third of U.S. markets, with over half of office buildings having single-digit vacancy or no vacancy at all. “Quality matters and high-quality office continues to outperform,” Cushman & Wakefield says...
RSK: I hope they are correct. Less new construction is helping lease up those sublease spaces so they might be onto something. Yet, the RTO has not accelerated but remains steady.
Owning might just be the new leasing for industrial occupiers thanks to the appeal of total control, the potential for long-term cost savings and a major push to make more products in the U.S.
Property sales to industrial occupiers zoomed up 32% last year, with manufacturers increasingly at the front of the line.
And the trend is accelerating: Houston-based broker David Wang has seen a 250% increase in calls from manufacturers interested in buying industrial real estate since President Donald Trump announced sweeping new tariffs... ...Full Story Here
RSK: This seems to be the bulk of CRE sales, owner occupants, with very few investor purchases.
Shopping center landlords are feeling the pressure as retailers are increasingly pulling back on leasing.
The first quarter of the year marked the weakest three-month period for shopping center leasing since 2020 when the pandemic put stores on lockdown, The Wall Street Journal reported, citing Cushman & Wakefield data.
Overall, tenants vacated nearly 6M SF more than they occupied in the quarter, according to Cushman & Wakefield. Last year, retailers closed roughly 1,300 more stores than they opened, according to Coresight Research.
The slowdown comes as a tsunami of bankruptcies have hit, forcing stores to consolidate their portfolios in a matter of months. A Bisnow analysis previously found that at least $8.7B of CMBS loans are backed by properties where bankrupt retailers have decided to terminate their leases over the past year...
Public officials across the country are getting more creative in their strategies to rejuvenate their downtowns five years after the pandemic decimated foot traffic.
In San Francisco, leaders and landlords are offering small businesses free rent on retail space. Stakeholders in Birmingham, Alabama, are repositioning vacant offices into new storefronts and restaurants. In Denver, bodegas and banks are replacing offices downtown as city stakeholders hope to transition the retail base from focusing on workers to catering to residents.
City and economic development officials around the United States are looking to their ground floors as a way to fill gaps left behind by the absence of commuting workers.
"It`s about adapting to a new normal and thinking about what the function of our downtown is now," Sarah Wiebenson, the senior manager of economic development at the Downtown Denver Partnership, told CoStar News.
Local legislators are among the 25,000 people who have descended upon Las Vegas to attend the annual International Council of Shopping Centers conference in an attempt to boost their retail ecosystems and rebuild the foot traffic... ...Full Story Here
RSK: This works if the downtown has a vibrant residential component to it...otherwise you are hoping to build it and will they come? Still need those workers to visit the retail downtown for the establishments to make a go of it.
Use of trophy properties is back near pre-pandemic levels on peak days, report shows
Owners of trophy office towers in big U.S. cities may have reason to feel like it’s 2019, the pre-pandemic time when workers pushed through crowded lobbies and elevators to log in for the day.
Class A+ buildings in major markets are exceeding 90% of pre-pandemic use on peak days, according to a midyear report from building security firm Kastle Systems. That use reaches 94% on Tuesdays, the top day for in-person work.
The report offers hope for landlords throughout the country that have struggled to overcome historically low demand for corporate space as remote and hybrid work habits have persisted more than five years since the onset of COVID-19.
It also highlights wide gaps between top-tier properties in the largest cities and the broader U.S. office market...
RSK: This trend is national. Top tier office space is leasing up. It may make sense to build or remodel buildings in the near future as rents are driven up...
A company that builds vertiports — or hubs where flying vehicles can
take off and land without a runway — has struck a deal to develop the
potential air taxi hubs on private aircraft terminals in New York,
Florida and Texas.
Signature Aviation, an Orlando-based operator of
private aircraft terminals, signed a joint venture agreement with
Italian advanced air mobility infrastructure firm UrbanV to evaluate
U.S. locations for a network of U.S. airports to host electric and
hybrid vertical takeoff vehicles.
The firms are exploring locations in Signature’s existing
airport network, which spans 200 locations in 27 countries, and beyond,
according to a press release. The move is aimed at capturing demand born
from the rapid advancement of piloted aircraft and unmanned drones
capable of shuttling passengers and cargo short distances...
Change in average residential electricity prices from May 2024 to May 2025
Electricity costs are rising in Georgia and across the country — and could get even higher for some amid the explosion in data centers powering AI and more.
Why it matters: Surging power bills could further stress many Americans` budgets as pretty much everything else gets more expensive, too.
By the numbers:
Georgia`s average retail residential price for 1 kilowatt-hour of
electricity rose from 14.93 cents to 15 cents between May 2024 and May
2025, per the latest available data from the U.S. Energy Information Administration, a gain of about 0.5%...
Across major U.S. cities, the long tail of the pandemic continues to reshape commercial property values and the budgets that depend on them. Nowhere is this more visible than in the offices that once served as the backbone of urban tax bases. The sharp decline in valuations has left municipal finance directors juggling budget forecasts, property owners challenging assessments, and homeowners increasingly shouldering the difference.
In New York, office buildings have lost roughly $29 billion in assessed value between 2021 and 2025, a plunge of around 16 percent when adjusted for inflation. That slide has translated into a $1.16 billion shortfall in property tax receipts, with more than 90 percent of the hit coming from office properties. Vacancy levels remain about twice what they were before the pandemic...
In our hyper-connected world, data
centers are powering everything from social media scrolls to AI
breakthroughs. These massive warehouses of servers store and process the
digital universe, but as their footprint explodes, so does the friction
with the communities they inhabit. With artificial intelligence driving
unprecedented demand, data centers are multiplying faster than ever.
Yet, a wave of local resistance is highlighting a stark tension: the
promise of jobs and innovation versus the strain on resources and
quality of life.
The Rise of Data Centers
Data centers have always been vital, but the AI revolution
has supercharged their growth. By mid-2025, the U.S. boasts over 5,400
facilities, with vacancy rates dipping to a record-low 1.9% in major
markets. Hyperscalers like Google, Amazon, and Microsoft are racing to
build bigger, greener operations to handle the deluge of data. Globally,
investments are pouring in—North America alone saw hyperscale
expansions valued in the tens of billions. But this boom isn’t without
costs. What was once a quiet industry in industrial outskirts is now
clashing with suburbs and rural towns, sparking debates over who foots
the bill for progress...
The U.S. warehouse market is showing early signs of balance after
several years of volatility between supply and demand. The national
industrial vacancy rate held at 7.1% in the third quarter, matching the
previous quarter and marking the first time in three years that
availability did not rise. Net absorption, a measure of occupied space
growth, increased to 45.1 million square feet—up 30% from the prior
quarter—indicating that tenants are beginning to fill available space
even as developers scale back new projects... ...Full Story Here
RSK: With spec construction down and materials costs up, equilibrium has been found.
Federal Reserve Governors Stephen Miran and Christopher Waller provided conflicting views on how quickly the central bank should lower interest rates in the face of a weakening labor market and heightened geopolitical tensions.
Miran said Thursday he plans to repeat his push for a half percentage point interest rate cut when the Fed meets later this month...
Key Points
Fed
Governor Stephen Miran said Thursday he plans to repeat his push for a
half-percentage-point interest rate cut when the central bank meets
later this month.
Governor Christopher Waller advocated a
quarter-percentage-point reduction at the meeting later this month, a
position that appears more in line with the Fed consensus.
Earlier this week, Fed Chair Jerome Powell indicated that a softening labor market kept the door open to additional easing.
The office-to-residential conversion wave has grown from a niche experiment into a full-blown movement. But for most owners, the idea of converting an underperforming office building starts with a nagging question: is my building even worth converting? The fact is that not every office tower is destined to become housing. For all the headlines about downtown conversions, only a fraction of buildings actually make sense once the math and mechanics are factored in. The industry has learned that figuring out which ones can work, and which ones can’t, isn’t just about design inspiration, it has to do with the details of the building. Gensler has created a scoring system, called Conversion+, to answer that question quickly and with confidence, long before anyone cuts a check for a feasibility study...
RSK: This sentence is probably one of the most important factors in the conversion peocess of office to residential/mixed use. “The best building for this is 50 years old and has never been maintained or upgraded,” Paynter notes. “That way, you are not paying for something that you are going to throw away.”
The student housing developer behind the Atmosphere Madison, now called The Axton, has delayed its second Madison housing project by a year, according to a Wisconsin State Journal report.
The city of Madison approved a demolition of a pair of low-rise apartment buildings with 120 total beds at 619 and 699 W. Mifflin St. for Trinitas Ventures of Lafayette, Indiana, to construct a 10-story student apartment building with about 665 beds.
The new development will be constructed between the Milwaukee Road Depot (at 640 W. Washington Ave. and now home to Motorless Motion Bicycles, Bandit Tacos and the Harvey House) and Wiedenbeck-Dobelin Warehouse, both designated as Madison landmarks... ...Full Story Here
RSK: I`m sure it will be completed. This group has a good track record.
Wendy’s plans to close 140 U.S. restaurants before the end of this year on top of the 100 it said it would close in May.
But
in a conference call with investors Thursday, the company said those
closures will be offset by new restaurant openings. Wendy’s said it
plans to open between 250 and 300 restaurants this year.
Wendy’s President and CEO Kirk Tanner said the restaurants that are closing are underperforming compared to others.
“They’re
just in locations that don’t build our brands,” Tanner said. “You look
at a brand that’s 55 years old and some of those restaurants are quite
out of date.”
How the economy, remote work and other major issues are reshaping the multifamily market...
A new survey from RCKRBX, a Washington, D.C.-based multifamily market
intelligence platform, finds that renter demand and preferences have
shifted significantly since the pandemic, with more than 40 percent of
respondents are delaying homeownership because of current economic conditions.
Renter expectations continue to evolve and reshape the multifamily
market, Michael Broder, CEO & co-founder of RCKRBX, said during a
webinar Wednesday that highlighted findings of the firm’s inaugural
National Renter Demand Indexing study...
Big
Bad Breakfast is a 26-unit breakfast concept that chef John Currence
first opened in Oxford, Miss., in 2008. He’d already been running his
fine-dining restaurant, City Grocery, in Oxford for 16 years.
“Plump
with talent as a restaurant group, I had the right people in place, and
it just kind of dawned on me … that nobody in my circle of friends had
ever approached breakfast in the same way that we all dived deeply into
the philosophies that we wanted to apply to lunch and dinner,” he said.
Why not build a smokehouse to make his own bacon, hang his own ham, make his own jellies and jams, grind corn to make grits?...
RSK: I miss the Egg & I here in Madison. Great place to meet clients and easy parking right off our central Beltline. This might be a good concept for a replacement.
Madison
joins other Midwest cities like Minneapolis, St. Louis and Cleveland on
Redfin`s list of housing markets most likely to heat up next year,
along with Syracuse, New York and the New York City suburbs.
The
Midwest and Great Lakes regions "have wide appeal because they`re fairly
affordable and provide relatively safe havens against climate-related
events like wildfires and floods," Redfin leaders wrote in the report,
released Dec. 2...
RSK: Again, with the slow-down in construction because of hardships getting permits with the city of Madison, costs of materials and interest rates this should be no surprise. The demand is there. Jobs in various techs are available. People will be moving in...if there are apartments available. If you have land for development, get it out there. Developers will be calling.
Smith Gilbane,
the joint venture development team of Gilbane Development and Summit
Smith Development, started construction of Block Three at Madison Yards,
marking a major milestone in the continued transformation of Madison,
Wisconsin’s, Near West Side.
Block Three is the latest phase of the vibrant Madison Yards
master-planned community, a dynamic mixed-use district that is
redefining urban living in Madison. Smith Gilbane is redeveloping 14
acres at the Southwest corner of University Avenue and Segoe Road into a
walkable, mixed-use district that boasts 500+ residential units, an
upscale hotel, multiple Class-A office spaces, 400,000-SF of
medical/office space, a Whole Foods Market, and retail, restaurant, and
entertainment uses...
RSK: The Hilldale are NORC (naturally occurring retirement community) has always been a hot concept from day 1. It looks like it shows no slowing down.
The number of ultra-wealthy Americans is growing, and as
commercial real estate values bottom out, they’re eyeing the sector as a
safe place to put their millions.
The country is already in the midst of what has been dubbed the “Great Wealth Transfer” as younger generations take hold of nearly $106T in family assets through 2048, redefining the economic landscape. Alongside them are freshly minted billionaires, as artificial intelligence and crypto have rocketed entrepreneurs into a new status...
RSK: The number of ultra-wealthy is growing, mainly due to family offices that enjoy the tax breaks of real estate ownership...but eventually, those deferred gains will come back to haunt you. These family offices per se feel they know better how to manage their properties rather than a third party...it has been proven right. We have several of these family offices in Madison, and I bet you could name a few yourself.
The recent stretch of store closings has pushed retail space availability to a new two-year high.
Commercial real estate data firm CoStar’s newest report reveals that store closures more than doubled in 2024 compared to 2023, pushing the retail space availability rate to 4.8%. This marks the most retail space available for lease than at any point in the past two years.
CoStar says that since the start of 2024, retailers have announced plans to close more than 10,000 stores, with chains like Big Lots, Joann, and Party City closing hundreds of locations. Closures have led retail space availability to increase by approximately 12.5 million sq. ft. since the start of 2025...
RSK: Even though there are a few more vacancies due to closures and bankruptcy, retail demand remains strong. THose spaces will no doubt fill up by successful businesses that are expanding.
Local reports point to shuttered locations of Outback Steakhouse, Bonefish Grill, and Carrabba’s Italian Grill
Bloomin’ Brands Inc. quietly closed several restaurants this past weekend, according to local news reports.
The company that operates Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar closed a Bonefish Grill location in Gainesville, Va., on Sunday, according to the Prince William Times, which quoted a Bloomin’ official as saying that its 60 employees would be able to transfer to another location and receive “transition bonuses.”
An Outback Steakhouse in Merrick, N.Y., also closed on Sunday, according to GreaterLongIsland.com, as did a 30-year-old location in Naples, Fla., according to Gulfshore Business, which quoted the leasing agent as saying that a neighboring Outback damaged the older location’s business...
RSK: In case it slipped by you, they closed the Outback Steakhouse and Bonefish Grill on Madison`s west side Monday. Always seemed to be plenty of cars in the parking lot when i went by......but that doesn`t mean they were making money.
The return-to-office orders have taken on new weight amid a softening labor market and broader economic anxiety.
A lot can change over the course of five years — especially if they
happen to follow a norm-shattering, once-in-several-generations
pandemic.
In the white-collar workplace, the pandemic meant a sudden shift to
remote work. And just as the world started to return to normal with the
arrival of COVID vaccines, companies and their employees entered a cold
war over return-to-office mandates.
Now, five years out, the work-from-where debate is reaching a fever
pitch. Earlier this year, corporate giants such as Amazon and JPMorgan
Chase — as well as much of the US federal government — ordered employees
to return to the office a full five days a week. More recently,
Paramount and Novo Nordisk have declared an end to remote work, while
Microsoft and NBCUniversal beefed up their hybrid work requirements....
A rough year for the restaurant industry led many chains to close underperforming locations in 2024, as they try to improve their sales in the years to come.
Inflation-weary consumers pulled back their restaurant spending in 2024 and instead sought value and discounts when they did choose to dine outside their homes. Overall U.S. restaurant visits fell for the first 10 months of the year, according to data from industry tracker Black Box Intelligence....
Key Points
Restaurant chains like Wendy’s, Denny’s and Applebee’s closed locations in 2024 as consumers dined out less often.
U.S. restaurant visits fell for the first 10 months of the year, according to Black Box Intelligence.
The casual-dining sector was hit hard, leading to bankruptcy filings and hundreds of restaurant closures.
RSK: It is tough out there for restaurants from sit down to chain fast food. Food costs have shot up out of control, as well as rents and labor. Many have cut back on staff and are focusing on value and take out. Many will not survive 2025, yet the allure of owning one`s own is some sort of primal force in people.
The percentage of CMBS loans tied to office properties that have fallen behind on payments is at its highest level on record.
Roughly 11% of office buildings tied to CMBS loans were
delinquent, beating the previous high watermark of 10.7% set during the
Great Recession in December 2012, according to Trepp, which began tracking the CMBS sector in 2000.
More than $2B in office loans became freshly delinquent in
December, causing a 63-basis-point increase in the overall delinquency
rate, according to Trepp.
Office loan delinquency has nearly doubled over the
past year, growing from 5.8% in December 2023. The sector has been the
primary driving force behind the overall increase in distress in CMBS
loans. Over the past year, the overall CMBS delinquency rate rose to
6.6% from 4.5% a year prior...
RSK: Unfortunately, I do not think it has bottomed out....we shall see what 2025 brings but maybe the 4th quarter will surprise us. It`s all about back to work to the office or not.
Dr. Vivek Murthy recommends updating the health warning label on alcoholic beverages to include their link to cancer
Last week – and just in time for Dry January – United States Surgeon General Dr. Vivek Murthy issued a new advisory outlining the link between alcohol consumption and increased cancer risk. In the advisory, he noted that alcohol consumption is the third leading preventable cause of cancer in the United States, after tobacco and obesity.
The scientific evidence supporting this link, the advisory adds, has been “growing over the past four decades,” however less than half of Americans recognize it as a risk factor for cancer. Murthy recommends steps to increase awareness about the alcohol/cancer connection, including an update to the existing surgeon general’s health warning label on alcoholic beverages, a reassessment of guideline limits, and expanded educational efforts from public health professionals and health care providers...
RSK: This will definitely put a slow dent in the profit margins of some establishments. Of course microplastics in food and food containers as well as water will be next. Moderation people and stay active.
or decades, pharmacy chains like Walgreens and CVS have been fixtures of convenience, but a perfect storm of challenges is forcing changes. Years of over-expansions have left drugstore chains saddled with underperforming stores in a retail landscape increasingly dominated by e-commerce.
Mounting government fines and strained relationships with health insurers have further squeezed profit margins. With shifting consumer habits and increased financial pressures, the future of these once-prized retail anchor tenants is precarious.
Shortly after Tim Wentworth stepped into his role as CEO at Walgreens, he revealed that a quarter of the chain’s stores were unprofitable. Now, Walgreens is taking action, announcing plans to close 1,200 locations over the next three years. Similarly, CVS recently announced layoffs of 2,900 corporate employees as both pharmacy giants embark on drastic cost-cutting measures...
RSK: I wouldn`t be surprised to see a few in greater Madison close....but would bet they would be snapped up by someone soon after. Some of these stores have a very high rate of theft and when you lock items up you won`t sell as many....a conundrum.
Coresight Research expects some 15,000 locations to shutter in 2025, with plans already up well over 300% year over year.
Dive Brief:
U.S. retailers are expected to close more stores than they open
again this year, according to Coresight Research. Last year, 5,970
stores opened and 7,325 closed, a net loss of 1,355 as of Jan. 10.
In 2025, Coresight expects about 15,000 U.S. stores to shutter, as openings remain steady at about 5,800.
As of Friday, Coresight tracked more than 2,000 closures slated for
this year, which represents a year-over-year increase of more than 334%,
compared to nearly 30% fewer openings.
Years after inflation began rising substantially in the U.S., even financially comfortable commercial real estate brokers admit they are finally starting to cringe at food prices.
Pain in the pocketbook is trickling down. And as money fears hit consumers, a hastening influx of fast-casual restaurant brands is flooding the market at greater velocity than ever before.
The chains are swooping in to meet demand, expanding an already strong market share and setting them up to ride the wave of a Wall Street-supported real estate explosion. And commercial real estate is growing increasingly competitive to sync along with it... ...Full Story Here
RSK: And why is Chipotle the top gun in this expansion mode? They are amassing a significant chain of real estate.
Private placement real estate investment trusts saw their combined
aggregate net asset value rise to $17.9 billion in Q4, a 15.6%
quarter-over-quarter increase, according to data released this week by
investment banking firm Robert A. Stanger & Co. These REITs now
account for 16.1% of the $110.9 billion total aggregate NAV across
publicly registered and private placement non-traded REITs, up from
14.1% of $109.9 billion in Q3. This growth highlights continued investor
demand for private real estate strategies.
“With non-traded REITs continuing to attract private capital, it’s
clear that the space remains a compelling component of diversified real
estate portfolios” said Kevin T. Gannon, chief executive officer and
chairman of Stanger.
WASHINGTON, Feb. 11—Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.4 months in January, according to an ABC member survey conducted Jan. 21 to Feb. 3. The reading is unchanged from January 2024.
View the full Construction Backlog Indicator and Construction Confidence Index data series.
The monthly increase in backlog was concentrated in the Western region, which also exhibited the largest growth in backlog over the past year. The South has the longest backlog of any region despite exhibiting the largest year-over-year decrease... ...Full Story Here
RSK: Construction delays 8.4 months out and growing....and with ICE taking many illegals who work in the industry, I`m sure this will grow for awhile.
Manufacturing’s share of industrial space demand is up 354% since 2018, buoyed by federal spending. But despite the change in presidents and a broad reversal of trade policy, factory operators are still looking to set up shop back home.
Manufacturing demand is projected to account for one-quarter of all industrial requirements by 2028, according to a recent report from JLL. It`s part of a broad shift in strategy among manufacturers that`s leading production back to the United States even as federal incentives are under threat and the first shots have been fired in a brewing global trade war...
Department stores continue to adapt to evolving consumer preferences and an ever-changing retail landscape. We looked at the latest location analytics for traditional and luxury department stores to uncover how they are finding success in today’s dynamic apparel space...
Key Takeaways
The share of visits to luxury department stores held steady between 2021 (2.2%) and 2024 (2.3%), indicating that these retailers have remained relatively insulated from the rise in budget-conscious shopping.
Bloomingdale’s (1.5%), Nordstrom (2.2%), and Dillard’s (2.3%) saw YoY visit increases in 2024, highlighting the value of elevated shopping experiences.
Between 2021 and 2024, the share of both Nordstrom’s and Dillard’s visitors that also visited one of the leading off-price chains increased, revealing an opportunity for department stores that meet the growing demand for lower prices.
March 03, 2025 - The Trump administration`s sweeping cuts to the federal workforce are slated to damage the D.C.-area economy and dramatically lower the city`s tax revenues, a new report projects.
D.C.’s Office of the Chief Financial Officer, in its new revenue forecast released Friday, estimates the city will bring in $21.6M less this year and an average of $342.1M less over the following three years than its December forecast predicted. The total decline adds up to just over $1B in reduced revenue between now and the end of fiscal year 2028.
The report cites the Trump administration’s recent moves to slash the federal workforce as the primary reason for the declining projections, along with the domino effect that is expected to have on the local economy.
The long tail of pandemic lockdowns is still dragging down office usage data. Even on the most crowded days in the average office, foot traffic is only 64% of 2019 levels. Across the week, the average attendance volume averages less than 54% of prepandemic occupancy.
Attendance data suggests companies are struggling to codify return-to-office policies five years after the pandemic struck, but brokers, analysts and even survey data suggest a more nuanced picture. The days of rolling out return-to-office policies are largely over, but how employers and their staff use their office space has permanently changed.
“RTO is not a relevant concept anymore,” said Mark Weiss, an experienced New York office tenant representation broker and executive vice chairman at Cushman & Wakefield...
RSK: The author`s viewpoint is RTO (return to office) has slowed and hybrid is going to be the norm. The cost savings of smaller, more well used space is worth it to companies. Hmmm
For the first time in our
survey, commercial real estate (CRE) investor optimism softened quarter
over quarter (QOQ) amid expectations for higher-for-longer rates and
policy uncertainty.
Overall market conditions
declined or remained flat QOQ in every sector except Office. Investors
remain most bullish on the Multifamily and Industrial sectors, though
investor sentiment in both sectors is worsening for the first time in
our survey.
42% of all CRE investors cite interest rates / access to capital as the biggest obstacle to their sector in 2025, followed by inflation / rising operating costs. Many investors also noted concerns regarding shifts in trade policy, federal employment, and immigration.
The Burns + CRE Daily Fear and Greed Index, created in collaboration with CRE Daily,
reflects sentiment across CRE sectors, including multifamily,
industrial, retail, and office. This survey provides insight into
whether values and development will likely increase or decrease and is
one of the factors we consider when forecasting multifamily
construction.
Nearly three weeks after the General Services Administration posted a list of 443 properties planned for disposition — and then promptly took it down — the agency has put up a new slate of buildings in its place.
The original noncore asset page, which for the past few weeks read “coming soon,” now lists eight properties that it says are slated for “accelerated disposition.” The properties across seven states total just over 2M SF.
Each of the properties had already been announced for disposition in prior slates released during the Biden administration, according to past press releases. None of the properties were part of the 443-asset list posted on March 4.
The page invites interested parties to submit nonbinding term sheets to a GSA email address and says that it will “post additional assets regularly.”...
The Trump administration’s most drastic implementation of tariffs to date ushered in a day of chaos for commercial real estate as markets roiled, price fears peaked and stakeholders openly worried that sticker shock could paralyze deals, leasing decisions and projects.
Many in the industry hoped President Donald Trump’s “Liberation Day” of reciprocal tariffs would shine a light on the administration’s trade endgame, one that would ease uncertainty and help them make decisions going forward.
Instead, the dramatic size and scope of the levies — far more sweeping than anticipated — left some feeling more in the dark than ever... ...Full Story Here
RSK: I know a few developers who are in this predicament, Whether tis will turn out good in the long is still onknown....what is known is there are some immediate hard times ahead.
Discover
how hybrid work models, cutting-edge technology, sustainability
initiatives, and economic uncertainty will redefine challenges and
unlock opportunities within the real estate landscape.
The commercial real estate (CRE) landscape is undergoing rapid transformation, driven by evolving workforce expectations, technological advancements, sustainability imperatives and economic shifts. These trends present both challenges and opportunities that companies and end-users must carefully navigate to optimize real estate strategies. This article will provide insight into how organizations can effectively respond to the dynamic changes in the sector, as understanding their impact and preparing accordingly will be critical for organizations aiming to optimize their real estate strategies.
Here are four key trends that will shape real estate decision-making in 2025 and beyond:
1. Transforming Workspaces: Embracing the Hybrid Revolution...
2. Catalysts of Tomorrow: Unleashing Tech-Driven Advancements...
3. Sustainable Pioneering: Driving ESG Leadership into the Future...
RSK:The thought of staying on top of Tech and innovation...you must be careful with this one. People get used to certain things especially Techwise...if you change things too often they get out of sync from their habits and will rebel. Just saying to be careful with too many updates and changes...
U.S. office properties lost more than 8M SF of occupancy in
the first quarter, halting the momentum shown in late 2024 when office
market absorption went positive for the first time since 2021.
The 8.1M SF of negative net absorption was driven by federal lease terminations, federal contractor sublease additions and buildings removed from the inventory for conversion, according to a JLL report.
Although the Department of Government Efficiency has been inconsistent with its federal lease termination plans, it had terminated 653 leases totaling 7.5M SF throughout the country as of April 15, according to JLL’s DOGE Federal Lease Termination Tracker. That accounts for about 4% of General Services Administration-leased inventory in the U.S.
DOGE, the agency tasked with slashing federal bureaucracy and led by billionaire Elon Musk, could terminate up to 52% of GSA leases by the end of President Donald Trump’s term...
Piedmont Office Realty Trust is halting dividends for the first time in its 15-year history as a publicly traded REIT.
The Atlanta-based office REIT is hoarding cash because more than 10% of its tenants that have signed leases aren`t yet paying rent, Piedmont CEO Brent Smith said on the company`s Tuesday earnings call.
Companies that have committed to occupying nearly 2M SF of Piedmont`s office space were either on free rent status or had leases yet to commence at the end of the first quarter, according to the REIT`s earnings report for the period.
Suspending the company`s dividend, which paid investors 12.5 cents per share every quarter since mid-2023, would allow it to retain $60M of annual cash flow, Smith said. It would be able to spend that money on securing new leases and covering tenant build-outs — otherwise, it might have been forced to take on new debt or sell assets in a down market...
Heather: Heather: The market has shifted over the past couple of years. We have solid rents in Madison and with it a sweetening of the “deal” for tenants. The numbers tell the story. What does your vacancy truly cost you? Dark spaces cast a shadow of doubt on an area. It’s less enticing, spaces can be vandalized, or people can make assumptions and as we know, belief can outweigh truth at times, unfortunately.
After years of remote and hybrid work, many American companies are calling employees back to the office.
According to the fourth-quarter Flex Index report, 32% of U.S. firms now require employees to be in the office full time, while the number mandating at least three days per week has climbed from 19% to 28%.
But the offices employees are returning to don’t look the same. After years of downsizing and consolidating space, many companies are rethinking how to use their square footage strategically — to not just support work but also attract and retain talent.
Among the most in-demand workplace upgrades? Wellness and fitness amenities. ...Full Story Here
RSK: They are doing this in apartment complexes. The owner will build out a gym and a subcontractor will run it free for tenants but charge for upgrades and to open it to public membership. Why not office buildings?
A hotel converted into apartments on the east side of Madison is nearing completion.
Madison-based Wiseman Capital led the adaptive reuse of the 129-unit Sandburg Studios, built out of a former Super 8 hotel on the east side of the city. The project, expected to open in June, will create housing without the use of public money that is affordable for professionals, said Cody Wiseman, founder and CEO of Wiseman Capital.,,,
THE BLUEPRINT:
Former Super 8 hotel in east Madison converted into 129 apartments.
Rents average $1,075, well below Madison’s $1,600 average.
Project uses adaptive reuse to avoid public subsidies.
Amenities include coworking space, dog park and renovated pool.
Amazon is escalating its battle to bring employees together.
The tech giant is asking several thousand employees to relocate to specific locations to be closer to their teams, in some cases asking staffers to move across the country.
The rolling efforts are the latest move from CEO Andy Jassy to refocus the Amazon workforce, and this one comes just days after he wrote a memo to staff saying that artificial intelligence would shrink headcount at the firm.
The policy change will impact thousands of employees across several teams. The company had approximately 1.5 million employees at the end of 2024.
Amazon is rolling out the mandate in individual meetings and town halls rather than putting the requests in an email, sources at the company told Bloomberg, which first reported the news.
RSK: Certain industries are going to be prone to this such as Amazon, financial institutions etc. Will it contribute to more office vacancy? Probably unless the space is converted to data center needs.
Artificial intelligence computing demand is shifting as more
people use the technology, and it is expected to push data centers
closer to population centers.
Big Tech’s AI arms race has sparked a data center megacampus boom — a wave of planned projects with hundreds of megawatts of capacity, built primarily to provide the computing power for “training” new AI models.
Now, as corporations and consumers increasingly embrace AI products and services, this adoption is driving a surge in demand for the computing through which users interact with these models — known as inference.
In the months ahead, the need for AI inference computing is expected to account for a higher share of data center demand than ever before. The demand shift from training to inference is already underway, and industry leaders at Bisnow’s DICE: National event last month said it will fundamentally transform the data center development landscape.
RSK: Some new terms in this story with the major one being inference What this all comes down to is ai data centers are going the way of Amazon distribution or the "last mile". Small data centers will be located close to where the end users are. Much easier to construct and a much lower profile. Read on to get the whole story and reason why.
New York-based Third Point thinks CoStar is trying to be the master of too many domains, which is holding back the stock.
That was the message from the hedge fund, which owns just under 2 million CoStar Group shares, in a first-quarter note to investors. The April 30 note came the same month as a board shake-up at the commercial real estate conglomerate, and Third Point executives signaled that more changes were ahead.
“After several years of uncertainty, we believe it is time for CoStar to begin the journey of meaningful self-help,” Third Point CEO Daniel Loeb wrote in the note, which disclosed a 3.7% first-quarter loss for the fund. ...Full Story Here
RSK: Costar better start listening to their clients and what their real needs are....especially in the commercial sector.
After decades of relentless office construction, the U.S. market is finally seeing its office glut shrink. According to CBRE,
office supply is on track to contract in 2025 for the first time in 25
years, as developers demolish outdated buildings and convert others into
apartments. Conversions, which were once cost-prohibitive, are becoming
economically feasible due to falling property values, revised zoning
codes, and generous tax incentive programs.
In New York City,
approximately 40 million square feet of office space is expected to be
converted into residential space over the next five to ten years, a
doubling of the estimate from two years ago. Projects like developer
Scott Rechler’s 5 Times Square redevelopment—adding 1,250 apartment
units—are emblematic of this shift. Rechler secured a 90% tax abatement
and purchased the 1.1 million-square-foot office property at a 40%
discount from its 2019 value...
For so long, restrooms were an afterthought in the design process. As long as it was usable, it was functionable. But as companies continue to lure employees back to the office, all spaces need to be accounted for and designed with employees in mind. Knowing return to work may be hard for employees, many companies have resorted to renovating restrooms to ensure that the workplace feels just as comfortable as they are at home...
Generation Z`s rediscovery of the mall as a hip new place
to shop, socialize and be seen has helped drive a continued increase in
foot traffic to enclosed shopping centers.
Visits to indoor malls grew nearly 2% during the first half
of 2025 compared to the same period last year despite a drop in
shopping traffic during June, according to data from foot traffic analytics firm Placer.ai. Open-air shopping center visits grew less than 1% year-over-year, while traffic at outlet malls decreased slightly.
Traffic dropped at all retail formats in June after consumers stocked up on items in April and May ahead of expected price increases due to tariffs.
But Placer.ai, which uses cell phone data to compile its numbers,
suggested that drop represented "natural demand normalization" rather than consumer weakness following the tariff-fueled shopping spree...
Trophy assets in bustling U.S. markets have become an increasingly
hot commodity as investment in the office sector surges nationwide.
Office sales grew 69% nationwide over the last four quarters compared to the year prior, according to a new report from Avison Young. Of the $40.8B worth of offices that changed hands, 71% were trophy or Class-A spaces.
Much of that activity came in the fourth quarter, which had more than $15B of transactions, up from about $8B in Q4 2023.
The increase in sales has been especially sharp in the California markets.
Los Angeles and San Francisco saw $3.5B and $1.7B of sales, respectively, in the last four quarters, which represented increases of 147% and 140% from the prior year...
Elon Musk’s Tesla has opened a restaurant in Hollywood, Calif. that combines classic American diner food, "megascreens" for movie viewing and charging for Tesla and non-Tesla drivers alike.
Tesla Diner is open 24 hours a day and features 250 seats for dining. It also boasts 80 V4 “Supercharger” stalls, making it the largest urban supercharging station in the world, the company said. Although the restaurant has only been open a couple of days, Musk is optimistic about more locations going forward. (To view photos of Tesla Diner, click here.)
“If our retro-futuristic diner turns out well, which I think it will, @Tesla will establish these in major cities around the world, as well as at Supercharger sites on long distance routes,” Musk wrote on X. “An island of good food, good vibes & entertainment, all while Supercharging!”...
AUSTIN, Texas, Aug. 5, 2025 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company"), today announced results for the three and six months ended June 30, 2025.
"Despite a challenging operating backdrop in the second quarter, we
continued to successfully execute on a number of key strategic
priorities. RevPAR index, our best measure of market share, increased
nearly 150 basis points to 115% during the quarter and year-to-date
operating expenses have increased a mere 1.5 percent as we continue to
effectively manage expenses and benefit from the efficient operating
model of our hotel portfolio. While RevPAR in our same store portfolio
declined 3.6 percent during the second quarter, this was significantly
influenced by difficult comparisons to robust special event driven
demand that benefited the second quarter of last year. Overall demand
across the Company`s portfolio remains stable as absolute occupancy in
the second quarter approached record highs. Our portfolio of high
quality, well located hotels is in excellent physical condition and we
believe remains well positioned for longer-term, outsized growth," said Jonathan P. Stanner, President and Chief Executive Officer...
The same factors that ignited its boom — cheap land, grid access and political will — are starting to generate friction. Power is tightening. Labor is limited. And after a blitz of megaprojects, residents and local officials are beginning to push back, reshaping the region’s once-permissive development environment.
That comes as a wave of new data centers is slated for the Richmond area and as growth accelerates amid mounting power constraints in Northern Virginia, the world’s largest data center market.
With power and land in short supply around the region`s Data Center Alley, developers are moving south along the Interstate 95 fiber corridor toward Richmond. The result, Avison Young says, is a “string of pearls” of large-scale data centers rising in rural counties like Henrico, Louisa, Chesterfield and Hanover — places that, until recently, had seen little to no digital infrastructure.
By contrast, southern Virginia offers developers greater access to grid power and, where utility connections lag, the ability to tap natural gas infrastructure for on-site generation, said Howard Berry, Avison Young’s national director of data center solutions.
“It’s the availability of power,” Berry said. “That`s why you see that trail going down, because there`s gas and available power to develop in those markets.”...
RSK: I haven`t heard much feedback on the proposed data center in the DeForest area but these are universal concerns. Centers that can self generate power on their own will soon be the new norm.
The story of America’s downtowns is no longer only about empty office
towers and stubborn return-to-office rates. It is about portfolio mix.
New analysis suggests that a rebalancing of how space is allocated for
live, work, and play can unlock more than $120 billion in value across
major U.S. markets. The prize is not only higher asset values on a
per-square-foot basis, but also stronger local economies that benefit
residents, employers, and city budgets alike.
That is the core argument of Reimagining Cities: Disrupting the Urban Doom Loop,
a study by Cushman & Wakefield. The research identifies an “optimal
portfolio” for walkable urban places, where the share of work uses sits
closer to 42 percent rather than the 70 percent average common in
Downtown districts today. In some cities, the skew is extreme. San
Francisco’s downtown real estate base has been as high as 87 percent
office. Others, like Miami, are closer to balance with a 44 percent
office share. Credit to Cushman & Wakefield for translating a
widespread hunch into a quantified target that stakeholders can plan
against...
RSK: It makes sense if you can repurpose those old empty office buildings into what is in demand, like living, hotels, entertainment etc., at a reasonable cost.
Organizations large and small are rethinking their commitment to the office. Companies worldwide are considering shrinking their footprints, trying to measure exactly how much office space they need. But business leaders are pushing back, warning that too much remote work degrades corporate culture and undermines productivity. Offices are being complemented by amenities, tools, and programming to help them be as impactful on an organization as possible. That has put real estate and workplace leaders at the heart of a new puzzle: how to understand not only how much people come into the office but what exactly they get from it. Utilization metrics no longer tell the full story.
What leaders are turning to instead is engagement. The idea isn’t new, but the way it’s being applied is. Engagement measures the sum of how workers connect with their workplace—whether that’s through desks, meeting rooms, gyms, or even digital platforms like Slack and Teams. The trouble is, there’s no consensus on how to define it. “There is no global definition for engagement,” said Michelle Needles, Global Head of Enterprise Solutions at Savills. Without a standard definition, companies are stuck trying to figure out exactly how good their workplace engagement is and how to make it better.
Engagement is also personal. Some employees still want the office for heads-down work, while others show up mainly for collaboration or client meetings. Some only dip in for the perks...
RSK: Just bringing people back to the office does not mean more collaboration....its just sets up the possibility for it. You need to engage employees and measure if it is working.
Rising costs, lackluster demand and staffing challenges are causing hoteliers across the country to rethink investments in their existing hotels and development of new projects, according to an August survey by the American Hotel & Lodging Association.
Thirty-two percent of respondents reported delaying projects, while 24% reported scaling back new projects. ...Full Story Here
RSK: Most hospitality sectors are having a trying time and hotel/motel is among them.
MADISON - Robert Harold Keller passed away on September 27, 2025, at the age of 98.
Bob
was born July 8, 1927, in Beaver Dam, Wis., to Ruth (Olson) Keller and
Clarence Jacob Keller. He graduated from Beaver Dam High School in 1945,
where he played both tennis and basketball and formed lifelong
friendships with Gerry Teletzke and Harlan Draeger...
...Much of his real estate life was centered around the Madison isthmus,
and his office was never more than four blocks from the square. He
developed, owned and managed numerous properties and was a leading
advocate in urban mixed use real estate. He was a proud member of the
Congress of New Urbanism, served several terms on the City of Madison
Planning Commission and was president of the Madison Board of Realtors
in 1957. He was named Realtor of the Year by the Madison Board of
Realtors in 1968, and in 1969 he was appointed by Governor Warren
Knowles to the Wisconsin Real Estate Examining Board and served a
seven-year term until 1976...
...A funeral service will be held at BETHEL LUTHERAN CHURCH, 312 Wisconsin Ave., Madison, at 11 a.m. on Wednesday, October 8, 2025...
You are invited to the 2025 City of Fitchburg Business Appreciation Luncheon!
Thursday, October 30th
11:30am-1:15pm
Promega BTC - 5445 E. Cheryl Parkway
Lunch will be served beginning at 11:15am
Program will take place at 12:15pm, showcasing Fitchburg businesses and entrepreneurs
This event fills up quickly, so reserve your spot today! Please register by Friday, October 24th.
Registration fee is $30 per person. Feel free to register additional
team members or guests. Please contact Joyce Frey at (608) 270-4246 with
any questions.
Study
finds economic mood impacts renter decisions and remote workers value
more space and pay higher rents vs. full-time in office employees
WASHINGTON--(BUSINESS WIRE)--RCKRBX™, the first multifamily market intelligence platform to deliver leading-indicator, demand-side data for the built world, today released the findings from its inaugural National Renter Demand Indexing study, revealing in-depth insights around the impacts of current economic conditions and time-in-office on renter decision-making, preferred property type and unit configurations going forward, migration and move patterns, and net performance effects on existing product based on renewal/leasing decision horizons.
“As renter expectations continue to evolve and reshape the multifamily market, RCKRBX’s inaugural National Renter Demand Indexing study provides a unique and data-rich lens into what renters want today and tomorrow,” said Michael Broder, CEO & Co-Founder of RCKRBX. “Our research shows renter demand and preferences have shifted significantly post-pandemic while existing supply and new construction/recent deliveries remain out of sync with what renters want and how these markets will continue to evolve. Developers and asset owners who deliver product more aligned to the new renter mindset are poised to achieve greater performance, resilience and value.” ...
RSK: Very interesting research article on size of apartment rentals available and the demand by type of worker, meaning those who work full-time in office vs other hybrid models. Hint, larger is better and willing to pay for it.
Across the United States, cities are struggling with two crises moving in opposite directions. The first is a housing affordability emergency, with half of all renters now spending more than 30 percent of their income on rent. The second is a commercial real estate reckoning as remote work and corporate downsizing hollow out central business districts. Vacant towers stand beside crowded shelters. The imbalance is striking—and increasingly untenable.
A new series of studies from Gensler and The Pew Charitable Trusts suggests that the same downtown buildings losing tenants could help ease the housing shortage if cities rethink how they define livable space. Their research, conducted in partnership with Turner Construction and Arnold Ventures, examines a “flexible co-living” model that revives elements of the mid-century single-room occupancy (SRO) while updating it for safety, dignity, and modern lifestyles. The concept aims to transform unviable office properties into compact, affordable communities for single renters—a group that makes up more than one-third of renters nationwide...
RSK: Co-living office conversions make the most of space and lowers rents. I had a girlfriend in colloge who lived at the Regent on Regent Street. That was coliving in a sensnse. Had a living and kitchen area in the middle and a bedrom and bath on each end of a unit. Worked well.
Young Americans are ditching $15 burritos for groceries — worrying CEOs and sending fast-casual stocks plunging as much as 80%
Amid
a busy few weeks for restaurant earnings, new data is emerging that
suggests a restaurant recession could be underway. The pullback is most
marked among the young customers who have long propped up the boom in “fast-casual” restaurants — chains built on recognizable ingredients, counter service, and prices roughly 50% higher than fast food.
Shares
of Chipotle fell some 5% last week after the chain`s earnings report
showed that margins fell and comparable-store sales growth appeared barely positive.
Sweetgreen and Cava, both of which report earnings this week, are
similarly plunging as investors anticipate hard-hit margins, weaker
traffic, and challenging same-store sales...
From business conferences to lavish dinners, the Monona
Terrace Community and Convention Center caters 500 to 600 events a year,
with more than enough food for attendees.
When the crowds disperse, there is often extra food available — and that’s when Healthy Food for All comes in.
The
local food recovery organization connects with convention centers,
hotels, grocery stores, caterers, farms, businesses and other groups
that have excess food, collects and packages it, and distributes it to
people who need it...
Developer Gary Gorman, chair of the board of directors and former CEO of Gorman & Company, lives on the 240 acre farm that has been in his family since 1852. After observing residents of his properties — kids, in particular — starting their day waiting for the bus with a bag of chips, he started thinking about how he might help the residents access healthy food.
“I started growing vegetables on my farm myself but I’m not very good at it,” Gorman said. “My wife would tease me, ‘Any moron can grow zucchini,` and that’s what I grew.”
After a decade of increases turbocharged by the pandemic, office tenant improvement allowances are flattening as costs rise and landlords grow weary of forking over cash to entice occupiers.
TI allowances for office leases have surged by 112% since 2016, peaking at $212 per SF in gateway markets earlier this year as landlords jockeyed for leases. But a recent leveling of such spending, growing by just 8% last year, underscores the difficulties facing office owners.
“Rents are going up,” CompStak Senior Director of Real Estate Intelligence Alison Baumann said. “But landlords are also spending a lot to get those tenants.” ...Full Story Here
RSK: Long article with lots of info. Basically, TI`s are becoming more expensive and unless you have a trophy class A+ office building with high rents to cover those costs, you will have a rough time making ends meet. You will have to give other concessions.
For most of its history, office engagement was a numbers game. If employees showed up, sat at their desks, and worked, engagement was considered strong. The office was built around this assumption. Buildings were designed to support productivity, and productivity was measured by presence. It was a simple calculus for an era when work and workplace were inseparable.
That model broke apart during the pandemic. Remote work proved that plenty of tasks could be done just as well from home. What companies struggled to replicate was the feeling of being together. They saw that the office still had a place, but the reasons people needed it had changed. “Commercial office has been challenging but for the first time in years there is excitement in the office,” said Adam Segal, Co-Founder and CEO of Cove, a commercial property management software company. The excitement comes from rediscovering what the office is uniquely good at.
Productivity, once the main metric of engagement, is no longer enough. People can be productive anywhere, which means the office must prove its value in other ways. The moments that matter most now are the ones that depend on being in the same room... ...Full Story Here
RSK: This is worth the read for those of you who deal in the office market or own office bldgs. Productivity has been shown to be viable for work at home so in order to attract employees back to the office, it needs to be an experience of sorts.
In less than a decade, work as we know it has shifted from a rigid,
commute-based routine to a far more fluid model. Coworking has evolved
in step with this transformation, reflecting broader shifts in workforce
migration, employment patterns, and local economic growth.
In this study, we explore the top 20 U.S. cities where these forces
have had the greatest impact between 2020 and 2023. Specifically, we
analyzed cities that saw notable increases in their working-age
population, employment rate, share of remote workers, along with
working-age population inflows. Then, we assessed how coworking markets
evolved in these cities in the years that followed (2023-2025).
Employees prefer to work from home or take time off at the end of the
week, so schedule programming in the middle of the week, a CBRE
consulting director says.
Employees are treating Fridays like a buffer zone between work and home life and that’s something that building operators can embrace in their occupancy planning, says Emily Botello, managing director of consulting in the Americas at CBRE.
Across nearly two decades of data, Fridays are the lowest-use day of the week, Botello wrote in a December research note. People preferring to work from home on that day is lowering the average of otherwise rebounding utilization rates for many companies, she says. Only 12.4% of weekday office visits are happening on Fridays, compared to more than 23% on Tuesdays...
RSK: The upside of this is if you`re ambitious, schedule time with your Boss or best contacts. They are likely to be free and take the time with you. Always a bright side to an otherwise dull side of things.
Comparisons to 2024 hurricanes more of a factor than government shutdown
U.S. hotel industry revenue per available room fell 0.9% in October,
which was the fifth consecutive monthly decrease but the smallest of the
declines during that span.
RevPAR has been flat to down for U.S.
hotels since April. The most recent decline was driven by an occupancy
decrease of 1.6 percentage points. That was the steepest of eight
straight monthly occupancy declines in the U.S.
Average daily rate rose 1.5%, which was the best increase of the past six months but...
RSK: Hotel revenue down slightly but not as bad as predicted. Government shutdown was not a major factor. A new term for you to absorb, RevPar...revenue per available room...
Office attendance crosses a new post-pandemic threshold
About Office Occupancy Rates
Office attendance just hit a milestone that would have seemed unlikely a year ago. The latest Kastle Back to Work Barometer posted its strongest readings since the pandemic began, with the week of December 8 delivering record highs across weekly averages and single-day peaks. Coming right after Thanksgiving, the data points to something more durable than a seasonal blip. Office usage is not only holding up. In some markets, it is quietly accelerating.
The headline number matters. Occupancy across all tracked office buildings climbed to a 56.3 percent weekly average, the highest level since early 2020. That alone would be notable, but the gains were not limited to trophy assets. While A+ buildings once again led the market, the narrowing gap between premium space and the broader office stock suggests that attendance is rising across property types. A+ buildings rebounded to nearly 79 percent weekly occupancy, while overall buildings pushed past previous post-pandemic highs. This looks less like a flight to quality story and more like a broad-based return to routine.
Contractors are receiving price hike notices on several key inputs, complicating efforts to plan and budget new projects
Dive Brief:
Construction input prices increased 0.5%
in March, while nonresidential input prices climbed 0.6%, both
unusually steep jumps, according to an analysis by Associated Builders
and Contractors of U.S. Bureau of Labor Statistics data.
Both overall and nonresidential
input prices are now 0.8% higher than a year ago and sit more than 40%
higher compared to February 2020, largely due to a sharp rise in natural
gas, steel, copper and lumber prices.
The price escalations across the
board reflect early impacts from tariffs and mark the third straight
month of price jumps, said Anirban Basu, ABC chief economist.
“Construction input prices increased at a rapid pace for the third consecutive month in March and have now risen at a 9.7% annualized rate through the first quarter of 2025,” said Basu. “The emerging effects of tariffs are glaring in the March data release.”
Pressure is mounting for owners and builders heading into the second quarter, especially as tariff-related uncertainty clouds purchasing and pricing decisions, according to the Associated General Contractors of America...
RSK: This will no doubt delay many a project and the ones that are completed will need to charge higher than average rents to make them financially feasible.
With Google and Uber
joining the ever-growing ranks of companies tightening remote work
policies, employees across industries are being forced to spend more
time in the office. But how much are office visit patterns really
changing on the ground? Did the resurgence observed in March 2025
continue into April, or was it merely a brief reprieve from the slump seen earlier this year? ...
Key Takeaways
April 2025 visits to the Placer.ai Nationwide Office Index were down 30.7% compared to April 2019 (pre-COVID).
New York City saw the greatest recovery, with office foot traffic just 5.5% below pre-pandemic levels.
Hybrid work remains prevalent even in cities leading the office recovery – in NYC, Tuesdays and Wednesdays were actually busier, on average, in April 2025 than in April 2019 – while Fridays remained slower.
San Francisco
led in year-over-year (YoY) office visit growth, underscoring the
impact of tech-sector return-to-office (RTO) mandates on the city’s
recovery.
Origins of One-Way U-Haul Customers Arriving in 35 U.S. Metros with 2M+ Populations This Year
PHOENIX, Ariz. (July 16, 2025) — Summer is moving season, and odds are you have seen a U-Haul® truck being unloaded at a home near you. Or perhaps you were the one moving.
With nearly half of all residential moves in the U.S. occurring between Memorial Day and Labor Day weekends each year, the U-Haul midyear migration trends report answers the question: “Where did those new neighbors come from?”
Many of the largest U.S. metros are in growth mode — a change from what was seen following the COVID-19 pandemic when people took advantage of remote work and migrated to less-crowded markets. More recently, big cities and their expanding suburbs are back to greeting a robust inflow of U-Haul equipment.
U-Haul, which is celebrating 80 years of Moving America, looked at its one-way customer transactions from January to July 2025 to determine the leading origins for trucks, trailers and U-Box® moving containers bound for the 35 metro areas with populations greater than 2 million....
nvesting.com -- Following today’s weaker-than-expected nonfarm payrolls report and uptick in the unemployment rate, economists at BofA Securities now expect two 25-bps rate cuts this year – one in September and the other in December.
August nonfarm payrolls were reported at 22,000, well below expectations of 75,000. Meanwhile, the unemployment rate increased to 4.3% from 4.2%.... ...Full Story Here
RSK: I see one rate cut for sure but basing a second on jobless rates for a second might not happen.
The Alexander Co. on Wednesday announced that its Riverhavn development will move forward following the Stoughton Common Council’s recent approval of a development agreement.
Situated along the Yahara River across from Mandt Park, Riverhavn will be designed as a modern community.
In
a public-private partnership with the Stoughton Redevelopment
Authority, the development will be constructed in two phases and offer
up to 250 apartments....
Foot traffic is picking up in U.S. offices, but Mondays and Fridays may still seem like a ghost town.
Office workers returning to the workplace rose nearly 5% in October compared to the same period last year, according to Placer.ai.
That increase in traffic is concentrated in the middle of the week, however.
Placer.ai’s index analyzes foot traffic at 1,300 office buildings in the U.S. While office visits in October were still more than 30% below October 2019, foot traffic continued to pick up this year.
“Even amid entrenched hybrid norms and ongoing pushback against in-person requirements, office visit numbers continue to trend steadily upwards,” the report says.
Major companies like Amazon, JPMorgan Chase and Samsung this past year have called on their employees to report five days a week to the office, according to workplace software management firm Archie...
Amazon doubled its spending on industrial properties in 2024 compared to the prior year, handing out more than $2B across at least 39 transactions. The company spent $920M on properties in 2023.
The purchases this year included a major expansion of its logistics network, but Amazon spent significantly more money acquiring land to fuel the demand for its Amazon Web Services cloud computing arm that`s being driven by the explosion of artificial intelligence.
Amazon acquired at least 3,000 acres across 14 states in 2024, according to CoStar data. The purchases represent not just an expansion of the company’s data center capacity but a shift in strategy as consumer spending patterns change yet again...
RSK: Most of this is driven by AI and their data centers which need power to run. They also are investing heavily in small nuclear reactors research to help power them. This may help the power grid in the long run.
On this week’s episode of Extra Serving, a podcast from Nation’s Restaurant News, NRN editor in chief Sam Oches and executive editor Alicia Kelso discuss two trends that have already made themselves known in the early days of 2025: value menus and beverage innovation. How might these two trends influence the restaurant industry in the year ahead? And how can restaurants put value menus to work for them without getting stuck with discounted prices?... ...Full Story Here
RSK: Boy hard to make it with Breakfast. Look at the Egg & I and Short Stack Eatery in Madison....neither could make it after 5 years even though they were popular places. I was on an entrepreneurial sounding board of about 20-25 people when the two ladies (girls back then) came in and gave us a presentation. They were awesome and well prepared except for one major item...I myself couldn`t see how they would make enough money to be satisfied and make the high rent of State Street area work.
President Donald Trump’s bold Sharpie pen came commercial real estate’s way on Day 1 of his second term as he issued an executive order that could have a massive impact on the office market in Washington, D.C., and beyond.
Trump signed a mandate requiring all federal workers to return to full-time in-person work. The executive order banning telework was one of eight Trump signed in a packed Capital One Arena following his inauguration Monday, including withdrawing the U.S. from the Paris Climate Accord and freezing all new regulations until Trump`s Cabinet is fully in place...
The number of banks reporting tighter loan conditions was almost at zero, according the Federal Reserve’s latest quarterly survey of senior loan officers, first reported by CoStar.
Bank demand for CRE hasn`t reached such levels since the first quarter of 2021.
They have already seized back some market share. Banks accounted for 43% of loan closings in the fourth quarter by non-agency lenders, up by 18% from the previous quarter and 40% from a year ago, according to a report by CBRE.
Banks were back at the top of the pecking order among sources of CRE debt. Life insurance companies were the second-most active lending group, followed by alternative lenders, accounting for 33% and 23% of loan closings in Q4, respectively. The CMBS conduits sector made up the remaining 1.5% of origination volume, down from 3% a year before... ...Full Story Here
RSK: For an office loan however, you will need 50 to 60 percent equity.
CBRE ended 2024 with what CEO Bob Sulentic
described as its best quarter ever for core earnings and free cash
flow, and the brokerage expects to continue to ride a market recovery
this year.
The world`s largest commercial real estate services firm turned a $487M
profit in the fourth quarter, more than half of its $968M of net income
for the full year. The quarter`s net income was 2.1% higher than a year
earlier, while CBRE`s profit for all of 2024 was 1.8% down from 2023...
RSK:I guess when you hit rock bottom the only way is up. 30% more than nothing still equals nothing if you know what I mean. But at least it is trending up relatively speaking.
NEW YORK (Reuters) - Investors including
Blackstone and wealthy individuals are scouting for office properties in
New York as companies call employees back to the office, fueling a
nascent recovery in the battered commercial real estate market.
The
increasing appetite for offices in New York and beyond could signal a
broader economic recovery for major cities worldwide as many workers
return in person five days a week, lifting demand for local services.
The turnaround comes after investors shunned emptied-out commercial
spaces for years after the pandemic.
Dislocation, divorce, death and downsizing are now joined by distribution and decluttering, forming the six Ds of self storage demand.
The West dominates self storage demand, with 59 metros
in the region ranking among the top 100 nationwide for the strongest mix
of demand drivers.
The South ranks second, with 26 metros in the top 100, followed by the Midwest (13) and the Northeast (3).
At the state level, Washington leads with 11 metros in the top 100, followed by Texas.
Among major metro areas, Tucson, AZ, and Oklahoma City,
OK, stand out for having the strongest combination of self storage
demand drivers.
Life events continue to drive the U.S. self storage market, with
moving, housing affordability, and economic shifts fueling sustained
demand. Search interest in self storage has surged 88% since 2020,
reaching a record 25 million annual searches in 2024.
America’s once friendly northern neighbor is up in arms.
Sports fans have drowned
out the American national anthem in jet engine-volume jeers. The
incumbent prime minister is running election campaign ads urging the
country to go “elbows up” — like a brawling hockey enforcer — into the trade war with US President Donald Trump.
One retiring parliamentarian even called all American beer an expletive that this family-friendly publication can’t print.
The American president’s announcement that he was placing tariffs on
nearly the entire world Wednesday roiled markets like few in recent
memory. Countries all over the world, including Canada, have said
they’re plotting ways to negotiate, retaliate, or both...
RSK: Found this very interesting. Will it affect the Canadian Snwobirds into selling the Florida retreats? Possibly some but where else can they conveniently go? I`m more worried about the Bourbon distillers.
• Softening market. Demand in the first quarter turned negative, with net absorption dropping 5.9 million square feet (msf), marking the weakest quarter since the onset of the pandemic. First quarters of any year are typically the slowest, but the trend over the past several quarters clearly signals an organic softening in the market.
• Tariff talk. Retailers are bracing for a more challenging operating environment due to far-reaching tariffs which will likely raise costs and dampen consumer demand. Prevailing economic uncertainty, if continued, is expected to result in cautious leasing behavior over the next several quarters, resulting in higher vacancy and easing rent growth.
• The big picture. Barring a recession, retail CRE is poised to weather this period of uncertainty with a relatively modest change to the fundamentals. The vacancy rate remains historically low, with minimal new construction and most tenants having already right-sized their real estate needs...
Economic and geopolitical uncertainties are delaying some
restructuring plans, but only temporarily, as pressure to control
commercial real estate spending remains “as strong as ever,” the firm
says.
Downsizing of office space has peaked, Cushman & Wakefield says, with return-to-office strategies accelerating demand for space despite uncertainty in the broader economy, according to a report it released Friday in conjunction with CoreNet Global.
Following years of footprint rationalization, pent-up demand for office space is now evident, with about an eighth of occupiers planning to expand their footprint, and average lease sizes growing 13% in the past two years, the firm said in a release. Cost continues to drive commercial real estate decisions, with pressure to reduce and control spending “remaining as strong as ever,” Cushman & Wakefield and CoreNet Global said in the report...
While many bosses doubled down on their return-to-office
mandates earlier this year, employers also appear poised to shrink the
individual office workspace they allot to employees who do show up,
according to a recent survey from JLL, a global commercial real estate
and investment management company.
Companies are aiming to tighten the so-called density metric, or space allotted per person, to an average of 132 square feet per person from
165 square feet per person and to increase the seat-sharing ratios to
1.3 person per seat currently to 1.1 people, according to JLL’s “Global
Occupancy Planning Benchmark Report 2025.” Companies can cut more costs
with 100% “agile seating” or completely unassigned seats, the report
states.
“Most organizations (78%)
report having defined standards for space functions to guide workplace
planning, actively working toward smaller, more standardized sizes for
office and workstations,” the report states.
Employers — along with
their finance executives, real estate and human resource departments —
have been faced with many new challenges around work policies and how to budget for and find the right office setup since the pandemic accelerated the popularity of remote and hybrid work more than five years ago.
Where and how people work has been transformed by technology....
RSK: Before we know it, workplaces will be like school rooms with each person having a desk and a locker if we are not careful. I think that is the wrong path to go down even if the majority of workers (67%) are hybrid.
Michael
J. Escalante, CEO, highlighted ongoing advancement in the company’s
transformation to an industrial REIT, with the industrial outdoor
storage (IOS) subsector as a central focus. He stated, "We expanded our
IOS portfolio with 2 acquisitions totaling
approximately $52 million" and described a 27-acre Atlanta property and
a 9.2-acre Port Charlotte, Florida, acquisition, both fully leased with
long-term contracts and annual rent escalations. Escalante further
emphasized, "We have increased our IOS ABR by over 25% since the
beginning of the year."
Office
asset monetization has accelerated, with Escalante reporting, "Through
quarter end, we sold 7 office properties for $158 million. Subsequent to
quarter end, we closed on 2 additional sales...totaling $24 million,
bringing our year-to-date office sales to 11 properties totaling $216
million."
A noncash
impairment of approximately $286 million was recognized, with Escalante
explaining this reflects "shortened anticipated hold periods and updated
expectations for sale pricing, consistent with our strategy to sell all
of our office assets in the coming quarters."
Javier
F. Bitar, CFO, reported, "For the quarter ended June 30, total revenue
was approximately $54 million and cash NOI was approximately $43
million. Net loss attributable to common shareholders was approximately
$265 million or $7.22 per share, inclusive of noncash impairments of
approximately $286 million recorded during the quarter."
Outlook
Management
reiterated its commitment to accelerating the shift to an industrial
REIT. Escalante noted, "We`re reshaping the portfolio with intention,
simplifying the platform, reallocating capital to higher-growth IOS
opportunities and strengthening the balance sheet."...
RSK: Just curious at what discount did they selll these offices and what price did they pay for the industrial and storge properties? Sounds like a major offload of office properties.
Inside Kwik Trip’s 245,000-square-foot Sweets Bakery, one
of the busier facilities at its La Crosse headquarters, the first thing
visitors notice is the pleasant aroma. On this day, Long Johns, which
are produced at a rate of 264 per minute to satisfy the cravings of
Midwestern sweet tooths, roll down a conveyor belt, ready to be plucked
by robotic arms and placed in boxes for distribution.
In
2024, more than 23 million Long Johns, including the cream-filled
variety (robots also inject the cream), rolled down this line. Yet when
it comes to sweet treats, Long Johns aren’t even in Kwik Trip’s top
three. The most produced goodies are cookies, at nearly 48 million, and
two other doughnut varieties: Glazers at 44.8 million and Dunkers at
44.7 million...
Data
center demand for computing facilities that can consume as much power
as entire cities, but America`s electrical grid is struggling to keep
pace.
Data centers are growing faster and bigger than ever as artificial
intelligence drives demand for computing facilities that can consume as
much power as entire cities, but America`s electrical grid is struggling
to keep pace with the breakneck expansion.
Power constraints have emerged as the single biggest bottleneck to building our AI future, according to a new report by JLL
that found data center vacancy rates have plummeted to a record low
2.3%. The surge in demand has created an unprecedented mismatch between
what companies need and what`s actually available.
The
scale of demand has exploded beyond what the industry has ever seen.
Just a few years ago, most data centers needed 200 to 300 megawatts on
roughly 300 acres. Now, Andy Cvengros, the executive managing director
and co-lead of JLL`s US data center markets team, said hyperscalers are
requesting sites with 1,000 acres and multiple gigawatts of power...
RSK: We keep hearing this on a daily basis....the power grid cannot handle the demand from AI centers....but what is anyone doing about it? Raising rates is not the answer.
Nareit’s Steven Wechsler explains the advantages of investing in real
estate through REITs. The conversation touches on the evolution of REIT
sectors, the impact of interest rate movement, liquidity and tax
efficiencies and the wide range of investment options available.
Key takeaways on REITs:
Organized to Provide Structural Discipline and Tax Efficiency: REITs
must distribute at least 90% of taxable income annually and maintain
strict asset and income thresholds, creating a disciplined framework
that supports consistent investor returns.
Public REITs Are Conservatively Managed: With
average leverage around 30%, public REITs are significantly less
leveraged than private real estate vehicles, reducing financial risk and
enhancing long-term stability.
Global Options: REITs are publicly traded in major markets around the world.
Positioned for Opportunistic Acquisitions: REITs
with strong balance sheets and access to capital are well-positioned to
acquire assets or portfolios when pricing becomes accretive.
Provide Access to Emerging Asset Classes: The
REIT structure includes data centers, cell towers and healthcare
facilities, aligning with broader economic and technological changes....
Authentic Brands Group, which controls the fast-fashion brand’s IP,
said it’s close to a deal. The brand management firm on Wednesday had
announced e-commerce and wholesale partnerships.
A day after announcing a trio of partnerships that will operate Forever 21’s wholesale and online retail in the U.S., Authentic Brands Group said that it’s on the verge of opening physical locations here as well.
The brand’s American operating company filed for Chapter 11 earlier this year and is winding down after failing to attract a buyer; that has meant closing all locations. The bankruptcy doesn’t involve operations abroad, and the brand still operates stores and runs pop-up activations in certain international markets...
Missing metrics disrupt lending, underwriting, and development
It’s cliché to say real estate is a data business, but when
government data stops flowing, the cliché becomes a crisis. The recent
shutdown that shuttered key agencies and silenced economic releases
has exposed just how fragile our decision-making is when the public
data pipelines go dark. In real estate and lending, we lean so heavily
on indices, employment metrics, rental reports, and construction stats
that a blackout in those feeds ripples farther than you realize.
During
the shutdown, critical releases from agencies like the Bureau of Labor
Statistics and the Census will be delayed or suspended. That means no
fresh unemployment rate, no new jobs data, no updated housing starts, no
fresh measures of inflation or Consumer Price Index changes from the
BLS, no new population updates, no updated household formation data.. ...Full Story Here
RSK: With the way the market and economy are right now, any wrench thrown into the wheel is not good.
Recent closures and bankruptcies, and uneven consumer trends have had little impact on overall U.S. retail fundamentals.
That’s according to Colliers’ latest Q3 2025 U.S. Retail Market Statistics report, which found that vacancy
rates remain historically low, with strong absorption and constrained
new supply supporting rent growth across much of the United States.
The national vacancy rate remained steady at 4.3% in the third quarter, according to the report. Mall
vacancies fell 30 basis points, while shopping center vacancies held
steady, signaling continued resilience in both formats despite shifting
retail footprints.
In other findings, average asking
rents increased to $25.53 per sq. ft. — a 0.27% quarterly increase — in
the third quarter, with occupancy costs remaining in line with sales
performance...
Other findings from Collier’s Q3 report are at the link...
The office market has been trying to find its footing for years, but the tone is finally shifting. Swipe data, mobility tracking, and earnings calls all point to the same trend: people are coming back to the office more often, and the companies with the biggest footprints are leading the way. That doesn’t mean the market has recovered—it means the experimentation phase is over. The question is no longer whether office will come back, but what kind of office workers want to come back to. No project embodies that shift more than JPMorgan Chase’s much-discussed new Manhattan headquarters, a building that has become part case study, part Rorschach test for the entire industry. The steel and glass get most of the attention, but the real innovation happened long before construction, when the bank asked a simple question: what do our employees actually want from their workplace?... ...Full Story Here
RSK: As the article states, it`s no longer whether office will come back....it`s what employees want to come back to.
Facing an unprecedented flood of data center proposals that require
billions of dollars in grid infrastructure projects to power, a growing
number of states and utilities are enacting measures to ensure
developers — not consumers — will foot the bill.
Developers and Big Tech tenants are proving willing to pay, as long as it means they get that power quickly.
This month, regulators in Pennsylvania and Missouri — two of the
country`s fastest-growing data center markets — have advanced measures
allowing utilities to implement special rates for data centers that
could add millions of dollars to the facilities` annual power bills...
Chicago’s hoteliers are leaning into local flair as the city`s tourism performed better than its national competitors in 2025.
There’s a healthy mix of new builds, renovations and
conversions of other property types making up the hotel construction
activity in the city, said panelists at Bisnow’s Chicago
Hospitality Summit. Hotel owners and operators at the event held Dec. 3
at The Allegro Royal Sonesta Hotel Chicago Loop are also pivoting from
standard hotel fare to concepts designed for specific locales.
“We`re not just doing cookie-cutter projects at the end of the day,... ...Full Story Here
RSK: Chicago has such a vibrant Hotel market, especially along the Miracle Mile.
Over the past year, the data
center sector has experienced remarkable growth. Investor enthusiasm has
followed suit. In 2024, capital poured into data center development and
related infrastructure at unprecedented levels. Joint ventures became...
RSK: It just might be a tad overheated. Plus, many municipalities are not keen on permitting for data centers and the huge electric power draw on the grid is still is a problem.
Three key trends are unfolding simultaneously: office-using
employment continues to grow, the amount of occupied office space is
gradually increasing, and the share of fully remote job postings has
dropped considerably since 2022. Together, these shifts suggest a
growing preference for in-office work, which could drive higher office
utilization and leasing activity throughout 2025.
As several major organizations, including the U.S.
government, Amazon, and JPMorgan, enforce stricter attendance
mandates—some requiring five days per week—companies may have a renewed
demand for office leasing, especially after many have reduced their
footprints over the past few years.
At the same time, many occupiers are prioritizing modern,
amenity-rich offices, driving stronger demand for trophy space. With
trophy availability tight and little new supply planned, this demand
could spill over into A+/A space, further boosting the office market.
It looks as if not all Big Lots stores will not be going dark after all.
The close-out retailer, which filed for bankruptcy in September, said that it has agreed to a sale transaction with Gordon Brothers Retail Partner that enables the transfer of Big Lots assets — including stores, distribution centers and intellectual property — to other retailers and companies, including Variety Wholesalers, Inc.
Under the terms of the deal, Variety Wholesalers, which operates more than 400 stores in the Southeast and Mid-Atlantic under the Roses, Roses Express, Maxway, Bill`s Dollar Stores, Super 10, Super Dollar and Bargain Town banners, intends to acquire between 200 and 400 Big Lots stores and up to two distribution centers. The company plans to operate the acquired stores under the Big Lots brand...
RSK: At most, half of the Big Lots stores will be acquired. The other half may be up for lease or sale. If you have a big box user you may want to contact them.
Chipotle Mexican Grill reported a strong fourth quarter as it continues to expand its footprint at home and abroad.
The
quick-serve restaurant company expects to open between 315 and 345 new
locations in 2025, more than 80% of which will have a drive-thru
“Chipotlane” for digital orders. Along with growing at home, Chipotle,
which has set a goal of 7,000 restaurants across North America, is also
focusing on global expansion. It currently has 85 international sites, including 55 in Canada, 27 in Europe and three in the Middle East, which it entered last year...
ST. PETERSBURG, Fla., Feb. 10, 2025
/PRNewswire/ -- Lonestar Data Holdings, the first company in the world
to provide a commercial data center service from the surface of the
Moon, the leader in lunar edge processing and data storage, announced
that its next Lunar Data Center, Freedom, successfully completed testing
and integration into Intuitive Machines` IM-2 mission lander, named
Athena, and was delivered to Cape Canaveral, Florida.
In coordination with SpaceX, the liftoff of the IM-2 lunar mission is
targeted for a multi-day launch window that opens no earlier than February 26, 2025.
In case of unfavorable launch conditions, such as inclement weather,
backup opportunities will be determined based on the lunar blackout
window and other factors...
The Department of Government Efficiency says it has terminated about 100 leases totaling 2.3M SF across the country.
A list of “lease cancellations” was posted on DOGE’s official government website Monday evening under its “Wall of Receipts,” which is designed to provide public updates on the agency’s cost-cutting efforts...
Department of Government Efficiency terminations double in less than a week
The Trump administration over the weekend further accelerated its pace of commercial real estate lease terminations for federal agencies, spreading the scrapped agreements to all 50 states.
Since Friday, the Department of Government Efficiency has added more than 500 lease terminations to its total. That`s about one in 10 active federal commercial real estate leases canceled, according to CoStar News analysis, and double what DOGE had previously publicly listed.
The fast-changing nature of the initiative shows how the administration is pushing to cut expenses and release more federal agencies from rental agreements. The canceled leases are not only hitting owners but also service providers across the country including appraisers and lenders who are busy trying to determine the impact on their markets and portfolios.
Lease terminations have now spread to all 50 states, including land reserved for American Indian tribes, and all U.S. territories except for America Samoa...
Wisconsin’s federal workers are fighting for their
positions following the Trump administration’s recently ordered mass
layoffs, Wisconsin Public Radio reports.
Wisconsin
has roughly 3,000 federal workers who have been serving for less than
one or two years in their current roles, according to the most recent
available federal data. These workers, often referred to as probationary
employees, have been the first to be fired as President Donald Trump
and the Department of Government Efficiency, led by Elon Musk, look to
cut down the federal workforce.
Among the total 2,876 federal workers in Wisconsin hired for two years or less as of September 2024 are:
RSK: On the rest of the story side of things just an fyi, Wisconsin Corporations laid off over 150,000 employees in 2024 and did we hear anything about that?
Data centers nearly caused widespread blackouts in Virginia last
summer, one of a series of near misses across the U.S. as data centers
strain regional power grids.
On July 10, without warning, 60 data centers in Northern Virginia all
disconnected from the power grid at once and switched to backup
generators — an automated safety response to voltage fluctuation caused
by an equipment failure on a nearby transmission line, Reuters reported Wednesday.
The result was a massive surge in excess electricity that sent both grid operator PJM and utility Dominion Energy scrambling to cut generation quickly enough to avoid damage to infrastructure and potentially regionwide blackouts...
RSK: I never thought of this being a problem but I guess it is like accelerating to 120 mph and suddenly slamming on the brakes...something bad is going to happen.
Occupiers of industrial properties are increasingly opting to purchase rather than rent their buildings.
There were 2,504 industrial sales to owner-occupiers in 2024, a 32% increase from the prior year`s total of 1,895, according to a new CBRE report that looked at facilities of more than 10K SF.
The trend is contributing to increased industrial property values, the report found. The average sale price of an industrial property was up 5% last year, reaching $152.42 per SF.
CBRE said the trend is fueled by a variety of long-term cost savings implications, including tax deductions, the ability to renovate or customize the space, and using it as a long-term investment. ..
With 65% of tenants expressing interest in a mobile access app, leaders need to ensure investment is allocated to the right technology that provides the experience occupants and their internal teams desire
NEW YORK--(BUSINESS WIRE)--VTS, the industry`s only technology platform that unifies owners, operators, brokers, and their customers across the real estate ecosystem, today released the findings from its second annual Global Workplace Report, which leverages data to pinpoint corporate tenant needs and expectations related to office space. The report is the result of a survey commissioned by VTS from an independent market research firm, reaching hundreds of business leaders from companies across the globe on their workplace strategy and sentiment for 2025.
Findings from the report address core workplace pillars such as workplace strategy, operations and access, as well as engagement – providing visibility around how tenants are currently engaging with office space and what their current needs are. Heading into 2025, the survey found that nearly half of tenants view a poor technical experience as the number one pain-point which is hindering them from coming into the office. This comes at a time when the desire for in-person collaboration and engagement in the office is increasing, with 59% of companies planning to encourage or mandate more time in-office over the next 12 months. Only 1% of companies in North America, Europe, and Australia have gone fully remote, meaning that strengthening existing tenant relationships and investing in the technology needed to manage the hybrid work environment will be key to success. ...Full Story Here
RSK: I often wonder when they say tenants do they mean the corporate or the workers....that makes a huge difference in my mind. Workers will always ask for more in demands.
The long-term outlook for life sciences companies remains strong. Thousands of treatments are being investigated, and spending on pharmaceuticals remains high. Although companies early in their discovery process aren’t getting financing as quickly as happened at the height of the market, overall venture capital funding was $5.6 billion higher last year than in 2023, making 2024 the fourth-best year on record.
The industry has resumed hiring too. After bottoming out at a 1.4% year-over-year decline in the first quarter of last year, R&D jobs in the biotechnology sector increased by more than 3% in 2024, to an all-time high in the fourth quarter of the year. ...Full Story Here
The United States ended 2024 with 1,354 fewer retail bank branches than when the year began. The closures are a return to a longstanding trend of banks shrinking their footprints after a pause in 2023.
Banks have long been a staple tenant for strip centers and freestanding retail pads near larger shopping hubs. With plentiful parking and dedicated drive-thrus, both types of retail real estate are coveted, making vacated banks a prime opportunity for tenants and landlords alike.
“The constraint on supply has propped up rents, in some cases higher than they should be,” said Terrison Quinn, managing principal for Southern California at SRS Real Estate Partners. “There’s very limited new supply. ... There`s enough demand out there, and we’re often competing for these boxes.”... ...Full Story Here
RSK: I have to agree with this. Free standing bank branches usually have a great location, near a shopping center, on a corner, plenty of parking, free standing.Will be lots of compitition for these locations...
Tariffs, tax credits and loan approvals are weighing on potential builds, particularly in clean tech construction.
A foreign construction equipment maker is betting big on President Donald Trump’s trade policies even as developers cancel billions in clean energy and tech manufacturing projects.
JCB, the U.K.-based construction equipment company, plans to double the size of its San Antonio, Texas, factory to 1 million square feet, said Anthony Bamford, JCB chairman, in a news release. The company cited the Trump administration’s tariffs as a key reason to localize more production.
Novartis, a Swiss drugmaker, also plans to substantially expand its U.S. footprint, including in Florida, Texas, New Jersey and California... ...Full Story Here
RSK: There is nothing worse than uncertainty and I do not blame them for delaying until a clear path ahead emerges.
However,
tech-heavy markets that have been remote work-friendly over the past
several years are experiencing an increase in demand for office space,
according to the Q1 2025 VTS Office Demand Index (VODI) quarterly report
NEW YORK--(BUSINESS WIRE)--For the first time in 20 months, demand for office space did not increase year-over-year during the first two months of the year, according to the latest VTS Office Demand Index (VODI) report. However, a surge in March activity reversed January and February’s dip, bringing office demand up 4.6 percent year-over-year by the end of Q1. The slowdown at the start of the quarter reflects growing uncertainty in the economy amid recent tension in global trade. Declining job postings, slower hiring, and broader concerns over unpredictable policy shifts likely played a role. According to the latest data from VTS, national demand for office space now stands at 68 — roughly two-thirds of its pre-pandemic level.
Job postings and hiring continued to soften in Q1, with postings declining steadily across nearly all major sectors over the past two years. The new hire rate — the percentage of employed workers who started their jobs within the past month — has dropped from around 4.5 percent in early-2022 to approximately 3.4 percent as of early-2025, a level not seen since the early-2010s.... ...Full Story Here
RSK: This could actually be a slight blessing for the office market as the economy softens a bit. Less job openings could mean employers have the upper hand in betting employees back to the office. See next article below.
Nuclear
developer Elementl Power said Wednesday it’s signed an agreement with
Google to develop three project sites for advanced reactors.
Google will commit early-stage development capital to the three projects, each of which will generate at least 600 megawatts.
It’s
the latest example of tech giants teaming up with the nuclear industry
in an effort to meet the vast energy needs of data centers.
Nuclear developer Elementl Power said Wednesday it’s signed an agreement with Google to develop three sites for advanced reactors. It’s the latest example of tech giants teaming up with the nuclear industry in an effort to meet the vast energy needs of data centers...
RSK: This will be interesting. It is a good move for data centers because if they are located close to the nuclear plant it is not a problem...very few humans work at the data centers. But the land will lose value I am sure...
Over 20
new institutions across a mix of two- and four-year public and private
colleges and universities turn to Barnes & Noble College for
innovative, customer-focused solutions
BASKING RIDGE, N.J., May 12, 2025 (GLOBE NEWSWIRE) -- Barnes & Noble Education, Inc.
(NYSE: BNED), a leading solutions provider for the education industry,
today announced a wave of new campus store partnerships with colleges
and universities across the country. These institutions, representing a
diverse mix of two- and four-year public and private schools, have
selected Barnes & Noble College
(BNC) to operate their campus stores ahead of the 2025–2026 academic
year, with over 20 campus stores scheduled to open from February through
August this year. This total is more than double the number added
during the same period in each of the prior two years...
The end of the pandemic ushered in the hybrid work era. Companies that experimented with remote work discovered both benefits and drawbacks. The solution for many has been a blend of remote and in-office work, though every company defines hybrid work differently. Some require employees to be in the office on specific days, while others let them choose. To support these flexible schedules, many companies have incorporated flexible office arrangements into their lease portfolios. Flex office leases help accommodate overflow employees and give workers options for where and when they work in person. That same flexibility is now starting to influence traditional office leases—a shift that’s especially impactful for smaller companies and startups that previously lacked the option to sign long-term deals.
“The traditional lease is starting to go away,” said Marilynn Joyner, Founder and CEO of Canva, a commercial real estate brokerage and consultancy, “I have seen three and even one year terms, landlords are willing to make deals right now.” Joyner works with startups to help them make better decisions when it comes to their office footprints... ...Full Story Here
RSK: Not sure brokers in our area are doing this or if so, how many. But we are all advisors at sometime or another without receiving commision or payment.
The U.S. industrial sector can`t seem to shake the effects of the pandemic-era wave of warehouse development.
Speculative development accounted for 71% of the 73M SF of industrial space that delivered in the first quarter, according to Cushman & Wakefield. Roughly 45M SF of spec space came online vacant, nudging vacancy up 30 basis points to 7%. ...Full Story Here
RSK: A slight dip in absorption. We shall see what happens as the tariff questions are finally resolved.
Apple, Bet365 bolster sales volume as tenants eschew leases for big-ticket purchases
Global tech companies` interest in expanding their national office footprints appears to have turned a post-pandemic corner.
From
Silicon Valley to New York, some of the biggest names in the industry
have renewed a push to operate as their own landlords as opposed to
leasing space in buildings, closing some of the largest purchases so far
since the pandemic and adding to the rebounding momentum for the United
States office market.
Companies such as Apple, LinkedIn, Amazon
and San Francisco-based financial technology firm LendingClub have in
recent months collectively closed roughly $1 billion in deals, often
taking advantage of the stressed office market by scooping up properties
that otherwise may have been out of their financial reach...
Apartment growth is shifting to
counties with lower population densities, according to the latest
National Association of Home Builders Home Building Geography Index for the first quarter of 2025, released earlier this month.
The market share of apartment
starts in large metro core counties continued a long-term downward
trend. In 2016, it was 45.1%. Since then, it has fallen 9.4 percentage
points to a 35.5% share, the lowest level since the HBGI’s inception...
RSK: A bit of a change in multifamily housing locations. Away from the core urban and out to the country. Most likely land costs and municipal restrictions causing this.
Real estate moves in cycles with periods of growing or slowing in between peaks and troughs. We have been in a period of slowing multifamily permitting for at least the past two years and nationally, we appear to have reached this cycle`s trough.
Individual markets can and do have different cycle timing, but it also appears that many have troughed for multifamily permitting as well. Charting six of the top 10 markets for multifamily permitting shows a clear pattern of peaks and valleys, with most reaching their peaks in 1st quarter 2023. Austin and Orlando hit their peaks in 2022 but maintained relatively high levels of permitting for longer periods...
Madison’s largest independent restaurant group is in a time of transition.
Food Fight, founded in 1994 by Monty Schiro and Peder Moren, operates 15 restaurants around the Madison area and one (Il Cervo) in Milwaukee. Lately the company has been shifting focus on some concepts and preparing to invest in others while in the process of hiring a new director.
“We hope that we have someone in place by the end of the year,” said Greg Frank, who stepped out of retirement to serve as interim CEO.
Former CEO Caitlin Suemnicht is now vice president of business development. “Basically doing what she loves, which is the creative part,” Frank said....
Market-rate apartment occupancy is expected to hold steady as demand remains strong
RICHARDSON, Texas--(BUSINESS WIRE)--RealPage®,
a leading global provider of AI-driven software platforms to the real
estate industry, announced today its 2025 second quarter analysis of the
multifamily housing sector and key indicators for the third quarter and
beyond. RealPage saw the pace of new apartment supply further
decelerate following an ongoing, rapid decline in construction activity.
“Demand for apartments has shown remarkable resilience even as the
once-in-a-generation supply wave crests and retreats,” said Carl
Whitaker, chief economist at RealPage. “We’re observing healthy
absorption rates across the nation. While new supply is decelerating,
the total volume of new inventory delivering remains enough to satiate
demand.”
Despite
an uptick in import volumes over the first half of 2025, demand for
the industrial real estate surrounding the ports has declined to the
point that landlords have had to start lowering rents, in some cases by
more than 10%, according to a new report.Amid economic volatility and cooling consumer demand, rents across the 4.2B SF of port-proximate industrial real estate tracked by Cushman & Wakefield are down 4.8% on average from last year.
The declines were especially acute in California, with properties in the Los Angeles markets seeking rents more than 20% below the rates of two years ago. Properties near major ports in New Jersey, Miami and Virginia also witnessed rent drops of roughly 3% or more.
The declines are coming despite the 10 busiest ports in the U.S. reporting a 3.5% year-over-year increase in volume over the first half of the year. Some ports reported significant growth, like the Ports of Long Beach and Savannah, climbing more than 5%, likely due to increased activity to avoid upcoming tariffs, according to Cushman. May and June important volumes were notably slower than the first four months of 2025.
But despite higher cargo volumes, the industrial market surrounding these ports is experiencing softer fundamentals, partly because of cooling consumer demand and broader economic volatility...
RSK: I think people forget that the Midwest has a lot of ports on the Great Lakes.I`d like to know how they are doing as well. More uncertainty and with tariffs in force first time net absorption since 2015.
MADISON, Wis. (WMTV) - The City of
Madison announced Monday that the John Nolen Drive reconstruction
project will begin in just one week.
The project, expected to last through summer of 2027, will begin on Monday, Oct. 13.
During
the reconstruction, traffic will be reduced to one lane in each
direction on John Nolen Drive. Drivers are asked to plan ahead for
significant travel delays, especially during peak travel times, the city
says.
In addition to the regular closures,
there will be several full closures of northbound John Nolen Drive and
the Capital City Trail for storm sewer installation, expected between 7
p.m. and 6 a.m...
Cresa purchased its biggest direct competitor and developer of a popular portfolio management software.
Dallas-based Fischer, a tenant advisory firm with 110 staff members, is being rolled into Cresa. The merger significantly boosts the size of Cresa’s portfolio business and follows several smaller acquisitions over the last two years.
“We’re the largest occupier-only-focused advisory firm, and they were the second-largest,” Cresa CEO Tod Lickerman said in an interview. “We both have the same privilege of focus. It’s such a good fit. It’s a natural for them and for us.” ...
QTS’ plans, announced in July, would include up to 15 buildings over the next 10 years and add up to 450 permanent local jobs.
Developers
often seek to annex land to a city or village to access urban services
like water and sewer or to expedite the development process.
While
no petition has yet been filed, DeForest administrator Bill Chang
confirmed the village was approached by QTS, and the town of Vienna
clerk also indicated officials there had been contacted regarding a
potential annexation...
Simon Property Group surprised the market by raising its full-year
2025 revenue and profit outlook after a stronger-than-expected third
quarter. The company reported revenue of $1.45 billion, up from $1.34
billion a year earlier, and net income rose to $607 million from $582
million. Occupancy across its U.S. malls and outlets held steady at 96.4
percent, showing that well-located retail properties continue to
perform even in a cautious consumer climate.
For the retail
real-estate sector this is significant. Many had assumed that malls and
outlet centres were permanently impaired by e-commerce and
hybrid-shopping habits—but Simon’s results suggest that well-positioned
retail real-estate is showing resilience. The uptick in base minimum
rent per square foot reflects stronger-than-expected pricing power. In
an environment of elevated interest rates and soft property sales,
having a stable occupancy rate near 96% gives a major retail REIT the
confidence to raise its guidance. If Simon’s performance is any guide,
other retail centres may also be moving from survival mode to selective
growth mode...
Free rent continues to be the preferred concession among Trophy and
Class A landlords. The trade-off between decreasing tenant improvement
allowances (TIAs) and increasing free rent offerings indicates that
landlords are prioritizing rent relief over upfront capital
contributions. This shift is likely driven by cash flow constraints and
the rising cost of building materials.
The spread between net effective rents and full-service base rents
has narrowed slightly to $8.36, yet it remains nearly four times higher
than pre-pandemic levels, suggesting that occupiers can still derive
significant value from landlords.
With an increase in active tenant requirements over the past six
months, the gap between free rent and tenant improvement allowances has
narrowed slightly and is not expected to widen in the near term.
RSK: A few things going on here. First, landlords are running out of cash or ability to borrow funds to make major improvements. In lieu of that, they are offering more rent concessions or free rent so possibly the tenant can make their own improvements. Either way, the landlord is losing rent.
Chicago-area industrial heated up in 2025 following a pair
of years that couldn’t quite reach the meteoric highs of the pandemic
era.
Investor competition for industrial properties,
particularly shallow bay space, is on the rise, and leasing activity has
continued at a healthy pace, panelists said at Bisnow’s Midwest Industrial Summit, held at Innovation Park in Libertyville.
Underwriting remains conservative and equity capital can be
hard to come by, but Chicago industrial pros` prevailing sentiment at
the event was that the market is looking more attractive by the day...
A freight recession, dizzying tariff and trade policies,
and a plunge in commercial construction could have shaken the fragmented
industrial outdoor storage sector.
But the niche asset class has shown countercyclical strength, intensifying demand from tenants and investors for IOS properties, heightening competition and proving investment theses.
“We`ve been pleasantly surprised at the resilience given the number of body blows that IOS should have taken,” said Zach Dobin, portfolio manager for Triten Real Estate Partners’ industrial platform. “It`s stood up.”
IOS rents have grown 123% since 2020, according to a midyear report from Newmark. The sector benefits from minimal purpose-built development and a diverse, evolving tenant base, including cargo, equipment rental, trailer parking, building material storage and more...
A Verona developer is proposing a four-story apartment building on the corner of Atwood and South Fair Oaks avenues on Madison`s East Side, where a popular appliance store stood for 50 years.
The apartment building, to be located on the site of the former Birrenkott Appliance, would have 31 one- and two-bedroom units, 18 covered parking stalls and about 3,800 square feet of retail space on the first floor. It’s expected to cost around $12 million, said Tim Lemkuil, a partner with TriNova Ventures, the project’s developer.
Lemkuil and Andy Fieber co-own Aldo Partners, a Verona-based construction company that would be the project’s contractor. They’ve always planned to use the construction company to develop properties and bought this one after Lemkuil, who lives nearby, saw a for-sale sign in the window, he said.
“This is our first big venture into apartments,” he said.
The development team considers the site the “gateway” to the Isthmus, Lemkuil said. It plans to re-create the corner storefront people see as they come up Atwood but set the new building back a bit farther to improve visibility, he said... ...Full Story Here
RSK: Our investment group looked at that property over a year ago....we couldn`t get it to make sense....good to see someone else did...31 units is packing it in on that site.
How is the construction industry faring
in 2025 and how has the outlook changed? JLL`s 2025 Construction
Perspective U.S. Midyear Update examines how CRE stakeholders are moving
their decision making beyond reactivity, how project-specific risks are
being assessed, and how we’re preparing for local impacts of national
policy.
The report analyzes construction spending, material costs
and changes in the construction labor force. It provides essential
insights for navigating a period of extensive uncertainty.
Americans are traveling less amid sticky inflation, swirling tariffs and a weakening job market. But for the country’s elite, a little economic bumpiness is no reason to cancel a vacation.
The persistent gap in performance between top-tier hotels and the rest of the sector is becoming a chasm, driven by the growing divergence in consumer habits. The widening is expected to continue, and it could eventually drive investment dollars to the luxury space when interest rates come down.
"We`re just seeing more of this bifurcation. The rich are getting richer, the poor are getting poorer and the middle class is getting squeezed out,” said Daniel Lesser, CEO of New York-based LW Hospitality Advisors. “People with means continue to travel in earnest, and those who are challenged are holding back.”
The top end of the hotel market is the only segment to post gains in 2025, while the rest of the sector has posted declining average daily rates and revenue per available room...
RSK: Lower and mid-tier hotels are feeling the pinch, but they are not going away. Wonder how the Wisconsin Dells area is doing....for some reason I feel fine.
Chicago’s Magnificent Mile is showing signs of renewal after years of
pandemic-related decline. Once emptied of shoppers and marked by store
closures and crime, the city’s premier shopping corridor is now drawing
crowds nearly back to prepandemic levels. Falling crime rates and lower
rents have encouraged both retailers and experiential tenants to return.
Uniqlo and Aritzia have opened new flagship stores, and attractions
like the Harry Potter Shop and the Museum of Ice Cream are adding new
energy to the street, long known for its luxury retailers and historic
architecture.
Vacancy remains high at roughly 25%, well above its
7% peak years ago, but the trend is improving. Lower lease prices—down
about 24% since 2019—have helped lure back brands that previously fled
to the nearby Gold Coast, which is now fully leased. Even as a few prime
storefronts remain empty and the fate of its urban malls remains
uncertain, private security, ongoing renovations, and a new wave of
experiential concepts are helping restore vitality to this
once-struggling retail artery...
RSK: Although vacancy remains high, the Magnificent Mile is slowly making a comeback....safety of shoppers being a key. I believe, State Street in Madison, can do the same.
The deal values Topgolf at $1.1 billion, roughly half of what Callaway paid for the entertainment brand in 2020.
Topgolf was a big duff for Callaway.
On Tuesday, the golf giant announced it had agreed to sell a 60%
stake in the popular driving-range-slash-golf-simulator-slash-brewpub
brand to LA-based private equity firm Leonard Green. The deal values
Topgolf at $1.1 billion, roughly half of what Callaway paid for the
brand in 2020. So how could something so beloved by bachelor parties be
such a business bogey?
Tee Time
On paper, Topgolf and Callaway seemed a perfect pairing. The
equipment-maker had been a backer of the entertainment enterprise since
2006, owning a roughly 14% stake before its $2 billion takeover during
the pandemic’s golf boom..
The state, home to the world’s largest concentration of data centers,
could become a model for how utilities handle power-hungry AI.
Virginia utility regulators last week authorized a separate rate
category for the largest electricity consumers, including
energy-intensive data centers that increasingly threaten the reliability
of the U.S. grid.
The move makes it easier for Dominion Energy to charge data centers
differently than other customers, like homes and industrial plants. The
Virginia State Corporation Commission green-lighted Dominion’s plan
Tuesday, as well as limited the utility’s planned rate hikes for
residential customers to “mean monthly increases” of $11.24 in 2026 and
$2.36 in 2027.
The new “GS-5” rate class applies to customers who demand 25 or more megawatts beginning in January 2027...
Construction of industrial facilities smaller than 100,000 square feet is up 16% year-over-year (Y-o-Y), while larger facilities are down more than half in the same period.
National average in-place rents rested at $8.73 per square foot at the end of October, up 5.7% annually. Lease spreads also continued shrinking across several markets.
The national vacancy rate for industrial space stood at 9.6% in October, spiking by 240 basis points (bps) annually due to ripple effects of the substantial deliveries in recent years.
Currently, 352.9 million square feet of industrial space is under construction nationally, which is equivalent to 1.7% of current stock.
So far this year, $61.8 billion has changed hands in industrial transactions
for an average of $136 per square foot. Recent interest rate cuts and
the end-of-year scramble to close deals may contribute to a strong
finish in 2025 in terms of sales.
Western markets:
After a period of protracted growth, rent appreciation is hitting the
brakes with six out of nine markets notching rent growth below the
national average.
Midwestern markets:
Industrial construction activity is beginning to pick up, with
developers looking to capitalize on recent interest rate cuts and
comparatively affordable labor and material costs.
Southern markets: Regional industrial expansion continues, with Baltimore as the only Southern market with a declining pipeline year-over-year.
Northeastern markets: Vacancies remain elevated in New Jersey and Boston, whereas lease spreads in Bridgeport lost some steam.
TORONTO, March 06, 2025 (GLOBE NEWSWIRE) -- Crown Property Management’s
("Crown") latest annual tenant experience survey provides insights from
6,000 commercial building occupants and 350 leasing decision-makers
across our 10 million square foot portfolio in the Greater Toronto and
Greater Ottawa areas (GTA and GOA). The survey explores demand and
utilization trends across our portfolio.
Three Key Findings:
The office is in, and hybrid is waning: A significant shift away from hybrid work with an increase in full-time office attendance.
Amenities or Bust: Tenant satisfaction correlates strongly with the utilization of office amenities.
Growth Prospects: Most tenants expect growth suggesting stability and confidence in space needs....
UW Health has begun construction on its new University Row
Medical Center, which will expand the existing Digestive Health Center
located at 750 University Row.
“We provide remarkable
care to more than 4 million appointments per year through our outpatient
clinics, so having facilities to meet growing demand is essential,”
Katrina Lambrecht, chief administrative officer at UW Health, said in a
statement.
University Row Medical Center will provide
space for most of the clinics currently located at 20 S. Park St., which
will eventually close...
D.C. office owners in the postpandemic era have built out a
slew of spec suites — designed and furnished spaces that allow tenants
to move in quickly and offer flexibility on lease terms.
The concept has historically been somewhat of a win-win.
Along with those benefits to tenants, landlords have been able to save
on tenant improvement allowances, use slow periods to prepare for future
demand, and position the suites as a competitive advantage.
But in an environment of high construction costs, paired with the
glut of spec suite supply, landlords say they have become more of a drag
on their bottom lines.
RSK: Hmmm, prebuilt out suites are usually a tough sell because tenant wants something changed. Plus, you have to carry that debt of building out until it is leased.
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
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The year 2024 has been unkind to many restaurant brands, as especially evidenced by the staggering number of bankruptcies filed this year. Indeed, restaurants are on track to declare the most bankruptcies in decades with the exception of 2020, when the pandemic upended the industry. No segment has been spared, with Chapter 11 filings from legacy chains like Red Lobster and TGI Fridays to once-quickly-growing startups like Hawkers Asian Street Food and Melt Bar & Grilled, to franchisees of major brands like Pizza Hut and Applebee’s...
Over the past 12 months, DLC Management Corp. and its investment partners have acquired seven open-air centers that, in total, comprise 1.5 million sq. ft. of retail space. Founder and CEO Adam Ifshin’s goal is to double the size of his center portfolio with capitalization, not new construction, and his new space is going fast.
“There are a lot of people who are trying to tie up space right here, right now, because they’re afraid it’s not going to be here tomorrow,” Ifshin told Chain Store Age on the floor of the ICSC New York Show during the second week of December. “We’ve had some bidding wars for 25,000-to-30,000-sq. ft. spaces.”
The space grab is, indeed, fearsome. Ifshin reported that DLC had signed two anchor tenants to leases that had been out for less than 30 days. ...Full Story Here
RSK: Open air retail centers and malls are doing quite well at the moment...but most retail centers are.
An overwhelming majority of Bisnow readers see lower interest rates and more people showing up to work at the office in their near future, according to responses to Bisnow’s 2025 predictions survey.
But the 1,400-plus readers who weighed in on what the new year will bring are tempering optimism with caution. Rates that remain higher than a few years ago, taxes, potential tariffs and other cost pressures are top concerns for the commercial real estate industry...
RSK: Look at chart number 2 where they have aske if you should Hold, Buy or Sell. Well, If most people want to hold and no one wants to sell, where will the properties come from for the Buy? This alone drives up prices and inflation.
For the first time, service-based retailers are now the most active acquirers of retail real estate space, according to CoStar.
In
its January topline summary, the commercial real estate analytics
platform reported that foodservice tenants accounted for more than 20%
of leasing activity during the first 11 months of 2024.
During the same period, fitness brands snapped up 12% of leases, and health care and education tenants grabbed 6%...
...
“Fitness brands are a fantastic driver of traffic to a center.
They’re not the stepchild any longer, they’re the stars of the show,”
Svec said. “The TikTok generation are active members of fitness centers.
They’ve become part of their personal brands.” ...
RSK: Interesting that fitness is one of the leaders and TikTok users are the most apt to sign up for them. That may change since TikTok is now banned in the US.
South Korea`s Samsung Electronics and at least one other appliance maker are considering moving some operations from their plants in Mexico to their U.S. factories.
The review is in response to President Donald Trump`s consideration of imposing 25% duties on imports from Canada and Mexico on Feb. 1, a South Korean newspaper reported on Tuesday.
Samsung is looking at moving dryer production currently happening at its Querétaro plant to a plant in South Carolina, according to the Korea Economic Daily. The paper reports that the South Carolina plant`s main product is washing machines...
Property owners question if projects can proceed without subsidies
One of President Trump’s campaign promises was to repeal former President Biden’s landmark legislation the Inflation Reduction Act. The bill, signed in the aftermath of the pandemic, has been called the Green New Deal and was designed to give federal grant money to a variety of sustainable initiatives including a number of different provisions aimed to incentive a transition to more sustainable building. The tax breaks and grant money has already been used by many property companies to help them build or improve their properties with energy efficient upgrades. But now with the Republicans in control of all three branches of government, the future of IRA grants for construction projects is in question. The uncertainty has left many property owners who have already applied for these programs wondering if their projects will be able to go forward without these subsidies...
Companies like Simon Property Group and Walmart are throwing money at
shopping centers with empty stores, weak traffic and falling sales.
Lower-performing shopping malls in the U.S. that once seemed destined to languish or close are getting renewed attention.
Last week, for example, Walmart revealed that it bought a mall in the Pittsburgh area, and Simon Property Group said that for the next two years it will refurbish many of its B malls.
“Frankly we’ve been organizationally very focused on — for no better word — the A’s,” CEO David Simon told analysts last week. “We do think there is real effort, focus, growth for us in the B’s, where we’re investing our dollars. So that’s a big program for us in ’25 and ’26.”..
Entering 2025 and beyond, select-service & extended-stay hotels
are poised to remain a focal point for investors seeking durable returns
in a volatile market
Key Takeaways:
Select-service hotels have demonstrated robust growth and
resilience, with record-breaking RevPAR, near-full demand recovery,
superior operational efficiency compared to full-service hotels, and
inflation-resistant profitability.
The proliferation of brands and strategic moves such as M&A
and conversions indicate a dynamic and competitive landscape, with major
hotel groups adapting to market conditions and seeking net unit growth.
The sector`s consistently higher yields and lower yield
volatility compared to other main property sectors continue to attract
diverse investors, from owner-operators to HNWIs and private equity
firms.
While portfolio transactions have seen a temporary decline due to
high interest rates, this trend is expected to reverse given recent
reductions in rates and credit spreads.
The lending landscape remains favorable, with a growing diversity
of lenders showing confidence in the sector driven by a smaller cheque
size and debt market clarity....
Power shortages could limit future data center growth
Data storage has been the standout asset class for the commercial real estate world ever since ChatGPT burst into our lives, reaching an unprecedented 100 million users in only two months. The data center market has been so hot that CBRE has started its own Data Center Solutions advisory group and acquired Direct Line Global, an infrastructure provider for data centers last year. But, despite what many thought was going to be years worth of double-digit growth in demand for data centers, Microsoft has started to slow down and even shrink some of its data center footprint.
The report comes from TD Cowen, a securities analyst group, which found that Microsoft has canceled leases for North American data centers totaling the equivalent of two full facilities. Microsoft has also allowed several letters of intent (LOIs) for other centers to lapse and has walked away from at least five properties it had under contract...
Concessions given to office renters decreased on average in 2024, the first time they have done so since CBRE began tracking them in 2019.
Concession packages peaked in 2023, when they included a tenant improvement allowance of $97.55 per SF and 9.6 months of free rent on average, according to a CBRE analysis of 4,350 leases in 12 markets nationwide.
“The decrease in concessions last year is another sign of stabilization and nascent recovery in the office market,” CBRE President of Americas Investor Leasing Mike Watts said in a statement.
Although both metrics declined in 2024, they remain about 30% higher than they were in 2019. 2024 saw an average tenant improvement allowance of $87.51 and 8.9 months of free rent, well above $63.67 and 6.7-month averages in 2019.
There is a split in the market when considering top-tier versus lower-tier buildings, CBRE found...
Execs point to promising progress in business, leisure travel
Encouraged by full-year and fourth-quarter results, hotel brands are expecting this year to show steady growth.
On their year-end and fourth-quarter 2024 earnings calls, hotel brand executives seemed optimistic about how 2025 is looking, crediting growth in the leisure and business travel sectors, new constructions coming online and more.
For more on what these brand execs had to say, read below:
Marriott International
Marriott International expects comparable systemwide constant-dollar revenue per available room growth of 3% to 4% year over year for the first quarter of 2025 and 2% to 4% for the full year. It projects net rooms growth of 4% to 5% for year-end 2025. It expects adjusted earnings before interest, taxes, depreciation and amortization of $1.17 billion to $1.19 billion for the first quarter and $5.29 billion to $5.43 billion for the full year...
Identity Theft and Financial Fraud: Scammers can use deepfake technology to create realistic but fraudulent identity documents and intercept payments or redirect funds to their accounts. Unreal Deals
Live 1-Hour Webinar/Podcast and Audience Q&A Session
Real stories of deepfakes. Hear about cases that succeeded and those that were thwarted.
Deepfake Detectives: Tips to safeguard your real estate deals.
Impersonation of clients and agents, manipulation of legal documents, and more.
The world`s largest industrial landlord was double downgraded by Scotiabank Monday, causing stocks to fall to a nearly five-year low.
Prologis has been taken from Sector Overperform to Sector Underperform, meaning the REIT’s stocks are expected to perform worse than the industrial market overall in the coming months.
Scotiabank also reduced the price target to $97 from $133.
Prologis` stock was $91.71 a share during Monday trading, down 6.6% from its previous close of $98.35, according to Seeking Alpha. As of midday Tuesday, the price remains the same.
Weaker earnings at Prologis would mirror a broader slowdown in the industrial market. The national industrial vacancy rate doubled in the last two years and reached 8.2% in February, CommercialEdge reports...
President Donald Trump’s ever-changing trade policy has led pervasive uncertainty to take hold across the economy, with questions swirling about rising inflation and how the inevitable next set of tariffs will ripple across markets.
Federal Reserve Chair Jerome Powell, attempting to address the concerns of the market, resurrected a relic of the pandemic following the March meeting of the Federal Open Market Committee...
Companies are investing in live
event-ready amenity spaces to attract talent, fuel creative work, and
create buzz in the workplace.
The next great concert or premiere you go to may be at work.
Recognizing people’s desire for immersive, in-person experiences, media and creative companies are investing in live event-ready amenity spaces in the workplace — a strategy that not only attracts talent and fuels creative work but also creates FOMO-inspiring buzz in the workplace.
Whether it’s taking advantage of an underutilized space for a strategic intervention, or incorporating into a larger renovation or facility planning, creative companies are infusing their workplaces with spaces that create opportunities for talent to have one-of-a-kind live experiences for their creative communities to rejuvenate the workplace experience and grow their businesses.
RSK: Just think of the possibilities as an owner of the building and for tenants as well as the general public. Some office buildings have very cool lobbies and auditoriums.
Access the latest quarter commercial real estate results for the U.S. industrial sector. MarketBeat reports analyze quarterly market activity including supply, demand and pricing trends.
Key INDUSTRIAL Takeaways For Q1 2025
Demand remained resilient in the first quarter despite tariff uncertainty.
The U.S. industrial sector continued to absorb space in the first
quarter, registering 23.1 million square feet (msf) of positive
absorption. This was down from 42.4 msf observed in the fourth quarter
but on par with the level absorbed in the same quarter one year ago.
Vacancy continued to drift higher to 7%. The
combination of vacant speculative deliveries and some occupier
dispositions caused the U.S. industrial vacancy rate to rise by 30 basis
points (bps) to 7%. After remaining historically tight for several
straight years, vacancy is now back in line with the historical
average—indicative of a more balanced market.
Rent growth continued to moderate. Rising
vacancy continues to take some of the pressure off rents. In the first
quarter of 2025, rents grew by 4.3% year-over-year (YOY) but were flat
quarter-over-quarter (QOQ). Moreover, a rising number of markets
reported YOY declines this quarter...
RSK: Good report....worth the read. Demans has caught up with construction which has slowed down. All those spec spaces are being filled so vacancy rate should decrease soon.
3V Infrastructure is self-financing EV charging at multifamily properties, betting that the rewards of selling at-home charging at scale are worth the up-front risks
Aubrey Gunnels, CEO of 3V Infrastructure, understands the risks involved in installing and owning EV chargers in thousands of apartment building garages and condominium parking lots. She also sees the opportunity.
Just look at the statistics. By 2030, EVs are expected to make up close to half of all new U.S. car sales. Today, roughly 80% of EV charging takes place at home, and roughly one-third of Americans live in multifamily housing. But only 5% of U.S. multifamily housing offers on-site EV charging, according to CBRE, one of the world’s largest property management companies and a 3V Infrastructure partner...
RSK: Wisconsin and specifically Madison, will be seeing electric rates increase not seen before. I think many EV owners will start being charged for the charging usage, which in many cases will be well beyond the cost of gasoline. Landlords beware if you are currently absorbing this expense.
Data suggests that nationwide office visits may be trending upwards once again.
Return-to-office mandates seem to be everywhere. Following the federal government’s example, local governments from the City of Atlanta to the State of Texas have introduced stricter in-office requirements. And an increasing number of corporations are demanding full-time in-person work—including firms like JPMorgan, which began enforcing a five-day RTO mandate in early March.
But what does ground-level data tell us about how these new policies are affecting office attendance in practice? Did the RTO slowdown observed in January and February continue into March? Or is a new resurgence underway? RTO marches ahead
The latest data from the Placer.ai Office Index suggests that nationwide office visits may be trending upwards once again. Although March 2025 office visit levels didn’t match the peaks of October and July 2024, visits last month were only 32.2 percent below March 2019 levels—an improvement over March 2024... ...Full Story Here
RSK: Stats show more foot traffic back to the office. This doesn`t mean more office space is being leased but could be a precursor to it.
A panel at this week’s Customers First Coalition 2025 Power Breakfast
in Madison discussed the energy challenges and opportunities associated
with more data centers coming online across Wisconsin and the U.S.
Speakers noted the rising demand impact of new data centers being built
nationwide.
Former state PSC Commissioner Tyler Huebner
said these projects bring “a lot of job creation, a lot of economic
benefit, tax base benefit” for the communities in which they are
located. However those benefits are accompanied by a substantial need
for energy — in some cases a “hyperscale” datacenter is comparable to
the addition of an entire city to the grid.
Huebner
said geothermal energy and small modular reactors (SMRs) represent
exciting prospects for this space. SMRs can be deployed to locations
with high demand after being built in a factory elsewhere and provide an
alternative to more expensive traditional nuclear plants.
While year-over-year rent gains are on the decline, solid demand has buoyed the market’s performance, according to Yardi Matrix.
The national average rent rose by $5 to $1,736 in April, showcasing ongoing moderate rent growth, according to Yardi Matrix’s latest National Multifamily Report, released on May 7. Year-over-year rent growth fell by 10 basis points during the same period, down to 0.9%.
Northeast and Midwest markets
continue to record the strongest rent growth at the major metro level,
with New York City well ahead of other markets at 5.8% rent growth YOY.
Negative rent growth continues in Sun Belt markets, including Austin,
Texas, at -5.6%; Denver at -3.9%; Phoenix at -3.1%; and Dallas and
Orlando, Florida, tied at -2.1%.
Hotels have begun to experience a downturn in U.S. demand over the past few months, and they expect it to continue through this year.
Though the hospitality sector had an average first quarter, sentiment across the industry is that a downward-trending economy and increasing uncertainty are set to impact their bottom lines for the rest of 2025.
“As we sit here right now, the near term is definitely disrupted,” Hyatt President Mark Hoplamazian said on the company`s earnings call this month...
RSK: I do not think it will be as bad as many think. The US economy is slowly picking up, the stock market is on a steady rebound and soon peoples retirement accounts will be flush again. As far as international travel, that is another question.
The flexible office space sector has seen its share of volatility, from the collapse of WeWork to a wave of overfunded startups chasing growth at the expense of sustainability. Amid that chaos, Industrious followed a more disciplined path. Built around management contracts instead of leases, the company steadily grew into one of the most stable and respected players in the category, culminating in its $800 million acquisition by CBRE.
In a recent episode of the Thesis Driven Leader Series, Industrious co-founder Jamie Hodari spoke with host Brad Hargreaves about how the company outlasted its peers. Now serving as CEO of Building Operations and Experience at CBRE, Hodari shared insights on the problems with VC-fueled office models, what tenants actually want from hybrid space, and how operations, not just real estate, are shaping the future of the workplace. ...Full Story Here
RSK: Brilliant mind here to recognize what tenants really admire most in co-work spaces. And, the exact reason WeWork failed under Adam. Good read for any employer and landlord.
After four decades of being headquartered blocks away from the Capitol Square in Madison, Wisconsin Manufacturers & Commerce (WMC), the combined state chamber of commerce, state manufacturers’ association and state safety council, will move to a new location on the city’s far east side on June 3.
WMC’s new address will be 2 Buttonwood Court in the American Center Business Park. WMC’s affiliations — WMC Foundation, the WMC Litigation Center, Wisconsin Safety Council, WMC Insurance, the Wisconsin Chamber of Commerce Executives and Wisconsin Business World — will all move their operations to the new location.
WMC purchased its new building in January. During the last several months, the location has undergone renovations to better meet the needs of WMC’s mission...
RSK: Much better location if you are serving the entire state for access.....poor location for lobbying, which is what they did so well for many years.
Cousins Subs marked the grand opening of its newest location in
Madison, Wis., with a ribbon cutting ceremony alongside the Greater
Madison Chamber of Commerce and Bucky Badger. Located at 1 N. Park St.,
the restaurant reestablishes the brand’s presence near the University of
Wisconsin–Madison campus.
“This location is a full-circle moment for our brand,” said Christine
Specht, CEO of Cousins Subs. “We’re proud to bring our deli fresh food
back to downtown Madison and serve the vibrant student community and
city residents in this iconic spot.”...
RSK: Excellent location for them. Student dorms close by, Kohl Center a block away, 2 hospitals in walking distance and of course those football Saturdays...
The most effective use of office space continues to evolve, driven by
the interplay of hybrid work policies and workplace experience. CBRE’s
data indicates that while sectors such as Technology, Media &
Telecommunications (TMT) have been pioneers in adopting flexible
workspace solutions, other sectors are catching up. The recalibration of
space composition, prioritization of collaboration spaces and adoption
of seat-sharing practices reflect a broader trend toward creating more
adaptive and effective work environments...
A 138-unit apartment building planned for Madison’s west side has been approved by the City Council for the second time, theWisconsin State Journalreports.
The news comes after Dane County Judge Rhonda Lanford sent the decision
back to the city following some nearby residents’ outcry and a lawsuit
challenging the site’s rezoning last summer.
Objections
to the proposed three-story development at 6610-6706 Old Sauk Road stem
from concerns that it would look out of place in the neighborhood,
worsen traffic and increase the area’s risk of flooding.
Lanford
earlier this month ruled that the council failed to determine whether
the rezoning was consistent with Madison’s comprehensive plan as state
law requires. She directed the council to reconsider the rezoning
accordingly, and it once again voted to rezone the property, this time
with a 16-4 vote..
RSK: I understand where the neighborhood is coming from but it cannot be much different than the Sequoia Place on Midvale....and that has several retail properties. I do know that if you go to Sequoia the parking is terrible.
Rising temperatures and massive new data centers are providing a massive stress test for the US power grid.
Before reading this, you’ll want to make sure all your devices are fully charged. Go ahead, we’ll wait.
Okay. This week’s epic heat dome has swallowed up much of the eastern half of the continental United States and is pushing the energy grid to the brink as buildings and homeowners everywhere crank up the air conditioning to stay cool. As a result: Spates of power blackouts across the country, ranging as far and wide as Queens, New York; northeast Ohio and Philadelphia, Pennsylvania. The US Department of Energy has even issued an emergency order to address and prevent potential electricity shortages in the entire southeast.
In other words, the changing climate is crunching US energy infrastructure...
New data from Fiserv shows that small restaurants/independents experienced modest sales growth in June (+0.4%) compared to June 2024. However, their month-over-month declines in transactions (-2.6%) and foot traffic (-2.5%) eroded much reason for optimism.
According to Fiserv’s Small Business Index, this negative monthly trend followed a 5.6% month-over-month drop from April to May.
The overall index for small businesses shows a 1.4% month-over-month sales decline, reflecting a broad slowdown in consumer activity across segments, not just restaurants. Foot traffic overall was also negative month-over-month, at -2%....
Retailers have announced 67% more store closures so far this year compared to 2024, with 119 shops across the U.S. closing in the first week of July alone, according to data from CoreSight Research.
There have been 5,941 announced store closures and 4,176 new locations this year through July 4. The imbalance of openings and closings amounts to roughly 50M SF of space that has been vacated this year without a new tenant in place, CoStar estimates.
Brick-and-mortar shops remain consumers` preferred method of shopping, but the data could reflect unease among retailers as consumer sentiment sours and President Donald Trump’s trade war drags on...
RSK: Even though there are closings for certain National Retailers, foot traffic and spending are up. Investors still see the retail sector for newer well located spaces as a good investment.
The U.S. Energy Department calls a decades-old accessibility provision redundant in a rule rescission taking effect soon.
New and existing buildings receiving funds from the U.S. Department of Energy won’t have to meet accessibility requirements starting Sept. 12 in a fast-tracked rule rescission that has alarmed disability-rights advocates.
The agency on May 16 used what’s known as a direct final rule to announce it’s rescinding a rule that’s been on the books since the 1970s requiring any building receiving federal funds, whether for new construction or undergoing renovation, to be made accessible...
RSK: I would still think smart operators would have some assesabitly in their construction...it would put them heads above those that do not. Thoughts on this?
Prologis has secured a 40-acre piece of land at 1690 N.W. 31st Ave. in Fort Lauderdale so it can build an industrial park. Much of that 40 acres is underwater, so the company needs to fill in the rock pit lake to build its $64 million industrial project.
Prologis says the current property owner, RPL Land, obtained state and county approval to fill the borrow pit. That process will address the contaminated sediments at the bottom of the pit to make it safe for future development.
The 560,000 square feet of warehouse space will be spread across five buildings... ...Full Story Here
RSK: I bet the NIMBY`s will be out strong to oppose this.
Post-pandemic,
flexible work models were meant to deliver the best of both worlds:
freedom and fluidity without losing the spark of in-person
collaboration. As the pendulum swings back toward on-site work,
companies still need to compete for top-tier talent—notably in tech. But increasingly, they also need to convince those people to come back to the office.
It’s
not enough to offer a desk and a decent coffee machine. The office has
become something more symbolic: a reason to believe. A space that
reflects your company’s intent and identity. That’s why commercial real
estate, once just a line item on the P&L, is quietly becoming a
talent brand platform...
A burst of optimism rippled through the construction world last week when copper prices plunged nearly 22%.
President Donald Trump had just spared raw copper from tariffs, surprising markets that had been bracing for broader restrictions.
For a moment, real estate developers exhaled. Then came the fine print.
On Friday, the White House slapped a 50% tariff on finished copper goods — the pipes, wires and fittings critical to U.S. construction... ...Full Story Here
RSK: Construction costs just became a bit more expensive. I`m still not sure how these tariffs will help the basic US consumer.
GE Appliances, a Haier company, said Wednesday it would invest more than $3 billion over the next five years in its U.S. operations, workforce and communities. The company will expand its air conditioning and water heating portfolio, increase production output across all product lines and further modernize its 11 U.S. manufacturing plants. The first phase of investments will begin at GE Appliances plants in Kentucky, Alabama, Georgia, Tennessee and South Carolina.
Upon completion of this plan, GE Appliances will have invested $6.5 billion across its U.S. manufacturing plants and nationwide distribution network since 2016. The latest commitment marks the second-largest investment in GE Appliances’ history, surpassed only by the creation of Appliance Park, the company’s global headquarters in Louisville, KY, in the 1950s...
Markets continue to be reflective of delaying decisions and searching for certainty. The passing of the recent tax legislation should provide some certainty; however, constantly fluctuating trade policies and geopolitical concerns continue to be issues impacting commercial real estate.
Key takeaways:
Multifamily housing: There was a massive surge
in new apartments between 2021 and 2024. Now, with higher financing
costs and other expenses across the board, the pace of new construction
has slowed sharply. As a result, the supply pipeline is drying up,
vacancies are stabilizing, and rents — particularly in mid- and
lower-tier apartments — are poised to pick up again later this year.
Student housing: The student housing sector
rebounded in 2024 following a slowdown in 2023, which, as in other
asset classes, was largely driven by tightening in the capital markets.
Sector fundamentals remain solid in 2025, with both portfolio and
one-off transactions on pace with 2024. The 12-installment lease
structure has become the industry standard, replacing traditional
academic-year or nine-month leases, providing more predictable and
consistent cash flow.
Office: The office sector was stable in the
second quarter despite volatile macroeconomic conditions. Leasing
volumes and office visitation continued to stabilize, with prime office
spaces in major cities outperforming struggling Class B and C assets.
With new optimism around increased transaction activity, a much-needed
market reset for troubled assets may be in store.
Retail: The outlook for retail landlords has
become slightly less favorable, though income streams are expected to
remain stable due to sustained high occupancy levels across most retail
centers. Tariffs continue to be a key source of uncertainty for the
retail sector, with the coming months — particularly the back-to-school
shopping season — expected to offer critical insights into how both
retailers and consumers respond.
Industrial: In the second quarter, the
industrial real estate market showed resilience amid shifting economic
conditions and is trending towards efficiency and modernization, with
companies investing in automation and advanced inventory systems.
Looking forward, industrial is expected to remain the most active and
favored asset class as demand for flexible, high-quality logistics
space continues.
Capital markets: Capital markets remain tight.
However, sustained transaction activity has shown that bid-ask spreads
have narrowed and investors are becoming more comfortable with
pricing. While distress continues to rise, it remains manageable, and
fundamentals across most sectors are strong enough to support extensions
or other creative solutions in many cases. Capital is available and
ready to be deployed, and we remain confident heading into the
remainder of the year.
This year alone has seen at least three NYC food halls close their doors, including last week when Harry’s Table, a Cipriani-run Italian food market on the Upper West Side in the Waterline Square complex developed by GID, announced its intentions to shutter and lay off 72 employees.
“There`s no shortage of great food and beverage, specifically in New York City,” said Trip Schneck, managing partner and co-founder at Colicchio Consulting, a food and beverage experience consulting firm. “A $23 check average with no alcohol, and the rents that landlords are charging, it becomes difficult to make the economics work.”
Harry`s Table is just the latest example of an NYC food hall opening to great fanfare, only to land in the market with a thud.
The 40K SF Citizens Market Hall in Brookfield Properties’ Manhattan West project said it would close in April. In May, Northend Food Hall in Washington Heights closed just four years after opening, Crain’s New York Business reported.
Food halls offer chef-driven, quick-service restaurant concepts designed to give a more elevated, unique experience than mall food courts populated with national chains like Sweetgreen, Panda Express and Shake Shack. But NYC’s offerings have suffered for a few reasons, Schneck said.
The food hall trend has exploded over the past decade. In 2015, there were 75 nationwide, according to Garrick Brown Real Estate Consulting. By early 2023, the number had nearly quintupled to 343....
RSK: Some quick thoughts here. Food Halls are glorified cafeterias in my mind. They catered to the lunch crowd. Their ambience in the evening is low compared to regular restaurants and if they do not serve alcohol they are doomed....unless a full blown back to the office for workers comes around.
For more than 116 years, Deanna Davis’ family has owned Reynolds
Ranch, which spans 7,600 acres in California’s Central Coast region.
With the heirs in disagreement over the homestead’s future, Reynolds
Ranch is now on the market for $30.7 million.
“It’s so hard to
make decisions together as a family about the ranch,” Davis told CNBC.
“If I had the cash, I would buy the whole thing right now and cash
everybody out and start over and take the title in a LLC.”...
Key Points
Deep-pocketed buyers are clamoring for ranches with massive acreage and private fishing.
At
the same time, one-of-a-kind ranches are hitting the market for the
first time in decades — or even generations — as families choose to cash
out.
Premium ranch brokers told CNBC why these legacy ranches command top dollar, and what buyers should know...
Amid the current slowdown, occupiers are adjusting their operational
strategies, resulting in a measured deceleration of industrial
absorption at a national level.
However, this cautious moderation won’t drag absorption in the red,
though admittedly it’s not slated to be far off. Absorption is on track
to reach 2.8 million square feet nationally during the second half of
2025, according to the latest NAIOP Industrial Space Demand Forecast, albeit the last quarter is set to compensate for the sluggishness of summer and early fall.
The NAIOP forecast model bakes in variables such as lagged net absorption, real GDP growth, inflation and output gaps, monetary policy, as well as seasonal and structural effects...
Sales of individual properties rose 11%, according to an MSCI Real
Assets report, as observers see optimism for volume to pick up in the
coming months.
Dive Brief:
Apartment sales volume fell 8%
year over year to $12.5 billion in August, according to a report that
data firm MSCI Real Assets shared with Multifamily Dive. However, sales
of individual properties, a gauge of sector health, rose 11% YOY to 11.2
billion.
At the same time, portfolio
activity declined by 64% YOY in August to $1.3 billion, which pulled
down overall sales. In August 2024, KKR closed a deal
to acquire 19 purpose-built student housing properties from BREIT for
approximately $1.64 billion, representing 46% of the total volume that
month. Even without that deal, sales would have shrunk in August.
The Real Capital Analytics
commercial property price indexes for multifamily ticked up 0.2% YOY,
according to MSCI. A year ago, prices were declining at a rate of 6%
annually. Cap rates have remained flat at 5.5% since August 2024.
Join me and Planning Division staff at 6 p.m. on October 21 for a
virtual meeting on one of the most rapidly redeveloping areas in
Madison.
Some individual development projects briefly receive substantial media attention; others, very little or none.
Some Common Council actions briefly receive media attention while others do not.
Yet, with the benefit of hindsight, we can see that the cumulative impact is dramatic.
As
recently as 2020, the area bound by Mineral Point Rd on the north, the
Beltline on the south, West Towne Mall on the west, and Westgate Mall on
the east, was overwhelmingly retail, office, and laboratory territory.
Five
years later, over 2,500 housing units have been built, are being
constructed, or are in the planning stage. Much more is likely.
On October 21 we’ll explore how a series of plans, investments, and incentives have energized this transformation.
Frightened by federal agents, some tenants
can’t pay rent on time after missing work, while maintenance staff
aren’t showing up to job sites. Property owners and managers worry
continued ICE activity will force them to pass costs to tenants.
John Warren has been in the real estate business for a decade, and
for the first time, U.S. Immigration and Customs Enforcement agents
showed up armed at one of his properties last week to conduct a raid.
Until
recently, it wasn’t normal for Warren to see ICE agents patrolling
Chicago area neighborhoods. Warren, operations manager and managing
broker of Forte Properties, oversees 450 units, mostly in western
suburbs with heavily Latino populations such as Berwyn and Cicero.
He
received word from his maintenance staff at a 24-unit apartment
building in Cicero on Oct. 7 that there were federal agents at the
property.
RSK: " Paranoia strikes deep...into your heart it will creep....it starts when you`re always afraid....the man gonna come and take you away" as the song by Buffalo Springfield goes. Is ICE really arresting legal immigrants or those that do not have a criminal record?
Chicago’s office-to-housing conversion wave is no longer just wishful
thinking—it’s now backed by political momentum. With over 20 projects
underway totaling millions of square feet, the city is accelerating the
transition of under-used offices into apartments and mixed-use
buildings. Long hampered by regulatory hurdles, the Chicago market is
signaling a major shift.
One of the main bottlenecks: the
once-promising “La Salle Street Reimagined” program. Launched in
September 2022, the program calls for turning millions of square feet of
under-used office space along La Salle Street between Randolph and Van
Buren into a mixed-use neighborhood. The target was to add 1,000 +
residential units with at least 30 percent affordability, activate
ground-floor retail, and restore the street-level vitality of what was
once the city’s financial spine...
Madison’s City Council will consider a ban on new car washes, car dealerships, standalone surface parking lots and some drive-thru windows near Bus Rapid Transit routes under proposed zoning changes intended to increase housing options. Transit-Oriented Development overlay district map
Madison’s Transit-Oriented Development overlay zoning district and the properties where four-unit buildings would become a permitted use under Mayor Satya Rhodes-Conway’s proposal... ...Full Story Here
RSK: Some important items here. Be sure to voice your opinions with your Alder.
Cities around the world are getting hotter—and not just by a few
degrees. The number of extreme heat days is rising so quickly that many
urban cores are becoming heat islands in their own right. In the U.S.,
the Environmental Protection Agency reports that heat-related deaths
have tripled since the 1990s, and in Europe, last year’s record summer
temperatures caused thousands of hospitalizations for dehydration and
heat stroke. The urban heat crisis is no longer just a public health
issue, it’s becoming a workplace design problem... ...Full Story Here
RSK: One can always find something wrong if you look hard enough. The problem here is the author does not offer many solutions.
Renewal rates are up as moving costs rise and inventory shrinks
thanks to a slowdown in new construction, stepped-up demolition and more
office conversions, the firm says
U.S. office vacancies showed
their first year-over-year decline since the pandemic, according to a
report by CBRE. The shift has been driven by a slowdown in new
construction and the demolition and conversion of older office space,
according to Stefan Weiss, U.S. head of office research for CBRE.
The vacancy rate of 18.8% in Q3
compares to 19% a year prior — a high that previously hadn’t been
touched since 1992 in the wake of the savings and loan crisis, Weiss told CFO Dive.
The current healthier vacancy rate, which is one of the latest signs
that the office sector has begun to shrug off the effects of remote and
hybrid work that have impacted commercial real estate since the pandemic
began, Weiss said.
RSK: We own several small office buildings, and I know of others that are continuously full. We have a waiting list at one and I am betting others in prime locations do as well. There is a place for all types and sizes of office users.
The office market’s recovery is starting to show up in the numbers,
but only a handful of cities can actually feel it. In places with strong
job centers and a deep bench of corporate tenants, leasing momentum is
finally picking up. Elsewhere, vacant floors and half-empty towers
remain the norm. The divide is growing more visible as companies
consolidate into higher-quality buildings and leave older stock behind.
Industrious is doubling down on San Francisco’s Financial District, taking an additional 17,100 square feet at 345 California and bringing its total footprint in the tower to roughly 50,500 square feet. The CBRE-backed co-working operator says the expansion will be fully built out by mid-February, a move that comes as the building’s owner, Metropolis Investment Holdings, pushes occupancy to 85%. Despite citywide vacancy still hovering above 31%, prime buildings continue to attract tenants, and San Francisco’s net absorption turned positive again in the third quarter.
For Industrious, the decision fits its long-running strategy of measured growth in high-quality locations. Backed by CBRE—now its full owner after an $800 million valuation deal—Industrious is positioning itself as the premium workplace-experience provider for companies returning to upgraded spaces. The company is expanding across the Bay Area, including a new 19,800-square-foot lease in Burlingame, as AI and professional services firms drive demand in walkable, amenity-rich districts. CBRE CEO Bob Sulentic told investors that the broader office recovery is already underway, saying, “The leasing markets are back.”... ...Full Story Here
RSK: The small and temporary office is still growing in the office sector.
Every week in the Corner Table newsletter (it’s free!), my colleague Beck Henreckson and I chart the openings and closings of restaurants, bars, cafes, food carts, fast casual chains and bakeries in Madison and beyond.
In 2025, the city saw a generous handful of openings. We now have both Jamaican coffee (Rasta Barista, next to new wine bar Tailer Nicole) and Jamaican food (Fya Syde Kitchen). Madison got a late night Japanese spot (Izakaya Kuroyama), a Yemeni coffee shop (Qamaria Coffee Co.), and new storefronts for vegan doughnuts (Level 5) and gluten-free baked goods (Paleo Mama Bakery)...
RSK: Although most likely not a full list, it just shows how fluid the restaurant/hospitality sector of retail is. A good niche to be in for a knowledgeable broker.
One U.S. state stands alone in how enthusiastically its residents embrace e-commerce.
New Hampshire is the number one state nationwide when it comes to online shopping habits of its residents. Analysis from mobile app developer MobiLoud evaluating the share of a state’s residents who shop online, the likelihood of people making weekly online purchases, and search intensity for online shopping terms gives New Hampshire a near-perfect online shopping obsession score of 99.68.
The Granite State achieved this top rating due to having the highest online shopping adoption (86.33%), as well as strong likelihood of making weekly online purchases (+10.9%) and solid search activity (12,880 searches per 100,000 residents)...
Investors are giving early education properties a closer look as
childcare centers, preschools, and other learning facilities show
remarkably strong fundamentals. Demand for early childhood education
continues to climb as more families return to work, dual-income
households become more common, and younger demographics reshape both
suburban and urban markets. That steady demand is turning these
buildings into something investors increasingly view as reliable, income
producing assets.
Part of the appeal comes from the structure of
the leases and the reliability of the operators. Many early education
providers sign long-term agreements with built in rent escalations, and a
surprising number of them have strong credit profiles. The sector also
benefits from a degree of recession resistance, since early education is
tied more to societal necessity than discretionary spending.
Institutional players and private equity groups have been making larger
commitments in recent years, and transaction activity in this niche has
begun to outpace several more traditional commercial property
categories...
Blue-chip departures accelerate repositioning and conversions
When Irvine Company sold One America Plaza in San Diego for about 120
million dollars, the deal marked more than the end of a single
ownership. It closed the book on Irvine’s remaining downtown holdings, a
dramatic shift for a city where the company’s presence once served as a
stabilizing force. That exit
came after years of weakening fundamentals in the city’s core. Downtown
vacancy has climbed into the mid-thirties, and availability approaches
half the market when shadow space is counted. Leasing volumes remain
well below pre-pandemic benchmarks, and several towers originally sold
as “core” assets have been trading at significant discounts.
Irvine
Company may have left downtown San Diego, but its overall strategy is
not a retreat from real estate. The firm still controls about 129
million square feet across its national portfolio...
With office vacancy and uncertainty mounting, medical office
buildings are quietly turning into one of the most sought-after property
types in commercial real estate. The shift to outpatient care, boosted
by demographic pressure from an aging population, is fuelling demand for
these buildings in suburban and community settings. That steady demand,
paired with long leases and highly profitable tenants, is drawing
attention from institutional investors hungry for stability.
Medical
offices are no longer niche assets. As of mid-2025, occupancy across
the top U.S. markets has climbed to roughly 93.5 percent, with a subset
of 42 markets reporting occupancy at or above 95 percent... ...Full Story Here
RSK: I see this market rising in our area. Med and Med Science is becoming more and more independent of the Hospital Groups such as imaging, injection, dialysis etc.
After 2024’s big drop in project starts, this will be a year of adjustment, the latest CommercialEdge data shows.
The industrial sector is transitioning from its pandemic-driven boom,
with 2025 expected to bring further adjustments, according to the latest
CommercialEdge industrial report.
After a surge in development that added over 1.1 billion square feet
in 2022-2023, supply slowed in 2024, with 358 million square feet
delivered. The pipeline is shrinking further, with just 236 million
square feet of starts recorded last year and little growth expected in
2025.
Meanwhile, development is shifting toward manufacturing
and data centers rather than warehouse and distribution space.
Manufacturing starts have totaled nearly 150 million square feet since
2022, driven by rising investment, though cuts to clean energy
incentives could impact future growth...
Restaurant Visitation Data Reflects "Two-Tier Economy"
The
state of the consumer was top of mind during second-quarter 2025
earnings calls, as restaurant executives consistently described a more
cautious and discerning customer. Leaders from major brands like
McDonald`s, Chipotle, and Starbucks noted that lower-income consumers,
in particular, are feeling the pressure of a challenging economy and are
pulling back on the frequency of their visits.
McDonald’s CEO Chris Kempczinski framed it as a "two-tier economy,"
where affluent consumers continue to spend while lower-to-middle income
households face significant cost-of-living pressures. This trend is
visible in visitation data, which shows quick-service (QSR) and
fast-casual restaurants underperforming full-service restaurants and
coffee chains in recent months.
Key Takeaways
QSRs
and fast casual chains are under pressure as budget-conscious diners
trade down to cheaper promotions or shift spending to grocery, dollar,
and convenience stores.
Premium fast-casual brands like
Chipotle, Sweetgreen, and CAVA are struggling with softer demand,
consumer “slop bowl” fatigue, and competition from grocers’ grab-and-go
offerings.
Casual dining chains such as Chili’s, Applebee’s, and
Olive Garden are outperforming the industry by leaning into bundled
value meals and strong promotional messaging.
RSK: The lunch crowd has definitely taken a downturn...but the last paragraph tells it all. Read it and be ready to help transition some of those that cannot make the grade. Opportunity here.
The life sciences market has come back down to earth after being one of the hottest real estate sectors during the pandemic. A boom in construction activity has led to a stark supply-demand imbalance, dragging the sector down. After hitting record levels of construction activity in the second quarter of 2024, CBRE reports that three of the biggest life sciences markets, Boston, San Diego, and San Francisco, are dealing with oversupply issues.
Construction deliveries across all three markets peaked between the fourth quarter of 2023 and the second quarter of 2024, driving vacancy rates to a record high and creating negative net absorption over the last 12 months. CBRE predicts that all three markets will take several years to absorb the oversupply. Of the 13 U.S. life sciences markets that CBRE analyzed, there was a negative net absorption of nearly two million square feet...
RSK: I am not sure we have that many hospitals in Greater Madison Area that can be converted, but other parts of the state especially NW Wisconsin have closed several hospitals. Concept just might work if there are enough skilled workers in the area.
Chain-smokers, family feuds, distress dealings and more made our staff’s top picks of the year
Real estate is a manifestation of money and power. For the reporters who write about it, it can be a fascinating topic, with diehard dealmakers and incredible stakes.
It can also, like any job, be a whole lot of work. This year here at The Real Deal, it was thousands of stories’ worth of work — more than 7,500, in fact. And amid a fast-changing market, TRD’s reporters and editors worked tirelessly to keep up with the latest trends and bring you, our readers, the next big scoop or scandal.
So as the year winds down, it’s important to reflect on the stories that shook the industry, shed light on secrets or even just made us laugh.
Below are a few of our staff’s favorites. Enjoy....
Since the emergence of e-commerce in the 1990s, some observers had predicted the demise of in-person shopping. They were mistaken. What has emerged is much more complex than a simple, binary online/offline shopping dichotomy. Consumers today enjoy a growing number of ways to shop that cater to their individual needs at any given moment. From delivery to click-and-collect to personalized in-store shopping, the retail ecosystem has exploited new technology to give consumers exactly what they want.
Key highlights
Embrace technology: Innovations will
create new opportunities. Artificial intelligence could take on shopping
tasks, with unmanned drones and vehicles delivering orders as needed.
AI may use consumer data to tailor the design, layout and merchandising
of each store to the needs of its specific trade area.
Keep it human: The more virtual and
automated shopping becomes, a greater premium may be placed on human
experience: shoppers could be willing to pay more for it.
Understand mixed-use environments:
New integrated mixed-use developments could change how we live and shop.
Future retail spaces could more likely be a part of communities that
blend residential, commercial, and recreational uses.
Cultivate spaces where planet and people thrive:
Future retail spaces will have to prioritize sustainability and
resilience, incorporating features like renewable energy systems. Retail
environments will need to be designed to serve diverse populations
equally.
Ambitious climate and decarbonization efforts have heightened the
demand for electrified and energy-efficient buildings. Regulatory
frameworks are evolving from simple incentives to stringent compliance
measures. Recently, states and cities have enacted building performance
standards (BPS) that mandate energy performance and emissions
reductions, as well as implementing benchmarking and transparency
policies. As a result, real estate operators must meet these standards
to mitigate financial risks associated with non-compliance, further
motivating them to enhance performance.
Simultaneously, utilities and third-party program administrators are
tasked with meeting multiyear energy savings targets, concentrating on
initiatives like peak demand reductions. This alignment of incentives
fosters cooperation between utility providers and business consumers to
identify energy-reduction opportunities...
RSK: Utility costs are one the major expense items in motel/hotel properties. Getting them under control is key to the bottom line.....but at what cost and what rate of return?
Major tenants signed big leases in New York City in 2024, in some cases paying handsomely for their new spaces as the city`s office market attempts to claw its way back from dark pandemic times.
Those tenants include TPG, which over the course of its lease will pay Tishman Speyer more than $1B for its 300K SF in The Spiral, according to a CompStak analysis of the highest-valued Manhattan office leases provided exclusively to Bisnow... ...Full Story Here
RSK: You wonder why these companies don`t just buy the properties they lease? No one is selling and the asset might not look good on the corporate books. These upgrades are mainly to draw employees back to the office.
MADISON, Wis. -- A longtime site of organized labor in Madison is being put up for sale.
The Madison Labor Temple Association is looking to redevelop it`s site
at 1602 S. Park St. to bring some new life to the area.
The site is listed with an asking price of $7.9 million.
"There`s
such a long history of class struggle inside the walls and halls of his
building," remarked David Poklinkoski who provided a tour to News 3 Now
Tuesday morning... ...Full Story Here
RSK: In case you missed it. Check out the price.
Ken Notes: What 7.9 Million -- Of course you probably have to tear it down yourself...
Office attendance last week was at its highest levels since the pandemic, according to Kastle Systems. Weekly average occupancy reached 54.2% of foot traffic levels before the pandemic sent workers to their home offices.
The weekly average attendance rate has climbed 6.5 percentage points in the last month, with all 10 cities tracked by Kastle seeing occupancy tick up.
Houston leads the pack, with occupancy levels at 65% of
prepandemic levels, followed by Austin at 61%. The Washington, D.C.,
metro saw a 7.5-percentage-point week-over-week increase in office
attendance to claim the third spot, with 51.5% of 2019 office usage.
Chicago and Philadelphia round out the top five metros...
RSK: Good news for downtown retail and restaurant establishments. In fact, the best way to measure if this is true is to check the restaurants at lunch hours and see if their patronage has increased.
Federal downsizing could flood the market with vacancies
President Trump has issued a flurry of executive orders since taking office, some potentially affecting the stalled return of public and private workers to offices. Last month, his administration introduced this action: “Heads of all departments and agencies in the executive branch of Government shall, as soon as practicable, take all necessary steps to terminate remote work arrangements and require employees to return to work in-person at their respective duty stations on a full-time basis, provided that the department and agency heads shall make exemptions they deem necessary.”
On February 10th, the federal employee return-to-work order took effect, disrupting schedules for many federal workers and causing traffic issues in cities like Washington, D.C. Beyond the inconvenience, it may set a precedent for the rest of the country, where remote workers have grown accustomed to working from home while employers push for a return to the office for various reasons...
As 2024 came to a close, Hotel Management contacted several design
experts to learn what hoteliers should expect in the coming year. Casey
Scalf, director of The Society, and Ann Hampton, interior designer, CREO
Architecture, shared their thoughts on top colors for the year ahead,
the challenges of labor costs and how technology will change how hotels
look.
Casey Scalf
What are a few major trends you expect to see in hotel design next year?
“Eclectic
maximalism” will be leading in hotel design next year, embracing
patterns on patterns, organic shapes, and rich, dynamic colors to
transport guests and immerse them in captivating visual experiences.
Color drenching, a technique that saturates a space (walls and ceilings
included) with the same shade, will also be here to stay....
SAN FRANCISCO--(BUSINESS WIRE)--Envoy, an integrated workplace platform that connects people, spaces, and data, today released its 2025 Workplace Predictions report. Respondents include nearly 500 executives across IT, HR, facilities, and workplace management roles, and explores the key trends and innovations poised to define the workplace of 2025. From emerging technologies to shifting generational expectations, these findings offer a roadmap for organizations looking to adapt and thrive in the future of work.
“The conversation about the workplace of tomorrow has moved from speculation to action"
Two major automakers announced new U.S. manufacturing commitments this week as President Donald Trump’s nascent trade wars force firms to shuffle their supply chains in search of savings.
Tesla, led by billionaire Trump adviser Elon Musk, announced plans for a 1M SF battery factory outside Houston this week. The disclosure came less than 24 hours after Honda announced it was moving the planned production of its Civic hybrid from Mexico to Indiana in response to Trump’s tariffs.
Tesla’s new battery plant is slated to take over a space the electric vehicle manufacturer already leases near Katy, Texas. The property is currently being used as a logistics center by Tesla contractor DB Schenker, according to Electrek, which first reported the factory plans. ...
As CVS Health prepares to close hundreds of stores this year, it is also planning to open 12 mini stores throughout the U.S. focused on medication rather than retail, doubling down on smaller footprints to tighten its belt.
he new stores will be less than 5,000 SF, about half the size of a typical CVS, The Wall Street Journal reported, citing CVS. The dozen stores will be placed in communities where residents may already shop at Walmart or dollar stores but don’t have a nearby place to fill their prescriptions and get vaccines, the company told the outlet.
The new stores will offer full-service pharmacies and health items like over-the-counter medications and first-aid products, the article states. But it will not feature convenience and retail items, including snacks, cosmetics and greeting cards...
RSK: If pharmacy makes up over 80% of CVS sales why bother for the other retail you might ask? Because it draws people in. This way, you do not pay the high rent for the space that only brings in 20% of revenue.
The IOS market is undergoing a pivotal transformation, driven by
rising capital and rapid expansion. However, rushed investments could
lead to potential distress, with zoning regulations remaining the
primary barrier to entry.
The equipment rental sector has become a common entry point for IOS
investors, with revenue trends closely following construction spending
patterns. The industry remains highly fragmented, and major companies
are aggressively acquiring smaller competitors.
Companies are strategically expanding in high-growth population
areas, particularly in the Sunbelt region, while limiting their presence
in the Midwest.
In the recent acquisition battle for H&E Equipment Services,
Herc appears better positioned than United Rentals due to less location
overlap.
In the previous installment
of our outdoor storage series, we explored the definition of industrial
outdoor storage (IOS) and highlighted key macro trends shaping this
niche property type. This edition will focus on the equipment rental
market, which has been making headlines recently with the impending sale
of H&E Equipment Services.
The nascent UK life sciences industry was already negotiating a slowdown in demand as diminished funding for companies chills the clamour for new space.
Now the sector has another quandary to ponder: Artificial intelligence is quickly changing the way tenants use space, and that means the buildings being developed must change as well...
(NEXSTAR) — After closing their doors amid a months-long bankruptcy process, several Big Lots stores are set to reopen under new management.
Earlier this year, Big Lots closed a previously announced sale agreement with Gordon Brothers Retail Partners. As part of the deal, Variety Wholesalers was set to acquire 200 to 400 Big Lots stores, which would retain the Big Lots branding, and two distribution centers. ...Full Story Here
RSK: We shall see how the tariffs affect this...the sell a lot of cheap imported goods.
Two years after the failures of Silicon Valley Bank and Signature Bank touched off waves of panic over the concentration of commercial real estate loans held by regional banks, financial institutions are making a dent in their balance of bad debt.
Concerns about regional banks` ability to absorb declining real estate values became pervasive despite a pullback from CRE lending in the wake of the banks’ failures. ...Full Story Here
RSK: Some banks that have careful underwriting in our area are not in this predicament. I am thinking of Oak Bank and One Community Bank as examples.
State of play:
Craft beer production hit 23.1 million barrels in 2024 — a 4% decline
compared to the previous year and the largest drop in industry history
outside the pandemic, according to data released Tuesday by the Brewers Association.
The
number of small, independent breweries operating in the U.S. decreased
for the first time in 20 years with 501 closures compared to 434
openings...
RSK: Sad, but there are plenty of options for a craft beer...many are good. Hopefully New Glarus Brewing, Capital Brewing and Wisconsin Brewing will survive the aluminum tariff increases. Was to bad to lose Leinenkugel`s original brewery but many of these old buildings will have a second life.
Amazon Web Services, the world’s largest data center user, has reportedly paused some of its data center leasing discussions, indicating a slowdown in the tech giant’s near-term appetite for new data center capacity.
Amazon’s cloud division is “pulling back” from part of its pipeline of potential colocation data center lease deals, particularly in markets outside the United States, Wells Fargo analysts wrote in a research report Monday, citing industry sources.
AWS isn`t canceling executed leases but is halting the formal processes like letters of intent and statements of qualification that typically precede signed agreements with colocation providers, the report says...
Economic headwinds like tariffs, inflation and the threat of a recession aren’t affecting BXP’s office leasing activity, the REIT`s executives said Monday on its first-quarter earnings call.
BXP, previously known as Boston Properties, recorded strong leasing volume in Q1, with 1.1M SF signed across 91 leases. It has landed major deals in recent months in New York, D.C. and the Boston suburbs.
The company`s Q1 leasing volume was 25% above the same quarter last year and 35% above the average of the last five first quarters, BXP executives said.
The momentum represents a positive sign for the Boston-based REIT that tenants are still willing to make moves amid economic uncertainty....
An ailing giant in the retail pharmacy world has filed for bankruptcy for the second time in less than three years, and this time may be the death knell — it plans to close or sell its remaining stores.
Philadelphia-based Rite Aid initiated the proceedings in a New Jersey bankruptcy court on Monday.
The chain “is pursuing a strategic and value-maximizing sale process for substantially all of its assets,” according to a press release.
That will include closing and selling off its remaining stores and warehouses, according to court documents obtained by The Philadelphia Inquirer...
Heather: Rite Aid has filed for Chapter 11 bankruptcy for the second time in less than three years. It goes to show you, companies of any size have their challenges. Despite big changes, they weren’t able to course correct. Momentum was not in their favor. It reminds me of restaurants. One can operate in a location for 20+ years. They retire, a new concept and operator backfill the space and yet they’re not successful. Proper leadership is crucial.
After a yearslong saga that resulted in the implosion of two towering smokestacks and the two-part demolition of a massive boiler house at the former Cheswick Generating Station, the property owner says the site will likely become a data center.
Scott Reschly, president of Charah Environmental Redevelopment Group, the Louisville-based firm that bought the site in 2022, said he is under contract with a “large multi-national experienced” data center developer pending a due diligence period.
Reschly said he could not disclose the name of the company yet, but the company is working with consultants in Pennsylvania and out of state.
The sale of the site, he said, will be complete by the end of the year... ...Full Story Here
RSK: Interesting that they tear down a power plant to put up a data center when data centers require a high capacity for power. Maybe hydro-electric with the river bordering it? Possibly there is enough power in the local grid to handle it.
Either way, a good use of an old coal fired power plant.
A pizza chain is bringing a high-tech franchise location to John Glenn Columbus International Airport in Ohio.
Columbus, Ohio-based Donatos Pizza and its sister company, smart kitchen technology developer Agape Automation, are partnering with robotic food tech provider Appetronix to open the pizza chain’s first robot-operated restaurant in its headquarters city.
The new fully automated Donatos Pizza restaurant will debut before security in front of Concourse B at the John Glenn Columbus International Airport in June 2025 and will be operated by franchisee HMS Host.,,
RSK: This is the future people. Undependable employees are driving this in the hospitality industry unfortunately. Not much different than vending machines in the future.
New law lets police remove nonpaying hotel guests too
Florida property owners will soon have new tools to combat unauthorized occupants, this time beyond the residential sector. On Monday, Governor Ron DeSantis signed two new measures aimed at helping commercial landlords and hotel operators more quickly remove “squatters” from their properties.
One of the new laws, SB 322, allows commercial property owners to request police assistance in removing unauthorized individuals, provided that the occupants have been asked to leave first. Those removed retain the right to file a lawsuit for wrongful removal. The measure is intended to provide landlords with a faster path to reclaiming control of their spaces. ...Full Story Here
RSK: I`m not sure if Wisconsin has such laws but if they do not, it`s probably time we did.
You may have heard the adage, “all
bourbon is whiskey, but not all whiskey is bourbon.” But have you ever
wondered what makes bourbon, bourbon? Or why 95% of the world’s bourbon
is made in Kentucky? If so, we have answers.
RSK: Just an FYI. I know many of you have been on the Bourbon Trail but did you know there are more barrels of bourbon in Kentucky than people? 1.75 barrels to every person. Now you know.
In just the past week, three separate Virginia data center projects
have been rejected or recommended for denial by local officials amid
growing local pushback in the world’s largest data center market.
Lawmakers in Chesterfield County, Fauquier County and the city of Chesapeake all voted against proposed data center campuses. Together, the three projects represent close to 1,000 acres of new development — and around 4.5M SF of data centers — that are now very much in jeopardy.
In Chesterfield, the future of one of the largest planned projects in the booming Richmond-area data center market is in doubt after planning officials recommended the denial of zoning changes required for a proposed 740-acre campus. Denver-based developer Tract applied in November to rezone the site for up to 2M SF of data center space across as many as 11 buildings.
While the final decision on the proposed rezoning rests with the county’s Board of Supervisors, Chesterfield’s Planning Commission voted unanimously Tuesday to recommend against approving the changes, citing potential traffic impacts and a lack of details on how the site would be developed compared to similar proposals, Richmond BizSense reports....
RSK: You are most likely to see more of the NIMBY protests for data center development. Some of the reasons are real but I do not buy the more traffic argument. Data centers do not employ a lot of people...rather machines. Plus new cooling methods can abate the noise level.
High vacancy rates have driven building owners to repurpose space, which
should help the U.S. office market’s recovery. But high costs and
incompatible structural designs remain challenges, CBRE says.
Office conversions are becoming more popular across the U.S. as building owners work to repurpose vacant space amid record-high vacancies and cities seek to address housing shortages, Yardi said in its June 2025 National Office Report on Wednesday.
The average national vacancy rate remained high in May at 19.4%, down 30 basis points from April but up 160 basis points year over year, according to Yardi Matrix data...
Office vacancy in the U.S. hit a record high last quarter
for the sixth time in a row, according to a Moody’s Analytics report
released Wednesday.
All commercial real estate sectors are experiencing weakness, the second-quarter report says, as “macroeconomic uncertainty dampened household and business confidence.” But the weakness in the office sector was particularly acute.
Moody’s reported nationwide office vacancy at 20.6% last quarter, up from 17% five years ago, at the start of the pandemic. Last quarter`s new high was a 20-basis-point jump from the first quarter and a 50 bps increase year-over-year.
The Moody`s report says mandates for employees to return to the office “have done little to stem the bleeding.”...
Optimism is said to be growing for the deployment of hundreds of billions in capital into North American commercial real estate in the second half of 2025 as sentiment builds from the year`s start.
Dry powder, or uninvested capital held by investment funds, grew to records in 2022 and 2023 at a time of high interest rates and weak demand for deals. While some was invested last year, much remained on the sidelines in early 2025 as executives analyzed the Trump administration`s policy changes on trade, federal spending and foreign policy, according to mid-year outlooks from two prominent real estate consulting firms, PwC and Bain & Co.
Real estate brokerage professionals and private equity executives interviewed by CoStar News agreed with that characterization in the reports, and Bain said pressure is mounting within the industry to utilize these funds and source fresh new capital. It added that if tariff uncertainty dissipates, momentum could return more quickly than anticipated, and holders of available cash would be poised to grasp emerging opportunities...
RSK: Lots of pent up money for CRE investment and with very little new construction due to high costs and new tariffs on materials, things will take off soon.
Ken Notes: Madison and the burbs should make a real marketing effort to position themselves as an emerging Biotech, AI / IT, and Research Hub. Talk about EPIC and Exact Science, The Research Park I and II, The UW, room to grow, and so much more... I`ll do the newsletter...
Corporate office occupiers didn’t know it at the time, but the pandemic gave them a head start on the artificial intelligence revolution.
AI’s integration into daily workflows is pushing more occupiers into smaller, higher-quality space with a focus on collaborative environments, the same trends that have defined postpandemic office demand. The dynamic is accelerating the bifurcation of the office market as occupiers adopt a leaner operating model and adapt to a more discerning workforce...
RSK: The future trend people. If your kids are going to college make sure they get a useful degree and not just political science or sociology or underwater basket weaving. The workforce is changing.
Scottsdale Indemnity has filed a declaratory judgment suit in the U.S. District Court for the Northern District of Illinois after an Illinois-based real-estate services firm, Weiss Entities LLC, suffered a data breach exposing client names, Social Security numbers and other personally identifiable information. The breach prompted a proposed class action, initiated under Illinois state law, accusing Weiss of failing to safeguard customer data.
In its complaint filed July 18, Scottsdale argues that Weiss’s policy explicitly excludes coverage for claims tied to “professional services” and “bodily injury/property damage.” The lawyers for Scottsdale argue that it has no duty to defend or indemnify Weiss in either the state-led class action or any related damages.
For real-estate companies, the implications are clear: a standard liability policy, even one marketing cyber protections, can still leave your firm legally exposed if its language excludes coverage for key claim types...
That deal, combined with other Big Pharma leases in key biotech markets, sparked optimism for a beleaguered industry starved for lease commitments for more than a year.
But the number of big fish in the life sciences sea has dwindled, setting up fierce competition for huge swaths of life sciences real estate sitting empty across the country and more serious contemplation of seeking out nonbiotech tenants.
“There are not that many more whales looking for space, okay?” JLL Vice Chairman Chad Urie said. “If you look at pharma presence in San Diego, it`s pretty easy to see that a good percentage of those groups have made their real estate play.”... ...Full Story Here
RSK: This has become a nationwide problem for some reason. Looks like lab companies are putting more money into research rather than leases. I haven`t seen any action at Velocity Station in Madison to date.
Bust out those old 20%-off coupons — Bed Bath & Beyond is back.
The formerly ubiquitous home goods brand relaunched its first store in Brentwood, Tennessee, on Friday with a new name: Bed Bath & Beyond Home. Parent company The Brand House Collective converted a store from one of its other brands, Kirkland`s Home, into the new Bed Bath & Beyond Home.
Six more conversions to the Bed Bath & Beyond brand are on tap in the Nashville market, chosen because of their proximity to the corporate headquarters of The Brand House Collective. The company could expand that to 75 more locations nationally through next year, depending on the results of the initial wave, CNBC reported.
The Brand House Collective CEO Amy Sullivan called Bed Bath & Beyond’s relaunch a “powerful addition” to the company’s portfolio and a step forward in its transformation.
All Bed Bath & Beyond stores closed in 2023 after the chain declared bankruptcy. The brand’s intellectual property was purchased by Overstock.com months later, and the company eventually changed its name to Beyond Inc...
This public-private collaboration will help meet our data
center electricity demand with advanced nuclear energy starting in 2030
and power the nuclear renaissance in Oak Ridge, Tennessee.
Today we announced the first deployment of Kairos Power’s advanced nuclear reactor — the Hermes 2 Plant in Oak Ridge, Tennessee — through a new power purchase agreement (PPA) between Kairos Power and Tennessee Valley Authority (TVA). Marking the first purchase of electricity from an advanced GEN IV reactor by a U.S. utility, this agreement will enable 50 megawatts (MW) of nuclear energy on TVA’s grid that powers our data centers in Montgomery County, Tennessee and Jackson County, Alabama.
Last October, we began a long-term collaboration with Kairos Power to unlock up to 500 MW of nuclear power for the U.S. electricity system through multiple deployments of their small modular reactor. With this next step, we are creating a three-party solution where energy customers, utilities, and technology developers work together to advance new technologies that can help meet the world’s growing energy needs with reliable, affordable capacity.
Here’s how it works: TVA will purchase electricity from Kairos Power’s Hermes 2 plant, scheduled to begin operations in 2030. In this initial phase of the collaboration, we will procure clean energy attributes from the plant through TVA to help power our data centers in the region with locally sourced clean energy...
RSK: This is no doubt the answer for more electricity for data centers....even if it is 5 years out. You will see more of these small reactors hooking up to the grid.
The average rate on a 30-year U.S. mortgage slipped this week to its
lowest level in 10 months, but remains close to where it’s been in
recent weeks.
The long-term rate eased to 6.56% from 6.58% last
week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate
averaged 6.35%.
Borrowing costs on 15-year fixed-rate mortgages,
popular with homeowners refinancing their home loans, were unchanged
from last week. The average rate held steady at 5.69%. A year ago, it
was 5.51%, Freddie Mac said.
Elevated mortgage rates have added to
a slump in the U.S. housing market that began in early 2022, when rates
began climbing from pandemic lows...
RSK: There is not a lot of demand for mortgages since home sales are down and investors are trying to find something that makes sense. With lower demand on mortgage money, the rates creep down.
The percentage of new apartment units that were absorbed within three
months after completion rose in the second quarter, according to the
Census Bureau’s latest release of the Survey of Market Absorption of New
Multifamily Units (SOMA).
The survey covers new units in multifamily residential buildings with
five or more units. The number of new multifamily units completed fell
for the second consecutive quarter, down to the lowest level since the
fourth quarter of 2023...
Chicago has the most groups on the list, but other cities are growing fast
The United States Census Bureau defines 12 states as Midwestern: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
With a total population of about 69.6 million, they accounted for 20.5% of the U.S. population in 2024, down slightly from 20.8% in 2020 and 20.6% in 2023...
The rapid expansion of biotech-driven lab real estate in key markets
such as Boston, San Diego, and the Bay Area is facing a pronounced
slowdown. Leasing activity, which surged during the pandemic and into
2022, has declined significantly, with vacancy rates in some premier
clusters now approaching 30 percent. This softening is largely driven by
tighter venture capital funding, particularly for early-stage firms,
coupled with an oversupply of speculative lab developments and an
increase in sublease availability, which together are exerting downward
pressure on rents and absorption rates.
For life science real
estate, the slowdown represents a market correction with tangible
implications for landlords and investors. Properties designed
specifically for lab use like wet labs, clean rooms, and other
specialized facilities, carry high infrastructure costs that cannot
easily be repurposed, leaving landlords with underutilized inventory and
constrained revenue streams...
Office is dead. That has been the general consensus since the pandemic
forced companies to reconsider their need for in-office work. If you
look at the broad numbers, this seems to be the case. Office occupancy
is still much lower than it was before ... ...Full Story Here
RSK: There still is opportunity in certain office markets. Lincoln is going after the best places to work and the best buildings for workers. A good strategy.
WeWork India’s IPO got off to a tepid start: the $36 million offering
was only 4% subscribed on the first day of trading. That’s a sharp
contrast to hype-level expectations and suggests that investor
confidence in the WeWork model, at least in India, is still fragile. The
offering is purely an offer for sale, meaning no fresh capital flows
into the business. Instead, existing shareholders (Embassy Group and
WeWork’s affiliate) are converting paper into liquidity.
The
origins of WeWork India make this all the more interesting. The Indian
unit was set up in 2017 as a joint venture between U.S.-based WeWork
(initially minority) and Bengaluru real estate firm Embassy Group. Over
time, it grew with more localized discipline, careful site selection,
and a reduced royalty/management fee relationship to the global parent. ...Full Story Here
RSK: We Work still has a long way to go to gain the publics trust. When you raise money just to pay investors back and not putting it into the product, people see that as a bad sign.
The world`s largest tech companies are on track to devote as much as $400B this year to data centers and chips as they race to build out artificial intelligence.
The spending spree is single-handedly bolstering U.S. economic growth, but in recent months, the rumblings of a looming AI bubble that began last year have grown louder.
A growing chorus of investors, economists and industry observers is raising red flags about the escalating price tag of data center investment and the feverish stock market growth it has spurred, even as reports show AI hasn`t created corporate profits. They say the hype will inevitably collide with economic reality and create the “mother of all financial bubbles.”...
The office market is recovering as demand sharpens and construction activity continues to slow, a new report says.
National office vacancy declined for the first time since 2019, dropping 5 basis points to 22.5% in Q3, according to JLL. However, leasing activity stood at 82% of prepandemic levels.
New construction continues to decline. Less than 6M SF is in the pipeline, down from 50M SF in 2019.
Due to the lack of new supply, vacancy for Tier 1 office space built since 2000 declined 104 bps over the last year, according to JLL... ...Full Story Here
RSK: And what types of companies make up 62% of the increase in space? FIRE T...finance, investment, real estate and technology!
Data center developers and the world’s largest tech firms are increasingly looking to natural gas as the fastest way to access the massive quantities of electricity needed to build artificial intelligence megacampuses, and it’s turning the country`s fracking hotbeds into digital infrastructure hubs.
From the Permian Basin in Texas to the Appalachian Basin in Pennsylvania, rural regions where the bulk of the country’s natural gas is produced are experiencing a sudden wave of planned data center projects intending to use that gas for power.
High-profile projects powered by behind-the-meter gas generation, like Oracle and OpenAI’s flagship Stargate campus in Abilene, Texas, and Meta’s Hyperion campus in northeast Louisiana, are poised to turn regions near shale fields that were once data center hinterlands into some of the industry`s fastest-growing development hot spots...
Milwaukee developer Mandel Group announced Tuesday it has
completed assembling a $65 million financing package to construct
Element Collective, a 197-unit workforce housing development located in
University Research Park.
The development will have a wide range of income-based rental rates.
“Element
Collective has been a long journey for us,” Robert B. Monnat, senior
partner for Mandel, said in a statement. “After developing huge momentum
in 2019, we were stymied first by Covid and then by the combined
impacts of inflationary construction costs and prohibitively expensive
costs of borrowing.”...
The coworking sector expanded significantly as a response to remote work options, among other changes in the market.
The coworking sector continued to expand in response to hybrid work
trends, offering companies flexible, cost-effective alternatives to
long-term leases, according to the latest Yardi Matrix national office
report.
Nationally, flex space accounted for 2.1 percent of total office
inventory, up 20 basis points year-over-year. Among the top 25 markets,
Chicago saw the largest increase—up 60 basis points to 2.6
percent—followed by Atlanta, San Diego, Orlando, and Miami...
RSK: Many reasons for this. One being, with all these tech layoffs many of those workers are going solo or banding together and, rather than work from home, are leasing flex space. This also gives them an office in many cities if they need to travel.
The
grand opening of our new World Headquarters is the culmination of more
than a decade of work to redefine Ford’s workspaces, as well as the
employee experience.
We
spent several years working with Ford teams to understand and improve
the way we design, develop, test, and prototype new products and
experiences for our customers. Our new 2.1 million square-foot home will
allow us to meet those evolving expectations and anticipated demands of
the future.
It
starts when you enter the door. We want our employees to feel Ford when
they walk in. In partnership with our design architect Snøhetta, we’ve
designed the space, including our use of color, materials, and artwork,
to bring our brand to life. We’ve also rethought how we address
employees’ needs, weaving in a layer of hospitality into the building’s
layout.
Fast-food and casual restaurant chains, facing unsustainable debt obligations, have needed to file for Chapter 11 bankruptcy protection in the last year to reorganize their businesses.
In
some cases, restaurant chains will restructure their prepetition debts
to enable them to continue operating. In other cases, a company’s debt
obligations are so unmanageable that it may opt to sell its assets to
its lenders, who will offer a credit bid of the debt they are owed.
Key Points
Several casual and fast-food restaurant chains filed for bankruptcy due to unsustainable debts.
On
The Border and Pinstripes sold their assets to lenders in bankruptcy,
but Uncle Julio’s handed its assets to lenders in a foreclosure sale
outside bankruptcy.
A major restaurant franchisor defaulted on $1.3 billion in debt and may file for Chapter 11 bankruptcy.
As trade rumors swirl around two-time NBA MVP Giannis Antetokounmpo,
the Milwaukee Bucks star has picked up some commercial real estate in
the backyard of the team he has been most closely linked to.
Antetokounmpo paid $14.1M to acquire 111 Clarkson Ave., an
eight-story, 28-unit apartment building in the Prospect Lefferts Gardens
neighborhood of Brooklyn, according to a deed posted to the New York
City register...
RSK: Smart athlete to put his money in real estate rather than spending it on himself and an entourage. The bad thing is it looks like he wants to be traded.
Ken Notes:Antetokounmpo also last month paid $11.4M for an apartment building in the Milwaukee suburb of Shorewood so still hope...
The department spearheaded by Elon Musk, known as DOGE, is no longer a centralized entity and its status “doesn’t exist,” Office of Personnel Management Director Scott Kupor told Reuters.
DOGE aimed to help reduce waste and slash spending across the federal government. In March, it promised to sell as many as 443 buildings and vacate another 10M SF worth of leases from the General Services Administration, which oversees the federal government’s real estate portfolio.
San Francisco has engineered one of the most dramatic office-market
reversals in the country, shifting from a national cautionary tale to
the top U.S. city for office sales. Through the third quarter, buyers
closed $4.7 billion in trades across 147 deals. That’s more deals than
New York and Los Angeles. Apparently investors see deep value in
discounted assets. Avison Young’s James Nelson says the trend has
staying power, pointing to a rare entry point in a market where early
bets have historically paid off.
The rebound is real but not
without caveats. Several high-profile deals tied to OpenAI have raised
concerns that parts of the AI surge may be ahead of fundamentals,
evoking memories of earlier tech cycles... ...Full Story Here
RSK: I guess when you hit rock bottom, any activity is a rebound...still, the metro office market is not what you would call "back" by any means.
Minneapolis considers new hotel fee to boost tourism
Minneapolis is looking to boost tourism by adding a new fee on hotel rooms.
The Minneapolis City Council is considering an ordinance that would create millions of dollars to promote Minneapolis. It would allow a 2% fee on hotel rooms.
Meet Minneapolis would oversee a group of hotels that would decide how to use the money to promote tourism.
“The initial projects are $7 million a year, and the hope is that it will jumpstart downtown and continue this growth that we’ve had,” Minneapolis Councilmember Michael Rainville said. “This will help create jobs. It will create property tax revenue.”...
A manufacturing comeback is underway in the U.S. Once heavily
outsourced to countries with lower labor costs; manufacturing is
returning (or “reshoring”) to America as companies seek to minimize
risk, ensure quality, and meet rising consumer and regulatory
expectations for sustainability.
Several factors are converging
to encourage U.S. companies to reevaluate their production locations.
Perhaps the biggest factor is how the pandemic exposed the
vulnerabilities in complex global supply chains, resulting in product
delays, shortages, and rising transportation costs.
“This is more a story of risk management,” said
Richard Thompson, international supply chain director at JLL. “The
pandemic exposed how fragile our global supply chain was when reliant on
one region. A more regionalized model allows companies to be nimbler
when problems arise.”...
Office leasing accelerated in a big way at the end of last
year, with space in the crème de la crème of real estate being snapped
up by tenants eager to return to the office.
Now, with that inventory dwindling, companies seeking
office space are turning toward the tier just below, where there is
still near-record vacancy. With lenders watching closely, the pressure
to fill space is more intense than ever — as is the competition. That
means bending more to the will of the tenant.
“Landlords don`t care for these flexibility options because
it inevitably ties them up. They`re dealing with a vertical jigsaw
puzzle,” Cushman & Wakefield Vice Chair David Hoffman said. “It’s
just the lesser of the evils.” ...
Discovering land has the infrastructure to supply hundreds or thousands of megawatts of electricity is now like striking oil or hitting the jackpot.
Power infrastructure is significantly increasing the value of some property, bringing owners and developers out of the woodwork to see if their holdings can help meet the insatiable demand brought by hyperscale data centers amid an artificial intelligence boom.
The phenomenon is making a handful of landowners in Texas and other data center hot spots overnight tycoons. Others are paying big bucks to see if their properties can cash in. ...Full Story Here
RSK: Wisconsin may miss out on the "gold rush" because of the utility companies asking for rate increases and trying to pass bills that will limited competition in the bidding process for expansion.
One of the main ways that brokers find new clients is by reaching out
to homeowners about selling their houses. This practice has been
supercharged by technology that can help plan and execute huge outreach
campaigns. While these large scale marketing efforts can be successful,
they can also expose brokerages to litigation for violating the
Telephone Consumer Protection Act.
Earlier this week, a complaint
was filed against Kellar Williams in New York over its telemarketing
campaign. Now, a second lawsuit has been filed in Oregon, this time
against Compass. Both suits accuse the brokerages of repeatedly
contacting someone who “has no existing business relationship” with the
companies. There is also a class action lawsuit being brought against
Compass for all of the people it contacted who are listed on the
national Do Not Call Registry...
RSK: This is worrisome. I know many commercial brokers who cold call property owners. I find it hard to believe they can be sued unless the property owner tells them not to contact them ever again.
A new term has emerged in the energy world: virtual power plant. No, this isn’t some new simulation game where players get to build and run their own generation site. Virtual power plants (VPPs) are digitally controlled networks of decentralized energy resources. They are able to understand the total energy supply and demand of a building and weigh that against the needs of the local energy grid. Virtual power plants use a cloud-based control platform to forecast, schedule, and dispatch energy to help meet the needs of both the building and the grid. They can also optimize on-site energy use and production based on the time-of-use rate of energy and the current needs of the grid.
If you described a virtual power plant to someone in the property industry, they would probably call it a microgrid. But virtual power plants differ from microgrids in a few important ways. Microgrids are usually created for one fixed location, like a large development or a campus of buildings. One of the defining characteristics of a microgrid is that it can create an “island” that operates off-grid if needed. To do this, microgrids rely on hardware like inverters and switches... ...Full Story Here
RSK: This is a welcome outlook on energy management. Not all energy is the same. Energy being produced by individuals and companies from solar and wind and pumped into the overall grid is oftentimes not compatible with the system. VPPs can help manage this problem for industries and power companies alike.
Wisconsin is an underappreciated Midwestern gem, especially for food lovers. With a significant portion of the state`s population having descended from German immigrants, it`s little surprise that you`ll find some of America`s best breweries, including Lakefront Brewery, cheese producers, and no-frills taverns here. Madison, Wisconsin, the state`s capital, is arguably the best example of the region`s laid-back, gastronomic best. With its heart located on an isthmus surrounded by two beautiful lakes, forested hills, and an enviable cafe, bar, and restaurant scene, the city has a lot going for it. For food lovers, one of the best parts of Madison`s downtown area is the Dane County Farmers` Market, a biweekly producers-only market that`s the largest of its kind in the country... ...Full Story Here
RSK: Had to toot the old horn on this one. If you are in Madison, give me a call and I will try to meet you at Coopers...fun place with great pub food with an Irish twist.
The fast-casual chain said it could consider a reverse stock split to bring its share price back into compliance
The Nasdaq Stock Market has warned Noodles & Company that its share price is too low to meet the exchange’s rules, the fast-casual noodle chain said in a filing on Tuesday.
Nasdaq informed Noodles on Dec. 24 that it was in noncompliance with the exchange’s minimum bid price requirement of $1 per share, and had been for more than 30 consecutive business days...
RSK: Noodles used to be all the rage...I think they became a bit complacent in adding new dishes and offerings to their menu...plus COVID was not kind to them.
A joint venture between 601W Cos. and David Werner Real Estate Investments secured a $62.5M loan from Northwind Group to buy 303 E. Wacker late last month in the larger of the two deals. The acquisition represents a plunge of about 66% in value for the office property, which last sold for $182M to Beacon Capital Partners in 2018.
The property on the Chicago River is about 75% occupied, and tenants have signed roughly 300K SF of new leases at the building since the pandemic...
Repurposed school buildings are home to a variety of
groups, including artisans, local governments and restaurants. But
funding and getting public buy-in for these projects isn’t always easy.
In 2016, Rebecca Davies and her
fellow Remark Glass co-founders needed space in Philadelphia to expand
their growing glassblowing business. When they learned of an available
basement space in the 340,000-square-foot Bok Building, a former
technical high school in South Philadelphia, they decided to take a look
— and a gamble.
The space was perfect for the
team’s needs, but Remark Glass would be one of just 15 new tenants in
the newly repurposed Bok, which was auctioned off by the city in 2013.
The basement of an abandoned school building isn’t exactly a
high-visibility location, and being first in a new venture brings its
share of risk, Davies explained. Would it fly?..
OpenAI and its partners are considering Wisconsin among other states for investments by Stargate, a project set to invest $500 billion over the next four years in AI infrastructure across the U.S., the BizTimes reports. OpenAI CFO Sarah Friar said the company would evaluate sites in Wisconsin, Pennsylvania, and Oregon beginning next week.
Equity funding for Stargate is a joint effort from SoftBank, OpenAI, Oracle, and MGX. A request for proposals sought plans that would enable the development and construction of large-scale AI data centers, detailing locations, total acreage, maximum power, power available at the start of 2027 and 2028, and examples of other successful projects.
Proposed sites would be assessed for technical feasibility, commercial viability, risk mitigation, and potential community and economic benefits. A shortlist is planned to be developed by March 21, selections made by April 11, and contract discussions begun by April 14...
Navigating construction material prices amid the new administration’s recent tariffs
Overview
CoreLogic analysis suggests that
tariffs could push home construction costs up by 4% – 6% over the next
12 months as material costs adjust to the new landscape. In some cases,
tariffs could push prices up by double-digit percentages.
RSK: This could increase the costs of renting, buying and leasing....someone will have to pick up the increases in cost and its usually the final consumer. Or, it might even slow down the rate of production.
One of the largest car dealership chains in the country, and the largest in New England, is set to trade hands for a huge sticker price.
Herb Chambers Cos. reached a deal to sell its dealership businesses and real estate to Georgia-based Asbury Automotive Group for $1.3B, according to Securities and Exchange Commission filings. The deal is expected to close in the second quarter.
The price includes $750M for the brand itself and $590M for its real estate assets, The Boston Globe first reported. Asbury also agreed to pay an additional amount that has yet to be specified for assets including the vehicle fleet and auto parts.
The deal includes 52 franchises, 33 dealerships and three collision centers across Massachusetts and Rhode Island. Herb Chambers, the owner of the company bearing his name, will hold onto his Mercedes-Benz dealership in Somerville, and he will serve as an advisor to Asbury...
Eli Lilly and Co. plans to bolster its domestic medicine production with a $27B investment in four new U.S. pharmaceutical manufacturing sites, bringing its total capital commitment to future expansion to more than $50B.
The company is negotiating with several states on locations for the new sites and will be taking proposals through March 12, it said in a press release.
Lilly expects to create more than 3,000 jobs for highly skilled workers at the four sites, including engineers, scientists, operations personnel and lab technicians. The company also anticipates it could create nearly 10,000 construction jobs during development.
“We are not just building facilities,” said Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations, in the release. “We are creating a future where American innovation leads the world in pharmaceutical manufacturing, requiring a highly skilled workforce prepared to shape the future of health care.”...
The office market has never been the same since the pandemic pushed
us all into a global work-from-home experiment. Certain markets have
bounced back—places like New York City and Dallas have seen steady gains
in office occupancy and leasing since the pandemic ended, nearly
hitting their pre-pandemic highs. Most other office markets, however,
are still struggling to lease back up as corporations rethink their need
for office space. The return-to-office push has gotten a bump from the
Trump administration, which is adamant about bringing federal workers
back to boost governmental efficiency. But there is still a lot of
concern that we might never return to the same office leasing
environment we had before the world had ever heard of a coronavirus.
The big question for the commercial real estate industry is: will the office market recover, and if so, when?
Concessions given to office renters decreased on average in 2024, the first time they have done so since CBRE began tracking them in 2019.
Concession packages peaked in 2023, when they included a tenant improvement allowance of $97.55 per SF and 9.6 months of free rent on average, according to a CBRE analysis of 4,350 leases in 12 markets nationwide.
“The decrease in concessions last year is another sign of stabilization and nascent recovery in the office market,” CBRE President of Americas Investor Leasing Mike Watts said in a statement.
Although both metrics declined in 2024, they remain about 30% higher than they were in 2019...
Federal Reserve officials held the central bank’s benchmark interest rate flat Wednesday, indicating that they plan to wait for President Donald Trump`s early trade moves to percolate through the economy before they act.
The target range for the federal funds rate will stay between 4.25% and 4.5%, the same outcome as The Fed`s January meeting. The move by the Federal Open Market Committee was anticipated by investors, who are increasingly looking to make deals despite a cloudy economic outlook.
“There’s really high uncertainty,” Fed Chair Jerome Powell said during a press conference Wednesday. “We think our policy is in a good place and that we can move when we need to. But right now we think it’s appropriate to wait and, given where the economy is right now, we think the price of doing that is very low.” ... ...Full Story Here
RSK: I don`t think anyone is surprised by this action....at least I`m not.
The Federal Reserve Bank of Minneapolis report shows that premiums
rose 45% from 2023 to 2024 for apartment owners in the Upper Midwest.
Dive Brief:
Although it is well documented
that apartment owners in states like Florida, Texas and California have
been hit with significant insurance increases over the last few years, operators in the Upper Midwest are also facing challenges.
A new survey from the Federal
Reserve Bank of Minneapolis shows that apartment owners in Minnesota,
Montana, North Dakota and South Dakota — four states that lie entirely
within the Ninth Federal Reserve District — saw their annual premiums increase by an average of 14% from 2021 to 2022, 22% from 2022 to 2023 and 45% from 2023 to 2024.
The average 2024 property
insurance premiums reported by the respondents, which included 35 owners
who operate nearly 45,000 units, were double those of 2021, more than
six times the increase in the Consumer Price Index over the same time
period. While median increases were lower, they still outpaced
inflation.
RSK: And we thought the upper midwest was safer for insurance rate increases because no hurricanes and giant wildfires. Nope! Property damage by demonstrators in a certain party are driving rates up and they are the first to complain about rent increases etc.
The US Department of Housing and Urban Development intends to leave its aging Brutalist building in Washington, DC.
The
US Department of Housing and Urban Development aims to leave its aging
headquarters on the National Mall in Washington, DC, for new offices.
HUD
spokesperson Kasey Lovett said discussions are ongoing about a
potential move, but that the agency is likely to relocate within the
Washington, DC, metropolitan area, which includes parts of Maryland,
Virginia and West Virginia.
Several
people familiar with the matter said HUD is also considering relocating
to cities outside the capital region, including Houston; Kansas City,
Missouri; and Akron, Ohio. Lovett said there is “zero truth” to those
locations...
RSK: Looks like there might be a load of office buildings available in the DC area. My thoughts are more than half the employees will stay and the other half would relocate.
The overall availability rate for U.S. office space stood at 23.3% at
the close of the first quarter, marking the third consecutive quarterly
decline in availability—a trend not seen since before the pandemic in Q4
2018. Through Q1 2025, U.S. office leasing activity totaled 66.4
million square feet (msf), sitting 17.4% below the pre-COVID annual
average of 80.4 million square feet (msf) (2000–2019) and 18.4% below Q1
2024. However, certain markets like San Francisco and Manhattan are up
significantly from a year ago. Lending activity picked up, with the
first quarter alone seeing approximately $15.7 billion in office loan
originations. ...Full Story Here
RSK: Again, some good news for the office sector but it is a slow return.
Lee & Associates’ Enrique Volkmer calls himself “the happiest guy in town” after returning to his hometown of Laredo in 2016 to broker real estate deals for third-party logistics companies and other industrial tenants.
In just the first two months of this year, Volkmer racked up 11 new lease signings.
Those deals have become exponentially bigger and more plentiful since the United States-Mexico-Canada Agreement went into effect in 2020, helping propel a fast and furious mission to shift manufacturing away from China to Mexico. The industrial associate who once sought greater opportunity in metros like San Antonio believes the best is yet to come... ...Full Story Here
RSK: Who said the tariff situation doesn`t affect the industrial sector, especially border cities. Great example.
The specialty grocer opened two locations earlier this month and has 20 more in the pipeline for this year
Just four months into 2025, Trader Joe’s looks poised to rapidly expand its number of stores.
Earlier in April, the specialty
grocer opened two locations — one in Seattle and another in
Murfreesboro, Tennessee — marking its first additions to its store fleet
so far this year.
Trader Joe’s announced on April 7
plans for seven upcoming stores, bringing its total number of announced
yet-to-open stores to 20...
Madison’s Mounds Pet Food Warehouse is set to close three stores but open two others, the Wisconsin State Journal reports. The locally owned pet supply store company is one of the area’s oldest.
The company will close its Fitchburg store on May 18 and its Middleton store on May 25. It will then open a store in the former Buy Buy Baby space near the Junction Road Target on June 1. The Mounds store next to Farm & Fleet on Stoughton Road is planned to close in July, and another new store will open Aug. 1 in a former Bed, Bath & Beyond store in East Prairie Commons...
RSK: The Fitchburg store has decent visibility but not exactly easy to get to. The new location will be closer to more demographics and easy to find. Plus , a slightly larger building.
Commercial real estate’s biggest brokerages posted strong first-quarter results, largely beating expectations and offering an early indicator that a market recovery is in the making.
But despite robust first-quarter growth, the firms also hedged their expectations for the rest of the year as macroeconomic uncertainty casts a shadow over the financial bright spots that emerged at the start of the year.
“We were, I would say, at the beginning of the quarter, excited that things were stabilizing,” Colliers CEO Jay Hennick said during his firm’s May 6 earnings call. “And then, of course, all this tariff stuff started and all of a sudden transactions that were close to closing had financing tied up and a variety of other things just were put on delay.”...
WareSpace, a national provider of co-warehousing and small-bay industrial space, is expanding its footprint with recent property acquisitions in North Carolina, Texas, Maryland, Colorado and Arizona.
The fast-growing company is capitalizing on demand from the type of clients that large industrial warehouse owners and operators have ignored: small, local businesses.
“The regions where we are opening have fast-growing economies with strong job creation,” said Levi Cohen, co-founder and CEO of WareSpace. “However, these are locations where small-scale e-commerce and light manufacturing businesses have historically struggled to find space that’s correctly sized, priced and equipped.”.. ...Full Story Here
RSK: Great concept but the article does not explain enough on acquisition and what the rents charged, the term length and everybody is looking for those same properties as they are.
lue Plate Catering has taken over the 24,500-square-foot former furniture store in Fitchburg that had been leased to restaurateur Dave Heide for the defunct Little John’s.
The nonprofit organization had produced about 16,000 meals a week for the Madison community, but its use of the building was brief.
David Porto, co-owner of Blue Plate Catering, bought the building on Oct. 24 for $2.2 million with Blue Plate founder and Chief Executive Jodi Fowler, and his brother, Michael Porto. They’re renting it to Blue Plate, which they own with three other partners.
Construction at the former A1 Furniture & Mattress at 5302 Verona Road is expected to be completed by mid-August, David Porto said...
RSK: Congrats guys, the apple doesn`t fall far from the tree and you picked up the concept of buying and leasing back from the group. Well done and continued success.
Data centers have become one of the fastest-growing types of construction projects, booming like warehouses did a few years ago. With demand for artificial intelligence and data storage skyrocketing, the number of data centers worldwide is expected to jump from about 5,200 in 2024 to over 7,600 by 2030 — creating a major pipeline of work for contractors and trades skilled in complex builds.
While much attention is given to data centers once they’re up and running, there is an entire industry focused on the complex and highly specialized work that goes into building them. Graydaze Contracting has been performing the painting and sealants scope on new construction data center projects for over 10 years. To further their specialization, Graydaze launched DataCoat, the first nationwide commercial painting division exclusively focused on data centers...
The U.S. construction industry is bracing for a potentially significant loss of its workforce as sweeps by Immigration and Customs Enforcement spread to workplaces as part of President Donald Trump’s crackdown on unauthorized immigrants.
Over the past week, agents have raided construction sites in Florida, a flood control project in New Orleans and the University of Texas San Antonio campus, arresting or detaining immigrant construction workers.
The raids mark a shift from the Trump administration targeting criminals in its immigration crackdowns, which brought a surge of home raids to the apartment industry’s doorstep...
Ken Notes: I am waiting for the dairy farm raids. Approximately 70% of the labor force on Wisconsin dairy farms is estimated to be made up of immigrants, with the vast majority of these workers being undocumented. This translates to over 10,000 undocumented workers contributing to the state`s dairy industry.
Deep discounts, favorable financing, and long-term benefits are turning users into owners.
Owner-occupier deals are gaining momentum in the U.S. in response to
falling property values, tighter capital, and a broader economic
downturn. Tenants who had been leasing office space are now looking to
buy a building outright—at reduced prices and favorable terms—to reap
the long-term benefits of property ownership.
According to JLL,
these types of acquisitions accounted for 20 percent of total U.S.
office sales in the first quarter of 2025—up from 15 percent for all of
2024, Before the pandemic it was only eight percent or less annually.
“With this year’s owner-occupier transaction volume already above
2024’s total, user acquisitions are expected to remain a major force in
the office market through 2025,” says Mike McDonald, senior managing
director at JLL.
RSK: And why not? If you are a major tenant in an office building and your lease is coming up, it just might make sense to buy the building...you have some leverage over the owner.
Shareholders of Walgreens Boots Alliance overwhelmingly approved the drugstore chain’s $10 billion acquisition by private equity firm Sycamore.
It is a rough era for national pharmacy chains like Walgreens, CVS, and Rite-Aid, closing hundreds of stores due to changing consumer behavior, declining pharmacy reimbursements and rising costs. Walgreens will close more than 1,000 stores through 2027 and Rite-Aid filed for bankruptcy protection in May, it’s second trip to bankruptcy court in as many years.
Walgreens shareholders will receive $11.45 per share from Sycamore Partners per the terms of the deal first announced in March, the companies said Friday. They could also receive as much as an additional $3 per share from the future monetization of Walgreens’ debt and equity interests in its VillageMD clinic business.
The buyout, which will take the drugstore chain private, will give it more flexibility to make changes to improve its business without worrying about Wall Street’s reaction. Walgreens was founded in 1901 and has been a public company since 1927...
RSK: To tell you the truth, the Walgreens I have been in lately are run down and shabby. And for me, once a private equity firm buys something out, the service goes down hill, just like my Veterinarian did. There will be some good corner locations coming up and that is what the PE people are betting on in making their return on investment.
Ken Notes: I am surprised Amazon was not at the table, this is clearly a market they want a BIG part of.
FRANKFURT, Germany (AP) — U.S. President Donald Trump and European Commission President Ursula von der Leyen have announced a sweeping trade deal that imposes 15% tariffs on most European goods, warding off Trump’s threat of a 30% rate if no deal had been reached by Aug. 1.
The tariffs, or import taxes, paid when Americans buy European products could raise prices for U.S. consumers and dent profits for European companies and their partners who bring goods into the country.
The Federal Reserve held rates steady Wednesday afternoon, dashing
hopes for a summer cut, but builders are adjusting their strategies to
stay on the job.
Contractors hoping for relief from the Federal Reserve will have to wait a while longer.
The central bank held its benchmark federal funds interest rate steady Wednesday afternoon in the range of 4.25% to 4.5%. The decision disappointed builders that had hoped for a jolt to jumpstart stalled projects.
The pause also keeps heat on Fed Chair Jerome Powell. President Donald Trump has repeatedly pressured Powell to cut rates and has even floated firing him. Legal experts say a president’s authority to do so is dubious, except for cause.
The administration has been trying to build a case for just such a cause, though, calling into question costs for the $2.5 billion renovation at the Fed’s headquarters, which Trump visited last week.
But after Wednesday’s decision, Trump — and general contractors rooting for a rate cut — will have to sit tight for now...
Columbus - Known for being the home of The Ohio State University and the renowned COSI museum, Columbus serves as the “Buckeye” state capital and its cosmopolitan center. The city benefits from a robust, diversified economy with bustling neighborhoods, ranging from the Short North Arts District to the German Village. A combination of business, tourism, and higher education attracted over 51 million visitors during 2023, setting a record for the city.?
The MSA has grown to be the 38th largest by market value in NCREIF’s NPI—up three spots from 41st in 2019. The market has experienced annualized five- and 10-year total returns of 2.9 and 4.9 percent, respectively. Though these long-term returns are more muted than other Emerging Trends top markets, more recent optimism has earned Columbus a position in the Emerging Trends movers and shakers listing for this year...
..The city’s resurgence appears backed by fundamentals. According to Bank of America Research, Columbus was the fastest growing city in terms of population in 2023, increasing 1.1 percent year-over-year. Since 2014, the city’s population grew at a 0.9 percent compound annual growth rate (CAGR) and is now estimated to be the 15th largest city in the country. The metro area’s employment has expanded at a compound annual rate of 1.5 percent since 2014. The city’s real GDP has increased by an annualized growth rate of 2.7 percent over this period. By all of these measures, Columbus is performing close to or better than the national average...
RSK: Madison, though a much smaller market, has seen this same growth on a smaller scale. Why Columbus? The State is business friendly. Could it be that it is run by a conservative Governor and legislature? Hard to say.
Sale of 15 recently acquired resorts denotes company`s asset-light transformation
With Hyatt Hotels Corporation having spent years transforming from a heavy real estate investor to a largely fee-based branding business, Hyatt CEO Mark Hoplamazian believes his company has reached an "inflection point" and has set the stage for outpacing the rest of the hotel industry in growth.
During the company`s second-quarter 2025 earnings call, Hoplamazian pointed to how Hyatt flipping owned resorts from its recent purchase of Playa Hotels & Resorts is the latest stage in a yearslong process.
"Having built this foundation and transformed to an asset-light business model, we are now at an inflection point, poised to scale with efficiency and speed," Hoplamazian said...
RSK: Hotels and motels are starting to feel the pinch of cutbacks in their resort and destination locations. I think Wis. Dells and Door County are still doing well but not gangbusters.
Black Rock Coffee Bar Inc. filed for an initial public offering, disclosing growing revenue and narrowing losses.
The Scottsdale, Arizona-based chain had a net loss of $1.95 million on revenue of $95.2 million for the six months ended June 30, compared with a net loss of $2.26 million on revenue of $76.7 million in the same period a year earlier, according to its filing Monday with the US Securities and Exchange Commission...
RSK: Another growing coffee chain. You may want to contact them to see what their criteria is for a location....although Wisconsin is a bit tough on franchising.
The period ahead of Labor Day can be a sleepy time for CRE, but that hasn’t been the case for Center City this year. The neighborhood’s office market has been absolutely buzzing.
Several skyscrapers along Market Street traded at steep discounts in recent days following years of extending and pretending in Philadelphia’s central business district. Valuation drops and special servicing updates in the neighborhood have also made headlines this week.
CSB Holdings and Tide Realty Capital are buying the 29-story 2000 Market St. for $45.5M, the Philadelphia Business Journal reported Friday. That is a 58% drop from the nearly $108M the building sold for in 2018.
The new ownership told the outlet they plan to continue operating the 68% occupied tower as-is, making it the largest office property to trade in Philly postpandemic without a residential conversion plan...
This could happen if home-price growth continues on its current trajectory and mortgage rates drop moderately to 5.5%
SEATTLE--(BUSINESS WIRE)--Housing
costs could return to “normal” by 2030 if home-price growth stabilizes
and mortgage rates fall to 5.5%, according to a new report from Redfin, the real estate brokerage powered by Rocket.
Home prices are near record highs,
mortgage rates remain elevated, and not enough homes are being built to
meet demand in many areas of the country. But recent weeks have brought
some signs that the housing market is trending in a positive direction:
home-price growth is slowing and mortgage rates are starting to fall.
Redfin’s new report explores hypothetical scenarios for U.S. home price
growth, mortgage rates and income levels in which housing costs—measured
using the mortgage payment-to-income ratio—would return to “normal.”
Massive warehouses were all the rage when Eastern Pennsylvania bulked up to accommodate the pandemic e-commerce boom.
As demand for those behemoths has cooled off, a different industrial sector has taken its place on tenants’ wishlists.
Businesses across the region are clamoring for shallow-bay warehouses and other small industrial buildings, but elevated construction, land and entitlement costs mean new builds aren’t penciling, even in the face of soaring rents.
“There’s definitely an opportunity there for real estate developers to satisfy the demand that exists for small bay,” KBC Advisors broker Brian McCurdy said. “We know that tenants are looking for it.”
RSK: Yes, there is a huge demand for small bay warehousing, but little is available. With construction costs so high, the rents developers would have to charge would not be sustainable for tenants. Maybe the answer is converting some of the larger spaces to smaller bays.
New data on housing, health and more in the City of Madison are now available as part of the latest update to the Neighborhood Indicators Project (NIP)(link is external).
The NIP is a partnership between the City of Madison and the UW-Madison Applied Population Lab. The project aims to track dozens of quality of life metrics over time to provide a better understanding of trends across Madison. The data is provided for free online for everyone to access...
The 2024 NIP update includes several new metrics, including:
RSK: Worth a read. You can probably draw your own conclusions from the data. It does help to show the need in some areas....but just throwing money at something as discussed will not change much of the conclusions.
Colliers| Wisconsin offers clients in the Wisconsin market, expertise in every property type. Wisconsin’s Colliers office offers a comprehensive portfolio of real estate services to occupiers, owners and investors on a local, regional, national and international basis, including: Brokerage Services, Corporate Solutions, Property Management and Valuation & Advisory Services. Colliers is the third-largest commercial real estate services company in the world, with over 12,300 professionals operating out of more than 522 offices in 62 countries.
Wegmans Food Markets is expanding its footprint in new and existing markets.
The Rochester, N.Y.-based grocer announced three new locations in 2025, including its first-ever store on New York’s Long Island, in the town of Lake Grove. It will also open its first store in Connecticut, in Norwalk, along with its ninth location in Maryland, in Rockville. The stores are all slated to open before the end of 2025...??
...Opening in summer 2025, the 92,000-sq.-ft. store in Norwalk,
Conn., will include 13 full service and 15 self-checkout registers, and
many of the same Market Cafe features as the Lake Grove site. It will
also have a two-story parking deck with 551 parking spaces and a bridge
into a second mezzanine level of the food market....
RSK: What I find interesting is the fact these new stores will have a dozen or so self-checkouts.....where Hy-Vee in Madison has totally removed theirs and replaced with express manned checkouts.
RSK: No buyer yet but the way is being cleared to have a Data Center in Port Washington. Again, Wisconsin has the probable power grid and the water for such centers.
The grocer, which opened 34 stores in 2024, has listed 12 locations on its website as “opening soon.” (No specific dates are given.) The openings, which are spread across seven states and Washington, D.C., include three sites in Trader Joe’s home state of California.
The 12 stores that Trader Joe’s has marked as opening soon are listed below. The grocer is expected to announce additional planned store openings during the year. ..
The transaction market for Chicago office properties is roaring back
to life as the new year gets underway, with two more buildings
reportedly changing hands in deals that include the largest downtown
office property sale by square footage in nearly three years.
Namdar Realty Group and Mason Asset Management completed an $85M purchase of the 57-story office tower at 70 W. Madison St. on Dec. 30, the largest downtown office property sale by total leasable space in almost three years, CoStar reported. The tower, which totals more than than 1.4M SF, is the largest property to trade hands since a controlling stake in the nearly 1.6M SF Bank of America Tower sold in March 2022...
Federal Reserve Governor Christopher Waller said Thursday that the central bank could lower interest rates multiple times this year if inflation eases as he is expecting.
In a CNBC interview, the policymaker said he expects the first cut could come in the first half of the year, with others to follow so long as economic data on prices and unemployment cooperate...
Key Points
Fed
Governor Christopher Waller told CNBC on Thursday that the central bank
could lower interest rates multiple times this year if inflation eases
as he is expecting.
“As long as the data comes in good on
inflation or continues on that path, then I can certainly see rate cuts
happening sooner than maybe the markets are pricing in,” he said.
Traders increased their bets for a slightly more aggressive pace of rate cuts following Waller’s remarks.
RSK: Not so fast my fine feathered friends. Just the other say a FDC Board member said rate cuts were not in the future because of sticky inflation..Maybe some of you Bankers out there could chime in and tell us what you think....we won`t hold you to it...kind of like weather people...their forecast can be way off and they just blame Mother Nature changed her mind.
WASHINGTON, D.C. (January 28, 2025) — Delinquency
rates for mortgages backed by commercial properties increased during
the fourth quarter of 2024, according to the Mortgage Bankers
Association`s (MBA) latest commercial real estate finance (CREF) Loan
Performance Survey.
"The
delinquency rate for commercial mortgages increased during the final
three months of 2024, with increases across most capital sources and
property types,” said Mike Fratantoni, MBA’s SVP and Chief Economist.
“The challenges facing different sectors vary – with office properties
perhaps facing the most challenging combination of weaker fundamentals
and stubbornly high interest rates. However, despite the current
conditions, other property types continue to benefit from a relatively
strong economy.”...
CBRE`s latest market data shows the U.S. life sciences real estate sector posted positive net absorption in Q4 of 2024, even as an increase in construction completions pushed the vacancy rate to 19.7%.
The fourth-quarter figures reveal gradual improvements across the 13 largest life sciences markets, with momentum likely to continue into 2025. Lab leasing activity reached 3.4 million sq. ft., marking a 28% year-over-year increase. Net absorption totaled 920,000 sq. ft. -- the third gain in five quarters -- indicating healthy demand for lab spaces despite market challenges.
Several factors fueled this progress in 2024, including record-high life sciences employment, numerous new federal drug approvals, and a 19% year-over-year increase in venture capital funding, totaling $30.4 billion. Additionally, lab construction surges that began during the pandemic are tapering off, with ongoing projects dropping to 12.1 million sq. ft. by the end of Q4 -- nearly two-thirds lower than the 2024 peak.
Investors and travelers trend towards “healthy” choices for luxury stays
Before it shuttered in 2022, the low-slung, midcentury Bearfoot Inn
was an affordable and clothing-optional outpost for gay travelers to
Palm Springs, California. Plasticky red loungers on the concrete pool
deck faced a slab wall and then the San Jacinto mountains. According to a
one-star online review, the proprietors argued with guests over the hot
tub.
The new hotel on the site, Terra Palm Springs, opened last
month. It’s very different. There are earth-toned rooms, wellness
tonics, a Himalayan salt room and a “desert wellness” spa circuit.
Nightly rates start at about $400 and could go up to $1,000, according
to co-founder Soli Cayetano — making it one of the pricier stays in the
desert tourism hotspot...
DEFOREST, Wis. -- A hybrid golf-entertainment venue in DeForest filed for Chapter 11 bankruptcy.
PinSeekers filed in Western District Court of Wisconsin on Tuesday.
The venue said in Facebook post it will remain open and have secured short-term funding to fully finance its operations.
PinSeekers said it will be able to pay approximately 75 employees all of their wages, salaries, and benefits. ...Full Story Here
RSK: This is a classic situation of real estates golden rule: Location, Location, Location. The new one proposed in Monona by Blue Shield has a good location to a large population center with ease of driving.
As part of its guidance on implementing governmentwide
budget cuts, the Trump administration is instructing agencies to submit
any plans for relocating offices out of the National Capitol Region by
April 14.
The guidance was issued via a memo from the Office of Management and Budget and Office of Personnel Management to all executive departments and agencies Wednesday, The Washington Post first reported.
Bisnow obtained a copy of the memo, which lays out instructions and timelines for agencies to report their progress in implementing President Donald Trump`s Feb. 11 “workforce optimization” executive order, in conjunction with the Department of Government Efficiency...
RSK: The SWAMP act is real!, although this has been proposed before but not much happened. Maybe this time it will. But either way, this will affect the office market in the DC area.
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After years of companies embracing remote work and hybrid models, a major shift back to in-office work could be underway.
This infographic highlights the surge in return-to-office by industry, using data from McKinsey & Company’s survey of 8,426 employees from various industries in the United States...
Tenant needs are constantly evolving, but older stock in infill locations remains a sought-after, cost-effective alternative.
Despite often being overshadowed by the modern facilities built during the development surge of the past few years, Class B industrial assets continue to attract a diverse range of businesses. A large Class B industrial building with a robust exterior, featuring multiple windows and a prominent entrance. Built in 1972, B&D Holdings’ 21 Parker Drive in Avon, Mass., is a fully occupied, 109,300-square-foot infill warehouse with a diverse tenant mix and ample outdoor storage. Image courtesy of JLL
These properties make up 53.5 percent of the total U.S. industrial inventory, equating to 10.7 billion square feet, according to CommercialEdge. Their appeal has only grown in recent years, particularly following the sharp decline in vacancy rates and surging rental costs post-2021.
“This pricing pressure pushed many users out of Class A availabilities, resulting in Class B properties achieving the lowest vacancy levels among all building classes,” said Tom Harmon, vice president of transactions at Bridge Industrial. “Vintage buildings play a pivotal role in the industrial real estate landscape, offering cost-effective options to occupiers while being situated in highly desirable locations near densely populated areas.”...
RSK: Not everyone can afford or use class A distribution/warehouse plus Class B has more locations better suited to infill and ease of access. This is why class B Warehouse is still the #1 asset and lowest vacancy rate in the sector.
Both chains saw a smaller share of customers visit other stores just
before or after stopping at their locations last year than in 2023,
according to Placer.ai.
Trader Joe’s and Aldi have increased their hold on grocery shoppers in the U.S., with both retailers showing a drop last year in the proportion of customers who went to a competitor right before or after visiting one of their locations, according to data published Tuesday by retail data analytics firm Placer.ai.
The trend suggests that a growing number of people view Trader Joe’s and Aldi as primary destinations for grocery shopping even though the retailers carry a smaller selection of products than traditional supermarkets, Placer.ai said. In addition, the changes could mean that people are becoming more partial to the small-format chains as they continue to look to stretch their grocery budgets, the research firm noted...
RSK: I`m a fan of T Joes and even with a lesser selection the prices are less than most grocery stores. Never been to Aldi`s but heard good things about them. I believe they are looking to expand (hint). Still, hard to beat Woodman`s and their pricing and selection.
More costly equipment, materials could disrupt AI storage development
The Trump administration`s sweeping tariffs threaten to increase costs for building data centers needed to support artificial intelligence, a move some technology and real estate industry analysts said could disrupt a surge in development.
A 25% tariff on steel and aluminum — materials used in these digital hubs — took effect March 12. On Wednesday, President Trump imposed duties as high as 34% on China, Taiwan, South Korea and other countries that supply electronics and other data center equipment. Such price hikes could stymie development of properties for the booming AI industry, some analysts note.
Microsoft, Amazon, OpenAI and other large firms are on the brink of what a JLL executive called the "biggest data center development binge" on record that includes the $500 billion Stargate Project in West Texas. Trump himself called it the “largest AI investment in history” early in his term.
"The problem is that for a lot of these materials, developers need to have a steady supply chain," said Kristen Vosmaer, managing director with JLL`s data center workplace dynamics business, in an interview. He added that once builders deplete inventory already shipped to the United States, "those tariffs will have an impact in relatively short order." ...
April 8 (Reuters) - U.S. President Donald Trump is seeking to expand the mining and use of coal inside the country in a bid to power the boom in data centers, Bloomberg News reported on Tuesday, citing a senior White House official.
In an executive order that Trump is expected to sign on Tuesday afternoon, he will set out a number of steps by the government designed to reinvigorate the coal industry, the report said. ...Full Story Here
RSK: Wonder if this will have some old coal power generating power like the Columbia Power Plant. Some of them have been so decommissioned that it would be virtually impossible to restart, Data centers need power, lots of power.
Coal??? Why not "Mini nuclear reactors," also known as Small Modular Reactors (SMRs) or Microreactors.
Consumers are increasingly opting for takeout and drive-thru meals instead of sitting down at restaurants.
That’s according to the National Restaurant Association’s 2024 Off-Premises Restaurant Trends report, which found that nearly 75% of all restaurant traffic now happens off-premises. Gen Z and millennials are leading the way, with two-thirds saying that takeout is “essential” to their lifestyle. Nearly six-in-10 use takeout or drive-thru at least weekly, and more than 60% say they`re ordering off-premises more often than a year ago.
The report found that mobile ordering is mainstream, used by 57% of adults recently including 74% of millennials and 65% of Gen Z adults. Older adults still prefer in-person ordering, but takeout is the most frequent off-premises method, followed by drive-thru and delivery...
RSK: Now you know why the footprint for many restaurants is shrinking. Most orders are takeouts except for the higher end establishments. People have slowly stopped preparing meals at home and if they do it is pre-,ade ready to heat n eat ones. Restaurant space is now between 2500 to 5000 sq. ft,
Election could derail prefab plan under a new government
America’s trade war is creating some interesting side effects. Countries around the world are starting to think about how they will be able to survive with lower American demand for their products. Canada is one of those countries. Lumber is one of Canada’s largest exports and America is its largest foreign market. Approximately 60% of Canada’s softwood lumber production is exported to the United States. Now Canada is bracing for a drop in exports to its largest trading partner to the South. In the new tariff regime, Canadian softwood imports will face a 25% tax. This new levy is in addition to an existing effective duty rate of approximately 14.5%, bringing the total effective tariff on Canadian lumber to nearly 40%. Some politicians think that they have a way to spur domestic use of Canadian lumber: by growing the country’s prefabricated construction industry.
The current Canadian Prime Minister has proposed creating a new government entity called Build Canadian Homes...
RSK: Nothing wrong with prefab buildings...many pluses actually but for some reason they have a bit of stinture to them. Personally, I hope they succeed.
Madison’s Food Fight Restaurant Group will turn Miko Poke into HWY 1, a “fast casual, counter-service” spot with a menu that “draws its inspiration from the colorful roadside eateries and beachside burrito stands that line the Baja Peninsula, from Tijuana to Cabo San Lucas.”
Miko Poke opened in 2016 next to Everly at 2701 Monroe St., and is now among 16 Food Fight restaurants each with a different theme. HWY 1 (pronounced “highway one”) is tentatively set to open in early June, following a remodel in late May.
HWY 1 will be a build-your-own bowl place for “Baja bowls,” salads and burritos, according to a release... ...Full Story Here
RSK: Might be a welcome change and Monroe Street is popular for eateries.
Retail announced over 64,000 job cuts so far this year, the second
most of any industry, according to a report from Challenger, Gray &
Christmas.
Dive Brief:
U.S. retailers eliminated over 64,000 jobs
during the first four months of 2025, the second most of any industry,
according to a new report released Thursday by consulting firm
Challenger, Gray & Christmas. The four-month total represented a
296% increase from the year-ago period.
A total of 7,235 retail jobs were lost in April, up 77% from April 2024, according to the report.
Close to 603,000 jobs were lost across all industries in the first
four months of this year, the most since 2020 when just over 1 million
job cuts were recorded. Almost half of the cuts this year were
attributed to job eliminations by the Department of Government
Efficiency, or DOGE, per the report...
Heather: Change is the one constant in CRE and in life. There seems to be less room for error over the past several years which levels the playing field of what’s required to be at the top. Results speak volumes.
Amid escalating construction costs and tariff uncertainty, development is increasingly being put on hold.
Two reports released this week show the extent and pace at which projects are being stalled or put on ice.
A survey of 250 U.S.-based general contractors conducted last month by real estate and construction finance platform Built found that 35% of respondents had seen projects canceled or “significantly delayed” due to financing gaps.
Seventy percent of respondents said they have regularly faced delayed payments, leading contractors to inflate bids by an average of 8%. And 60% of contractors said they are concerned about tariffs compounding these issues.
Also in April, ConstructConnect found that the number of private developments placed on hold has increased 40% from last year, while the number of abandoned projects has jumped 14.1%, Construction Dive reported.
ConstructConnect`s Project Stress Index, which measures construction projects that have been halted, abandoned or whose bid dates have been delayed, showed a 1.5% increase in April and was up 16% from 2021...
Retailers so far appear to be forging ahead with their roll-outs of new stores, even after telling investors how potential tariffs and spending-weary consumers may end up dinging their bottom lines.
This week a variety of major chains — including off-price retailer Burlington Stores and apparel seller Abercrombie & Fitch — reported their earnings. They didn`t say they planned to slow their expansion plans at this time, but rather will continue to open brick-and-mortar locations.
They join other retailers expanding their store space. Last weekend, Destination XL Group, catering to "Big + Tall men,"...
A firm had a property listed. An agent from the listing firm showed the property to a buyer. The buyer subsequently signed a buyer agency agreement with a different firm. The buyer used the offer to purchase to ask the seller to pay the buyer`s firm`s fee, which the seller accepted. The agent with the listing firm who showed the property now claims procuring cause. There was no firm-to-firm compensation agreement. Is procuring cause even relevant anymore?
Answer:
If there was a firm-to-firm compensation agreement and the firm`s indicated procuring cause was the standard of performance, then the firms could arbitrate which firm was procuring cause, like when there used to be an MLS offer of compensation. Without a firm-to-firm compensation agreement dictating procuring cause as the standard of performance, arbitrating procuring cause is only relevant in a few limited situations with specific facts. As applicable to the facts indicated here, for the listing firm to be able to file arbitration and claim procuring cause, they would have to fit the scenario identified in Standard of Practice 17-4(5).
Standard of Practice 17-4(5) identifies a scenario where a buyer`s firm is compensated by the seller and the listing firm reduces the commission owed by the seller but the listing firm claims to be procuring cause. In this instance, the arbitration shall be between the listing firm and the buyer`s firm and the amount in dispute shall be the amount of reduction the listing firm agreed to with the seller.
The various scenarios where procuring cause is still applicable are found in the Standards of Practice for Article 17, which can be found on page 14 of NAR’S Code of Ethics & Arbitration Manual.
Top executives from two of the biggest names in the data center and
power sectors have gone into startup mode, launching a firm they say
will transform how the industry builds self-powered data center
campuses.
Data center startup GridFree AI publicly launched last week, touting plans for modular, gas-powered data centers it claims will be cheaper, faster to build and use far less power than data centers connected to the grid.
Founded by former Talen Energy CEO Ralph Alexander and former Microsoft global edge operations head Patrick Yantz, the firm emerged from incubator Montauk Climate with $5M in initial funding from venture capital firms Giant Ventures and Amplo...
RSK: Well, that might be one answer compared to nuclear reactors. The interesting thing about this is the cooling process of the computers which saves half the amount of energy required so less carbon emissions.
Bright spots are emerging for several property types, according to PwC’s midyear outlook.
The U.S. business sector came into 2025 looking forward to a resurgence of merger-and-acquisition activity, based on their collective expectations about inflation, interest rates and the new presidential administration, according to highlights from a new report from PwC.
Contrary to those expectations, the administration has pursued aggressive policies with respect to trade and tariffs. So far, at least, this has not resulted in an M&A slowdown, as both deal volume and total dollar value are comparable, year-over-year.
Still, a May survey by PwC found that roughly one-third of respondents were pausing or revisiting deals, leading the Big Four accounting firm to conclude in its US Deals 2025 Midyear Outlook, “We believe an upswing is still possible, but it’s unlikely without more policy clarity and stability.” ...Full Story Here
RSK: I quick inside look at what may happen for certain CRE sectors...a few bright spots and a few burn outs.
U.S. hotel room demand and revenue per available room made an about-face for the week of June 15-21 with both measures increasing following three weeks of decline.
In similar fashion, TSA screenings over the past week also posted a year-over-year increase following three weeks of declines.
Some of this turnabout stems from a later end date for U.S. schools reported by STR’s School Break Report. Demand increases were even more pronounced in the northern part of the country where summer breaks tend to start later. This further highlights the impact school calendars have on hotel performance trends.
Additionally, the movement of the Juneteenth holiday from Wednesday in 2024 to Thursday this year made for easy comps early in the week and for a stronger weekend. U.S. hotel RevPAR for the week advanced 3.3%, the result of average daily rate up 2% and occupancy rising 0.9 percentage points. This was the first weekly occupancy increase since early May...
Chicago is leaning hard into its LaSalle Street Reimagined vision, and the conversion of 111?W?Monroe is shaping up as a centerpiece. The Harris Trust office towers are being reborn as a mixed?use destination: a 226?room hotel, a reactivated rooftop Monroe Club with pool and restaurant, a 16,000?ft² ballroom and spa, and 345 apartments (around 104 of which are designated affordable). Construction kicks off later this year, with a finishing line set for early 2027.
This transformation is backed by a strategic financial move: $40 million in Tax Increment Financing (TIF) from the LaSalle/Central district, alongside historic and low-income housing tax credits. TIF isn’t a grant in the traditional sense—it’s a promise to reinvest future property tax increases from the district into redevelopment wireframes now, essentially using tomorrow’s gains to fund today’s projects. Across six ongoing conversions, the city has approved roughly $321 million in TIF to leverage nearly $900 million in private investment, bringing 1,765 mixed-income homes online...
A new study from CommercialCafe
ranked Madison No. 2 among Midwestern tech hubs. The study used 15 key
indicators across three categories, including employment, business
environment and education.
Key findings included:
Madison
topped the ranking in terms of its STEM employment density (10,554 per
100,000 residents) and placed third for its share of STEM degree holders
(54.5%);
The city had the
third-highest share of STEM establishments on the list (6%) and the
highest square footage of research and development and life sciences
offices (2.2 million square feet); and
The hub ranked second for its graduation rate (88.2%) and fourth for its number of vocational STEM awards (1,298).
RSK: That`s more like the Madison I have come to know and love most of the time. This means an influx of high tech workers which means more housing and more CRE needed.
Starbucks is mandating the return of some remote workers to
its headquarters and increasing the number of days that corporate
employees must work in an office, the Associated Press
reports. The Seattle-based company is among many reevaluating their
work-from-home policies, which rose in popularity during the COVID-19
pandemic.
Brian Niccol, Starbucks chairman and CEO,
said today in a letter to employees that corporate workers would be
required to be in the office four days per week beginning in early
October. That’s up from the current requirement of three days per week.
It
also said that all corporate “people leaders” must be based in either
Seattle or Toronto within 12 months — a change from February, when it
required the same only from vice presidents.
While
individual employees working under those leaders would not need to
relocate, all hiring for future roles and lateral moves will require the
workers to be based in Seattle or Toronto...
A heat dome over Europe, fatal flash floods in Texas, wildfires in
Arizona and Colorado national parks. That is just the past few weeks in
the life of planet Earth as extreme weather events become more common
and unpredictable.
An average of 3.4% of retail sales are directly affected annually by
changes in the weather, according to research published by the American
Meteorological Society. Applying this globally means the weather alone
influences about $1T in retail sales every year. And that, in
turn, affects real estate decision-making.
Planning for weather-driven demand, climate sensitivity and weather
volatility across stores and distribution networks has become especially
crucial for retailers and logistics operators in not only meeting
consumer demand but also helping their inventory teams have the right
product in the right place at the right time to avoid empty shelves.
RSK: I`m not sure there is anyplace on earth that doesn`t have some sort of climate risk. Even in Madison, WI we have a tornado in the county every now and then, although not bad ones.
Increased immigration enforcement on jobsites has led to more
callouts and potentially longer project timelines, but experts believe
the future will hold a policy shift.
In the first half of the year, one word continued to appear in
headlines surrounding broad economic and political change:
“uncertainty.” Construction Dive’s Uncertainty Series delves into how
this lack of clarity is affecting contractors and what the future holds.
Click on the links to read previous articles about interest rates and about tariffs.
Immigration and Customs Enforcement agents raided an Alabama elementary school construction site on July 23, WKRG5 reported, resulting in the arrest of 11 people.
It’s one of the latest examples
of ICE cracking down on jobsites believed to be employing immigrants
unauthorized to work in the U.S...
...“With this immigration policy
pushing back on immigration, whether undocumented or documented, that
suggests given our nation’s demographics, that if anything, the skilled
worker shortage in construction is going to be exacerbated during the
years ahead,” Basu said....
Property sales for some footprints collapsed as fast casual formats
grew, leaving landlords with few buyers and costly renovations
While brands like Texas Roadhouse and Olive Garden continue to
thrive, many casual dining chains have halted expansion, closed stores
or filed for bankruptcy, leaving a glut of former restaurant properties
with few buyers.
Casual dining real estate is in a major slowdown, as property sale
success rates have plummeted from 72% in 2021 to just 37% in 2024,
according to data from Northmarq, a commercial real estate firm. This
decline is primarily driven by fundamental mismatches between available
properties and the changing needs of restaurants, which make it
increasingly challenging to repurpose former casual dining locations.
The total number of U.S. coworking locations declined in the second quarter, the first time that has happened since at least 2023, according to CoworkingCafe.
A stronger first quarter has kept the total number of new locations in 2025 in positive territory, but coworking operators have gone from expanding at breakneck speed to a snail`s pace. Growth has slowed, but there are early signs that rising demand from corporate clients could fuel coworking’s next leap forward.
“We`ve already made up for the Q2 reduction in count alone in Q3, from what we`ve seen from openings,” said Peter Kolaczynski, the director of research at Yardi, which owns flexible space booking website CoworkingCafe and a majority stake in WeWork.
The coworking sector hasn’t been immune to the macroeconomic waves undulating from the trade war being waged from the White House. The biggest operators pressed pause on expansion plans while they waited for more solid ground on which to transact, and smaller operators have been squeezed by rising costs, Kolaczynski said.
Since 2023, more than 1,500 new coworking locations totaling 21M SF of office space have opened their doors across the U.S, bringing the sector’s total U.S. footprint to 141M SF. But the pace of expansion has slowed considerably after an explosive 2024...
Landlords in Boston, facing “crazy vacancies,” are now pushing back
on commercial valuations. Some property owners are even arguing their
properties are worth half of what the city assesses, a stark signal of
distress in the office sector. The core issue: sky-high vacancy rates
have decimated value, and holding powerless assessments means heavier
tax burdens amid collapsing demand. The real problem isn’t just
emptiness, it’s that owners feel stuck with property taxes that don’t
reflect today’s reality.
But what if landlords treated their
buildings like cities treat their waterfronts, blending resilience with
amenity rather than battling value declines head-on? Adaptive reuse
offers a route out. Boston has already seen successful examples:
converting the old Landmark Center (a former Sears warehouse) into
retail, office, entertainment, and childcare space, and transforming the
Charles Street Meeting House—a historic church—into mixed-use office
and retail while preserving its character. These are far from isolated;
the state is funding conversions of vacant office buildings into
housing, projects that would not only activate empty structures but also
diversify tax streams. One Chestnut Place and 31 Milk Street are just
two of the office-to-residential transformations underway with state and
municipal incentives...
A bonded warehouse owned by the world’s largest industrial landlord was the site of a raid that left dozens of immigrant workers detained. Federal agents questioned immigrant workers for hours to verify their legal status before arresting 29 people.
Federal officers with U.S. Customs and Border Protection raided a Prologis-owned facility in Edison, New Jersey, early Wednesday, detaining 29 immigrant workers. The workers were zip-tied and taken to a nearby detention center after hours of questioning, according to The New York Times.
Third-party logistics operator Smart Supply Chain Inc. leases the building at 45 Patrick Ave. as a bonded warehouse — an industrial site certified by CBP that lets importers delay or avoid steep tariffs on foreign goods...
The world’s largest sovereign wealth fund, Norway’s, is back in the
CRE game. The fund plowed $543 million into a Manhattan office tower,
taking a 95 percent stake in a building on Avenue of the Americas. This
move signals renewed confidence in prime office assets, as institutional
investors creep back into markets they had mostly abandoned in recent
years.
Sovereign wealth funds have trimmed their exposure to real
estate in recent years, shifting toward infrastructure and alternatives,
as declining valuations, rising interest rates, and mounting
remote-work uncertainty weighed on fundamentals. But now, as brokers
report rebounds in leasing activity and a shortage of well-located
assets, these funds are reasserting themselves. Norway’s reinvestment
reflects a broader recalibration: exposure that once dwindled is now
being rebalanced as opportunity replaces hesitation...
RSK: It is a good sign when investors start buying office properties, even if it is the prime downtown buildings. Hopefully the trickle-down effect will happen.
Cottonwood has closed a $1 billion real estate “special situations”
fund aimed at buying troubled commercial properties at a time when
distress is spreading. Delinquency rates in commercial mortgage backed
securities have climbed past seven percent this year, with office loans
nearing eleven percent. The combination of refinancing challenges and
weaker demand is creating the kind of market Cottonwood was waiting for.
The
broader trend is clear. Rising defaults are not just confined to office
but are also hitting retail and lodging, sectors still struggling to
regain pre-pandemic footing. Each uptick in delinquency expands the pool
of assets likely to be re-priced, giving opportunistic capital new
targets...
Starts for new apartment projects of five or more units picked up in August, according to statistics released Thursday by the Census Bureau and the U.S. Department of Housing and Urban Development.
Roughly 403,000 units broke ground last month, a 15.8% increase year-over-year, according to Multifamily Dive. ...Full Story Here
RSK: Many thought multifamily was at a major slowdown. But even with high interest rates and construction costs, people need to have housing and somehow, to a degree, they will give up many things to have it.
A
new exhibit at the National Building Museum showcases how downtowns are
evolving from office corridors to centers of housing, nightlife and
culture.
Downtowns across the US are undergoing a major transformation, years
after Covid-19 disrupted local economies and changed the way people
live, work and play. For many community leaders, the pandemic was “like
hitting the reset button,” forcing them to rethink what purpose city
centers serve and for whom, says Georgetown University urban planning
professor Uwe Brandes.
After
years of cities experimenting with ways to revive city centers amid
ongoing office vacancies, lost transit ridership and a national
affordability crisis, Brandes is putting some of the best practices from
around the country on display. He’s the curator of “Coming Together,”
a new exhibit at the National Building Museum in Washington, DC, that
charts how US downtowns have changed over the last five years and asks
what their future may look like...
RSK: Madison`s CBD has not revitalized in my opinion, but the main arteries around it have such as the East Washington Corridor, Johnson and Bassett St areas. More work to be done.
Federal lease payments, construction projects face delays if stalemate drags on, analysts say
The federal government shutdown now underway could disrupt plans for
the federal real estate portfolio and put office landlords at risk of
rent payment delays if a resolution isn`t reached in coming weeks.
Shutdowns
can eventually slow federal contracting, leasing and the disposition of
government properties, analysts said, though building owners with
federal tenants are expected to keep receiving rent for now. At least
two real estate investment trusts warned this year that an elongated
shutdown could adversely affect their performance.
In the absence
of appropriations, the General Services Administration, the government’s
real estate manager, said its buildings would remain open to occupants
and that the agency would retain “adequate staffing” to protect federal
property under its custody and control. Still, the GSA on Wednesday
called for an end to the shutdown...
Battery makers are being forced to pivot. With electric vehicle sales plateauing after years of explosive growth, companies that built their fortunes on powering cars are now looking to power buildings instead. The global slowdown in EV demand has left manufacturers with excess production capacity and falling margins. That’s leading many to redirect their focus toward stationary energy storage including batteries designed to help stabilize power grids, manage peak loads, and provide backup power for homes and commercial buildings. This pivot isn’t just about market diversification, it’s about survival. And in the process, it could reshape how buildings manage energy.
For years, battery storage in buildings has been more promise than practice. The technology was available, but the economics rarely penciled. Between high upfront costs, regulatory hurdles, and uncertain payback timelines, most property owners viewed battery systems as futuristic luxuries rather than essential infrastructure. Now, that calculus may be changing. Battery makers are now moving aggressively into grid storage to offset weak EV demand. That shift could accelerate cost declines that make battery installations feasible for the broader commercial market...
In China’s tallest towers, food delivery has become an architectural
problem. Some skyscrapers are so massive that new workers, known as
“runners,” have been hired to sprint from elevator banks up dozens of
floors just to keep meals warm. It’s an almost absurd reminder that
buildings are systems of movement, not just monuments of glass and
steel. As cities build higher and denser, design often stops at the
skyline—but the real challenge lies in how people and services move
inside these vertical neighborhoods... ...Full Story Here
RSK: One of the minor things that perplex high rise buildings.
The Federal Reserve cut interest rates for the second time in as many months, easing monetary policy just as commercial real estate markets snap back to life. But Chairman Jerome Powell said members of the central bank had widely different views on what to do moving forward.
Wednesday’s widely expected decision offers a bit of clarity as the government shutdown drags into its fifth week and the White House digs in on the trade war that kicked off in April. But it upended a growing expectation that a rate cut at the Fed`s December meeting was practically guaranteed...
Industrial outdoor storage (IOS) is suddenly seeing significant demand and rent growth amid lean supply.
These
sites are often located near highways, ports and other key
infrastructure, but are now becoming essential staging grounds for data
center construction.
Leo Addimando, CEO of Alterra IOS, said
there’s $300 billion worth of IOS space that’s owned by businesses, ripe
for investment.
The rapid buildout of AI and quantum infrastructure is sparking a boom in an often overlooked commercial real estate sector. Industrial outdoor storage (IOS) is suddenly seeing significant demand and rent growth amid lean supply...
RSK: A majority of this is being driven by data center development. These sites are used as staging areas for construction. Interesting to see if the Deforest Center is approved, where the staging area will be.
National rent growth decelerates as supply pressures persist
ARLINGTON, Va.--(BUSINESS WIRE)--Second paragraph, fourth sentence of release should read: Annual rent growth slowed further to 0.8%, down from 0.9% in September and 1.5% at the start of the year. (instead of Annual rent growth slowed further to 0.8%, down from 0.9% in August and 1.5% at the start of the year.)
The updated release reads:
APARTMENTS.COM RELEASES MULTIFAMILY RENT GROWTH REPORT FOR OCTOBER 2025
National rent growth decelerates as supply pressures persist
Today Apartments.com, an industry-leading online marketplace of CoStar Group (NASDAQ: CSGP), published its latest report on multifamily rent trends for October 2025.
U.S. apartment rents declined in October, with the national average falling to $1,708 — a 0.3% decrease from September’s revised figure of $1,713. This marks the fourth consecutive month of flat or negative monthly rent change and the steepest October decline in over 15 years. Three of the five steepest monthly rent reductions over the past fifteen years have occurred within the last three months. Annual rent growth slowed further to 0.8%, down from 0.9% in September and 1.5% at the start of the year.
RSK: This may change the number of new apartments in the construction pipeline. Mainly it is the older units that are seeing the stabilization....but then again not.
As land values soar and density restrictions tighten, developers
across the U.S. are rethinking one of the most overlooked components of
real estate design: parking.
Once viewed as a static necessity, parking is rapidly evolving into a
dynamic profit lever — thanks to the rise of mechanical and automated
parking systems.
“Parking can sometimes kill a project,” said A.J. Jenkins, director
at The Automated Parking Co. “I’ve seen deals where a conventional
parking design sank the entire pro forma. By implementing modern,
stacked or automated systems, developers can flip that equation
entirely.”...
After a pandemic-driven surge, and a subsequent pullback, warehouse real
estate supply and demand is finally starting to come into balance and
showing new signs of life.
E-commerce, which was the primary driver of the recent boom cycle, certainly hasn’t gone away, but more people are returning to brick and mortar. Warehouse tenants are now more focused on efficiency, power and location than they are on square footage.
New development has slowed down, and federal policies are pushing onshoring of manufacturing, which helps the sector counter still-high interest rates and economic uncertainty. Rent increases are no longer as steep as they were a few years ago, and in some markets they are actually falling slightly due to oversupply.
Key Points
Warehouse real estate supply and demand is starting to come into balance after a tumultuous few years.
New
development has slowed down, and federal policies are pushing onshoring
of manufacturing, which helps the sector counter still-high interest
rates and economic uncertainty.
In some markets, rents are falling slightly due to oversupply.
RSK: After a quarter of over supply, the warehouse sector is slowly making a comeback with demand increasing and supply just starting to gain some momentum.
What does a workplace look like when children are primary users, alongside their mothers?
At Perkins&Will, our Dallas studio recently took on this question with All Moms, a Richardson, Texas–based nonprofit supporting mothers of all kinds. We created renderings for a headquarters that embodies their mission of promoting health and well-being across the full spectrum of maternal experience—a custom home, finally, for programming that includes education, playdates, coworking, and community building...
RSK: We probably aren`t quite there yet, but I believe to get employees back to the office, especially moms, companies need to have daycare on-site or nearby as a perk.
Some of the mid-Atlantic`s largest developers are putting away their shovels and taking out their checkbooks.
Because acquiring apartments is cheaper than developing
ground up, investors and developers — even those whose bread-and-butter
has been ground-up development — are going all-in on buying existing
apartments.
Foot traffic is picking up in U.S. offices, but Mondays and Fridays may still seem like a ghost town.
Office workers returning to the workplace rose nearly 5% in October compared to the same period last year, according to Placer.ai.
That increase in traffic is concentrated in the middle of the week, however.
Placer.ai’s index analyzes foot traffic at 1,300 office
buildings in the U.S. While office visits in October were still more
than 30% below October 2019, foot traffic continued to pick up this
year.
“Even amid entrenched hybrid norms and ongoing pushback
against in-person requirements, office visit numbers continue to trend
steadily upwards,” the report says...
RSK: More back to the office foot traffic may be attributable to the move to hybrid work and not work from home. Still seems like Monday and Friday are the smallest traffic....but Friday has always been that way.
Commercial real estate has had a rough go after gaining momentum coming out of the pandemic.
October
was the first month of negative year-over-year transaction volume
growth in the sector in nearly two years, according to monthly data
provided by Moody’s as a media exclusive to CNBC’s Property Play.
The recovery in commercial real estate has been slow and bumpy, much
like interest rate policy over the past few years. The two, of course,
are deeply connected...
RSK: Doesn`t surprise me. High interest rates and CAP rates make investors shy away from many types of CRE. Properties rarely make sense for investment in this market. However, the buy to occupy is still happening.
Net-Lease Investment Recovery Continues, Driven by Strong Industrial, Retail Demand
Dallas, TX – May 15, 2025 – The U.S. net-lease investment market continued its recovery in the first quarter of 2025, driven by robust demand in the industrial and retail sectors, highlighting the sector`s resilience and attractiveness to investors seeking stable, low-risk opportunities, according to the latest research from CBRE.
Net-lease properties are characterized by a lease structure in which the tenant agrees to pay a portion of or all of the taxes, insurance fees and maintenance costs in addition to rent. Total net-lease investment volume increased by 9% in the first quarter of 2025, reaching $9.6 billion. For the year ending Q1 2025, net-lease investment volume increased by 21% year-over-year to $44.6 billion...
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.
Join us for a captivating conversation with Linda Holtz of M2RE, as she
shares her incredible journey from France to becoming a successful real
estate investor in the U.S. Linda`s expertise in property management has
been instrumental in her focus on multifamily value-add opportunities
in Houston, Texas, and her recent exploration of new development retail
centers. She offers invaluable insights on aligning investments with
personal values, ensuring quality housing, and building strong
relationships with investors—all while maintaining a strategic focus on
the Texas Triangle and beyond, including the promising market in Tulsa,
Oklahoma.
We`ll also explore the transformative impact of AI in
real estate, where technology complements and enhances our unique
narratives. With an eye on 2025, Linda and I discuss potential
opportunities in the multifamily and commercial sectors, emphasizing the
need for strategic planning and psychological resilience. Coaching has
played a pivotal role in overcoming fears and embracing the freedom to
live life fully, both in terms of time and location. Don’t miss this
episode, where Linda’s story inspires us to connect with our passions
and loved ones while thriving in the ever-evolving landscape of real
estate.
Broadwing Advisors is pleased to present Madison’s first Life Science Real Estate Market Report. This report demonstrates the robust biotechnology market created over the last 25 years in Dane County.
Madison’s Life Science Facts
• Over 11,200 bioscience employees in greater Dane County • Over 40% industry growth over the last 10 years • More than 1,500 industry degrees and certificates conferred annually
Madison’s Life Science Real Estate Facts
• 61% of buildings in market are single user occupied • 46% of lab spaces have been converted from other uses • Top 10 users in the market represent 2,900,000 SF of the total (60.4%)...
All Dell employees living within an hour of an office will have to be in the office five days a week.
Dell is the latest tech company to announce it’s ending its hybrid and remote work policy. Starting March 3rd, Dell employees will have to show up in person five days a week.
In an email obtained by Business Insider, CEO Michael Dell writes that “all hybrid and remote team members who live near a Dell office will work in the office five days a week. We are retiring the hybrid policy effective that day.”
“What we’re finding is that for all the technology in the world, nothing is faster than the speed of human interaction. A thirty second conversation can replace an email back-and-forth that goes on for hours or even days,” Dell writes....
RSK: ANother one requiring back to work. Seems like more and more tech companies are calling for a return to office policy. Might be a rough road in the beginning but should smooth out as time goes on.
The U.S. office market ended 2024 with early signs of stability as
metrics improved throughout the year, and much less space was returned
to the market than in 2023. However, strong headwinds in 2025 suggest an
uneven recovery and likely several bumps over the next few years.
Occupiers continue to reduce space as their leases expire but are likely
to upgrade to a higher quality space and building. Despite headlines
focused on large companies` return-to-office efforts, most have evolved
their office operations, embracing flexibility to encourage
productivity. Large, sprawling campuses are being rethought, with the
potential for redevelopment opportunities.
RSK: Colliers report on industrial and outlook for 2025. Key elements are sustainability, labour and power availability bare the driving forces for location.
According to a Bloomberg report, a popular restaurant known for its buffalo wings and scantily clad female servers, will be filing for bankruptcy in the coming months.
Whether you`re a fan of the food or... the atmosphere, Hooters is a ubiquitous chain in America. The instantly recognizable owl logo and "breastaraunt" have become etched in the cultural landscape for decades, with 293 locations across the country. Now, it appears bankruptcy is on the horizon.
As of this writing, there are two Hooters locations in Iowa (Council Bluffs, Davenport); 15 in Illinois (the closest being Rockford); and only one in Wisconsin, which is located in East Madison.
As reported by Bloomberg, the casual-dining chain operator has hired law firm Ropes & Gray to prepare a filing, though the plans are not final at this time. There have been signs of struggle for a while now. In September 2024, credit rating agency KBRA downgraded two tranches of securities issued by Hooters, citing revenue decline...
Atlanta’s commercial landlords are putting a new price tag on the city’s long-running love affair with cars.
Landlords have been beset by rising interest rates, construction and insurance costs, and stubbornly high vacancy in recent years. Now many are pushing up parking prices — and converting once-free lots — to prop up their revenues.
“These office buildings, they’re not making money, and that’s the only way to generate income,” Atlanta-based investor and broker Alan Joel said. “And it’s there. The infrastructure is there. The parking is there. It’s a way to get some income without spending a tremendous amount of capital.”
Owners of prime office towers, which are experiencing record availability, have pushed parking rates in their buildings up by 9.2% for reserved spaces and 4.7% for unreserved spaces, according to a 2024 CBRE report...
RSK: As more development happens in downtown Madison, the less open free parking there will be. It is just a matter of developing an additional revenue stream to offset the rising costs of taxes, upkeep & repair.
Vermont’s Northeast Kingdom, just across the border from Quebec, has long depended on French-Canadian tourists to help drive its economy.
But once-bustling cross-border tourist traffic has slowed to a crawl in the months since President Donald Trump imposed new tariffs and floated the idea of annexing Canada.
The fallout is prompting a wave of trip cancellations, leaving hotels, restaurants and entertainment venues scrambling to make up for lost business at the start of what was already setting up to be a less-than-favorable summer season...
Tonight, the Madison Common Council unanimously approved
three proposals designed to make it easier to build a range of homes,
increase flexibility for homeownership, and make it easier to permit
small and mid-sized buildings downtown.
“I want to
thank my colleagues on the Common Council for collaborating on these
sensible efforts to provide more housing options for Madison residents
and for the community support for these proposals. By simplifying our
processes and enacting forward-thinking policies, we are ensuring that
everyone in our city can live and thrive in the neighborhood of their
choosing,” said Mayor Satya Rhodes-Conway. “These are significant steps,
but we need to continue making progress to increase housing choices in
Madison. Working with the Council, we plan on introducing additional
pro-housing policies this fall to continue our work on this important
issue.”
The proposals approved by the Common Council include:
Thanks in part to a huge surge in transactions in Dallas-Fort Worth, the overall U.S. investment sales market was up more than 25% in terms of dollar value during the first half of the year.
Transaction volume also rose more than 15% over last year to nearly 12,500 sales, according to Avison Young’s first-half U.S. investment sales report, shared first with Bisnow... ...Full Story Here
RSK: Investment sales are up, but in certain regions. Most slaes are owner occupants at the moment.
The multifamily real estate sector sends mixed signals as we cross
the halfway mark of 2025. Activity has slowed but not stopped, and
market conditions are neither recessionary nor red-hot. It’s a year of recalibration, not retreat.
For developers, investors, and capital partners, this is a moment to
reassess and not react impulsively but plan strategically for what comes
next. While economic uncertainty and capital constraints persist, the
long-term outlook for multifamily remains sound. The fundamentals
haven’t changed, but the playbook has...
A partially demolished building on West Wilson Street is the source of contention between a local developer and the city of Madison, according to the Wisconsin State Journal.
Middleton developer Terrence Wall’s company, T. Wall Enterprises, bought the property at 131 W. Wilson St. in 2022 to develop The Moment Residences, and while demolition began at a 12-story building on the site, the three-level underground parking garage remains.
Wall said he was forced to delay demolishing the parking garage for safety reasons as he awaited city approval of the 15-story apartment building he plans to construct there... ...Full Story Here
RSK: There are two sides to every story....I would like to hear Walls in more depth because there is a chance he is not getting a fair shake.
Starting Wednesday, September 17th at 7:00am, Parisi Construction
will close Mid Town Road, between the Marty Road/Mid Town Road
intersection to the S Gammon/Mid Town Road intersection, to facilitate a
City of Madison water main installation project
During the closure, traffic will be detoured using Raymond Road. The
street will reopen to normal conditions the Wednesday, October 8th....
Back in the early 2000s, when green building was still more of a movement than a market, California’s Sustainable Building Task Force released The Costs and Financial Benefits of Green Building. It was a groundbreaking attempt to put numbers on what, until then, had been mostly ideals. The report claimed that spending as little as 2% more in upfront costs could return ten times that in savings over the life of a building. The math worked because it didn’t stop at energy and water bills, it tried to quantify things like productivity, absenteeism, and health outcomes. That was bold at the time. For years, owners and investors could easily value lower utility bills, but how do you put a price on fewer sick days or a less stressed workforce?
Two decades later, we’re getting closer to answering that question with real data.... ...Full Story Here
RSK: Only 2% more in upfront costs? I like the idea that healthy buildings may have a healthier life in terms of return for owners, but some of the measurements in this article are a bit soft. Still, I am all for it if it makes sense.
I’m sure that you’ve heard the chatter: short-term rentals are
“dead,” Airbnb is oversaturated and no one is making money on the
platform. The truth is that yes, Airbnb is more competitive than ever
and the bottom 50% of operators are struggling to make positive returns.
However, top operators are making more than ever. New tools have made
it easier than ever to “rinse and repeat” winning strategies and scale
STR portfolios into multi-million dollar businesses.
You cannot
purchase a house in a good location, throw it on Airbnb and expect it to
be a winner. Finding and operating a successful short-term rental takes
research, planning, and leveraging these short-term specific tools that
will help you get the most out of your listing.
New York City is undergoing a quiet but dramatic shift as obsolete
office towers turn into much-needed housing. What had long been a
trickle of one-off projects has become a defining feature of the city’s
real estate landscape. With office vacancies still hovering above 20
percent, landlords are increasingly looking to residential reuse as both
a survival strategy and a response to the city’s housing shortage. The
result is a surge of conversions that has outpaced anything seen in
prior decades.
The numbers tell the story. Between 2004 and 2022,
New York averaged less than 1.2 million square feet of conversions
annually, with only one year ever breaking above four million. That
picture changed after COVID. In 2023, conversion starts hit 1.6 million
square feet. The next year, they doubled to 3.3 million. By August 2025,
they had already surpassed 4.1 million—eclipsing the entirety of 2024
in just eight months, according to a new Cushman & Wakefield report...
M&T Bank, PNC executives among those predicting increase in next few quarters
Cracks are starting to form in the long-frozen market for bank lending for commercial real estate.
Executives at M&T Bank, PNC Financial Services Group and other banks said this week they expect to see growth return for commercial real estate loans starting early next year. The shift would come after banks have steadily cut their exposure to the commercial real estate sector over the past several years, mostly in response to rising delinquencies on office-building mortgages.
The work world is still adjusting to hybrid work. There are many things workers became accustomed to during their time at home that are no longer available in a shared workspace: their pets, sweatpants, mid-day naps. Of all the comforts of home that office workers miss, there is one that office managers might actually be able to provide—peace and quiet. Most offices today have an open format, which can be great for collaboration but terrible for acoustics.
Our homes are, for the most part, quiet and tranquil places. Offices are anything but. To help create spaces where workers can escape the constant noise of an office, many companies are turning to phone booths and small meeting rooms. The value of these spaces goes far beyond simply giving someone a place to make a phone call. “Originally we thought that our booths would be used primarily by businesses for sales calls, but more and more we hear from our customers that workers are spending hours in them because they find a private, soundproof space better for getting work done,” said Thierry Ondet, Managing Director at ROOM, a manufacturer of modular meeting rooms and personal phone booths...
Democrats introduced a package of legislation drafted in response to deadly Milwaukee apartment fire earlier this year
A new push by Wisconsin lawmakers aims to prevent apartment fires like the one that killed five people and displaced around 100 others in Milwaukee in May.
A new bill would offer grants to Wisconsin landlords to put fire sprinkler systems in their buildings.
Another bill, introduced by Democratic state lawmakers on Monday, would allow local municipalities the ability to pass ordinances requiring apartment buildings of any age be equipped with sprinkler systems.
Retail real estate has been on a roll. Investment sales are
up significantly, distress is falling, the leasing market is still
competitive, and a limited amount of new construction is buoying
long-term fundamentals.
But the industry is battling fierce macroeconomic
headwinds, from on-again, off-again tariffs to waning consumer sentiment
and an increasingly shaky job market.
This holiday season is poised to clarify a landscape mired
in uncertainty and define which of the competing headwinds and tailwinds
ultimately wins the day.
RSK: This holiday season should be okay for retail but after that things are up in the air. Tariffs and other factors loom large. So far, retailers have been absorbing most of the price increases but that may end in 2026.
Average effective asking rents for market-rate apartments in the U.S. are expected to return to growth in 2026. Rents are forecast to climb 2.3% across the nation next year, quite a change from the 0.7% contraction recorded in the year-ending October 2025, according to data from RealPage Market Analytics. Out of the nation’s 50 largest apartment markets, 11 are expecting effective asking rents to increase 3% or more in 2026. Miami is slated to lead the nation with annual rent growth of 3.8% next year. Seattle should see a rent hike of 3.7%, followed by a 3.5% increase in Fort Lauderdale and a 3.2% upturn in Los Angeles. Three markets – Cincinnati, Columbus and San Franciso – are expecting a 3.1% bump in rents, while four markets – Detroit, Kansas City, Philadelphia and West Palm Beach – are forecast to see a boost of 3% in effective asking rents in 2026. Of the 11 markets with the biggest rent increases next year, only San Francisco is expected to see annual rent growth cool, dropping from a nation-leading increase of 7.4% during the year-ending October 2025...
The geography of America’s AI boom no longer resembles the familiar
map of the tech economy. Over the past two years, the country’s highest
concentrations of GPU clusters have taken shape not in Silicon Valley or
Northern Virginia, but across a belt of Southern and Midwestern states
that offer cheaper land, friendlier zoning, and enormous, if uneven,
access to electricity. A recent dataset
tracking 214 AI-focused data centers and grouping them into 83 cluster
sites shows an unmistakable pattern: the future of artificial
intelligence is being built wherever the power grid can handle it.
Take
Texas. It hosts the largest number of GPU cluster sites in the country
with 17, more than double California’s total. Those clusters contain
roughly 811,000 AI chips and the computing equivalent of more than 6.6
million H100 units. The scale is unprecedented, and so is the energy
draw. Texas produces more electricity than any state in the country,
about 547 million megawatt-hours annually, yet AI already accounts for
roughly 15 percent of that total. California, by comparison, has eight
clusters holding around 216,000 chips, but its AI power burden is only
about one percent, leaving far more headroom on the grid...
RSK: You might note that Wisconsin is not on the list....yet. We have the power and the water but we also have a strong NIMBY energy.......something will give soon even if a little at a time.
Wendy`s, the fast-food chain famous for its square burgers and
Frosty treats, is making headlines for closing hundreds of U.S.
locations over the next year as part of a broader strategy to improve
profitability and modernize its brand.
For loyal customers who are looking to go out to eat more, this news sparks a pressing question. Could your favorite Wendy`s be on the chopping block...
SoftBank Group’s CEO is expanding his plans to invest hundreds of billions of dollars in U.S. data center infrastructure — this time with Trump-branded industrial parks.
Tech billionaire Masayoshi Son is finalizing a deal with the White House to build facilities that would manufacture artificial intelligence hardware on federal land, The Wall Street Journal reported, citing unnamed sources familiar with the discussions... ...Full Story Here
RSK: Not sure why they would have to brand them at all.
This report uses the latest location intelligence to unpack the shopper
behaviors, market shifts, and brand strategies that will shape retail
and dining trends in 2026.
Key Takeaways:
Retail is deeply divided. Visits to value and luxury apparel segments grew YoY in 2025 while traffic to mid-tier retailers flagged.
Upscale dining momentum reflects similar bifurcation. More resilient, affluent consumers are bolstering fine-dining traffic.
Authenticity is key.
Brands successfully executing on a clear sense of purpose – from
community-driven grocers to bookstores – are driving consistent visit
growth.
Online and offline retail are converging into a seamless ecosystem. As consumers seek online value and in-person convenience, AI fulfillment, dark stores, and local pickup are accelerating.
Digitally native brands expanding into physical retail are redefining omnichannel. These chains provide a blueprint for merging digital efficiency with personalized in-store experiences.
Traditionally urban brandsare shifting to suburbia to capture new audiences. With consumers rooted in hybrid lifestyles and growing suburban demand, chains that adapt their footprints drive fresh traffic.
Expansion into college markets and celebrity pop-ups are helping retailers and malls connect with younger consumers. Brands
that grew their footprints in college towns or on campuses increased
their Gen Z traffic, as did malls that hosted celebrity or influencer
activations...
Over the past year, I’ve seen more buyers asking about
veterinary-occupied real estate than ever before. I’ve closed two vet
clinic transactions and have another currently on the market. Each has
offered cap rates above 7% and drew multiple offers within a week.
Investors
are looking for yield that still comes with credit. These properties
tend to check both boxes. They offer stronger tenancy than typical
mom-and-pop retail but better returns than many corporate net lease
tenants today.
What’s interesting is how resilient these assets
have been, even when the story isn’t perfect. Older buildings, shorter
remaining lease terms or double net structures aren’t scaring off
qualified buyers if the location and operator make sense...
RSK: I have to agree. I did a transaction like this with CRESA and TJ a few years ago. My buyer eventually sold to an investment group who leases the properties back from him.Everyone won on this deal.
Thursday, March 12, 2026 9:00 AM Friday, March 13, 2026 4:00 PM (CDT)
Description
The Accredited Buyer`s Representative (ABR®) Designation is for real estate buyer`s agents who focus on working directly with buyer-clients at every stage of the home-buying process. With this designation you will receive specialized training, prove your experience, learn advanced strategies to identify buyer needs and preferences, clearly communicate your value, and gain a competitive edge. This course is the first step in earning your designation, the last two steps can be found here: abr.realtor/how-to-earn-your-abr/.
The average rate on a 30-year U.S. mortgage fell this week to its lowest level in nearly 10 months, giving prospective homebuyers a sorely needed boost in purchasing power that could help inject life into a stagnant housing market.
The long-term rate fell to 6.58% from 6.63% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.49%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate dropped to 5.71% from 5.75% last week. A year ago, it was 5.66%, Freddie Mac said...
Groundbreakings declined sharply this year, compared to the same period in 2024, according to Yardi Research Data.
The summer months of 2025 marked a decisive slowdown in industrial
construction starts, totaling 45.8 million square feet, Yardi Research
Data shows. That’s 41.7 percent below the 78.5 million square feet
recorded in summer 2024 and 48.5 percent lower than 2023’s elevated 88.8
million square feet during that same period.
The decline was steady month to month—June
20.9 million square feet, followed by July’s 15.1 million square feet
and 9.8 million square feet in August—a clear contrast with summer
2024’s stronger cadence (June 28.3 million square feet, July 23.2
million square feet and August 26.9 million square feet).
Earlier this year, activity was steadier: industrial construction
starts totaled 68 million square feet in spring, only 4.0 percent less
than 70.8 million square feet recorded in spring 2024, as a strong March
(27.2 million square feet) helped offset a softer May (16.7 million
square feet). The year began on cooler footing though: winter (December
2024–February 2025) posted 55.1 million square feet, down 10.7
percent from 61.7 million square feet in winter 2024....
The software-driven approach pioneered by a new Kentucky distillery runs counter to the low-tech methods of whiskey’s old guard. Its mix of data and automation might help pave a way forward.
In case you missed it, the
American whiskey industry is seemingly in free fall. The once
untouchable bourbon business has seen many big brands abruptly retreating, with sales of Bulleit down 7 percent and Wild Turkey down 8 percent in the first half of this year. Brands like Kentucky Owl and Garrard County Distilling have filed for bankruptcy. Uncle Nearest, one of the “it” bourbon brands of the past few years, went into receivership in August.
All
of that is a long way to say that the present makes for an awfully
inauspicious time to launch a new Kentucky distillery, but for bourbon
veterans David Mandell and John Hargrove, cofounders of Whiskey House,
industry chaos equals opportunity—thanks in part to a massive
investment into tech to bring an often antiquated industry into the
2020s...
RSK: I like a good bourbon every now and then, especially after a Badger football victory...so my throat is a little parched. What does this mean? Well, without the human touch, it does take a little of the bloom off the rose. I mean, a little human error could lead to a new taste experience. I get the business side of things and why it is a ghost distillery.
The $226 million project uses ocean breezes and seawater to stay cool.
China has completed the first phase of construction of what it claims is the world`s first underwater data center (UDC). Located in Shanghai’s Lin-gang Special Area with a price tag of roughly RMB 1.6 billion ($226 million), it`s a significant milestone in the quest for sustainable solutions to the growing energy demands of China’s computing infrastructure...
The next wave of flex work blends offices, travel and lifestyle
into one seamless experience, according to President Anna Squires
Levine.
For today’s employees, flexibility is a default expectation, as the
lines between their home, office and workspaces continue to blur. For
employers, this new reality isn’t just about space efficiency, but also
about unlocking productivity by giving teams the autonomy to choose
where they work best.
Industrious has picked up on this trend and has started tailoring its
remote workspaces to cater to those who want to work even while
travelling or commuting. In partnership with Brightline,
the company launched on-the-go workspaces in train stations earlier
this year. “All these moves reflect a broader shift in how people think
about work,” said Industrious President Anna Squires Levine. “It’s more
than just a location. It’s also a service that supports the way we
live.”...
Sizable gain on trade policy reversal, but uncertainty plagues the market
President Donald Trump’s tariffs sent real estate stock prices on a rollercoaster.
They tumbled last week
amid concerns from all corners of the industry over sky-high pricing
and added costs. Days later, a fake headline posted to social media
platform X claiming a pause on tariffs sent stocks briefly soaring, only
to tumble back down after the news was debunked...
RSK: Residential worried about interest rates, leasing worried about build out costs and if international tenants will pull out, construction costs of building supplies and interest rates. This will all settle out in time.
Artificial Intelligence has significantly transformed the real estate industry. Initially dismissed by many as rudimentary and error-prone, AI has evolved into a sophisticated and increasingly trusted tool. Today, it assists with a wide range of tasks—from writing listing descriptions to handling inbound inquiries. As the technology continues to advance, its applications within real estate are expanding rapidly. Some investment companies now rely on AI to underwrite deals and research new markets. For now, AI mostly serves as a powerful assistant for analysts rather than a replacement. Many believe that AI will always require human oversight, particularly for complex, high-stakes transactions such as commercial property deals.
But, that perspective may be shortsighted. AI has consistently demonstrated that, given enough data and time, it can overcome its limitations and challenge the notion that only humans can perform certain intricate jobs. It is entirely conceivable that AI could eventually handle the full lifecycle of a commercial real estate transaction—from vetting and underwriting to negotiating and closing deals. The real question is not whether AI will be capable of this, but how soon it will happen...
RSK: I would still like a human to look at the data and give their input. How many times have we had an outside broker from a different state represent a client and then pick a site based on demographics....but all of us Brokers here know that is not a good site. Traffic is the wrong way, no one shops in that area etc etc.
Discover
how architects Tim Hardingham and Dan Cheetham are shaping the future
of urban living by converting traditional office spaces into dynamic
residential communities.
Have you ever noticed the stark contrast between the bustling activity in hotel lobbies compared to the quiet, often vacant, office lobbies nearby? This observation is more than just a passing curiosity—it signals a ripe opportunity to redefine urban spaces. Architects Tim Hardingham and Dan Cheetham, both seasoned experts at IA Interior Architects and FYOOG (an IA company), are actively addressing these gaps in urban design with innovative solutions.
Their expertise and forward-thinking approach offer a fresh perspective on the increasingly popular office-to-residential conversions. Drawing from extensive research and firsthand insights, Tim and Dan propose a blueprint for transforming conventional buildings into vibrant, multidimensional community hubs that promote health and engagement. Here are their eight strategies for breathing new life into old spaces:
1. Innovate with Tech-Enhanced Environments ...
2. Center Amenities Around Wellness-Centric Amenities...
3. Design Spaces for Diverse Working Spaces...
4. Drive Circular Economy and Through Material Innovation...
6. Create Cultural and Artistic Hubs...
7. Integrated Urban Farming into Design...
8. Shape Spaces Through Community Input-Driven Spaces...
Having a job you hate – whether your dislike is due to long hours, bad pay, or frustrating colleagues – can wreak havoc on the rest of your life. It’s bad enough when a work day is filled with irritating events, but when work creates issues that follow you home, it may be time to search for a new job.
During the pandemic, there was a wave of people leaving their positions – a phenomenon that some labeled The Great Resignation. Experts, including Professor Anthony Klotz who coined the term, believed that the phenomenon would come to an end by the start of 2024. A study from LinkedIn (MSFT) and Microsoft, however, revealed that 46% of people wanted to quit their jobs this year, up from 40% in 2021....
Provident Data Centers and American Real Estate Partners` PowerHouse Data Centers have formed a joint venture to build a data center campus near Dallas slated to be one of the largest such complexes in the United States...
RSK: This is one large data center campus and to tell you my thoughts is that the already weak Texas power grid won`t be able to handle the electric needs. Wisconsin is better suited for this. We have the water resources as well as a stable power grid that is not at capacity......and we have dormant nuclear plants that could be brought back up to speed.
Former WeWork CEO Adam Neumann brought home a win after his company’s apartment brand, Flow Life, secured the 16-acre Biscayne 85 property in a court-ordered auction for $70.5M, doubling the initial stalking horse bid of $35M.
low’s winning bid came at a Jan. 15 auction, besting Miami-based development firm Melo Group`s $35M bid from October.
“The winning bid from Flow Life was double the initial stalking horse bid and will result in the recovery of a substantial amount of the victim’s losses,” Avison Young principal Michael T. Fay said in a statement, referring to litigation stemming from allegations that the property`s former owner misappropriated funds raised through the EB-5 immigrant investor program...
The casual-dining chain, which filed for bankruptcy in November, has lost about half of its U.S. footprint over the past year.
TGI Fridays has closed 30 locations around the U.S. since filing for Chapter 11 bankruptcy in November.
The closures follow about 100 others in the year leading up to the filing on Nov. 2. They leave the chain with 133 U.S. restaurants, per its website. That’s about half the number it had at the end of 2023, according to data from Restaurant Business sister company Technomic.
Local media reports from New York, New Hampshire, Maryland, Massachusetts and Ohio confirmed that TGI Fridays restaurants have closed there in recent days and weeks. Signs posted to the doors of some locations said they’d made the “difficult decision” to close...
Delinquency rates on commercial real estate loans have edged higher over the past year, rising from 0.95% in Q3 of 2023 to 1.05% in Q3 of 2024. While this increase remains relatively modest, it marks a continuation of the gradual upward trend seen in recent quarters, reflecting the pressures of elevated interest rates, shifting demand in key property sectors, and broader economic uncertainty. Although delinquency levels are still well below historical peaks, the persistence of even slight increases suggests growing financial stress for some property owners and lenders.
For the commercial real estate industry, this trend signals a period of cautious adjustment. The relatively stable but slightly rising delinquency rate suggests that lenders are closely monitoring risk exposure, particularly in asset classes facing structural challenges, such as office and certain retail properties. As borrowing costs remain high, distressed properties and refinancing difficulties could become more common, leading to selective tightening of credit standards...
The National Multifamily Housing Council (NMHC) Annual Meeting brings together multifamily real estate leaders, investors, and professionals to discuss the latest trends, challenges, and opportunities in the market. Our team was on the ground, walking the floor and engaging in discussions to capture the pulse of the industry.
This year, the atmosphere had a different tone—more watchful and cautious—reflecting broader uncertainties about the market’s direction. Below, we’ve compiled 10 key insights from the event highlighting shifting investor strategies, emerging trends, and evolving market dynamics that are shaping the future of multifamily real estate.
Maui resorts drove almost half of transient room revenue growth in fourth quarter
By just about every metric, 2024 was a banner year for Host Hotels & Resorts.
During
the hotel real estate investment trust’s fourth-quarter and full-year
earnings call, company executives pointed to its $1.5 billion in hotel
acquisitions last year, performance coming in above guidance and
improving demand at its Maui resorts.
Revenue per available room growth during the fourth quarter was better than expected, driven by 3% rate growth, Host
President and CEO Jim Risoleo said. Transient revenue drove the
outperformance during the quarter, growing 8% — its highest improvement
in the past six quarters.
Maui, New York and Oahu drove leisure revenue growth thanks to their strong festive seasons, he said...
A recently refurbished office site in Chicago, Illinois, might be pivoted to data center use amid a slow rental market.
As reported by Crain’s, the owners of 801 South Canal Street are looking to repurpose some or potentially all of the site from office space to data center use.
Landlord 601W spent some $265 million renovating the 683,000 sq ft (63,400 sqm) building, now known as Canal Station, but has reportedly struggled to fund leasers in a tough rental market and is having difficulty refinancing the site.
Further details of the data center plans have not been confirmed. The site is adjacent to a substation.
601W purchased the six-story building in 2019 for $68 million and renovations began in early 2021. Telos Group has been marketing the site for office use...
RSK: No mention of the cost factor to do the rehab or what kind of income stream they can expect if they do this. The land may be worth more just as a vacant piece.
Hospitality leaders touted a strong rebound in business travel during the fourth quarter, fueled by companies getting more of their executives back on the road.
But the optimism may have been premature. Rising costs, inflation and looming tariff threats are clouding the outlook for 2025, with business fundamentals looking far less stable than they did just months ago.
Early in earnings season, hotel REITs and top brands painted a picture of resilience, celebrating business travel as a bright spot even as leisure demand showed signs of softening. Yet by late February, caution had crept into investor calls, with fresh data and shifting economic signals suggesting the industry could be heading for a more turbulent year ahead...
RSK: With more and more zoom meetings taking place, I can see where the business travel has dropped off some....but nothing better than consummating a deal in person. Resort travel is however, on the rise.
There’s a power
crunch looming as AI and cloud providers ramp up data center
construction. But a new report suggests that a solution lies beneath
their foundations.
Advanced geothermal power could supply nearly two-thirds of new data center demand by 2030, according to an analysis
by the Rhodium Group. The additions would quadruple the amount of
geothermal power capacity in the U.S. — from 4 gigawatts to about 16
gigawatts — while costing the same or less than what data center
operators pay today.
In the western U.S., where geothermal
resources are more plentiful, the technology could provide 100% of new
data center demand. Phoenix, for example, could add 3.8 gigawatts of
data center capacity without building a single new conventional power
plant...
RSK: I always thought geothermal was a great way to go. And with new technology, it is becoming very cost affordable. Read on to find out about "behind the meter" power.
Twenty-six publicly traded real estate investment trusts in the US declared increases to their regular dividends in February, according to S&P Global Market Intelligence data.
Hotel REIT DiamondRock Hospitality Co. announced the largest dividend increase in February, raising its quarterly cash payout by 166.7% to 8 US cents per share, payable to shareholders April 11. The new dividend is 36% lower than its pre-pandemic level in 2019.
First Industrial Realty Trust Inc. announced the second-largest dividend increase during the month. The industrial REIT raised its quarterly dividend by 20.3% to 44.5 US cents per share, payable to shareholders April 21.
Xenia Hotels & Resorts Inc. increased its quarterly dividend by 16.7% to 14 US cents per share, payable to shareholders April 15...
Labor availability, energy costs, and sustainability emerge as key priorities for corporate leaders and site selection consultants
NEW YORK--(BUSINESS WIRE)--Area Development, the leading publication covering corporate site selection and economic development, has released the findings of its 39th Annual Corporate Survey and 21st Annual Consultants Survey, providing an in-depth look at the top factors shaping business expansion and location decisions in 2025.
With economic conditions in flux and policy shifts influencing
investment strategies, corporate executives and site selection
consultants alike are prioritizing skilled labor availability, economic
incentives, and energy costs when evaluating potential sites. However,
this year’s survey results show notable shifts in how companies and
consultants approach site selection.
Among the key findings:
Energy availability and costs have become a major concern.
Businesses report growing apprehension about rising industrial energy
costs and grid reliability, particularly in high-consumption sectors
like manufacturing and data centers.
The South and Midwest remain top destinations. Pro-business
policies, strong workforce pipelines, and strategic logistics advantages
continue to make these regions attractive for corporate investment.
Corporate expansion plans are cautious. Only one in ten
corporate leaders surveyed plan to open a new U.S. facility in 2025, a
sharp decline from last year’s survey. Rising costs and economic
uncertainty are leading businesses to be more selective about where they
grow.
Foreign direct investment and reshoring continue to shape the landscape.
While nearshoring efforts are increasing, new tariffs could present
challenges for manufacturers weighing domestic production versus
overseas operations.
RSK: The midwest is still the prime location along with the south. A good pipeline of workers and energy plus water resources is the key. WIsconsin better be careful on granting utilities increased rates.
A nationwide slowdown in life sciences leasing activity
tempered enthusiasm for Denver-based REIT Healthpeak Properties despite
overall revenue growth in the first quarter.
Healthpeak posted $687M in revenue for the quarter, an
annual increase of 14.4%. The company beat earnings expectations and
generally turned in a strong quarter, but it maintained its existing
guidance for the rest of the year on concerns about life sciences, which
makes up about 35% of its portfolio...
RSK: Just a victim of the uncertain times....once it all is settled down and the direction clear, this sector will shine once again. It depends heavily on governmental grants.
Billions of dollars in planned factory projects have been canceled or paused in the last six months, a development with the potential to pour cold water all over visions of new economic hubs in some of the country’s lower-profile corners.
But a new wave of projects in industries like pharma, tech and automotive are ready to refill the pipeline, keeping demand and dreams alive for the sites painstakingly selected and prepared for development.
“Companies don`t want to be pioneers when it comes to site selection,” The Boyd Co. principal John Boyd Jr. said. “If a site is selected, even if the project doesn`t happen, that`s an enormous economic development accomplishment in and of itself...
The congressionally created entity tasked with recommending federal property disposals has unveiled the next round of buildings it says the government should get rid of.
The Public Buildings Reform Board is recommending that the government offload a dozen properties across eight states that it estimates would save $5.4B over 30 years and generate $346M in sale proceeds...
RSK: I think you will see more and more consolidation of Governmental buildings on all levels, Federal, State and local. Take a look at the State Bldg. on Wilson that is projected to be 300+ apartments, rstaurants and retail space as an example.
With hurricane season just days away, property insurance providers will be without a critical piece of information this year that they use to inform their pricing decisions.
Earlier this month, the National Oceanic and Atmospheric Administration announced it would stop tracking the cost of extreme weather. Commercial property insurers rely on federal weather data to assess risk and price coverage, especially as weather events become more severe, industry insiders say. They warn that without access to NOAA`s data, it could disrupt underwriting, drive up premiums or lead to no coverage at all.
“When in doubt, I think the carriers are going to model for the worst, because they have to protect their assets,” Tri Pack Insurance Services founder William Lindsay III said. “What that translates to in the marketplace would be an increase in pricing and/or a decrease in capacity, where you just have less carriers that are willing to take on the risk.”
RSK: I get where it might slow some data response down but people who live in these areas will know when a storm is coming. If you buy a home next to railroad tracks, don`t be surprised if a train comes rolling through. Insurers will get their money somehow so I do not feel too sorry for them.
Property assessments went public on May 16. You had questions and Isthmus got answers...
What Madison homeowner doesn’t have questions after receiving their latest property assessment from the city? A $50,000 increase on a one-bathroom house? What????
City assessors mailed property assessments on May 16; appeals were due June 2. Isthmus sat down over a video call with City Assessor Michelle Drea and Megan Lukens, business systems manager, to answer frequently asked questions, some submitted by readers.
How does Madison’s property assessment process work?....
Madison’s Central Business Improvement District (BID)
reported that business occupancy rates have returned to pre-pandemic
levels downtown, according to WMTV15.
While some storefronts near the Capitol remain empty, the BID said that
58 new businesses have opened since the beginning of 2024, while only
20 have closed.
Downtown
is more than 90% full when it comes to occupancy rates, BID data
showed, and rent has reportedly remained stable over the past few years.
The BID is also anticipating more than 6,000 people will move downtown
over the next five years as more housing is built in the area...
Over the past five years, the office sector has been constantly
adapting to new market needs and economic realities, but office
attendance is still far from pre-2020 levels.
Despite a monthly uptick in office-using employment of 31,000 jobs in
April, office-using sectors overall were up just 0.2 percent
year-over-year, Census data shows. The national office vacancy rate was
19.7 percent as of April, down 20 basis points from the previous month,
but up 140 basis points year-over-year, according to a recent CommercialEdge report.
However, mostly fueled by some organizations implementing return-to-office mandates,
office renewals and expansion deals are still taking place. Accesso,
for example, has signed nearly 112,000 square feet in lease expansions
across its mixed-use, office and retail portfolio over the last 12
months. The Florida-based commercial real estate investment manager,
owner and operator signed expansion agreements at six of its properties
across the Southeast. What was Accesso’s strategy to determine tenants
to renew and/or expand their leases?...
RSK: One key for renewals is to be in constant communication with your tenants well before the renewal date, the flight to quality and less commuting time with amenities.
The industrial real estate sector, once considered a stronghold in
commercial property, is now grappling with refinancing challenges.
Despite high occupancy rates and robust demand for logistics and
warehouse spaces, landlords are facing difficulties due to rising
interest rates and tightened lending standards. The surge in borrowing
costs has eroded the financial cushion that many industrial property
owners once relied upon, making refinancing a more arduous task.
In an unexpected twist, Fortress Investment Group may miss a July?15 payment deadline on a roughly $2?billionbond
tied to industrial properties—the majority leased to Amazon. Though
these assets operate in a high?demand segment of commercial real estate,
Fortress has been unable to secure refinancing on this substantial debt
load, signaling stress even in e?commerce–backed portfolios...
RSK: Even if you have the best AAA tenants such as Amazon, lenders have tightened refinance standards. But, I hardly believe any of them want to take back the properties.
President Donald Trump signed the multitrillion-dollar One
Big Beautiful Bill into law at the White House Friday, locking in one of
the most consequential rewrites of the U.S. tax code in a generation —
and setting the stage for broad and lasting ripple effects across
commercial real estate.
The bill’s
final passage came on Thursday after lawmakers frantically cobbled
together the votes required to usher through the 887-page tax and
spending package before Trump’s live-wire, symbolic Fourth of July deadline.
"I think when you go over the bill, it was very easy to get
them to a ‘Yes,’” Trump told reporters Thursday evening before he
boarded Air Force One for an Iowa rally. “We went over that bill, point
after point. ... Biggest tax cut in history, great for security, great
on the southern border. ... We covered just about everything."
He continued: “The biggest bill of its kind ever signed —
and it`s going to make this country into a rocket ship. I think we`re
going to have record numbers.”...
Among
single-family investors, 57% believe mortgage rates will remain above
6.5% over the next 12 months—up sharply from 29% in Q4 2024.
Real estate investors no longer think a material drop in mortgage rates is on the near-term horizon.
That’s one of the main takeaways from the latest survey conducted by ResiClub and LendingOne, among the fastest-growing private real estate lenders in the country.
To participate in the Q2 2025 LendingOne-ResiClub
SFR Investor Survey, investors had to own at least one single-family
investment property. The survey was fielded between May 29 and June 13.
In total, 222 single-family landlords completed the survey....
"Store closing" sales are going to become more common in 2025 as leasing activity continues to slow and scores of retailers go out of business.
Leasing has fallen 20% this year compared to this time in 2024, Cushman & Wakefield reports.
Rising rent and design costs started the downward trend in activity last year, and now tariff and trade uncertainty is amplifying the pullback. Retailers are delaying decision-making until the clouds around ever-changing economic policy dissipate. ...
Commercial real estate sales are showing signs of a rebound, with second-quarter U.S. deal volume climbing nearly 18% year-over-year — a sharper pickup than JPMorgan analysts had projected.
U.S. CRE sales totaled $38B in June, down 15.7% year-over-year, according to JPMorgan, citing MSCI Real Assets data. But excluding $887M in entity-level deals — such as REIT and private company acquisitions — property transactions actually rose 6% from a year earlier, the report said.
JPMorgan tracked $10B in entity sales in June 2024.
“2Q activity is tracking well above our assumptions,” JPMorgan says in a report released this week....
Extra Space Storage posted higher second-quarter earnings as the company said it reached historic levels of occupancy.
Extra
Space Storage posted $841.6 million in revenue, up from $810.7 million
the year prior. Analysts were expecting revenue of $847.5 million,
according to analysts surveyed by FactSet.
Occupancy reached 94.6%, up from 94% the prior year. Wall Street expected 94.3%. Same-store revenue was flat year-over year.
The
company guided for core full-year funds from operations, or FFO, of
$8.05 to $8.25, narrowing previously issued guidance of $8.00 to $8.30...
RSK: They gave no reason for the increase but I speculate that there are a lot of products being manufactured and stored before the tariffs go into effect.
Another housing developer is advancing plans to build apartments on land once used by the former Oscar Mayer plant.
The Annex Group, of Fishers, Indiana, would replace a vast parking lot and a small house and tavern at the intersection of Packers and Commercial avenues with a five-story building containing about 241 lower-cost units. It would be the company’s first project in Madison.
“We like to specialize in doing workforce and affordable housing projects specifically in college and university towns,” said David Wesner, The Annex Group’s vice president of development. Madison, he said, “made a ton of sense for us.”
A proposed redevelopment would see this five-story apartment building replace an Oscar Mayer parking lot. The project would come on the heels of multiple other income-restricted housing projects nearby...
In good times, when buildings are profitable, parking is often an
afterthought. It’s considered a necessary part of any property, but
rarely viewed as a strategic asset. For many owners, parking operations
are simply outsourced to third-party vendors to avoid the hassle of
managing it internally. But when times get tough and net operating
income starts to drop, as it has across much of commercial real estate
in recent years, every revenue line comes under scrutiny and parking
comes back into the spotlight.
Unlike most components of a
building, parking is one of the few assets that can generate revenue
from the general public. It operates more like a commodity than a
traditional real estate lease. And like other commodities, pricing
should fluctuate based on supply and demand...
Real estate accounting has always been more than balancing
spreadsheets. It’s the hidden scaffolding that keeps portfolios upright.
Valuations, audits, compliance filings, lease reconciliations. These
processes have long been seen as ripe for automation, and with the
arrival of artificial intelligence, the idea of a “self-driving”
accounting department suddenly doesn’t feel so far-fetched. But the
truth is less dramatic. AI is reshaping the work of accountants in real
estate, but it’s doing so in fits and starts, and always with a human
hand still on the wheel.
The industry is watching closely as AI adoption picks up. One report
shows that more than two-thirds of large real estate firms now use AI
somewhere in their finance functions, often in tasks like lease data
extraction or portfolio risk management. The results, however, are
uneven. Some AI tools can process hundreds of pages of lease clauses in
seconds but stumble when asked to compare terms across properties.
Others draft reports that look clean at first glance but require careful
review to weed out inconsistencies. Accuracy, liability, and trust are
recurring sticking points. In real estate, where a single accounting
misstep can unravel a multimillion-dollar deal, no firm is willing to
outsource judgment entirely to an algorithm...
Overall Rate Increases Again as Office & Multifamily Hit New Record Highs
The Trepp CMBS Delinquency Rate increased for the sixth consecutive month in August 2025, rising six basis points to 7.29%.
In August, the overall delinquent balance was $44.1 billion, and the outstanding balance was $604.6 billion; these are both up from $43.3 billion and $598.9 billion in July, respectively.
Breaking it down by property type, three main sectors experienced substantial rate movement. Multifamily and office rates both surged, with the former up 71 basis points to a nine-year high of 6.86%, and the latter climbing 62 basis points to yet another all-time high of 11.66%. The retail delinquency rate dropped 48 basis points to 6.42%, receding to its lowest level in the past year.
Loan-level statistics for August mirrored last month’s, which saw a substantial volume of newly delinquent loans as well as cures. Newly delinquent loan balances amounted to over $4.8 billion in August, while cured loans totaled $3.8 billion. ...Full Story Here
RSK: Still some doom and actual gloom out there for office and multi-family. But I think it is starting to flatten out.
After years of new supply without the tenant demand to support it, life sciences real estate nationwide is at an inflection point, with 18.7M SF likely to change uses by 2030, according to a new JLL report.
Although construction pipelines are emptying, the oversupply problem appears to be here to stay for the foreseeable future, exacerbated by economic headwinds and new technologies allowing companies to do their work in smaller spaces.
That means increased distress and conversion possibilities over the next five years for roughly 30% of today’s available lab space, which totals 61M SF, by JLL’s count...
RSK: I am not sure how to interpret this to our market in Southern Wisconsin and Madison in particular. I do know this, not a whole lot of new lab construction is going on.
Downtown office markets are still learning to live with less demand.
Remote and hybrid schedules shifted where people work and when they come
in. Before the pandemic, only seven percent of workers telecommuted. By
2024, that figure had climbed to twenty three percent. Special
servicers are seeing the strain as well, with the office CMBS special
servicing rate hitting 16.4 percent in June. Those numbers explain a lot
about the empty floors in central business districts and the anxiety
inside lender portfolios.
The other side of the ledger is just as
stark. The country needs millions of additional homes, including an
estimated 4.3 million apartments by 2035 to meet demand. Nearly half of
renters now spend more than thirty percent of their income on housing,
and forty nine percent of Americans say the lack of reasonably priced
homes is a major problem in their community. At the lowest incomes, the
shortfall of available affordable homes is measured in the millions as
well...
RSK: A lot of costs involved in converting office to residential, since the floor plates and HVAC cores were not set up for it. it is happening with older buildings, especially in CBD`s. This tax credit may help, but it comes with many caveats.
U.S. Rep. Alexandria Ocasio-Cortez requested a study on the impacts of the rapid development of data centers on consumer utility bills.
Ocasio-Cortez announced that the appropriations bill included her request after the House passed its fiscal year 2026 Energy and Water Appropriations Act, she announced in a Thursday release. In April, Ocasio-Cortez and Rep. Kathy Castor wrote a letter to the Committee on Appropriations asking to include the study in the bill.
Ocasio-Cortez laid out two possible solutions to the problem: load flexibility and demand response programs to minimize the impacts of new data centers. The programs could help temporarily reduce electricity consumption during peak demand periods by using on-site generators, shifting workload to other facilities or scaling back operations to prevent blackouts... ...Full Story Here
RSK: You know my take on this...Data Centers should pay the bulk of the increases in utility usage.
While vacancy has leveled off and construction remains active, supply trends continue to shift, according to Yardi Matrix data.
The industrial sector held its ground in August, with national sales
volume reaching $33.8 billion in the first half of the year. Properties
traded at an average of $129 per square foot, reflecting a stable
pricing environment despite broader economic uncertainty.
While deal flow remains tempered by questions around interest rates
and policy direction, the sector’s fundamentals continue to attract
investor interest. Expectations of rate cuts and improving clarity
around tariffs are contributing to a more optimistic outlook heading
into the final months of the year...
New research from Pew shows that modern multifamily buildings are
significantly safer in terms of fire deaths: fire fatalities in
post-2000 apartments occur at less than one-quarter the rate of modern
single-family homes. This is striking, because one of the most
burdensome code requirements in multifamily has long been the mandate
for two separate stairwells in buildings above three stories—a rule
built on older fears of fire egress risk. If newer buildings with modern
sprinklers, fire-rated materials, self-closing doors, and advanced
alarms can perform so much better, the justification for requiring two
stairwells—even in smaller buildings—warrants serious reexamination.
Critics of the two-stair rule argue that it adds 6 – 13 percent to construction costs and eats up 7 percent of floor area...
The world`s largest tech companies have led a surge of data center
construction across the Midwest with huge campuses for artificial
intelligence. But the region`s next wave of build-out is expected to
involve smaller facilities, with developers seeing opportunities to
repurpose defunct industrial sites and languishing office space as AI
processing centers.
From the suburbs of Chicago and Columbus, Ohio, to rural counties in Wisconsin and Iowa, tech giants like Amazon, Microsoft and Meta are building gigawatt-scale data center campuses to train the AI models on which Big Tech has pinned its future.
While public attention has largely concentrated on hyperscale projects, prominent voices in the data center industry say there is an emerging wave of development across the region for inference: smaller facilities housing the computing power necessary for individuals and businesses to utilize AI.
As AI data center demand shifts towards inference, developers are taking advantage of infrastructure built in the Midwest’s industrial past. The region has many former manufacturing facilities with access to large blocks of electricity they no longer use, as well as power infrastructure built by utilities for factories that never materialized as U.S. manufacturing declined.
RSK: Great reuse of property in my book. Although they are not the giant mega data centers, these type of properties are perfect for the next level of data center. The Midwest is perfect for them, including Wisconsin.
Insurance costs are no longer a footnote in the housing hunt. In many
climate-exposed regions, premiums have climbed so quickly that they now
rival mortgage payments, creating a new layer of financial friction for
buyers. Homeowners have watched their insurance jump year over year
until basic coverage became a monthly burden, making their properties
harder to sell and their neighborhoods less competitive. What used to be
a predictable line item has become a swing factor that changes how
people weigh the cost of living in certain parts of the country... ...Full Story Here
RSK: This isn`t only affecting residential real estate, but commercial real estate is being hit just as hard.
Life science companies, whether navigating early-stage funding
constraints or managing public market pressures, don’t often have the
resources or time to develop their own facilities from the ground up.
That dynamic has created a strong niche for developers of speculative
(“spec”) life science properties to create buildings designed and
constructed in advance that anticipate the specialized needs of biotech
and research tenants.
Spec development offers clear advantages to
both sides: for tenants, it means faster move-ins and the ability to
occupy purpose-built laboratory space without the capital investment of
ownership. For developers, it provides a product type that commands
longer leases and higher rents compared to traditional office
properties...
RSK: Madison`s spec lab sciences is mostly at a standstill for the moment. But, I expect that to change as construction costs and interest rates decline a bit.
A record-breaking 180,585 apartments are in development from
repurposing office spaces, hotels and other buildings, per a RentCafe
report.
Hotels were again the top category for adaptive reuse projects in 2024, though office conversions were still popular and accounted for nearly a quarter of all new units, per the report. Goleta, California-based RentCafe based the Oct. 24 report on apartment data as of July 2025 pulled from its sister company Yardi Matrix.
Dive Brief:
Apartment conversion projects “accelerated at an unprecedented pace” across the U.S. in 2024, according to a new RentCafe report. Last year, nearly 25,000 apartments were completed via adaptive reuse, up 50% compared to 2023 and double the amount of such conversions in 2022.
Currently, a record-breaking 180,585 apartments from adaptive reuse projects are in various stages of development across the nation, mostly from office spaces — up 19% compared to last year, according to RentCafe.
This strong redevelopment activity indicates that major cities are actively transforming underperforming properties, revitalizing neighborhoods and continuing to adapt to the era of remote work, per the report.
RSK:Interesting that Hotels are such a big part of conversions, but when you think about it, it is obvious. Class A office conversions still lead the way, however.
The popular bakery will also use new location to expand baking operations
Bloom Bake Shop is set to expand again. Owner Annemarie Maitri bought the building at 1923 Monroe St., most recently One & Only, and has plans for a new restaurant.
Bloom has outgrown its space at 1851 Monroe St., but Maitri was intent on staying in the Monroe Street area, she tells Isthmus. “This is my neighborhood,” says Maitri, whose devotion to the area is clear and may stem in part, she thinks, from her childhood moving around as part of a military family...
Ask a broker what they sold a property for, and the answer is just as likely to be a percentage as a dollar figure.
Commercial real estate lives and dies by the capitalization
rate. The simple calculation — net operating income divided by market
or purchase price — is used as shorthand to describe the health and
direction of properties, asset classes, markets and the entire sector...
As First American Capital Corporation’s (FACC) influence expands
across Wisconsin, it is through strong community partnerships that
connect Native entrepreneurs with business loan options, education and
resources for success.
Working closely with the Wisconsin Economic Development Corporation
(WEDC) Key Strategic Partner (KSP) program provides contract funding and
aligns FACC’s efforts with the state’s economic goals to help
businesses build capital, create jobs and strengthen local economies.
“Access to capital is vital to entrepreneurs as their businesses
progress from idea to reality and then continue to grow,”
said Sam Rikkers, deputy secretary and COO of WEDC. “FACC’s ability to
connect with and serve Native businesses helps WEDC fulfill its mission
of building an economy for all, where everyone has the opportunity to
thrive.”
The December 9-11 Governor’s Conference on Diverse Business Development Marketplace
(AKA Marketplace) event showcases WEDC’s commitment to building
partnerships with state and local entities. This annual conference
brings together business owners from across Wisconsin who are focused on
growing their businesses...
With 2026 around the corner, what can apartment owners and operators expect to see in the new year? This report highlights the top trends that will define 2026 in terms of economic conditions, operational strategies, and renter behavior. From the boardroom to the leasing office, explore what’s ahead.
Stay on top of the competition with the latest multifamily analysis from Apartments.com, powered by industry-leading CoStar insights.... ...Full Story Here
RSK: Many factors involved but the speculation is, less construction of new units will lead to rising rents.
Middleton’s plan commission recommended against rezoning the property
Middleton Chinese restaurant Imperial Garden and an
adjacent Asian grocery store are safe from the wrecking ball, at least
for now.
Tom Sanford, who assisted property owner Henry Chen in his proposed redevelopment plans, tells Isthmus
that Chen “has decided not to redevelop the property at this time.”
Sanford says Chen was “disappointed” that Middleton’s plan commission on
Nov. 11 recommended the city council deny rezoning the property to allow for a 10-story, 195-unit apartment building.
“So, nothing will change and the Imperial Garden Restaurant will
continue serving excellent Chinese food as usual,” Sanford says...
RSK: In my mind, the plan was a bit too ambitious. If they would have scaled it back a bit, the city may have accepted it. I would say that it will be up again in the future.
Even as a data center building boom sends power demand skyrocketing and strains grids across the country, energy developers have canceled 1,891 new power generation projects in 2025, according to a report published last week by energy transition tracker Cleanview.
The canceled projects represent a combined 266 gigawatts of generation capacity — the equivalent of roughly a quarter of the country`s existing generation capacity.
Clean energy projects accounted for 93% of these cancellations, according to Cleanview. Developers nixed 86 GW of planned solar generation this year, as well as nearly 80 GW of battery storage projects and 54 GW of wind. Only 5 GW of gas generation was canceled in 2025...
Youth sports used to mean a couple of fields at the edge of town and a
full Waffle House on tournament weekends. Now, in markets across the
country, kids’ tournaments are acting more like mini Super Bowls,
pulling in hotel flags, restaurants, apartments, and even corporate
campuses. For developers, youth sports are no longer just a programming
line item. They are becoming the anchor for full-scale placemaking.
The
money behind that shift is real. The U.S. sports facilities market is
valued at about $36 billion today and is forecast to reach more than
$260 billion by 2034, implying annual growth north of 20 percent. On
the travel side, spectator sports tourism alone generated $47.1 billion
in direct spending in 2024 and a total economic impact of $114.4
billion, with more than 109 million non-local attendees traveling at least 50 miles to attend events.That
does not even count the youth and amateur side of the industry, which
earlier work from Sports ETA pegged at more than $50 billion in direct
spending.
RSK: No doubt this is a draw. Wisconsin Dells has several of these attractions. However, in the frozen tundra of Wisconsin, indoor facilities reign supreme.
Dallas illustrates a striking split in modern urban real estate. The wider metropolitan area is adding jobs and population, yet its historic downtown office district has become a weak spot as tenants opt for newer, amenity-rich suburban locations. Vacancy rates downtown have climbed into the high 20s while nearby submarkets like Uptown show far lower vacancy and strong leasing momentum as firms chase modern space, walkability and lifestyle attributes that older towers struggle to match. Major employers are reassessing their footprints and, in some cases, relocating or reducing space in the central business district in favor of environments they believe will better attract and retain talent.
This divergence reflects deeper structural shifts in office demand. Much of downtown’s stock was built in the 1970s and 80s and now feels... ...Full Story Here
RSK: This may be the thing of the future...downtown offices with higher vacancies than suburban. Look for adaptive reuses for downtown office space.
Life sciences companies have engaged in record swaths of layoffs in the last three months.
The cuts hit a talent pool stretched to the brink, with employment levels for research and development jobs reaching record levels to end 2024 and start 2025. Even with the layoffs, the unemployment rate for biotech in April was just 2.8%, according to the Bureau of Labor Statistics.
The tenuous employment picture poses yet another problem for life sciences companies and their landlords, which are working to wrangle a 21.4% vacancy rate nationwide that more than doubles in some of the country’s top lab markets...
RSK: Madison has seen a bit of this slow down, but the workforce for this industry is solid and the quality of life will draw more lab tech workers to the city.
CompStak is tracking several key economic sets to understand:
The impact of tariffs:
The retail inventories to sales ratio remained at 1.3 in February, indicating retailers have enough merchandise on hand for 1.3 months. February marked the 11th consecutive month that the ratio read at or above 1.3; future months could show a jump as retailers stockpiled to avoid future tariffs;
While the Port of Long Beach was the nation’s busiest in March and saw a 25% increase in total TEUs handled over March 2024, the Port of Savannah achieved record-breaking growth, handling nearly 534,000 TEUs, 22.5% up from a year ago; moving forward the West Coast ports are anticipated to show a decline amid tariff pressure on goods originating from Asia.
RSK: Good information on this topic. Dane County Regional is trying for International status, which may increase cargo flights to MSN. In turn, this will drive the value of the property surrounding the airport.
For real estate professionals, keeping up with current trends is
vital in a constantly evolving market. Between sustainability, portfolio
diversification and the expansion of technology like AI and virtual
reality, making wise real estate investment decisions today requires
thorough knowledge of the opportunities and challenges on the horizon.
Below, 19 Forbes Business Council members each share one real estate investing trend likely to emerge in 2025, as well as the potential impact each trend will have on investors.
1. Increased Spending On New And Existing Properties 2. More Demand For Flexible Spaces 3. A Shift Away From High-Risk Areas 4. Second-Tier Market Investments 5. AI-Driven Property Analyses 6. Portfolio Diversification 7. Increased Social Impact Investing 8. More Demand For Eco-Friendly Real Estate 9. Prioritization Of Water Availability And Flood Risk 10. Rising Interest In Mixed-Use Developments 11. Increased Desire For Shared Workspaces 12. Partnerships Between Small Investment Firms And Larger Organizations 13. Growth In Co-Living Spaces 14. Digital Infrastructure Investments 15. The Rise Of Data-Driven Investing Platforms 16. Standardization Of Virtual Reality Tours 17. Hyper-Targeted Marketing 18. A Rise In Property Prices 19. More Focus On Sustainable, Energy-Efficient Properties...
The industrial sector brings trillions of dollars to the U.S. annually, with manufacturing contributing more than $2.9T. However, with talks of tariffs leading to higher import costs for materials and machinery and supply chain disruptions, some industrial owners are searching for ways to reduce expenses and their tax burden.
One solution to keep things moving is railroad distribution. The rail market operates on a privately funded and maintained infrastructure that reduces strain on taxpayer-funded roads and highways and is a more viable form of intermodal transportation to help move a larger cargo of goods across long distances. Railroads have a yearly economic impact of nearly $234B and contribute to 750,000 jobs throughout the U.S.
Shortline and industrial railroads, often referred to as terminal switching railroads, are usually located on the perimeter of larger accessed rail networks. These are focused on local industrial needs compared to the broader reach of larger Class I railroads. Fulcrum Rail Founder and Managing Partner Max Callahan said the owner-operators of industrial properties along these railroads are offering full-service logistics and warehousing, but unlike those on Class I railroads, they are paying a premium to do it...
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.
Gift cards can be redeemed at all of our restaurants for dine-in visits or call-in carryout orders, and they never expire...
emand for computing power to fuel the artificial intelligence revolution has fueled an immense need for new data centers just as industrial developers find themselves with an excess of land and warehouse space.
Some major players, including Prologis, the world’s largest industrial developer, have pushed into the data center market to capitalize on the moment. Conversions have been floated as a way to redirect excess industrial space, but the projects are expensive and difficult to do at scale... ...Full Story Here
RSK: Well, this article just proves my point in the preceding article.
Architizer`s 13th A+Awards features a suite of sustainability-focused categories recognizing designers that are building a greener industry — and a better future. Start your entry to receive global recognition for your work!
From a design perspective, one could say that the past decade was all about the bars — with the rise of the speakeasy came a heightened interest in bar interiors. Now, one can argue that we’ve entered the golden age of the coffee shop. From the smell of freshly ground beans to the slow pour of black coffee and the amazing latte art found in every cup, coffee shops have become a new place of gathering.
Apart from social spaces, cafes act as workstations for remote workers or digital nomads, cozy “lounge rooms” for reading books and listening to podcasts and even event spaces that host pouring workshops or book club assemblies. Coffee shops straddle the intersection of public and private space, challenging architects to compose flexible designs and explore the qualities that make a successful cafe...
RSK: I don`t know about you but I am guessing you want your cafe to be warm and fuzzy yet functional. These seem to have a stark, naked atmosphere and are not inviting at all. But that may just be my idea of a coffee shop. WHat are your favs and why? Drop me an email and let me know. Will post results if we have enough replies.
WASHINGTON (AP) — Dozens of Social Security Administration offices across the country are slated to close this year due to actions taken by Elon Musk’s Department of Government Efficiency as part of the Trump administration’s unprecedented effort to shrink the size of government.
DOGE has published a list of nearly 800 federal real estate leases that it is seeking to cancel. The Associated Press has obtained an internal planning document from the General Services Administration, which manages federal real estate, which shows when nearly two-thirds of those cancellations are expected to go into effect.
The offices are closing despite a new requirement that tighter identity-proofing measures be put in place to prevent fraud and abuse. These steps will require millions of recipients and applicants to visit agency field offices rather than interact with agency employees over the phone...
The
market reacted strongly to the unveiling of China`s AI, DeepSeek, with
AI stocks plummeting and REITs and utilities trading up significantly.
Investors
are shifting towards predictable returns from REITs and regulated
utilities, which offer 8%-10% expected returns, amid uncertainties
surrounding AI`s future profitability.
The
DeepSeek news has made the steady cashflows of REITs and utilities more
attractive as the allure of AI`s unbridled growth diminishes.
Looking
for a helping hand in the market? Members of Portfolio Income Solutions
get exclusive ideas and guidance to navigate any climate.
Market`s perception of the news
The market
clearly thinks DeepSeek is really bad news for AI plays. These companies
which were previously perceived to have large moats were presumably
overtaken by a start-up that wasn`t even allowed access to the best
chips.
Maybe the moat is still intact, maybe it is irrevocably
shattered. I don`t know, but more clarity will be found in the coming
weeks and months.
More interesting to me is how powerful the
response was in non-AI stocks, particularly the boring and predictable
sectors like REITs and utilities...
The news was everywhere, so I`m sure you already heard that the Chinese unveiled their newly developed AI, DeepSeek (DEEPSEEK), which is presumably more efficient than ChatGPT and trained using fewer resources.
I am not an AI analyst, so I am not equipped to verify these claims. Instead, I want to talk about the massive market response to the news and why seemingly unrelated sectors like REITs and utilities traded up significantly on the day.
AI stocks got clobbered.
Corporate executives and office brokers spent much of the
last two years describing the widespread shrinking of office footprints
as “rightsizing,” a euphemism that obscured the fact that most tenants
were cutting space.
But downsizing activity in the fourth quarter was at its
lowest point since the start of the pandemic as corporate occupiers
signal they are getting serious about return-to-office policies. It is
an early sign of a shift in leasing strategies, with occupiers giving
back less space and even expanding to welcome back employees who had
been working from home...
RSK: Well, this could be a good sign or it could mean that the majority of leases have been renewed and is why the rate has slowed down. Either way, it is some optimistic news.
How much electricity are we going to need? A lot. Or more precisely, an "unprecedented" 3,500 terawatt hours for the globe over the next three years. That corresponds to adding more than the equivalent of a Japan to the world’s electricity consumption each year, according to the International Energy Agency, which is out with a new report called, "Electricity 2025: Analysis and Forecast to 2027."
Snapshot: "Strong growth in electricity demand is raising the curtain on a new Age of Electricity," per the report. "Electrification of buildings, transportation and industry combined with a growing demand for air conditioners and data centers is ushering a shift toward a global economy with electricity at its foundations." Most of the additional demand for electricity through 2027 will come from emerging and developing economies, led by China, which are expected to make up 85% of the growth.
Perhaps surprisingly, in advanced economies like the U.S., total and per capita demand has stayed relatively flat or even declined since 2009...
South Korean automobile conglomerate Hyundai plans to build a $5B steel plant in Louisiana and an automotive plant in Georgia as part of a $20B investment in U.S. onshoring, according to CNBC.
Hyundai Chairman Euisun Chung plans to announce the investment at the White House Monday along with President Donald Trump and Louisiana Gov. Jeff Landry, CNBC reported, citing people familiar with the plans.
The Louisiana plant is expected to manufacture
“next-generation” steel to be used in Hyundai’s Georgia and Alabama auto
plants for electric vehicle production. Monday’s announcement will also
include plans for another plant in Georgia, which would be its third in
the U.S...
Sam’s Club plans to open about 15 new stores annually in the coming years while remodeling all of its roughly 600 locations across the U.S., company CEO Chris Nicholas said at an investor day Wednesday.
The Walmart-owned retailer aims to double its membership over the next eight to 10 years with the boost from the new locations, Nicholas said.
This represents an escalation to existing growth plans. Sam`s Club announced in 2023 that it would open roughly 30 new stores in the country over the next five years...
RSK: Probably a win win for Sams. If tariffs increase the cost of goods people buy then they turn to discount warehouses. If prices do not rise they still have a viable service that has more than doubled since the pandemic.
Nobody seems to want the Alliance Bank Center in St. Paul, raising questions about how the city is going to keep the tower safe.
Why it matters: With rising office vacancies and plummeting property values in downtown St. Paul, the abandoned tower highlights a problem that could be the first of more to come.
State of play: The city has condemned the 16-story Alliance Bank Center and taken over basic property management from distressed landlord Madison Equities. It`s keeping the water on for fire suppression and maintaining some skyway access to other buildings, and it says it`s also continuing to patrol the property.
Threat level: A complex this large and with this many access points presents a long-term safety risk.
City inspectors discovered feces, urine and garbage during an
April 3 inspection, which was detailed in a notice to condemn the
property. There was also evidence of break-ins and broken doors and
windows....
RSK: Probably won`t happen in our market. That building is out of date. Soeone will buy it for location and dirt if nothing else, although demo will not be a small amount...
Former Skender Construction CEO Mark Skender died at 61 from complications of cancer, the company said in a press release Friday.
Skender served as the company`s top executive from 2014 to 2020 and its executive vice president from 1989 to 2014...
“Mark was more than a leader — he was a visionary who helped shape the future of our company and our industry over three decades,” the company said in a LinkedIn post Friday afternoon. “He played a pivotal role in transforming Skender into one of the city’s most forward-thinking and community-focused construction firms.”
Office occupancy shoots up after policy implementation before easing back a bit, study shows.
Depending on how a company views its office-space costs, a return to office policy can be an efficient way to go.
While long-term, large-scale telecommuting
can allow some companies to shrink their overall real estate footprint,
the majority that are returning employees to the office can
significantly decrease their per-person costs through higher space
utilization.
According to a new report from Density, a supplier of sensors, software and related services for offices, citing data from CoStar, per-employee rent costs in U.S. sub-markets in March 2025 averaged $10,600 for companies that had implemented RTO policies versus $13,500 before implementation.
Heather: Collaboration is an essential function of many (not all positions). Similar to sales, you can’t plan every revenue source because “magic” happens as you do the right things. Will Mondays and Fridays be wiped off the board? I doubt it but as we know, rules are created top down. Some companies will insist on it and others will see it as an amenity for employees while positively affecting the bottom line. This decision will be influenced by company culture, values, and the bottom line...
• Mounds Pet Food Warehouse has opened a new west
side location off Junction Road and plans an east side store near East
Towne Mall
• The locally owned company closed three existing locations to consolidate operations and provide better customer convenience
• New stores will offer expanded services including a potential doggy day care and grooming services
MADISON
— A locally owned pet food retailer is closing three stores while
opening two new replacement locations as part of a plan to better serve
Madison-area pet owners.
Mounds Pet Food Warehouse opened its new
west side location off Junction Road near Target on Sunday, drawing more
than 500 customers on its first day. The store replaces the company`s
former Fitchburg and Middleton locations.
RSK: Much needed. As an owner of 2 Goldens I wind my way there often. Much larger store and a bit more convenient for me. We now have two older retail warehouse spaces to lease up.
An agent has a property for sale that is in a trust. There are two trustees and four beneficiaries. The four beneficiaries include the two trustees. Who needs to sign the offer to purchase and the closing documents?
Answer:
The individual(s) who have the authority to bind the trust need to sign the offer to purchase and closing documents. It is most likely the trustee(s) of the trust who would have the legal authority to sign the offer to purchase. However, it is a good idea to provide the trust document to the title company for its review to determine who has the legal authority to sign on behalf of the trust...
The agent is listing a few parcels of vacant land, and one of the neighbors has an auxiliary structure (shed) encroaching on one of the lots the buyer is purchasing.
Are the neighbors required to move their shed? The agent recalls a previous instance where the code enforcement office claimed a shed was “grandfathered in” and the neighbor did not have to move his shed. Is this truly the case?
Answer:
The parties may wish to have a survey completed to check if there is an encroachment or encumbrance affecting the listed property. If the seller did not disclose the encroachment under item E14 on the Vacant Land Disclosure Report (VLDR), then the agent may have to disclose the encroachment as a material adverse fact.
Under Wis. Stat. § 893.25, adverse possession can be established by a person who has no deed or other recorded document giving the adverse possessor title by proving 20 years of uninterrupted adverse possession. Adverse possession applies only to the extent that the property is actually occupied, and the property must be protected by a substantial enclosure, or usually cultivated or improved.
To show adverse possession, the adverse possessor, in connection with his or her predecessors in interest, must be in actual continued occupation of the property, exclusive of any other right. This and the other adverse possession statutes refer to what is commonly known as “tacking.” Tacking means that a current adverse possessor can add, or “tack,” their time of possession to that of a predecessor’s adverse possession in order to establish a continuous possession for the required number of years. A “predecessor in interest” generally will be the previous owner.
Historically, title holders protected their properties from adverse claimants by documenting that any party in possession is there by permission, or by obtaining the possessor’s acknowledgement that the possessor is there with the title holder’s knowledge and consent. Arguably, giving this permission would hinder the person’s ability to try and claim adverse possession because the element of hostility would be missing as a result of the property owner giving permission.
If a person were to try to assert adverse possession, the person would need to bring legal action in court called an action to quiet title under Wis. Stat. Chap. 841.
It may be wise to have a survey done to confirm whether there is a problem, and if so, the extent thereof. An attorney might be able to help. The licensee may not provide the parties legal advice.... ...Full Story Here
After years of robust growth, the U.S. warehouse sector is now grappling with its highest vacancy rate in over a decade. According to Cushman & Wakefield, warehouse vacancies rose to 7.1% in the second quarter, up from 6.1% a year ago, and the first time above 7% since 2014.
A
combination of shifting trade policies and pandemic-era overbuilding
has left the sector in a state of flux. Retailers and manufacturers
rushed to stockpile inventory ahead of anticipated tariffs, then quickly
pulled back as duties were implemented under the Trump administration.
Many tenants are now working to shed surplus space. U.S. sublease
listings hit a record 225 million square feet in the second quarter, up
25% year-over-year, according to Savills...
Several interested developers contacted city officials, other uses for the site are still in the picture
Once, thousands of workers built tractors and trucks on the General
Motors site in Janesville. Now, saplings grow among its concrete rubble.
In the future, at least part of the site could host a very different user — a data center.
Janesville Economic Development Director Jimsi Kuborn will ask the
City Council on Monday to open a 30-day window for proposals from data
center developers interested in the 240-acre site..
For decades, a four-story brick building in the Glenforest neighborhood of Raleigh, North Carolina, served as a call center for AT&T.
But next month, it will open as a self-storage facility for people to keep old newspaper clippings, couches and teddy bears.
The project is Tourbineau Real Estate Partners’ first office-to-self-storage conversion, and the company is on the precipice of taking that model national, with six more in the pipeline — focusing on urban districts with vacant office space.
“We`ve seen, anecdotally, a lot of these urban governments and community groups finally understand that these buildings aren`t really going to become anything else,” said Tourbineau Chief Investment Officer Ben Wong.
Paramount Skydance wants workers to kick off 2026 in the office every day, and it is giving workers less than two weeks to decide if they are up for it.
Paramount wants workers to sign on to the new five-day in-office plan by Sept. 15 or take a severance payment. Workers in Los Angeles and New York City will be the first required to return, but they won`t have to actually come back until January, The Wall Street Journal reported.
Skydance Media and Paramount Global completed an $8B merger on Aug. 7, creating Paramount Skydance Corp.
Workers are presently operating under a two-day in-office requirement. CBS News, MTV, Comedy Central, BET and Nickelodeon are all under the umbrella of Paramount Skydance... ...Full Story Here
RSK: This might just be a ruse to fire or let go workers who do not comply. Paramount wanted to trim costs and employees in an earlier statement.
Fermi, the energy-focused REIT co-founded by former U.S. Energy Secretary Rick Perry, just filed for an IPO as it prepares to build a massive data center and power infrastructure campus near Amarillo, Texas. The nearly 6,000-acre “Hypergrid” project promises up to 11 gigawatts of mixed energy, including nuclear, gas, solar, and battery capacity. The goal is to bring its first gigawatt online by 2026.
As the dust settles on that headline, it’s worth remembering that for hyperscale data center developers, access to reliable, high-capacity power isn’t just a nice-to-have—it’s everything. Eighty-four percent of data center executives rank energy access among their top three site selection criteria. In many markets, land is abundant. What’s scarce is power that can handle racks of GPUs humming 24/7, with consistent interconnection and minimal delays...
RSK: CRE agents...we may be better off chasing the best power grid rather than the data center brokers themselves. Gigawatts are more valuable than land at the moment.
Return fees are now commonplace for online merchants, and customer loyalty has yet to be impacted.
The
majority (70%) of merchants now charge return fees, up from 65% last
year, according to the 2025 State of Ecommerce Returns Report from
commerce operations platform Loop, based on over 13 million returns
across 4,000 Shopify merchants. Merchants have achieved an 11.5% average
return rate so far in 2025, while converting 19% of returns into
exchanges...
Caterpillar (NYSE:CAT), best known for its construction and mining machines, has suddenly become a beneficiary of the artificial intelligence boom, Bloomberg News reported Thursday. As AI’s soaring electricity needs ripple through the economy, investors are betting on demand for Caterpillar’s lesser-known turbines, pushing the stock to record highs in September.
The rally underscores how Wall Street’s AI trade has broadened. After chipmakers and cloud firms, then utilities and data-center builders, investors are now eyeing industrial companies poised to profit from the infrastructure required to power AI.
Brian Sponheimer, a portfolio manager at Gamco Investors, said the market has been searching beyond the “Magnificent Seven” for overlooked winners in the digital economy, Bloomberg News reported.
Caterpillar (NYSE:CAT) stock jumped 14% last month, its best showing since 2023, lifting year-to-date gains to 32%, and well ahead of the Nasdaq 100...
A landlord needs to issue a five-day pay or vacate notice to a tenant for failure to pay rent. To whom must the landlord present the notice? Is it everyone in the unit? What about the minor children who are occupants?
Answer:
A landlord has some options for giving the five-day pay or vacate notice to tenants for failure to pay rent.
The landlord can give a copy of the notice personally to the tenant or can leave a copy at the tenant`s usual place of abode in the presence of a member of the tenant`s family who is at least 14 years old and who is informed about the contents of the notice.
The landlord can leave a copy with any competent apparently in charge of the rented premises or occupying the premises or by mailing a copy by regular or other mail to the tenant`s last known address.
If notice cannot be given by one of the two methods specified above, the landlord can affix a copy of the notice in a conspicuous place on the rented premises or by mailing a copy by regular or other mail to the tenant’s last-known address.
Another option is to mail the notice by certified or registered mail to the tenant`s last known address. Lastly, the landlord can serve notice on the tenant as prescribed in Wis. Stat. § 801.11 for the service of summons. ...Full Story Here
A major convenience chain’s acquisition of a fast-casual sandwich franchise is now complete.
RaceTrac Inc. has acquired the Potbelly sandwich shop brand, which includes more than 445 company- and franchise-owned shops across the United States. The deal, valued at approximately $566 million, was announced in September.
RaceTrac, which operates more than more than 800 RaceTrac and RaceWay convenience locations and approximately 1,200 Gulf convenience locations, says the deal “elevates its position in the evolving retail landscape,” combining both brands’ capabilities in real estate, franchising, operations, food innovation and marketing to drive growth and customer loyalty. Potbelly had previously announced a long-term goal of reaching 2,000 shops nationwide...
RSK: Wonder if some of the Pot Belly`s will become convenience stores. I am sure the ones here will not have gasoline but maybe EV charging stations? Hard to tell...
Nascent data center developer Fermi America has signed deals to begin
building four nuclear reactors at the firm’s planned Texas data center
campus.
Fermi, co-founded by former Texas Gov. and U.S. Secretary of Energy Rick Perry, announced Monday that the company has inked separate deals with a pair of Korean firms to begin engineering work and manufacturing of equipment for nuclear reactors to power its proposed Project Matador data center campus in the Texas Panhandle.
The Amarillo, Texas-based REIT’s agreement with Doosan Enerbility will involve the Korean company beginning production of critical long-lead-time reactor equipment needed to build Westinghouse AP1000 reactors, the specific design Fermi plans to deploy on its proposed campus. At the same time, Fermi announced a contract with Hyundai Engineering & Construction to begin engineering work on the reactors.
Launched in January by Perry and longtime energy executive and Republican donor Toby Neugebauer, Fermi has yet to build any data centers. Still, the company went public on the Nasdaq Stock Market earlier this month, and it now has a market capitalization of close to $14B, according to Bloomberg. ...Full Story Here
RSK: On the other hand, nuclear, including small reactors, could fit the energy demands of data centers. Safety is always a concern.
The latest data from Trepp show the delinquency rate for
office-backed CMBS loans has surged to 11.8%, topping the peak seen
during the financial crisis—a clear sign of distress in the office
sector. For multifamily CMBS, the rate has climbed to 7.1%, the worst
mark since late 2015, as even rental housing is feeling capital-market
pressure.
The magnitude of the office crunch is striking. A jump
from just 1.8% in October 2022 to 11.8% today reflects dramatic shifts:
remote work stickiness, overbuilt space, and ballooning maturities. For
lenders, investors and owners this marks a turning point: what was once
viewed as manageable is now baked into portfolios as measurable risk...
RSK: I do not think this will seriously affect our market area, but looking like there will be many a CRE Mortgage delinquency and foreclosures coming nationwide, esp[especially in office and multifamily.
Industrial capital markets brokers are pouring themselves
an extra cup of coffee and rubbing the sleep out of their eyes as
investment in the sector accelerates.
Jack Fraker, Newmark president
and global head of industrial and logistics capital markets, said
younger members of his team are increasingly showing up “at the crack of
dawn,” mirroring the work habits of industry veterans like himself.
Those same analysts are underwriting industrial deals late into the
night as client demand accelerates.
“What we`re seeing is a renewed interest in this asset class,” Fraker said. “Domestic investors, REITs, private equity funds and global investors are all getting back in the game.” ...
With office vacancy and uncertainty mounting, medical office
buildings are quietly turning into one of the most sought-after property
types in commercial real estate. The shift to outpatient care, boosted
by demographic pressure from an aging population, is fuelling demand for
these buildings in suburban and community settings. That steady demand,
paired with long leases and highly profitable tenants, is drawing
attention from institutional investors hungry for stability.
Medical
offices are no longer niche assets. As of mid-2025, occupancy across
the top U.S. markets has climbed to roughly 93.5 percent, with a subset
of 42 markets reporting occupancy at or above 95 percent. Rental growth
is also ticking up, and new development remains constrained by the high
costs and complexity of building for medical use—factors that limit
supply even as demand increases. These supply-side constraints, combined
with favorable fundamentals, make medical offices buildings more
resilient than typical office or retail assets...
RSK: I see this market rising in our area. Med and Med Science is becoming more and more independent of the Hospital Groups such as imaging, injection, dialysis etc.
On March 12th, the United States is set to introduce a 25% tariff on all steel and aluminum entering the country. The move, announced by President Trump this week, is one of several tariff measures floated by the new administration in the past month, including pending reciprocal tariffs on countries that charge duties on U.S. imports, and ultimately delayed tariffs on Canada and Mexico.
Archinect has already reported on the potential impact of tariffs on construction spending and construction costs. Given the likelihood that tariffs will form a significant part of U.S. trade policy throughout the next four years, it is therefore worthwhile for architects to investigate how higher prices for imported materials, whether lumber from Canada or steel from China, will be absorbed into the budgets of ongoing construction projects...
Ollie`s Bargain Outlet Holdings is aiming to open a host of new stores this year and has begun its acquisition spree with a Big Lots bankruptcy buy.
The company plans to open 75 new stores in 2025, a target buoyed by its acquisition of 40 former Big Lots leases late last month. The discounter retailer is expanding as other major retailers are using the bankruptcy process to restructure or liquidate, including Big Lots, Bargain Hunt, Joann, Franchise Group, 99 Cents Only, Rite Aid and Party City. ..
Commercial real estate firms have reached a broad consensus that artificial intelligence could eventually help workers, especially analysts, do their jobs more efficiently. Expectations are higher and job openings are fewer as companies vie to be bigger, faster and stronger through the use of AI.
But angst and anxiety follow about long-term effects to the broader talent pipeline and the early career workers in it.
“At the C-suite, it’s a concern about losing an edge, or giving an edge to someone else if they don`t leverage AI to its full capability,” said Spencer Burton, former president of Stablewood Properties and co-founder and CEO of CRE Agents, an AI program for CRE.
The Borough Beer Co. & Kitchen, which opened in July 2022 on Park Street where Rockhound Brewing Company used to be, is closing.
“It’s with sad news that we share that The Borough will be closing,” read a post on the business’s Instagram Friday. “Thank you for all the support these past few years.”
The Borough, 444 S. Park St., is largely owned by Joe McCormick, of JD McCormick Properties, the developer of the mixed-use apartment building The Borough is in, called The Dude Abodes apartments......
The Borough is known for its baked truffle mac ’n’ cheese made with cavatappi pasta, Gruyère, aged white cheddar, Parmigiano Reggiano and toasted panko....
RSK: Something doesn`t add up here. You cannot get a brewery license if you own commercial real estate? If someone knows the real "rest of the story" please let me know.
According to a new report by JLL, retail real estate investment saw
an unexpected upswing in the first half of 2025, with transaction
volumes climbing 23 percent year-over-year. The West led the charge,
doubling its activity with a 107 percent jump, hinting that investor
confidence is returning to certain corners of the market. After years of
being considered the laggard of commercial real estate, retail is
showing a resilience that few predicted.
The bounce isn’t coming
from a flood of speculative bets but from a scarcity of quality product
and a steady demand for space in centers anchored by essential services
or strong experiential draws. With new construction stymied by high
costs and prolonged timelines, vacancy rates remain near record lows,
supporting stable rent growth. This scarcity has created an environment
where well-positioned assets command competitive bidding, and capital
that might have been hesitant a year ago is now moving more decisively...
RSK: Hardly any new construction going on has put the pressure on existing retail so rents remain strong, especially for good locations. Investors know this.
Microsoft will begin requiring employees to work in the office at least three days a week starting in early 2026, beginning at its Puget Sound headquarters and rolling out nationwide before reaching international teams. Executives frame the move as a push for collaboration and cultural connection rather than downsizing.
The scale of Microsoft’s office holdings makes this especially notable. Its Redmond campus alone covers more than 500 acres with over 8 million square feet across 80-plus buildings, making it one of the largest corporate campuses in the world. On top of that, Microsoft maintains sizable offices in New York, Atlanta, Silicon Valley, and major international markets like London, Beijing, and Hyderabad—where it just leased an additional 264,000 square feet for AI development. In total, the company operates in over 120 countries with hundreds of office locations, a reminder that its real estate presence is as global as its products....
A new report by CoStar projects the U.S. office market will outperform earlier forecasts, but it still faces macroeconomic headwinds.
After the average vacancy at U.S. offices declined in the third quarter for the first time since 2019 — dropping 5 basis points to 22.5%, according to JLL — CoStar has revised its outlook for the market in 2026 from negative to positive.
Previously, the real estate data and analytics firm projected that tenants would vacate 4M SF more than they take up in 2026. CoStar changed its nationwide prediction to 10M SF of positive absorption for next year...
The City of Madison, in partnership with EQT By Design and 4th
Economy, is holding a public workshop to engage community members in
shaping the city`s economic development plan.
The virtual event will take place on December 11, 2025, from 5:00pm to 7:00pm via Zoom.
After
months of collaboration with community members, city staff, and
advisors, we`re excited to share draft strategies and gather insights
that will directly inform our economic development priorities. These
ideas represent a significant shift in approach, centering community
needs and perspectives in building an inclusive and sustainable economic
vision for Madison`s future.
The interactive workshop will provide attendees with:
Updates on the economic development plan draft strategies
Input on priorities for Madison`s economic future
Engagement with city officials and planning consultants
U.S. commercial property prices are nearing the end of the year on a hot streak in some categories not seen since 2022.
The November CoStar Commercial Repeat Sale Indices report indicated multiple positive trends of back-to-back monthly growth that could bode well for markets heading into next year.
The CCRSI value-weighted U.S. composite index, a measure of mostly high-dollar trades common in major cities, rose 1.3% over October, the fourth consecutive monthly increase. The last string of growth for four months in a row occurred from April to July 2022.
The index is still down 2.5% in the 12-month period ended in November compared to the prior year. However, the speed of decline is decelerating. For example, the index lost 12.4% of its value from July 2023 to July 2024...
RSK: WIll it continue? A lot depends on inflation and interest rates. Right now it seems people are taking short term interest rates for financing in hopes that further rate cuts are in the near future. Rumor has it that the next rate cut will be in October.
A rural subdivision has the preliminary plat and is waiting for the final plat since it is yet unbuilt. The only thing the developer is waiting on is zoning and waiting for the final plat. How should advertising and offers be handled?
Answer:
Wis. Stat. § 236.31 provides an agent can list properties based on a preliminary plat where the preliminary plat has been submitted for approval with the town or municipality in which the subdivision lies. An offer can be proposed on that property if the offer is contingent upon approval of the final plat and shall be void if such a plat is not approved. The agent should recommend the prospective buyer seeking to write an offer on the property consult with the buyer’s attorney to make sure all contingencies are properly drafted.
A valid listing contract must describe the property. If there are no street addresses yet, identifying the parcels according to the preliminary plat may be sufficient if a third party could identify the property based on the description in the listing contract....
That’s the message retailing giant Amazon is sent to 1,950 Quebec employees — by email —after it announced Tuesday it is shutting seven of its massive warehouses in La Belle province and ceasing all operations amid strained labour relations with its newly certified union.
That’s because Quebec is home to Amazon’s only unionized workforce in Canada. About 200 employees in Laval took the company to the province’s labour relations board complaining of low wages, poor working conditions and inadequate health and safety measures.
At recent demonstrations, workers’ representatives demanded a 30% pay increase to $26 per hour for its minimum wage earners...
Alexandria Real Estate Equities neared
its disposition target to end 2024 as part of its effort to focus on
its most promising properties as it navigates a sluggish leasing market
and supply glut.
The company sold $1.1B worth
of assets in the fourth quarter, just shy of the $1.2B target it sought
to streamline its portfolio. ARE has focused on what it calls
megacampuses to combat soft market fundamentals, but executives during
an earnings call Tuesday sounded hopeful for the future.
Going forward, ARE is
“laser-focused leasing spaces that are coming back to us, and for
rollovers this year, making very good progress,” Chairman Joel Marcus
said during the call...
A cantilevering pool and a soaring skybridge are among the distinctive details that characterise this list of upcoming skyscrapers, scheduled to complete in 2025.
After more than a decade of plans made and then shelved or postponed, the city of Madison seems committed to moving forward with the development of Brayton Lot.
That’s the two-acre empty block just off the capitol, along East Wash.
For many years it was a surface parking lot. More recently, it served as the construction staging area for the Bus Rapid Transit Project. ...Full Story Here
The chain expects to shutter 70 to 90 restaurants in 2025 due to low
volumes and lease expirations, compared to 88 store closures last year.
Dive Brief:
Denny’s plans to accelerate its
closure of lower-volume restaurants this year, with between 70 and 90
expected to shutter, CFO Robert Verostek said during a Wednesday
earnings call. This contraction includes some closures related to lease
expirations.
The chain closed 88 restaurants
last year, including 30 during the fourth quarter. These units had
average unit volumes below $1.1 million and had been open for an average
of about 30 years.
Denny’s previously said it planned to close 150 underperforming
restaurants by the end of 2025. The new closure forecast means nearly
30 additional restaurants have been marked to shut down. Verostek also
said the chain reduced headcount at corporate support centers, but did
not provide further details..
This design is the latest in a series of updates the Pennsylvania-based retailer has rolled out over the past few years.
Dive Brief:
Rutter’s will open two new c-stores featuring a 21-and-over bar and lounge this spring, the retailer announced on Tuesday.
The 14,000-square-foot stores, located in Johnstown and Milton,
Pennsylvania, will feature an extensive array of alcoholic beverages in
addition to several TVs and video gaming terminals.
Adding a bar is the latest way Rutter’s is taking advantage of its spacious store layouts. The company has been increasing the size of its stores over the past few years to give more room to amenities like foodservice stations and beer caves.
It almost feels like a throwback to the COVID era, with more people raising backyard chickens – but this time, it’s driven by skyrocketing egg prices due to bird flu. So, what’s the trickle-down effect on food and retail establishments? Breakfast-focused restaurants, where eggs are a staple – from classic dishes like eggs with bacon, sausage, potatoes, and toast to essential ingredients in pancakes and waffles – are feeling the impact most acutely.
Breakfast Chains Implement Surcharge to Offset Egg Price Spikes
According to a recent USDA report, retail egg prices increased by 13.8% in January 2025, following an 8.4% rise in December 2024. The agency has now revised upwards its initial forecast of a 20% increase in egg prices for 2025 and now projects a 41.1% rise for the year. Data from the U.S. Bureau of Labor Statistics on the average price of a dozen large Grade A eggs also highlights the significant nature of this recent price surge from a historical perspective.
To offset this unprecedented surge in egg prices, several breakfast chains have implemented surcharges on egg-based menu items in February. Waffle House introduced a 50-cent surcharge per egg across all its locations. Similarly, Denny`s added surcharges across its 1,500 locations, with fees varying based on regional impacts. Other establishments, such as Biscuitville, also imposed similar surcharges to manage escalating expenses. These measures reflect the industry`s efforts to navigate the financial strain caused by the egg shortage while striving to maintain menu affordability for customers... ...Full Story Here
RSK: Higher income breakfast first goers are not as phased as lower income ones. I sure miss the Egg & I off Todd Drive and the Beltline.
With significant reshoring likely years away, higher prices for
imported servers, cooling equipment and power systems could raise
development costs in the short term, industry experts say.
Dive Brief:
Despite an exemption for semiconductor imports, Trump administration tariffs
will likely raise data center development costs and could chill
investment in the sector, with proposed and under-construction
facilities affected more than operating data centers, analysts say.
“Any data center buildout where
the product is not made in the U.S. is going to be affected,” even as
durable inventory stockpiles and long development lead times blunt the
financial impact in the near term, said Ashish Nadkarni, group vice
president and general manager for worldwide infrastructure research at
IDC.
The tariffs are also likely to
raise prices and worsen supply chain constraints for critical power
infrastructure, potentially delaying development and pushing data
centers toward more flexible power management solutions, said Tyler
Norris, Ph.D candidate at Duke University and co-author of a February report on data center load flexibility.
RSK: I think there will be a wait and see for a bit until the tariff fiasco works itself out. Others that are already under construction or near finishing will be completed...
Loan process streamlined but eligibility tightened for some borrowers
The Small Business Administration was established in 1953 to promote
small business growth through financing, advocacy, training, and
emergency relief. Its primary tool is the 7(a) loan program, which
guarantees a portion of qualifying loans, allowing lenders to offer more
favorable terms. The agency also provides tools to streamline loan
origination and servicing for lenders. This week, the Trump
administration introduced changes to the SBA loan application
requirements. Since small businesses are the primary tenants in many
retail real estate locations, these changes could soon affect retail
leasing.
Several key changes were made to the SBA loan
program—some expanding access and others adding restrictions. The most
significant change is that borrowers must now verify their citizenship
or permanent residency. While data is limited on how many foreign
citizens apply for these loans, this requirement could reduce the number
of eligible companies...
Host Hotels & Resorts, the largest publicly traded hotel
landlord, is girding itself for a slower-than-expected summer travel
season.
The Bethesda, Maryland-based REIT now expects its total
revenue per available room to grow by between 0.7% and 2.7% this year,
down from its guidance of 1%-3% growth issued three months ago, it said
in its first-quarter earnings report Thursday.
It attributed the lowered guidance to “moderating” volume in leads for group bookings.
Host, which owns more than 43,000 hotel rooms across 81
hotels, the vast majority of which are in the U.S., surpassed Wall
Street expectations for revenue and earnings in the first quarter, and
its stock price was up more than 3% as of Thursday afternoon.
RSK: Madison might be okay if this happens as well as Milwaukee. They are both sports orientated metros among other things. Wisconsin Dells may suffer a bit but nothing drastic.
As New York City prepares to implement the Fairness in Apartment Rental Expenses (FARE) Act, a legal challenge may halt enforcement before the law takes effect next month. The new law, passed by the City Council in November, changes who pays broker fees, shifting the cost burden on landlords who hire the brokers rather than tenants.
The Real Estate Board of New York (REBNY), joined by other industry groups, sued in December to block the law, claiming it violates constitutional protections around private contracts and commercial speech. They argue the rule could backfire, raising rents, cutting into apartment listings, and upending the brokerage business model. In a recent court hearing, the industry groups asked U.S. District Judge Ronnie Abrams to block enforcement while the case proceeds. The judge hasn’t said when she will reach a decision...
RSK: Usually the seller or landlord pays commissions unless there is a buying or tenant brokerage agreement. Should it be a law that the landlord pays in a lease arrangement?
Step inside a
newly built apartment complex in almost any American city and you’re
likely to find people congregating in an unexpected place. They’re not
in the pool or the game rooms or the gym. The people are gathering in
the mailroom.
Through
an unusual collision of building codes, postal regulations, shopping
habits, and a global pandemic, mailrooms have become a new kind of
social space in apartment buildings. And designers are finding new ways
of taking what has long been a utilitarian peripheral space and turning
it into a central square where residents can dwell and interact...
An agent has vacant land listed, and a prospective buyer called the agent about the property. The agent sent a vacant land disclosure report to the buyer. The buyer is being represented by a real estate attorney, which was indicated in the offer to purchase. Does the listing agent need to provide a Disclosure to Customers form to the buyer?
Answer:
It depends on whether the agent will be providing any brokerage services to the buyer. If the agent is going to draft or present written proposals, such as a counter-offer or an amendment to the buyer, the agent should provide a Disclosure to Customers form to the buyer first because drafting or presenting written proposals would be considered negotiations prompting such a disclosure. If the agent will not be negotiating with the buyer at all and everything will be handled by the buyer’s real estate attorney, a Disclosure to Customers form is likely not necessary. If there is any doubt as to whether the agent will be engaging in negotiations, it is probably prudent to provide a Disclosure to Customers for to the buyer just to be safe.
The WRA`s Disclosure to Customers form may be found in Transactions (zipForm edition) and the WRA Forms Library.
MADISON, Wis. (WMTV) - For more than a century, the Oscar Mayer plant was a fixture of Madison’s north side — pumping out hot dogs, lunch meats, and a particular scent that longtime residents still remember.
“I remember the smell when you would drive by. It was a very distinctive smell,” said Laleña Lampe, board member of The Bodgery, a nonprofit makerspace now operating inside the historic factory.
Since the plant’s closure in 2017, the massive site has mostly sat in limbo — but that’s changing quickly. The former meatpacking campus is now in the early stages of a full transformation into OM Station — a mixed-use development aiming to blend housing, jobs, public green space, and local culture...
President Trump said he plans to make changes to
his administration`s aggressive crackdown on illegal immigration to
address worker shortages
WASHINGTON – President Donald Trump said he plans to make changes to his administration`s aggressive crackdown on illegal immigration to protect migrant farmers, hotel workers and others in the leisure industry who have been among those deported.
Trump promised the changes in a June 12 Truth Social post that acknowledged Immigration and Customs Enforcement officers have expanded arrests beyond just migrants convicted of violent crimes, who Trump officials have said are the primary targets of raids and deportations...
Utah Sen. Mike Lee is pressing to sell federal land in the western US
As Senate Republicans take a red pen to the massive tax and spending bill passed by the House last month, some GOP lawmakers are pushing to add a provision that would green-light the potential sale of 2.1 million to 3.2 million acres of public land across 11 Western states.
Land of opportunity: Utah Republican Sen. Mike Lee is leading the charge, saying his sale proposal would only free up a tiny fraction of federal land and that the sales would help drive down housing costs. According to a draft of the provision obtained by Politico’s E&E News, the land will be required to be used for “the development of housing or to address associated infrastructure to support local housing needs.”
Conservationists, hunting groups, and politicians from both sides of the aisle have lined up to oppose the proposal:...
Question: The listing agent has a
seller who is a foreign national. He owns a vacant lot that he would
like to sell. The listing agent is unsure of the verbiage that should
be used in the listing contract to document that the seller will be
subject to FIRPTA withholding. Where can the listing agent find some
general information on this?
Answer: Real estate agents are no longer
required or encouraged to provide the documentation for FIRPTA
compliance. Given changes to the WB offers, the seller will complete
the certification no later than closing, which means the title
company or some other entity or person serving as the qualified
substitute will likely have the seller execute the certificate at
closing. Ideally this will allow the seller to complete the
certification along with the other closing documents the seller
executes with the title company for closing.
The offer provides that if the seller
is a non-foreign person, the seller provides a sworn non-foreign
status certification no later than closing. The certification may be
delivered to the buyer or a qualified substitute. If the seller works
with the title company as a qualified substitute, the title company
should provide the buyer with a statement confirming the title
company’s receipt of the document. The title company may provide
this to the buyer along with any other closing documents. The real
estate firm is not required to obtain or maintain copies of the
FIRPTA certification forms.
Additionally, the Vacant Land
Disclosure Report (VLDR) asks whether the owner of the property is a
foreign person as defined by the Internal Revenue Code. As such, the
seller may use the VLDR to disclose that FIRPTA may apply.
Item F10 on the VLDR provides:
“Is the owner a foreign person, as
defined in 26 USC 1445 (f)? (E.g. a nonresident alien individual,
foreign corporation, foreign partnership, foreign trust, or foreign
estate.)
Section 1445 of the Internal Revenue
Code (26 USC 1445), also known as the Foreign Investment In Real
Property Tax Act or FIRPTA, provides that a transferee (buyer) of a
U.S. real property interest must be notified in writing and must
withhold tax if the transferor (seller) is a foreign person, unless
an exception under FIRPTA applies to the transfer.”
The WRA-VLD Vacant Land Disclosure
Report can be found at Transactions (zipForm edition) and the WRA
Forms Library.
The ice cream shop in CityPlace Doral would normally be bustling on a Tuesday afternoon when the temperature is over 90 degrees. But last week, no one was sitting to enjoy their gelato or linger over a coffee.
In the city of Doral in Miami-Dade County, nicknamed Doralzuela for its hefty Venezuelan community, typically lively streets are noticeably quieter in recent months, shop owners and employees told Bisnow. The customers, most of whom are immigrants, who visit their stores are staying home out of fear of being deported.
Hundreds of thousands of immigrants from Cuba, Haiti, Nicaragua and Venezuela who have lived in U.S. cities like Doral legally for years have had their legal status revoked by the Trump administration in recent months. In South Florida — which has the highest concentration of residents from the targeted nations — the policies have already had an impact on industries and neighborhoods that rely on immigrant workers...
Among
the many provisions in the massive One Big Beautiful Bill Act passed
into law this month is the permanent extension of the Opportunity Zone
program, along with some tweaks to how they work. Making the program
permanent and allowing investors to participate on a five-year rolling
basis should make it more attractive for financial advisors looking for
tax breaks for their clients, since they will no longer have to worry
about an upcoming sunset date. However, in the short term, the timing of
the rollout of the updates will likely mean lower demand for OZ
investments, industry insiders say...
SolarEdge
and Solar Landscape plan to fit more than 500 warehouses with a
combined photovoltaic installation of 630 megawatts, enough to power
80,000 homes
As the U.S. clambers for more power, some think the answer might be just above their heads.
On a flight into Los Angeles, Martin Rogers, U.S. general manager at solar technology firm SolarEdge, noticed the opportunity first hand: mile after mile of empty warehouse rooftops.
“It’s amazing how much rooftop space there is that just sits there unused,” he said. “I thought to myself: When is somebody going to capitalize on all this?”
On Wednesday, SolarEdge partnered with Solar Landscape, a developer of rooftop solar projects, to install 630 megawatts of solar capacity across more than 500 commercial and industrial rooftops in the U.S. The projects are expected to be delivered over the next year, and, once complete, would mark America’s largest rooftop solar installation...
RSK: The article states that some owners can get a 3% to5% extra income to their bottom line by leasing out their rooftops for solar power. Not sure about that up here in the frozen tundra of Wisconsin.
The recent closing of Danny`s Pub (and near-closing of Churchkey Bar & Grill) are stinging reminders that even the most beloved local bars, taverns and clubs can`t always last forever. We dug into the archives and compiled a list of some of the most iconic establishments that Madison has lost in the past 50 years.
Madhatter...
The Silver Dollar Tavern...
Blue Velvet Lounge.... The Pub... Bull Feathers... O’Cayz Corral... The Flamingo Bar... Pinckney Street Hide-away... Headliners... The Hotel Washington: Rod’s, Club de Wash, The Barber’s Closet and The New Bar... Bunky’s Nightclub... The 602 Club... Amber Grid...
Foreclosure Starts Increase 11% from Last Year; Completed Foreclosures Increase 18%
IRVINE, Calif., Aug. 14, 2025 /PRNewswire/ -- ATTOM, a leading curator of land, property data, and real estate analytics, today released its July 2025 U.S. Foreclosure Market Report, which shows there were a total of 36,128 U.S. properties with foreclosure filings— default notices, scheduled auctions or bank repossessions — up 11 percent from a month ago and up 13 percent from a year ago.
"July`s foreclosure activity continues to trend upward year-over-year, with increases in both starts and completions," said Rob Barber, CEO at ATTOM. "While rising home prices are helping many owners maintain equity, the steady climb in filings suggests growing pressure in some markets."
Nevada, Florida, and Maryland post worst foreclosure rates
Nationwide, one in every 3,939 housing units had a foreclosure filing in July 2025. States with the worst foreclosure rates were Nevada (one in every 2,326 housing units with a foreclosure filing); Florida (one in every 2,420 housing units); Maryland (one in every 2,566 housing units); South Carolina (one in every 2,588 housing units); and Illinois (one in every 2,727 housing units)...
Amid the current slowdown, occupiers are adjusting their operational strategies, resulting in a measured deceleration of industrial absorption at a national level.
However, this cautious moderation won’t drag absorption in the red, though admittedly it’s not slated to be far off. Absorption is on track to reach 2.8 million square feet nationally during the second half of 2025, according to the latest NAIOP Industrial Space Demand Forecast, albeit the last quarter is set to compensate for the sluggishness of summer and early fall.
The NAIOP forecast model bakes in variables such as lagged net absorption, real GDP growth, inflation and output gaps, monetary policy, as well as seasonal and structural effects.
The constant back-and-forth in trade policies made it difficult for importers and exporters of raw, intermediate and finished goods to settle on any long-term leasing decisions, the report states. Such tenants will need to adapt to the new environment when accounting for their current and future occupancy..
Do real estate pros have any reason to cheer? Colliers has the data.
Retail traffic and sales ticked up in August as seasonal ebb countered economic woes such as tariffs and inflationary pressures.
August saw shop visits climb 1.1 percent year-over-year, while sales also rose, 3.5 percent, according to a monthly retail foot traffic and sales analysis by Colliers... ...Full Story Here
RSK: I think it is a bit of each. Should know more when the weather turns cold. Also, does foot traffic equal increased sales?
Tariffs haven’t broken small- and mid-bay industrial users yet — but with shorter leases, stockpiling and rising vacancies, the question is how long they can last.
As time wears on, landlords and tenants say the balancing act is getting harder.
Falling confidence in the U.S. economy has dampened long-term planning, shortening the length of leases.
“Our average lease terms are usually three to five years,” said BKM Capital Partners Managing Director of Asset and Portfolio Management Mason Waite.
“What we`ve seen is a lot more tenants, when we come up for renewals, saying, ‘Instead of a three- or four- or five-year proposal, can you give me a two- or three?’”... ...Full Story Here
RSK: Looks like shorter term leases and/or smaller rent increase if any. Probably temporary until the real effect of the tariffs is known.
Many thought tariffs and a slowing economy would finally catch up to the logistics real estate market. Higher costs and softening consumer demand seemed like a bad mix for warehouses that depend on global trade. But Prologis is proving that narrative wrong. The world’s largest industrial landlord reported $2.21 billion in revenue for the third quarter, a 9 percent increase from last year, and signed leases for an impressive 62 million square feet of space. That kind of growth shows that even after years of development, demand for well-located logistics space is still strong.
Prologis CEO Hamid Moghadam said the market is “nearing an inflection point for rent and occupancy growth,” as importers and tenants lock in space ahead of what could be another busy shipping season. That confidence comes at a time when new construction has started to slow. Even after waves of development over the past few years, we’re seeing absorption hold steady. Cushman & Wakefield reported that new industrial completions were down roughly 40 percent year over year in the first quarter of 2025. Fewer new buildings means that existing space, especially newer and more efficient ones, are becoming more valuable...
In June 2024, Perry, Iowa’s largest employer closed its doors after more than six decades of operation. As a result, 1,276 employees were left without work and Dallas County took tax losses.
The city is set to soon be home to a meat processing facility, with JBS USA stating its plans to make a major investment toward a new sausage plant, with the goal of making 130 million pounds of sausage annually. This move is expected to bring 500 jobs to the community as well as 250 construction jobs for the project.
“This output can feed more than four million people nationwide annually, helping meet growing consumer demand for high-quality protein,” JBS said in a May press release...
Foreclosure starts, which are the initial phase of the process, rose 6% for the month and were 20% higher than the year before.
Completed foreclosures, the final phase, were up 32% year over year.
Florida, South Carolina and Illinois led the nation in state foreclosure filings.
Foreclosure filings climbed again in October, after sitting at historic lows in recent years, according to new data released Thursday.
While the numbers are still small, the persistent rise in foreclosures may be a sign of cracks in the housing market.
There were 36,766 U.S. properties with some type of foreclosure filing in October — such as default notices, scheduled auctions or bank repossessions, according to Attom, a property data and analytics firm. That was 3% higher than September and a 19% jump from October 2024, and marked the eighth straight month of annual increases, Attom said...
MADISON, Wis. (WMTV) - QTS Data Centers is partnering with University of Wisconsin-Madison to invest $1.5 million in a new research initiative.
The new initiative, Advancing Data Center Sustainability, will help the university advance sustainable digital infrastructure though research and innovation.
This comes after QTS approached the Village of DeForest and the Town of Vienna in October about building a new data center.
“Investment by QTS into UW research connects our researchers with practical challenges of digital infrastructure,” said Paul Robbins with UW–Madison. “The Nelson Institute has long worked with government organizations, non-profits, and community groups. We are excited to partner with leading industries to help create more sustainable outcomes.” ...Full Story Here
MENOMONEE FALLS, Wis. - Running a small business can feel like an uphill battle. Now, a Wisconsin program is working to make that fight a little less grueling ahead of Small Business Saturday.
The Brief
A Universities of Wisconsin program offers free consulting/classes to support small business owners.
Resources cover finance, planning, and marketing to help businesses survive.
The program aims to boost local shops and keep money in the community.
An agent has a commercial listing, and a buyer made an offer. The
seller wants to negotiate a right of first refusal if the buyer
decides to sell it in the future. Can the listing agent counter the
offer to negotiate a right of first refusal?
Answer:
If the seller wishes
to obtain a right of first refusal to buy back the property if the
buyer were to sell it in the future, the seller may counter the offer
to include a contingency providing that the parties are to enter into
a right of first refusal drafted by the parties` respective legal
counsel.
The right of first
refusal most often given in real estate transactions provides that
the potential purchaser has the first right to buy the particular
property upon the terms and conditions offered by another buyer. The
person given the right of first refusal has the right to match the
price, terms and conditions offered by the other buyer. This
presumably includes the timing. This presumes that the terms of the
offer made by the other buyer must be given to the person holding the
right of refusal so that they can decide whether to match those terms
and buy the property or let the other prospective buyer purchase the
property.
Real estate
licensees should not draft rights of first of refusal and instead
should encourage their party to contact legal counsel.
To find an attorney,
a person may contact the State Bar of Wisconsin’s Lawyer Referral
Service (LRS). When calling the LRS, a legal assistant helps
determine the nature of the potential dispute and can refer attorneys
in the caller’s area who have practice in matters related to the
potential dispute. They can visit the LRS online, or they may call
800-362-9082, Monday through Friday, from 8:00 a.m. to 5:00 p.m.
For more
information, see page 16 of the February 2013 Legal Update, "Contract
Law Drafting Pointers," and the previous WRA Legal Hottips that
discuss the topic of right of first refusal. Please note that you
must be signed into your myWRA account to access the hottips...
The United States has barely made a dent in the housing shortage for the poorest people in the country, and the Department of Housing and Urban Development is suggesting a shift in focus to help address the problem.
The biennial Worst Case Housing Needs report released this month, the first published since President Donald Trump took over from Joe Biden, departs significantly from its predecessors over the past decade by citing social factors, chief among them immigration, that it says are negatively impacting the housing market... ...Full Story Here
RSK: Good article. What seems to be working is the low income tax credits and
Opportunity Zones....the immigration population is overwhelming the housing system and driving up rents and prices.
WASHINGTON, Dec 10 (Reuters) - CoStar Group (CSGP.O), opens new tab has asked the U.S. Supreme Court to take up its dispute with a rival real estate data provider, warning that a recent federal appeals court ruling could chill innovation and spur costly litigation. CoStar told the justices, opens new tab on Monday that the San Francisco-based 9th U.S. Circuit Court of Appeals improperly ruled in June to reinstate antitrust allegations by rival Commercial Real Estate Exchange Inc (CREXi). The appeals court reversed a lower court`s order that had dismissed CREXi’s claims... ...Full Story Here
RSK: I don`t think most of you really care who wins what in this situation. Each has its pluses and minuses.
An agent wants to sell investment properties that are owned by an LLC of which the agent is the sole member. Can the agent list those properties? What is the best practice for doing this?
Answer:
The agent may list the properties owned by the agent`s LLC. The agent must obtain written consent and disclose that the agent has an ownership interest in the seller-LLC, per Wis. Stat. § 452.133(3)(b) and Article 4 of the REALTOR® Code of Ethics.
The following example may be used to obtain written consent in the offer to purchase:
“All parties understand licensee, __________, has an interest in the (Buyer) (Seller) [STRIKE ONE] entity or organization and consent to the licensee serving as a real estate agent for that entity or organization in this transaction.”
Wis. Stat. 452.133(3) states:
“Wis. Stat. 452.133(3) Prohibited conduct. In providing brokerage services, a licensee may not do any of the following:
(b) Act in a transaction on the licensee`s own behalf, on behalf of the licensee`s immediate family if the firm is an individual, on behalf of the licensee`s firm, or on behalf of any organization or business entity in which the licensee has an interest, without the prior written consent of all parties to the transaction. For the purpose of complying with this paragraph, a licensee shall obtain the written consent in the offer to purchase, option, lease, or other transaction contract.”
Article 4 of the Code of Ethics provides:
“REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. (Amended 1/00)”...
The U.S. office sector has been the hardest hit during the recent
corrective period for commercial real estate. 10-year Treasury yields
that are about 170bps higher than where they were in the post-GFC period
have created headwinds for real estate assets in general. Office
assets, meanwhile, have also underperformed due to a lack of physical
demand related to the aftereffects of the pandemic. While it appears
we’re at the beginning of a recovery for office valuations, as the
sector’s operating fundamentals show promise, it still faces significant
challenges before it can return to prominence in institutional
portfolios.
Dislocations created by the pandemic
Historically, the office sector was linked to broader economic growth,
with demand closely aligned with hiring within the professional services
sector. The pandemic upended this relationship as the rise of working
arrangements, including work-from-home and hybrid agreements, have
created a dislocation between traditional demand drivers and net office
demand. This has been evident as the historical correlation between
office employment and net leasing activity, also known as the absorption
rate, dropped significantly between the period before and after the
pandemic...
RSK: Hard to say. I do think we have hit bottom or close to it but that may be the new norm. In case you wonder what the word bifurcated means: divide into two branches or forks.
When most people hear the word microbiome, they think about the
trillions of microorganisms that live inside the human gut. But microbes
exist everywhere, not just in our bodies. Every environment, from a
forest floor to the walls of a high-rise, hosts its own invisible
ecosystem of bacteria, fungi, and viruses. Buildings, with their sealed
windows, complex HVAC systems, and constant flow of people, create
particularly unique microbial communities. These communities shift with
the seasons, the density of occupants, and even the cleaning products
used. In ways that science is only beginning to understand, these
microbiomes can influence both human health and building performance.
The idea that the built environment has a microbiome is changing how
researchers think about indoor air quality. For decades, building
systems have been tuned to regulate temperature, humidity, and energy
efficiency, often by sealing spaces tight. While effective for
conserving energy, these strategies also trap air and alter microbial
diversity, sometimes concentrating pathogens or allergens. The question
is no longer whether microbes are present in our offices, but which ones
are there, how they interact, and what that means for the people who
spend their days inside. Tyler Smith, head of Global Lifecycle Solutions
at Johnson Controls, put it simply: “I am really excited about
biosensors.”
Commercial real estate organizations focused on underrepresented populations are being squeezed as a growing backlash against DEI initiatives sweeps across corporate America.
The movement, bolstered by federal rollbacks under President Donald Trump, has led to the widespread dismantling of diversity, equity and inclusion programs.
From Harley-Davidson to Disney to PBS, scores of companies across the country have scaled back or erased their DEI efforts under mounting political and shareholder pressure.
In CRE, the reckoning is accelerating, driven by economic headwinds that have made DEI roles and programs some of the first on the chopping block. Industry groups are feeling the strain and, in some cases, fearing for their members...
RSK: I am all for DEI if it means you hire the best qualified person for the job. If some are not, take the chance on training them if they really want to work and succeed...
Despite record-breaking temperature drops across the US over the last century, the world continues to get hotter. In fact, only three states have recorded their lowest-ever temperatures in the 21st century...
While some states` coldest temperatures were recorded recently, others were documented decades ago.
Hawaii remains the only state in the US yet to report a temperature below zero degrees Fahrenheit.
The coldest temperature ever recorded in the US was -80 degrees in Alaska in 1971.
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.
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