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PSC to vote on another 3 utility-scale solar projects this year

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RSK: Will be interesting to see the efficiency in these northern climes.

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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.

 In Asia and Europe, workers are back in the office more often and consistently than in the U.S.

On a Friday morning in March, a number of salarymen, mostly wearing black or gray, streamed out of subway stations near the Shibaura district in Tokyo, where electronics company Toshiba, semiconductor company Sumco and automobile manufacturer Mitsubishi Motors are headquartered. Long lines formed at Starbucks and FamilyMart as the office workers grabbed their morning coffees and breakfasts.

A few hours later, as the sun rose in New York City, it was not a challenge to find an empty seat on the largely empty trains coming in from Westchester County or New Jersey, and Grand Central Station was not as bustling with rushing commuters as it had been the preceding Wednesday...
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RSK: The world is getting soft...especially in the US. The work ethic has changed dramatically.

219 E Main St, Mount Horeb, WI	5955 McKee Rd, Fitchburg, WI	640 University Ave Madison, WI	704 Williamson St Madison, WI
5955 McKee Rd, Fitchburg, WI	638 University Ave Madison, WI

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Small spaces are in demand in the retail sector, fueled by expanding quick-serve and fast-casual restaurant chains.

Spaces of less than 2,500 sq. ft. accounted for more than two-thirds of executed leases in the retail sector during the first quarter, according to JLL Retail’s Q1 Outlook. These spaces also comprised the greatest sq. ft. signed during the quarter. (The JLL study noted that quick-service and fast-casual restaurants, which reported almost 2,000 potential openings in 2024, generally fall within the small-size category.)

Conversely, big-box spaces of more than 50,000 sq. ft. comprised less than 1% of all deals and only 5.6% of space signed for. Major deals in this category include Dick’s Sporting Goods, BJ’s Wholesale Club, Bosse Pickleball and Chicken N Pickle.
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RSK: Small retail (less than 2,500 sf) is king at the moment.

8150 Excelsior Dr Madison, WI	8040 Excelsior Dr Madison, WI	1289 Deming Way Madison, WI
8025 Excelsior Dr Madison, WI	8030 Excelsior Dr Madison, WI	1200 John Q Hammons Dr Madison, WI	1241 John Q Hammons Dr Madison, WI

1255 Fourier Dr Madison, WI

8000 Excelsior Dr Madison, WI

918 Deming Way Madison, WI

8020 Excelsior Dr Madison, WI

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The Gialamas Company`s premier development. The park has over 57 buildings containing 200+ companies, occupying over 3.0 million square feet.

• Adaptive reuse projects are on the rise again with 17.6% more apartments converted from outdated buildings in 2023 compared to the year prior.
  
  
• While office conversions remain popular, 2023 saw a shift towards repurposed hotels, particularly in Manhattan, which now dominates the adaptive reuse landscape.
  
  
• A growing Atlanta suburb leads in office conversions, closely followed by two Midwest hubs — Milwaukee and Indianapolis.
  
  
• The staggering 151,000 apartments currently underway across the U.S., mostly from office spaces, indicate a major revival in office conversion in the upcoming years.

In 2023, the adaptive reuse of buildings into apartments rebounded strongly, approaching the high activity levels of 2019 and 2020. This uptick came as developers were quick to respond to the growing demand for housing, following a two-year slowdown. This resurgence saw the conversion of buildings into 12,713 new apartments throughout 2023 — showing a substantial 17.6% increase compared to the year before.

Moreover, this trend is expected to continue in the coming years, and our analysis of Yardi Matrix data shows that adaptive reuse apartments are poised for further growth: A whopping 151,000 rental apartments are currently in various stages of conversion, with 58,000 of those on track to be repurposed from former office spaces...

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RSK: All types of properties are being converted into apartments with hotels leading the way. Milwaukee is tied for second with offices being converted to apartments.

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An increasingly active office market helped the publicly traded commercial real estate brokerages post largely positive first-quarter results, although the firms` leaders pointed out that an expected return of capital markets activity has again been delayed.

CBRE posted a $126M profit, leading the pack ahead of $66M in net income from JLL and $43.3M from Colliers. Newmark and Cushman & Wakefield both reported losses of around $29M.

Executives at the major brokerages said leasing volume is trending positively, lifting a slowdown in the capital markets space that they expect to reverse by year`s end.

“As the world moves on from the pandemic and as interest rates stabilized — that doesn`t mean they go up or down, it just means they stabilize — people will resume to normal course transactions,” said Alexander Goldfarb, managing director of research at Piper Sandler who analyzes Newmark’s performance....

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RSK: This is good for brokerages but it doesn`t mean vacancy rates are decreasing. Many companies are downsizing but yet a lease is struck, generating commission but less space.

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4901 Eastpark Blvd	2323 Crossroads Dr	2310 Crossroads Dr	2418 Crossroads Dr
5201 Eastpark Blvd Madison, WI	5325 Wall St Madison, WI	2128 City View Dr Madison, WI	5310 Wall St Madison, WI
2801 Crossroads Dr Madison, WI		5315 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.

CCIM/SIOR Golf Outing

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

We now have definitive proof that the traditional Monday-through-Friday, 9-to-5 is over for remote-capable employees. It’s based on a meta-analysis paper on productivity in hybrid, remote and in-office settings, published by researchers from Stanford University, the University of Chicago and the Instituto Tecnológico Autónomo de México.

People will credit (or blame) the pandemic for this, but there’s actually a much simpler reason: The traditional model is either less productive or more expensive than the alternatives, or both.
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RSK: It comes down to this...total remote work and total in office work is less productive than a combination of both.

2814 Perry St, Madison

1909 W Court St, Janesvile

Commerce St, Lake Delton

2202 W Badger Rd, Madison

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By the end of last year, 2.4M SF of lab space was in New York City`s construction pipeline, set to swell the 3.6M SF of inventory already in existence, according to a CBRE report.  

The investment by developers made sense. After all, in 2021 and 2022, New York notched record life sciences leasing. But last year, leasing dropped 13% from the previous year’s high and rents decreased 9%, according to CBRE.

“What we have seen over the past 24 months coming off of the pandemic was a contraction in a number of the clients,” Pearl River Labs Head of Operations Lugene Maher said at the Bisnow New York Life Sciences and Biotech event last week.

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RSK: I think AI has had some impact on this, but hopefully it is only temporary. Madison has that new lab/tech land build to suit on Odana Road where the old Clock Tower Court was....land has been sitting vacant for some time now but Sara Inv. has plenty of leads.

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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

Net lease investment is stuck on pause after a plunge in investment volume in 2023 that the market just can’t shake.

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RSK: Very good synopsis of Net Leased Properties. You do not hear of many of them in our market area but they are out there, mainly chains and franchises. They are not going away.

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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Hotel Originations Also Buck Trend With 8% Increase

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RSK: Industrial and Hotels lead the way but seems like lending for retail has declined putting pressure on existing space.

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

There has been wide speculation about the impact of the recent settlement of commission split lawsuits. The new rules require buyer`s agents to negotiate commissions directly rather than having them dictated by the seller`s agent. This change could lead to a price war and empower buyers to secure better deals on commissions, right? Compass CEO
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RSK: I have not seen any change in commission rates either...in fact, now that it is explained better, more sellers/landlords/tenant reps are okay with paying cooperating brokers as long as the deal is finalized.

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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We often think about evolution as a slow, gradual process, but that is often not the case. Evolutionary changes can happen in spurts, be it a mutation or a mass extinction. This same concept applies to the business world. Sure, norms change slowly over time, but it usually takes a life-altering event to be the catalyst for large-scale change. The pandemic was just such an event when it comes to the evolution of the way we work.

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RSK: The idea of not needing a building permit to construct new space in an office is very appealing. Somehow it always seems that we are catering to the needs and wants of employees rather than the company. What happened to meet you in the middle?

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

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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Redfin reported its first-quarter earnings this week, indicating slight revenue growth despite challenging market conditions. Although the company continues to operate at a loss, Redfin believes that recent changes in the industry landscape, particularly following commission lawsuits, may lead to profitability within the year. According to CEO Glenn Kelman, a major driver of Redfin`s future...
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RSK: Going to a digital only brokerage may look enticing at first, but looked what happened to many digital retailers....they ended up have brick n mortar as well to succeed as did physical retailers needed to have an digital presence as well. I believe you need both to really compete.

ABSTRACT Commercial Real Estate LLC	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

Betty Thompson Realty

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