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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...
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Industrial vacancy beginning to plateau as new supply falls
The U.S. average vacancy rate climbed by 19 basis points, to 6.6%,
during the third quarter of 2024, the smallest quarterly increase since
it began to rise in late 2022. New supply totaled 76 million SF, the
lowest since early 2021, and 54% below the 163 million SF delivered
during the third quarter last year. Demand as measured by net absorption
totaled 39 million SF, bringing the year-to-date tally to 115 million
SF. Quarterly construction completions will fall further over the next
few quarters, when new supply and rebuilding tenant demand will approach
equilibrium, and vacancy will peak in most markets and start to fall
again. ...Full Story Here RSK: If you are in the industrial sector this report is a must read.
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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.
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After two years of delay,
construction has finally begun on an Amazon fulfillment center in
Cottage Grove, heralding what local officials predicted would be an
economic boon not only to the village but to the surrounding region. The
transformation of 145 acres of farmland off highway TT into a shipping
hub that will span more than 3 million square feet is “one of the
largest economic development attraction projects in Dane County
history,” Jason Vangalis, an Amazon economic development manager, said
at a groundbreaking event on Wednesday. The
ecommerce giant’s five-story warehouse, slated to open in late 2026,
will create up to 1,500 jobs and contribute at least $245 million in
taxable value — about a fifth of the village’s total tax base — by 2028,
according to local officials... ...Full Story Here RSK: That will be a boost to the Villiage`s tax base. Only concern will be the heavy truck traffic 24/7/365...
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For brokers who thrive on the daily grind of chasing deals, the past few years have been tough to say the least.
Last year, while interest rates were rising and transactions were frozen, brokerage giants reported negative cash flows and were forced to make painful budget cuts. To stem losses, many stopped hiring or laid off employees.
But the past few months have seen a seismic shift.
...Full Story Here RSK: Finally some good news thanks to retail, Industrial and even office leasing.
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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.
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Chicago’s historically tight vacancy and build rates should preserve its rent growth momentum into 2025With historically low vacancy and less supply-side pressure than its
peers across the country, Chicago’s multifamily market should maintain
its standing on the asking-rent-growth leaderboard into 2025. Likewise,
the Midwest’s muted multifamily construction pipeline — especially
compared with the Sun Belt markets — keeps its collective vacancy rate
low and its year-over-year asking rent growth above the national norm... ...Full Story Here RSK: If you throw the Madison Market in this you would see numbers off the chart...unless they are already included in the Milwaukee SMSA which I doubt.
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Need to sublet extra office space? Let our years of experience help you find relief from this excess space and help your bottom line" Call Ralph Kamps 608-345-2880
...Full Story Here
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Kenosha plan would include 4 data centers several miles from ongoing Microsoft project Another large data center development could be coming to southeast Wisconsin.
The city of Kenosha’s plan commission will review a proposal from a
developer for a four-building data center campus northwest of Interstate
94 and Highway 142 in Kenosha County. The site is about 6 miles south
of a $3.3 billion Microsoft data center campus under construction in Mount Pleasant... ...Full Story Here RSK: You knew it wouldn`t be long before someone took over the Foxconn land and what better than 4 data centers...Wisconsin and this location in SE Wisconsin has the power and the water to facilitate the centers.
Ken Notes: Of course when Russia looks for a US target.....
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The A&W restaurant chain
plans to expand the brand’s presence in Wisconsin through the Milwaukee
and Madison markets with the help of existing and new franchisees. On
Thursday, the company said the brand plans to open two to four
restaurants in Madison and three to five locations in Milwaukee in the
next five years. ...Full Story Here RSK: Have a good location or site for A&W I`d contact them.
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With the largest Real Estate Practice of any law firm in Wisconsin, Reinhart offers clients custom-tailored real estate insight.
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The industrial sector has struggled to regain confidence, but there may be a silver lining coming in 2025.The vacancy rate in the U.S. industrial market rose to 6.6%
in the third quarter of 2024, but it grew at the slowest pace since
2022, according to a report by Colliers.
Although vacancy is expected to keep ticking up, Colliers projects it
to peak in mid-2025 at about 6.8%, then start to decline.
Following the pandemic boom, the industry has struggled to keep up
with the record pace of construction, but the pipeline has shrunk
dramatically.
After hitting a record 711M SF in 2022, total space under
construction has dropped by 53%, now sitting at 331M SF, according to
the report. New supply delivered in Q3 totaled 76M SF, 54% below the
163M SF that delivered in the same quarter last year... ...Full Story Here RSK: This is very interesting....a slow down in construction but rates remain steady with a 2-7% increase. Tenants just are not inking leases at this time...but I am betting the new regime in the White House may change all that. BE A CONTRARIAN?
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CARW Happy Hour – Ope Brewing
November 21 @ 8:00 am - 5:00 pm
Join CARW for a Broker Happy Hour on November 21st!
Ope is a dog friendly establishment. Feel free to bring your furry four legged friend as long as they are friendly!
Where:
Ope Brewery
When:
Thursday, November 21st, 2024
4:00 – 6:00 PM
Cost:
Free to Members
Non-Members $50 ...Full Story Here 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
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Commercial property owners face many energy challenges today. The rising cost of energy is adding to the pain of high interest rates. Many cities across the country are starting to require buildings to report on energy usage, with some now levying fines for those that use more than their fare share. To add to all of this, extreme weather conditions and more frequent natural disasters are increasing the risk of power outages. As buildings strive for energy resilience and efficiency, there’s a critical need for solutions beyond traditional centralized power systems. That’s where microgrids come into play. America’s aging energy infrastructure is buckling under the growing demand for cities and industries ramping up electrification efforts. Meanwhile, the voracious energy appetite of data centers is another factor pressuring power utilities. Utility expansion backlogs and increased extreme weather exacerbate price volatility and power disruptions, leading to an unprecedented microgrid market. Traditionally used to provide resilient energy where local grids are unreliable, microgrids are increasingly building a presence nationwide, even in urban settings.
A microgrid is essentially a localized power grid that can operate independently or in conjunction with the main grid....
...Full Story Here RSK: Great idea about micro-grids....but solar will probably not be a good reliable source in the frozen tundra of Wisconsin or the upper Midwest.
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While 59% of job seekers said they preferred “fully remote” roles,
only 2% of job postings advertised such an arrangement, Flexa said.Widespread return-to-office
mandates aren’t discouraging job seekers from looking for flexible work,
according to a report released Nov. 12 by Flexa, a remote and flexible
job site.
The site saw the “highest number
of flexible job hunters ever recorded” last quarter, it said in a
statement announcing the data. The number of seekers looking
specifically for flexible roles more than doubled in number from the
previous quarter, Flexa said, with 22,014 job hunters signing up between
July and September 2024...
...Full Story Here RSK: I do think work can be done remotely...but collaboration and new ideas and methods cannot or at best a poor imitation of in person.
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When the American economy sneezes, the world catches a cold. When a new president gives it a boost via tax cuts and imposes tariffs on imports, real estate markets around the globe weigh the possibility of higher interest rates, altered investment flows and changing patterns of corporate occupation. Real estate investors from the UK to China via the Middle East are trying to work out whether President-Elect Donald Trump’s policies will match his campaign rhetoric and to what degree America’s economy might suck in real estate investment from other markets while pushing up global inflation and instigating higher-for-longer interest rates... ...Full Story Here RSK: Interesting article. Most of it saying that who really knows how markets and people will react. Time will tell.
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Retail landlords could be in for a very happy holiday, with revenues
and occupancies up, shopping center traffic on the rebound and consumers
loosening the purse strings ahead of the most important shopping
quarter of the year.
Many of the country’s largest publicly traded owners of retail real
estate were optimistic enough to boost their full-year guidance in the
third quarter, anticipating stronger earnings than previously
expected and a better pay-off for investors to ring in the new year.
...Full Story Here RSK: Retail remains a hot sector. Even though many have declared bankruptcy, its not the real estate but the product line...same with the restaurant groups that went down.
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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.
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Office conversions have had a banner year to date in 2024, with 73 of
them already completed and another 30 scheduled for delivery by
year-end—the most since CBRE began tracking conversion projects in 2016.
Much of this activity is being driven by historically high office
vacancy rates and falling asset values, prompting public/private
partnerships that are incentivizing conversions. The pipeline of office
conversions is expected to grow as cities offer more incentives and
sellers of troubled assets further discount prices, particularly for
older buildings.
As of Q3 2024, 71 million sq. ft. or 1.7% of U.S. office inventory
was planned for or already undergoing conversion. This is the same
amount of conversion activity as in Q1 2024, despite the completion of
45 projects totaling 7 million sq. ft. since then—an indication that the
conversion pipeline is replenishing as projects are finished. ...Full Story Here RSK: I suppose you are thinking that the most successful conversions would be where other services for living such as grocery stores, health services etc, are located. But those retail and other services have a way of finding where people live. So if you convert, chances are these services will find you and locate you.
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Public hotel brand companies set the tone for stock performance in October
Hotel brands continue to deliver strong results for the broader hotel industry based on the latest stock performance report. The Baird Hotel Stock Index — which comprises 20 of the largest hotel brand companies and real estate investment trusts publicly traded on a U.S. stock exchange by market capitalization — rose 1.9% in October. ...Full Story Here RSK: Most hotels are doing well but there are some bottom feeders.
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Industrial tenants are keeping commercial real estate
brokers busy with property tours and lease negotiations. But in today’s
market, only 30% of potential deals even have the possibility of turning
into a signed lease, according to a JLL report.
An uncertain macroeconomic picture — and an incoming U.S.
president who has promised to upend global trade policy — is partially
to blame for the lackluster conversion rate. But industrial users are
also shifting their logistics strategies, often opting to outsource
rather than execute a lease...
...Full Story Here RSK: Many industrial and warehouse users are letting third-party companies do their storage and distribution, making leases a bit of a problem.
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8 S Carroll St Madison, WI
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6230 University Ave Middleton, WI |
114 E Main St, Waunakee, WI
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822 E Washington Ave Madison, WI |
Aventine 1958 Atwood Ave, Madison, WI
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Market No. 5 841 W Verona Ave, Verona, WI
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313 E Johnson St, Madison, WI
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401 Charmany Dr
Madison, WI
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...Full Story Here
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Retailers turn to second-generation space for expansion opportunities Executive summary
• Net absorption remained positive for the 15th straight quarter, totaling 4.5 million square feet at the end of September. The availability rate remains tight, at 4.7% and vacancy has remained unchanged throughout 2024 at 4.1%.
• Retail construction costs have soared since the pandemic, thanks to surges in inflation, cost of capital, labor and material prices. While 5-year rent spreads are also up by double-digits, in many cities rent spreads are still trailing construction costs....
...Full Story Here RSK: Not much retail development plus old leases renewing at much higher rates is a win for retail investors and owners for now.
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HOLIDAY GIFT CARD SALE Buy $100 in gift cards & get a FREE $25 bonus card*
Offer runs November 1 - December 31st 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...
...Full Story Here
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Building operators using IRA tax incentives “will be talking with
their senators and representatives to express the need to keep these in
place,” a U.S. Green Building Council official said.With President-elect Donald Trump
set to take office and Republicans to gain control of the U.S. Senate
in January, building owners and operators wonder whether the incoming
administration’s emphasis on fossil fuels could stall recent progress in
building energy efficiency and sustainability.
While organizations like the U.S.
Green Building Council have pushed for expanded tax credits for
energy-efficient building retrofits, Trump’s Agenda 47 and the Heritage Foundation-led Project 2025 prioritize fossil fuel support, potentially at the expense of clean energy incentives...
...Full Story Here RSK: Some of the Bidens energy policies actually made sense while most others set this country back and helped increase inflation. There has to be a middle of the road policy and not an all at once shift...we need to go into these things gradually. Somewhat like hybrid vehicles that run on gas and battery...not a paradigm shift to all electric at once....that creates push-back and disfavor...
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ABSTRACT Commercial Real Estate LLC
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The Gialamas Company, Inc.
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Artis Reit
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Key Commercial Real Estate, LLC
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Madison Commercial Real Estate LLC
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St. John Properties
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IA Management, LLC
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Wisconsin Commercial Real Estate
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Park Towne Realty LLC
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Mullins Group, LLC
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Flad Development & Investment Corp.
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Evans Properties, LLC
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Keller Real Estate Group
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MIG Commercial Real Estate, LLC
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First Weber Group, Inc - West Towne
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Opitz Realty, Inc.
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First Weber Group, Inc - Prairie Du Sac
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Peterson Management Company Inc.
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The Lenhart Company, Inc
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Scott Faust & Associates
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Shamrock Real Estate Services, LLC
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Targa, Inc
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Stark Commercial - East
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Urban Land Interests
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Slinde Realty Company
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Berkshire Hathaway Home Services Matson Real Estate
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Artisan Graham Real Estate
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...Full Story Here
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Ralph Kamps Editor CirexNews 608.345.2880
Ken Harwood Publisher CirexNews 608.334.2174
Cirex News is emailed weekly to over 2,000 CRE Brokers/Agents and people interested in commercial real estate. It is online at CirexNews.com. All of our articles are archived and searchable. So a search for " opportunity zone" will bring up dozens of articles on the subject.
In our weekly News & Views you can promote your clients properties and your services
call 608-345-2880 for details...
...Full Story Here
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