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

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.

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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.

75 Gasser Rd Wisconsin Dells, WI

4711 Farwell St McFarland, WI

808 Industry Rd Sauk City, WI

426 Gammon Pl Madison, WI

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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.

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RSK: A large chunk of these profits are from managing the property as well as investing in them, not just sales revenue.

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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.

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...

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RSK: This is a very interesting look at why back to the office is gaining momentum. AI will also have a major effect on this. Good read.

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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.

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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.

2025 CBG
Holiday Party

    December 10, 2025

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RSK: An advertorial? Interesting though. REITs are here to stay. Pro`s and Con`s.

2025 CARW
Golf Outing

Rescheduled Date
September 9th

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

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With over 350 experienced real estate professionals, Knight Barry provides exceptional support and service. Visit our website for more information about our 50+ commercial and residential offices throughout Wisconsin, Michigan, and Minnesota.

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

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.

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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.

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

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...

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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.

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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...


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RSK: Good news is office buildings are selling. Bad news is they are selling at steep discounts.

1200 John Q Hammons Dr Madison, WI	8040 Excelsior Dr Madison, WI	1255 Fourier Dr Madison, WI	8000 Excelsior Dr Madison, WI
8025 Excelsior Dr Madison, WI	8030 Excelsior Dr Madison, WI	8020 Excelsior Dr Madison, WI	1241 John Q Hammons Dr Madison, WI

8150 Excelsior Dr Madison, WI

1289 Deming Way Madison, WI

918 Deming Way Madison, WI

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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.

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.

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RSK: With the good comes the bad. A catch 22?

4901 Eastpark Blvd	5201 Eastpark Blvd Madison, WI	2310 Crossroads Dr	5315 Wall St Madison, WI
2801 Crossroads Dr Madison, WI	5325 Wall St Madison, WI	2128 City View Dr Madison, WI	5310 Wall St Madison, WI

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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.

Get ready for our annual Bocce & Backpacks Tournament, held at the East Side Club in Madison! Join us for an afternoon of friendly competition, networking, and giving back to support foster care children in the RASCW area.   ...Full Story Here

6504 Ronald Reagan Ave, Madison, WI	Madison East Business Center 4602 S Biltmore Ln, Madison, WI	4602 S Biltmore Ln Madison, WI

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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.

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2 E Mifflin St Madison, WI	22 E Mifflin St Madison, WI	152 W Johnson St Madison, WI	1400 E Washington Ave, Madison, WI
10 W Mifflin St Madison, WI

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	The Gialamas Company, Inc.	Artis Reit	Key Commercial Real Estate, LLC
Madison Commercial Real Estate LLC	St. John Properties	IA Management, LLC	Wisconsin Commercial Real Estate
Park Towne Realty LLC	Mullins Group, LLC	Crown Commercial	Flad Development & Investment Corp.
Evans Properties, LLC	Keller Real Estate Group		MIG Commercial Real Estate, LLC
First Weber Group, Inc - West Towne	Opitz Realty, Inc.	First Weber Group, Inc - Prairie Du Sac	Peterson Management Company Inc.
The Lenhart Company, Inc	Scott Faust & Associates	Shamrock Real Estate Services, LLC	Targa, Inc
Executive Management, Inc	Stark Commercial - East	Urban Land Interests	Slinde Realty Company
Assist-2-Sell/Pohlkamp & Associates	Berkshire Hathaway Home Services Matson Real Estate	Artisan Graham Real Estate

Hovde & Hovde, Inc

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