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Commercial Real Estate Summit

Thursday, October 5, 2023
(1:00 PM - 6:00 PM) (CDT)
Concourse Hotel
1 W. Dayton Street
Madison, WI 53703 United States
Description

1:00-5:00pm, join us for engaging presentations and updates from our local governments, conversation on Commercial Real Estate in Dane County, and beyond.

5:00-6:00pm, is an opportunity for networking and one on one conversations and idea sharing.

Free for All Real Estate Agents! Topics Include:

• 1 -1:50 PM: Commercial Economic Update - Mark Eppli
• 2 -2:50 PM: Madison Planning and Commercial Developments -Matt Wachter
• 3 -3:50 PM: Wisconsin Legal and Regulatory Issues - Cori Lamont
• 4 -4:50 PM: Dane County Legal and Regulatory Issues - Robert Proctor

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Centennial and Pacific Retail Capital Partners are spending big on plans to bring left-for-dead malls back to life

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RSK: "I have a dream"!! Hopefully it can work...excellent idea.

75 Gasser Rd Wisconsin Dells, WI	400 Viking Dr Reedsburg, WI	1400 Commerce Pl, Plover, WI	426 Gammon Pl Madison, WI
5806 Co Rd Q Waunakee, WI	4711 Farwell St McFarland, WI	505 S Gammon Rd Madison, WI	808 Industry Rd Sauk City, WI
330 N Century Ave Waunakee, WI

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DivcoWest is suing WeWork for $30M after the coworking company left space it leased at a DivcoWest building in Manhattan and quit paying rent in December, The Real Deal reports.

The California-based landlord contends that WeWork owes it all of the rent due under the lease at 311 West 43rd St., which ran through 2032. The lawsuit alleges that WeWork didn`t send notice that it was leaving and didn`t remove its property from its 64K SF.

WeWork did not immediately respond to a request for comment Monday.

Earlier this month, WeWork said that it will renegotiate nearly all of its leases and that it would leave "unfit and underperforming locations." The company`s lease liabilities represent more than two-thirds of its total operating expenses...
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RSK: If it were me, I wouldn`t waste too much time and money on WeWork. Just get to subleasing and cut your losses...WW is going bankrupt anyway.

7 W Main St Madison, WI	316 W Washington Ave Madison, WI	115 State St Madison, WI	704 Williamson St Madison, WI
409 N Lake St Madison, WI	638 University Ave Madison, WI	313 W Johnson St Madison, WI	8 S Carroll St Madison, WI
2 S Carroll St, Madison, WI	114 E Main St, Waunakee, WI	203 E Main St, Waunakee, WI	5955 McKee Rd, Fitchburg, WI

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With no sign that the Federal Reserve’s restrictively high interest rates are coming down anytime soon, the commercial real estate industry is still looking at ways to shake loose financing as lending is set to drop around 40% this year.

One term gaining popularity is “dequity,” an ambiguously defined mix between debt and equity that developers are increasingly using to fill holes in their capital stacks. The funding carries increased risk for borrowers — but not enough to discourage the commercial real estate sector from using it to plug a gap.

“It is the de facto solution to every problem,” Sam Friedland, a senior vice president at Related Fund Management, the private equity arm of The Related Cos., said onstage at Bisnow’s 2023 National Finance Summit last week...
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RSK: You`re going to hear more and more of this term so get to know it.

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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.

Last month, the data startup Cribl posted a job opening for a people-operations analyst. There was nothing particularly eye-popping about the role. It offered a salary of $55,000 to $70,000, required two to four years of relevant experience, and included standard benefits like health insurance, dental, and a 401(k). But the position came with an incredibly coveted — and increasingly rare — perk in today`s job market: It was 100% remote.

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RSK: The slow push employers have to get employees back to the office...remote jobs are shrinking.

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A prominent office building in Downtown D.C. is slated for conversion after anchor tenant Williams & Connolly vacated and Hines relinquished control of the asset.

The building above the Metro Center station, 725 12th St. NW, is under contract to sell to a partnership of Madison Marquette and Highland Square Holdings, which filed a Board of Zoning Adjustment application to turn it into live-work loft units, the Washington Business Journal first reported.

A source close to the deal told Bisnow the sale price is around $70M, well below the $135M loan that Hines had taken out on the building from lender Allianz Real Estate in 2016.

The office building at the corner of 12th and G streets NW, also called 700 11th St., became vacant last year after law firm Williams & Connolly completed its relocation to the second phase of The Wharf. The ground-floor retail space is also dark at the building.

Last September, Real Estate Alert reported that Hines was handing back the keys to the lender. It reported at the time that Allianz retained Eastdil Secured to market the property and was seeking a $90M sale price...
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RSK: Interesting, because many lenders do not want to have the keys handed back in lieu of foreclosure. I think you may see this happen soon in our market.

316 W Washington Ave Madison, WI	5625 Odana Rd Madison, WI
Commerce St Lake Delton, WI	503 Vine St Wonewoc, WI

SEE ALL LISTINGS HERE

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If done right, remote and hybrid workers can reduce their individual emissions by commuting infrequently and working outside of large offices.

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RSK: My opinion is this is just a drop in the bucket for US emissions...and a tiny spec compared to what China and India are emitting. But every little bit helps but at what cost?

CARW Retail Conference – Strong Wisconsin Brands

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

September 21, 2023 - Adverse market conditions and lower valuations are creating litigation risks for commercial real estate (CRE) deal parties, particularly in the office sector. At the same time, opportunities exist for refinancing and a rebound in value where regulations can be eased or adapted to help CRE survive and thrive through the post-pandemic storm.
Market risks and the regulatory response

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RSK: I don`t know if you have had an appraisal lately on an office building but it is not pretty unless you have at least 5 years left on all your leases.

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A second wave of sublease space has hit the market in Dallas-Fort Worth, a phenomenon poised to create a logistical nightmare for landlords and put imperiled properties at greater risk.

Over the past three to four months, a handful of companies that took space from another tenant have put their space back on the sublease market. Such situations have historically been rare given the risks that come with layered tenancy, but as building owners grapple with the potential consequences of lost revenue and weakened occupancy, some are beginning to bend in unexpected ways.

“Subleasing is difficult in general because you have to get signoff from multiple people, and it’s not always in their incentive to do that,” said Steve Triolet, senior vice president of research and market forecasting for Partners Real Estate.

“With a sublease of a sublease, now you’re talking about three entities, and you have to jump through a lot of hoops.”...

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RSK: This was just a matter of time before it started. There are some sweet rental rates on subleased/sublease space. But many landlords are reluctant to do so.

Madison East Business Center	Nelson Road Business Center	Madison East Business Center	Hoepker Corporate Center
4009 Felland Rd, Madison, WI	4602 S Biltmore Ln Madison, WI	6504 Ronald Reagan Ave, Madison, WI	4602 S Biltmore Ln Madison, WI

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RSK: AI is here and we might as well harness it`s potential like we did nuclear fuel.

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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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RSK: Interesting concept...like thinning out the weeds from the wheat and putting them in a different pile so the wheat can flourish.

2 E Mifflin St Madison, WI	2550 University Ave Madison, WI	152 W Johnson St Madison, WI	1400 E Washington Ave, Madison, WI
10 W Mifflin St Madison, WI	1457 E Washington Madison, WI	212 E Washington Ave Madison, WI	22 E Mifflin St Madison, WI

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Office usage rose to 50.3% for the period after the Labor Day weekend holiday — the week ending Sept. 13 — in the 10 metro markets Kastle tracks for its Back to Work Barometer, putting the total over 50% for the first time since July.

That represented a turnaround from the period ending Sept. 6, when the barometer came in at 47%.

Kastle noted that there was a seasonal element to the increases, since for each of the post-Labor Day periods since the pandemic, there have been gains in most markets.

Corporate policy demanding that workers return to the office have ramped up and could be contributing to the increase, though the evidence for that is still inconclusive...   ...Full Story Here

RSK: Seems like more of a blip than a spike.

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Lower-than-expected demand in the office-dominated urban cores of major markets has been a consistent theme in the past three years. The very fact that office buildings dominate the landscape in central business districts may be contributing to the problem.

Office buildings in general have performed poorly since the beginning of 2020, especially in major markets. Across eight of the country’s largest office markets, weak demand has sent the aggregate amount of available office space up by over 200 million square feet, an increase of 52%. In the central business districts of these markets, demand has been even softer, resulting in a 71% rise in available space...
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RSK: In one word "mixed" use is better overall for office absorption.

Please include the following dates in the CirexNews - CRE and Investment News for the future CE classes CBG is offering:

Wednesday, October 11, 2023 breakfast meeting & CE-3

Breakfast 7:15-8:05
Meeting 8:05-9:00
CE-3 9:00 – noon

CBG Annual Holiday Party & Meeting

    December 14, 2023
    4:00 p.m. to 8:00 p.m.
    The Ivory Room Piano Bar

Saved the date...

Wednesday, April 10, 2024 breakfast meeting & CE-4
Breakfast 7:15-8:05
Meeting 8:05-9:00
CE-4 9:00 – noon

Wednesday, June 12, 2024 breakfast meeting & CE-5
Breakfast 7:15-8:05
Meeting 8:05-9:00
CE-5 9:00 - noon

Wednesday, October 9, 2024 breakfast meeting & CE-6
Breakfast 7:15-8:05
Meeting 8:05-9:00
CE-6 9:00 - noon

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4901 Eastpark Blvd	2323 Crossroads Dr	2310 Crossroads Dr	2418 Crossroads Dr
5201 Eastpark Blvd Madison, WI	5601 Manufacturers Dr Madison, WI	2128 City View Dr Madison, WI	5310 Wall St Madison, WI
2801 Crossroads Dr Madison, WI	5325 Wall St Madison, WI	5315 Wall St Madison, WI	Manufacturers Dr 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.

The Federal Reserve has declined to raise interest rates further, following a recent spike in July, but signaled that another rate hike could come before the end of the year.

In a Sept. 20 statement, the Federal Open Market Committee noted that recent indicators suggest continued economic expansion and a sound U.S. banking system, as well as an elevated level of inflation. The FOMC acknowledged that tighter credit considerations will have an impact on economic activity, hiring and inflation, but conceded that the ultimate impact of these measures cannot be known...

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RSK: Econ 102 people....as long as the Fed and White House keep doling out and printing money, there will be inflation...not to mention that fuel costs affect everything.

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

In March 2022, San Francisco Mayor London Breed got a smattering of big tech companies—Uber, Salesforce, Meta and Microsoft among them—to commit to bringing workers back into the office. The pledges from the companies themselves were vague, but it was a hopeful sign for the city’s long-suffering business district.

In the 18 months since, progress on that return has happened in fits and starts, with employees reluctant to sacrifice the benefits of a remote working life...
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RSK: Workers coming back alone will not help the CBD and downtown cities. You need to make it appealing and the feel of safety for the workers....homeless encampments, drug users, feces on sidewalks etc. are keeping quite a few from wanting to go back. Plus the overall commute.

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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RSK: You may ask who cares?....but the fact of the matter is larger companies are going to newer office buildings with more amenities but downsizing at the same time....so the beat goes on.

1255 Fourier Dr Madison, WI	8040 Excelsior Dr Madison, WI	1289 Deming Way Madison, WI	1 Erdman Pl Madison, WI
8025 Excelsior Dr Madison, WI	8030 Excelsior Dr Madison, WI	1200 John Q Hammons Dr Madison, WI	1111 Deming Way Madison, WI

918 Deming Way Madison, WI

8000 Excelsior Dr Madison, WI

1241 John Q Hammons Dr 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.

ABSTRACT Commercial Real Estate LLC	Artisan Graham Real Estate	Artis Reit	Berkshire Hathaway Home Services Matson Real Estate
CBRE	Century 21 Affiliated - Roessler	DSI Real Estate, Inc.	Evans Properties, LLC
First Weber Group, Inc - Capitol	First Weber Group, Inc - Prairie Du Sac	First Weber Group, Inc - West Towne	Flad Development & Investment Corp.
IA Management, LLC	Keller Real Estate Group	Key Commercial Real Estate, LLC	MIG Commercial Real Estate, LLC
Mullins Group, LLC	Opitz Realty, Inc.	Park Towne Realty LLC	Peterson Management Company Inc.
Ruedebusch Commercial Investments, Inc.	Scott Faust & Associates	Shamrock Real Estate Services, LLC	Slinde Realty Company
St. John Properties	Stark Commercial - East	Targa, Inc	The Fiore Companies
The Gialamas Company, Inc.	The Lenhart Company, Inc	The Rifken Group, Ltd.	Urban Land Interests

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