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Ralph KampsOctober Lease Asking Rates
...Full Story HereRalph Kamps
Editor CirexNews
608.345.2880
Ken Harwood
Publisher CirexNews
608.334.2174
October Lease Asking Rates
This Weeks Articles for 10/29/2024 ...
- Office-to-residential conversions are tough. Could dorm-style co-living be the answer? ...
- Disclose Your Ownership Interest...
- More Landlords Pulling Empty Office Space Off The Market In Face of Uncertainty ...
- The power conundrum...
- The Hidden `Double Whammy` Facing Owners Who Hand Buildings Over To Lenders ...
- Michelin-Starred Chef Partners With Terra On First Branded Condo Tower ...
- Despite Return-to-Office Mandates, Downsizing and Vacancy Upticks Persist...
- 7-Eleven to open over 600 stores under new design by 2027 ...
- Highwoods Properties lays foundation for `wish-list` office purchases ...
- CoStar Stock Drops 10% After Reporting Decline In Bookings ...
- Want employees to return to office? Give them a reason to do so...
- The Paper Store dedicates $60M to brick-and-mortar expansion ...
- This Week`s N.Y. Deal Sheet: Flatiron Building Conversion Lands $357M ...
New Listings
Land for sale Active
CC
Water St, Prairie du Sac, WI 53578The conceptual Development Plan for Prairie du Sac offers an excellent investment opportunity. This expansive forty-six-acre property, currently utilized as farmland, presents an exciting prospect for development.building for sale Active
226 Ohio Ave
Madison, WI 53704Multi-tenant building for sale on the corner of Ohio Ave & Atwood Ave. Great upside opportunity.
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...
ABSTRACT Commercial Real Estate LLC
 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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...Full Story HereOffice-to-residential conversions are tough. Could dorm-style co-living be the answer?
Converting offices to microapartments with shared kitchens and bathrooms could cost about 25% to 35% less than converting to traditional apartments, Pew and Gensler researchers said.
Researchers have proposed yet another way for cities to use the glut of office buildings left vacant amid the shift to remote and hybrid work: Turn them into dorm-style, co-living residences with private sleeping areas and communal kitchens, bathrooms, living rooms and laundry facilities for each floor.
“This is a real opportunity for downtown revitalization and to replenish the low-cost housing stock” relatively quickly, said Alex Horowitz, The Pew Charitable Trusts’ housing policy initiative project director, on a Monday webinar. The webinar highlighted the findings of a report released today by Pew and Gensler, a global architecture, design and planning firm, on the potential of converting offices to co-living spaces.
...Full Story Here“This is a real opportunity for downtown revitalization and to replenish the low-cost housing stock” relatively quickly, said Alex Horowitz, The Pew Charitable Trusts’ housing policy initiative project director, on a Monday webinar. The webinar highlighted the findings of a report released today by Pew and Gensler, a global architecture, design and planning firm, on the potential of converting offices to co-living spaces.
RSK: Oooh....I see a whole host of problems with this. will take special tenants to get along with each other. Also, unless there are certain subsidies in taxes, loans and permitted uses an investor could be looking at low rates of return with higher risk. That said, it does have potential.
ARTIS REIT / Madison Lifestyle Office Portfolio
Madison Lifestyle Office Portfolio comprises 14 Class A properties totaling over 1.7 million square feet of leasable area and an additional 8.3 acres of development land. The portfolio is located on the west side of Madison, Wisconsin.
Disclose Your Ownership Interest
If you stand to earn a commission, rebate or profit from a vendor you recommend, you must tell your client.
Q: I know it’s a best practice to provide at least three names of vendors that clients might use in their real estate transaction, like attorneys and title insurance, home inspection and moving companies. I take it a step further and provide all my buyer and seller clients with a comprehensive list of many vendors.
My vendor list includes several cleaning companies, one of which I own. I tell clients they are not obligated to use any of the vendors. Do I have to disclose that I own one of the companies on the list?
A: Providing a comprehensive list of vendors is a great service to clients. I also have a several-page vendor list and let clients decide whom they’d like to use. However, Article 6 of the Code of Ethics states that if you or your company might receive a financial benefit from making a recommendation to a client for a product or service, you must disclose it to the client. Even if you don’t consider it a recommendation because you’re letting the client choose, it could be construed as a recommendation since you provided the list. It’s best to err on the side of caution and make that disclosure...
...Full Story HereMy vendor list includes several cleaning companies, one of which I own. I tell clients they are not obligated to use any of the vendors. Do I have to disclose that I own one of the companies on the list?
A: Providing a comprehensive list of vendors is a great service to clients. I also have a several-page vendor list and let clients decide whom they’d like to use. However, Article 6 of the Code of Ethics states that if you or your company might receive a financial benefit from making a recommendation to a client for a product or service, you must disclose it to the client. Even if you don’t consider it a recommendation because you’re letting the client choose, it could be construed as a recommendation since you provided the list. It’s best to err on the side of caution and make that disclosure...
RSK: Just an FYI people and same goes if you have an interest in a property.
Reinhart
With the largest Real Estate Practice of any law firm in Wisconsin, Reinhart offers clients custom-tailored real estate insight.
More Landlords Pulling Empty Office Space Off The Market In Face of Uncertainty
A chaotic market has triggered fight-or-flight responses in office owners across New York City, spurring either aggressive plans for acquisitions and renovations or fire sales and quick exits.
But in the face of change, some have simply frozen, firing their brokers and trashing marketing materials, hoping for a more stable day.
“People that do have substantially vacant buildings have this moment in time where they can evaluate their position,” said Spencer Levine, president of developer RAL Cos. “Do they pivot on what that building is about?”
To many, taking that opportunity means stepping away from the typical rent and rerent cycle.
Between January and September, approximately 8.5M SF of office space has been unlisted from the market due to reasons other than leasing, according to data provided by Cushman & Wakefield. During the same period in 2019, 3M SF of office space was unlisted...
To many, taking that opportunity means stepping away from the typical rent and rerent cycle.
Between January and September, approximately 8.5M SF of office space has been unlisted from the market due to reasons other than leasing, according to data provided by Cushman & Wakefield. During the same period in 2019, 3M SF of office space was unlisted...
RSK: Interesting concept for empty office space.."warehousing it" and its not what you think it means. Taking a gamble as I see it but might work for some.
Madison Commercial Real Estate LLC
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
Warehouse / Office Building for Sale
Commercial Space for Lease – Portage
Fully Leased Commercial Building for Sale
SEE ALL LISTINGS HERE
...Full Story Here
The power conundrum
92 percent of respondents now say that power availability is more important than the location of new projects.
Equally, energy consumption and efficiency ranks as the top concern for data centre developers.
The power challenge is not new, but the problem is deepening as demand surges, competition intensifies and sustainability concerns come to the fore. Now more than ever, the data centre industry needs to bring forward new solutions to mitigate power constraints.
...Full Story HereThe power challenge is not new, but the problem is deepening as demand surges, competition intensifies and sustainability concerns come to the fore. Now more than ever, the data centre industry needs to bring forward new solutions to mitigate power constraints.
The majority of survey respondents deem investment in upgrading grid infrastructure to be the most effective and important action needed to meet demand. This is clearly going to be a key part of the equation; however, electricity grid upgrades in markets like the UK and US can take between five and 15 years to plan and deliver. Often, these timelines simply do not align with the aggressive schedules for data centre construction.
Where possible, investors may look to new markets where power is more attainable. However, data sovereignty requirements can often prevent this...
RSK: It used to be close to high transmission lines and power plants was a deterrent for location....but with data centers it is becoming preferred sites.
Commercial Brokers Group
The Gialamas Company, Inc.
 8150 Excelsior Dr Madison, WI |
 1289 Deming Way Madison, WI |
 918 Deming Way Madison, WI |
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See All Listings Here...
...Full Story Here
The Gialamas Company`s premier development. The park has over 57 buildings containing 200+ companies, occupying over 3.0 million square feet.
The Hidden `Double Whammy` Facing Owners Who Hand Buildings Over To Lenders
With billions of dollars worth of commercial real estate loans coming due, landlords with struggling properties are increasingly giving the keys to lenders and walking away.The decision amounts to owners trying to wash their hands of an investment gone bad, but many have found out the hard way that it isn’t so simple. These transactions — known as deed-in-lieu-of-foreclosure sales — could wind up saddling them with a large tax bill...
RSK: Unless you are a newbie in the investment real estate world, you are probably painfully aware of this. If it is a partnership or LLC with many partners, some of them may not be.
CARW 2023 Events and Resources
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
Ken Notes: Thank you Tracy Johnson President and CEO of CARW for keeping me in the loop.
Michelin-Starred Chef Partners With Terra On First Branded Condo Tower
Chef Jean-Georges Vongerichten has launched more than 60
restaurants worldwide. Now, he’s planning to add a condo tower to the
list.
The chef, whose eponymous restaurant in Manhattan has two Michelin stars, is partnering with Coconut Grove-based Terra Group and Lion Development Group, led by E11even Partners owner Michael Simkins, to build the Jean-Georges Miami Tropic Residences just south of the Miami Design District, according to a release.
The 329-unit, 48-story condo building at 3501 NE First Ave. is slated to break ground next year and be completed in 2027. The tower will include 28K SF of ground-floor commercial space, including a restaurant for Vongerichten’s ABC Kitchens brand.
“Miami Tropic represents a longtime dream of mine to open residences that blend my culinary passions with my interest in creating lifestyle spaces,” Vongerichten said in a statement...
RSK: I bring this up because of one thing, luxury condos are all the rage as Boomers move out of empty nested homes and into the condo life. And the price of them is up 23%? Here in Madison we have a lack of condos and I for one feel we need more, from entry level to luxury.
Knight Barry Title Group
With over 350 experienced real estate professionals, Knight Barry provides exceptional support and service. Visit our website for more information about our 50+ commercial and residential offices throughout
Wisconsin, Michigan, and Minnesota.
MADISON: 2450 Rimrock Road, Suite 204, 608-255-2700
CAP SQUARE: 44 E. Mifflin Street, Suite 101, 608-255-2700
MADISON: 2450 Rimrock Road, Suite 204, 608-255-2700
CAP SQUARE: 44 E. Mifflin Street, Suite 101, 608-255-2700
Despite Return-to-Office Mandates, Downsizing and Vacancy Upticks Persist
Return-to-Office Mostly Unchanged in 2024While employer-mandated return-to-office policies at well-known companies have garnered plenty of headlines, office utilization data remains mostly unchanged. Due to remote and hybrid work, downsized office footprints still appear to be the norm in the office sector, according to our most recent U.S. office market report.
Many companies have tried to entice workers back to the office with amenities and other incentives, but for the most part, these efforts have fallen short. Having grown tired of the carrot approach, some companies have instead decided to embrace the stick. Amazon CEO Andy Jassy announced in a memo that the company expects its workers to return to the office five days a week starting in January. Earlier this year, Dell announced that remote workers would no longer be considered for promotions. Meta informed its employees this summer that attendance will be tracked daily and failure to be in the office at least three days a week could lead to termination.
Key Takeaways:
- Despite recent return-to-office mandates from major companies, office utilization remained unchanged, and vacancy rates continued to rise, with the national rate at 19.5%, up 170 basis points year-over-year
- Under-construction office space totaled 68.5 million square feet nationwide, of which only 9.3 million square feet broke ground this year
- Office sales totaled $23.8 billion through September, with assets trading at an average of $171 per square foot
- San Francisco remained the most expensive market in the West, with asking rents averaging $67.32 per square foot, nearly matching national leader Manhattan’s $67.93 per square foot
- Chicago’s office construction pipeline shrank to 827,906 square feet as of September, a quarter of the 3.4 million square feet under development a year ago
- Manhattan saw improvement in office occupancy, with its vacancy rate decreasing by 90 basis points year-over-year to 16.8%
RSK: A lengthy report but read the key takeaways in the beginning. Eventually, what goes around, comes around.
Key Commercial Real Estate, LLC
See All Listings Here...
7-Eleven to open over 600 stores under new design by 2027
The retailer’s newest format features “a larger product assortment and expanded food and beverage offerings,” CEO Joseph DePinto told investors on Thursday.
Dive Brief:
- 7-Eleven is planning to open over 600 large-format, food-focused convenience stores
in North America by the end of 2027, according to an investor
presentation posted Thursday by parent company Seven & i Holdings.
- These locations will showcase a
new prototype the company internally calls its New Standard stores,
according to the presentation. They are “more contemporary facilities”
that offer “a larger product assortment and expanded food and beverage
offerings” compared to the rest of its stores, CEO Joseph DePinto told investors on Thursday.
- 7-Eleven is leaning into foodservice as a means to help improve its financial standing in North America — especially in the U.S. — where it has taken a significant financial blow this year amid economic headwinds....
RSK: They are back with a new larger store format. If you have a good site available, I would give them a call.
St. John Properties
 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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...Full Story HereHighwoods Properties lays foundation for `wish-list` office purchases
Sun Belt office landlord CEO says the pathway for office investment market begins to open back up
After waiting years for the right balance of improving economic conditions and attractive valuations, institutional office investors are preparing to reopen their wallets.
Highwoods Properties, a Sun Belt-focused landlord, is joining other large buyers making plans to acquire high-quality properties aimed at bolstering its existing portfolio. The real estate investment trust based in Raleigh, North Carolina told analysts on the company`s earnings call Tuesday that it is proactively hunting for deals, signaling the long-awaited return of larger, institutional-level investors to the office investment market...
Highwoods Properties, a Sun Belt-focused landlord, is joining other large buyers making plans to acquire high-quality properties aimed at bolstering its existing portfolio. The real estate investment trust based in Raleigh, North Carolina told analysts on the company`s earnings call Tuesday that it is proactively hunting for deals, signaling the long-awaited return of larger, institutional-level investors to the office investment market...
RSK: Definitely a flight to quality for those who have the majority of employees still coming in.
Wisconsin Commercial Real Estate
 75 Gasser Rd Wisconsin Dells, WI |
 4711 Farwell St McFarland, WI |
 808 Industry Rd Sauk City, WI |
 426 Gammon Pl Madison, WI |
See All Listings Here...
...Full Story HereCoStar Stock Drops 10% After Reporting Decline In Bookings
Commercial real estate data giant CoStar Group saw its stock price plunge to its lowest level this year after its quarterly earnings report led one analyst to downgrade the company. CoStar reported net new bookings of $44M in the third quarter, down 34% from the second quarter`s $67M in bookings and 32% from Q3 2023. This drop led RBC Capital Markets to downgrade CoStar from outperform to sector perform and reduce its price target from $96 to $83.
The company`s stock price stood at $69.90 as of 12 p.m. ET Wednesday, down 9% on the day following the earnings release. It had fallen as low as 10% earlier in the morning...
...Full Story Here
RSK: Of course it has nothing to do with their product or the competition.
Investors Associated
See All Listings Here...
...Full Story HereOne area of expertise for Investors Associated is first class property management. To keep our properties running smoothly, we focus on the little things with the big picture in mind. Our team is comprised of a group of individuals that oversees the day-to-day operations such tenant retention, lease negotiations and property maintenance costs. Bottom line, if you’re not happy, we’re not happy! Check out our properties today and see why you should lease with us.
RASCW Events
Want employees to return to office? Give them a reason to do so
Google employees will not be compelled to return to the office five days a week if they maintain their productivity, Alphabet CEO Sundar Pichai has pledged.
Speaking at Google’s recent “TGIF” all-hands meeting, Pichai and John Cassey, vice president of Global Compensation and Benefits, sought to assuage fears that Google would not follow the lead of Amazon in mandating employees return to the office five days a week.
According to Cassey, there are no plans to change Google’s three-day in-office policy, although Pichai stressed that maintaining productivity on work-from-home days is crucial for this policy to remain in place.
...Full Story HereRSK: The reason to do so is to give employees a hand up to prosper and exceed. We CRE agents and brokers have been doing flex work from day one.
Ken Notes: Everyone should take a Meyers Briggs survey, then you would know what office envrion works best for each individual...
Park Towne Realty LLC
 7031 River Rd DeForest, WI |
 402 Gammon Pl Madison, WI |
 6730 Odana Rd Madison, WI |
 1117 River Rd DeForest, WI |
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 6808 Odana Rd Madison, WI |
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The Paper Store dedicates $60M to brick-and-mortar expansion
This year the retailer’s largely Northeast fleet has grown by 10% to more than 100 stores, and its five-year plan includes a move into new markets.
Dive Brief:
- The Paper Store is marking 60 years in business with a $60 million expansion plan across the Northeast and into new markets including the Midwest.
- Over the next five years, the gifts and homewares retailer will renovate existing stores and open an unspecified number of new ones, according to a company press release.
- The Paper Store now runs more than 100 stores nationwide, with 10% of those either remodeled or newly opened this year.
RSK: If you have a nice retail location coming available you might want to contact them since they want to expand in the Midwest.
Mullins Group LLC
 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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Food Fight
Food Fight is a locally owned and operated restaurant group with an ever-growing family of unique and diverse restaurants in the greater Madison area. Founded in 1994 by Monty Schiro of Monty’s Blue Plate Diner and local real estate investor Peder Moren, Food Fight Restaurant Group combined their creative vision and business sense with a mission of providing the best possible service and experiences for the greater community.
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 HereThis Week`s N.Y. Deal Sheet: Flatiron Building Conversion Lands $357M
Wheels are officially in motion for the residential conversion of the Flatiron Building, with the owners of the iconic New York City property securing fresh financing this week.
The Brodsky Organization and its partners, GFP Real Estate and the Sorgente Group, scored a $357M loan for the project from Tyko Capital, The Real Deal reported.
The Brodsky Organization paid $40M to buy a 25% stake in the building last year and lead its conversion, following a long-running rift between the building’s former owners that eventually led to two auctions for the property.
The new partnership plans to convert the 22-story, 255K SF landmarked office building into 60 residential condos. Newmark’s Jordan Roeschlaub and Nick Scribani led the team that put together the loan from Tyko...
The Brodsky Organization paid $40M to buy a 25% stake in the building last year and lead its conversion, following a long-running rift between the building’s former owners that eventually led to two auctions for the property.
The new partnership plans to convert the 22-story, 255K SF landmarked office building into 60 residential condos. Newmark’s Jordan Roeschlaub and Nick Scribani led the team that put together the loan from Tyko...
RSK: There is money out there for office conversions to apartments and condos.
Properties for Lease or for Sale By Company
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 |
Flad Development & Investment Corp. |
Evans Properties, LLC |
Keller Real Estate Group |
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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  |
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Hovde & Hovde, Inc
Betty Thompson Realty
About CirexNews.com
Ralph Kamps
Editor CirexNews
608.345.2880
Ken Harwood
Publisher CirexNews
608.334.2174
Cirex News is emailed weekly to over 2,000 CRE Brokers/Agents and people interested in commercial real estate. It is online at CirexNews.com. All of our articles are archived and searchable. So a search for "opportunity zone" will bring up dozens of articles on the subject.
In our weekly News & Views you can promote your clients properties and your services
call 608-345-2880 for details...
...Full Story Here