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This Weeks Articles for 12/5/2022 ...
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We lost a colleague and wonderful person this week. Gary Stolen, an icon who helped shape the scene of real estate in Madison has passed away. Gary was known for his residential construction craft and as well as his Old Towne Office Complex on Odana Rd. and other commercial projects. He was also one of the Founders of the Commercial Brokers Group, Inc which grew from a table of 6 to well over 250 local members. RSK...
Gary Stolen built the Clock Tower Office Park (originally known as Olde Towne Office Park) in 1978 after many successful years in the residential home building business. Gary`s concept for the office park was built around the idea that, "You work to have a better life, why not have a better life while you work." He used high quality materials in the buildings and he built the office park around a one-acre courtyard with winding paths and picnic tables. The trees he planted in 1978 have matured so we have both shade and sun to please everyone`s preference.
Visitation will be Monday, December 12 from 4-7 at Ryan`s Funeral Home on Sherman Avenue for anyone that wants to attend. There will be a private funeral with family....more
RSK Notes: Gary loved his family, his business, the community and dancing. I am sure he is now dancing with the stars and showing them how it is done.
Transactions are down as investors grapple with higher debt costs and increasing uncertainty. But opportunities are still to be found.
Commercial real estate investors and economists are expecting more interest rate hikes as the Federal Reserve continues to try and tame stubborn inflation, avoid a recession and attempt a softer landing for the turbulent U.S. economy.
Six rapid rate hikes and rising inflation between March and November have slowed transactions across all sectors as demand has softened due to higher debt costs and uncertainty, and the bid-ask spread has widened as sellers have been reluctant to lower prices...
RSK: Deals are definitely down but savvy investors are making things happen now.
MADISON, Wis. (WMTV) - Several area hotels are getting renovations to prepare for more permanent residents. Turning hotels into housing is one way the City of Madison is adding desperately needed apartments for the growing population.
This month, a 12-month renovation project will begin to turn the Madison Plaza Hotel on the city’s west side, into Plato Madison, an apartment complex with 190 units.
After the previous contract ended with Madison Plaza Hotel, development company Repvblik purchased the hotel. The California based development company has done similar projects across the country including in Reno, Nevada, sterling Heights, Michigan, Sheffield, Alabama and Branson, Missouri...
RSK: Great idea. Hotels are not as expensive to convert as say office buildings. Already plumbing and electric etc. running to units, but you can bet some office buildings will be converted to housing in the near future.
Amazon is delivering U.S. online purchases with more than 1,000 electric vehicles.
The e-tail giant has reached a goal it set in July 2022 to deploy electric vans it designed and built in partnership with manufacturer Rivian to deliver packages in U.S. cities including Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle, and St. Louis. This rollout is the beginning of what Amazon expects to grow into a fleet of 100,000 custom electric delivery vehicles across the U.S. by 2030.
Customers will begin receiving deliveries during the 2022 holiday season via electric van in new cities, including Austin, Boston, Denver, Houston, Indianapolis, Las Vegas, Madison, Newark, New York, Oakland, Pittsburgh, Portland, Provo, and Salt Lake City...
RSK: Yes, Madison is on the list. I wonder how well they will work in our colder climate and holiday delivery rush....I`d bet they are keeping many gas powered vehicles ready to fill in just in case. But, I admire them for moving ahead with the plan. MG&E must have been busy putting in super charging stations for the fleet.
A cooling economy, rising mortgage rates and mass layoffs have done little to dampen executive demand for expanded office presence and increased flexibility for office workers, a new report from Ernst and Young found.
The consulting firm on Wednesday released its second annual EY Future Workplace Index, which showed a growing appetite for hybrid work and an increase in both the use of flexible working options and the presence of a four-day workweek...
RSK: Whether it is actually four days a week or less hours per week/day it does effect real estate. A third of the companies said they will reduce their real estate needs over the next year. Not good for the office market or any other sector for that fact.
Ken Notes: What we really need is a flex week. Make the day 5 a bonus of sorts and then companies can downsize quickly and temporarily by moving to 4 days. Also this works for those who need weekend staff, hospitals and others use a 3 day "week" to staff for weekends and holidays.
Madison Lifestyle Office Portfolio comprises 16 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.
Employers and their staff are in the midst of a historic standoff. Covid-19 vaccinations (and boosters) are widely available, with stronger, more advanced iterations in the works. Much of the world has settled into our new normal—the dining, live music and other out-of-home experiences we so dearly missed have resumed. However, many employees who acclimated to a work-from-home lifestyle and experienced its benefits first-hand are resisting in-person mandates. They value the ease, comfort and flexibility of working from home.
RSK: Yessir....time to coddle the workers...make them feel like they are at home or on vacation when they are at work...so when they do go home or on a vacation.... will it feel like home or work? Personally, I do not want my work to feel like home or a vacation. Going home is to let work go away and relish your family environment...
Ken Notes: This is not new or a pandemic issue, Apple did this in the 80`s and EPIC has built their campus around the concept. Great food, good coffee, child care, and health centers have attracted great employees to good companies for decades. The hardware and software for the Macintosh computer were merged for the first time after a volleyball game...
In an interview for Wendy Schneider`s 2016 documentary, "The Smart Studios Story," Butch Vig said, "1254 E. Washington was one damn ugly looking building. It was a two-story, red brick pile of junk, and it looked like a crack house."
The outside of the building hasn`t changed much in decades, but the interior is getting a whole new look and feel thanks to 36-year-old Kenosha native, Neka Allen. Allen, a director of analytics for a consumer goods company and student of interior design purchased the building for under $500,000 in September 2021 after it spent nearly two years on the market....more
According to Allen, the building was in rough shape and in need of some love. She got right to work; turning the space into both her home and a future Airbnb, while paying homage to the building`s history as Smart Studios....
RSK: Love adaptive re-use!
(CNN)A record-setting 10.7 million 20-foot containers passed through the Port of Los Angeles in 2021, up 13% from the previous record set in 2018.
And that pace is set to continue, according to Gene Seroka, executive director of the Port of Los Angeles. "I don`t see us falling off a cliff," Seroka said. "I don`t see the American consumer changing their buying habits."
For 18 months now, the Port of Los Angeles has received 900,000 container units per month. Pre-pandemic, just one month with numbers like that would have been a record.
"We`re running now about 17-18 ships a day that are working in port. That`s 70-80% higher productivity than we ever had before Covid-19," Seroka said...
RSK: Good article on why it is still a bit back logged. Also, if they slow the rate that ships can anchor off port and keep them at sea longer, the perceived back-log doesn`t look so bad...but it is still there...turning a blind eye to the problem I guess, or just slow the bleeding even though you cannot stop it.
Can you solve the puzzle
RSK: This week`s crossword courtesy of the Morning Brew.
Commercial real estate has long been thought of as a hedge against inflation, but recent trends in the market are testing that theory.
RSK: The key for residential price inflation is mainly that everyone needs a place to live...but not everyone needs to go to the office to work....nor go to a hotel for travel and leisure. But let`s be real, there is inflation in good commercial real estate.
Sun Prairie Office Condo
Great opportunity to lease or purchase a well maintained office condo. This building in the Nature`s Preserve Office Park has a serene setting with easy access from Madison and Sun Prairie. Visible from Hwy 151, the building features high ceilings, abundant natural light, 8 private offices, open workspaces, and a kitchenette. Currently, the building is single tenant but could easily be converted to multi-tenant...
A few things we know about corporate real estate: it’s a focus of cost-cutting for companies, but it’s also probably the last asset you want to sell now in a soft market.
How soft? According to Elizabeth Ptacek, senior director of market analytics at commercial real estate information and analytics company CoStar, there is currently 232 million square feet of surplus commercial real estate up for sub-leasing. To put those numbers into perspective, Amazon’s HQ2 is 8 million square feet. Even more telling, the 232 million square feet is twice the level of surplus from before the pandemic.
RSK: If you do not have a solid NOI in your office building, it may be hard to refinance if your term is coming up. Foreclosures are on the horizon.
As department stores leave malls, owners are becoming more creative with what to do with the large spaces left behind.
Eastridge Center shopping mall in East San Jose is looking to reinvigorate an over 260,000 square foot space that Sears left behind by potentially turning it into a Vietnamese indoor market. At MainPlace Mall in Santa Ana, California, an American Ninja Warrior Adventure Park opened in July featuring obstacle courses — think: monkey swings, spider walls and tilting logs — based on the ones seen on the show. Meanwhile, Oxmoor Center in Louisville, Kentucky is trying to turn 28,000 square feet of space in its second floor into an office space...
RSK: Comes down to three things: Office amenities; shop for groceries, other retail, take in a movie after work, restaurants for lunch and diner, other entertainment during breaks, maybe even some day care and health care....all under one roof. Possibly living in some apartments as well? Malls have become mini convenience cities and that is what will save them.
Ken Notes: It is about the event at the destination. From retail to entertainment it is now about the experience not the product!
VIEW FROM ABOVE
The office market’s slow growth limits companies ability to shed space and cost quickly...more
RSK: In case you missed it, here is Broadwing Advisors Q3 Office Vacancy Report.
Gift cards can be redeemed at all of our restaurants for dine-in visits or call-in carryout orders, and they never expire.
Holiday Gift Card Sale, November 1 – December 31, 2022: Get a complimentary $25 bonus certificate* with every $100 in gift cards you purchase.
This property has it all! Fully Built out Kitchen and Bar, Walk-in Coolers, Terrific Visibility with over 53` of State Street Frontage with approximately 3M pedestrians passing your doorstep annually, additional cooler in the lower level with space for storage. Outdoor dining is made easy with existing patio furniture. Fixtures & Equipment have been removed; Hood, Walk-In coolers, bench seating and bar remain. Space is sprinklered.
A record number of consumers in search of deals on holiday gifts went shopping in stores and online over the Thanksgiving Day weekend, according to the results of a new survey by the National Retail Federation and Prosper Insights & Analytics.
Seventy-six percent of consumers said they shopped over the past weekend, up from 70 percent in 2021. The actual numbers of those making purchases exceeded NRF’s initial forecast by more than 30 million people.
Stores saw the greatest bump in traffic, welcoming more than 122.7 million shoppers over the weekend, up 17 percent from last year when many stayed home due to COVID-19 concerns. More than 130 million people shopped online, up two percent from last year’s total...
RSK: Brick N Mortar retail is not dead...nor is online shopping. The two are morphing together to form a new hybrid shopping experience.
CBG Annual Holiday Party & Meeting
Before they became Exhibit A of a supposed “Airbnbust,” Carrie Ann Rink and her family were living a host’s dream in Southern California. They had an attractive property in a desirable area near Palm Springs with five-star reviews. Business was brisk amid the “revenge travel” wave of guests shaking off covid concerns.
Then May arrived, and bookings at the Desert Hot Springs home kept dropping off, despite the family’s best efforts: lowering prices, adjusting booking requirements and tweaking photos...
RSK: Not to be left out, AirBnB is also having it`s own problems as the bloom is off the rose.
Ken Notes: I do not think it is AirBnB`s rates have gone up plus hosts have hidden a lot of the fees in the cleaning and service fees not shown in the daily rate. Hotel sites do not have these hidden fees and once burnt consumers become cautious.
Experts weigh in on subleasing trends, activity and advice to brokers in the space.
At a national level, subleasing activity is currently increasing. During the first quarter of 2022, the leasing of sublease space rose 60 percent year-over-year, according to a CBRE report. While activity is on the rise, availability for sublease space in every major market, including the office space, is above pre-COVID levels.
In the Manhattan office market, for example, sublet inventory as of late August of 2022 grew by nearly two thirds since March 2020, Franklin Wallach, executive managing director, Research & Business Development, Colliers, told CPE. That represents just under 20 million square feet of sublet space on the market, some of which has been successfully leased...
RSK: Some good ideas here. It`s not only the work from home and hybrid work but also the flight to quality space causing the glut. Think amenities.
This paper, commissioned by flexible office-space provider IWG plc, explores the ever-shifting relationship between how and where people work, and its impact on the local communities where they live.
From the rise of the centralised office to the acceleration of hybrid working in the post COVID-19 era, it considers the challenges, opportunities and success factors facing our towns, suburbs and villages as they seek to build and protect thriving communities around their centres and High Streets.
As changing work patterns reduce the dominance of the daily commute, is now the moment for such communities to throw off the ‘dormitory’ tag and create a more sustainable and dynamic future for themselves?
An expert line-up of contributors, led by Mark Dixon, Founder and CEO of IWG, add their voices to the discussion...
RSK: This is an outstanding report on hybrid working...definitely worth the read if you are in the office sector.
The conversion of empty retail stores to mini warehouses expected to wane as in-store shopping makes a comeback.
With many retailers closing locations during the pandemic, e-commerce sellers took the opportunity to reposition dark stores in urban locations as mini warehouses. But now that the U.S. retail sector seemed to have gained a position of relative strength and many people have eagerly come back to in-person shopping, will that strategy continue to be a sound one?
According to Benjamin Conwell, senior managing director and practice leader for the e-commerce and electronic fulfillment specialty practice group in the Americas for real estate services firm Cushman & Wakefield, demand for “dark stores” in urban neighborhoods is not a temporary fad, but a trend that isn’t going away. That’s because e-commerce and omni-channel operators see them as a cost-effective way to get close enough to their customers to provide 30-miniute to 60-minute delivery, he notes...
RSK: I am not aware of any of these in our Metro, but it doesn`t mean they do not exist. If you know of one please let me know. I like the concept even though many city councils would not let paper or boarded over retail windows last very long...only if peaceful demonstrations break windows...
Ken Notes: I still believe Amazon will make a play for a retail distribution network where you will pick up your items like the old Sears catalogue stores. This is the only way they can mover into larger items like appliances...
Perfect Central Warehouse Location
Former Madison Newspaper Distribution Center. 250ft of Frontage on Fish Hatchery Rd and over 125 stalls of on site parking. 5 Leveler loading docks, 2 drive-in loading ramps. 3.4 Acre Site....
Price ....... $3,900,000
Delivery in June of 2023! Join the Cariad in Middleton. This new mixed-use development will feature 79 apartments and one office/retail space. The site is prominently located along University Avenue with an average daily vehicle count of 20,200. Ideal for small office users, retail, etc....
The edict comes from a CEO who manages four companies and is unlikely to be in four places at the same time.
It’s clear that Twitter owner and supreme ruler Elon Musk has no problem bombarding his employees with bad news. In his first email to the remaining staff he didn’t lay off on Wednesday, Musk purportedly ended Twitter’s permanent remote work policy and said that employees would be expected to be in the office at least 40 hours per week..
RSK: I am betting this will change somewhat...more like 3 days a week in the office or something similar...but with Elon....who knows!
Health systems facing economic headwinds and the aftereffects of the pandemic are taking a closer look at divesting or squeezing more value out of their real estate holdings.
Why it matters: Real estate can account for up to 40% of a health system`s balance sheet and also represent a major chunk of some communities` commercial real estate inventory.
The big picture: Inflation is still driving up the costs of just about everything. With the threat of a recession, the bond markets are drying up and cash is tight...
RSK: Even the health industry isn`t immune from too much real estate. A lot of that is due to the lack of help and burn out of staff.
The dark woods, sumptuous furnishings and rarified air of private social clubs have long remained the exclusive preserve of the moneyed few. The clubs serve as a retreat from the public, a place where the well-heeled can relax among their own, ensconced safely behind walls separating them from the of banal existence of the workaday world.
All of which adds to the irony of one of real estate’s recent trends: Developers are incorporating private clubs into New York City Class A commercial space to entice workers back to the workaday world they fled to work remotely in March of 2020...
RSK: this may work and be appealing to a handful of employees but far from an answer in my book.
RSK: Don`t forget to renew your Wis. Real Estate License by Dec. 14th. You can do it right here.??...more
Turn-Key Fitness & Former Massage Studio
Downtown Visibility AND Parking. Suite 125 is a turn-key Fitness Studio. 3249 SF, $25-28/SF. Expansive work-out room, dressing rooms, restrooms (showers can be added), private office, and more. Suite 175 is a turn-key Massage Studio. 2130 SF, $20-25/SF with kitchen and private rooms. Enjoy business synergies with RED Sushi across the hall and various offices on the subsequent floors. Artful property as customers/clients are greeted by illuminated artwork on the property, state of the art screens in the hallway welcoming guests and sharing events, fitness room with equipment, conference room, bicycle parking for those opting for alternative transit or underground parking for your vehicle. Load Factor to be advised. One block from the Capitol Square...
High Pedestrian and Vehicle Counts!Highly Visible Campus location! >2.5M Pedestrians annually steps from your door. Ideal for an established operator looking to lease a prime campus location in the Heart of Downtown Madison. This area is a main artery connecting downtown Madison to Middleton with >33,200 VPD . >4100 beds within 1 mile! Strong national and locale retailers such as Fresh Madison Market, Verizon, BW3, Ruby, The Double U and others. Designated #6 in the nation for Top Livability according to SmartAsset`s 2021 study. Are you aware of the $10,000 grant?
H&M has opened a new type of store experience that will be updated with new fashions, visuals, events and neighborhood partners throughout the year.
Located in the Williamsburg section of Brooklyn, New York, the 7,000-plus sq. ft. store will feature the brand’s most fashionable styles and host exclusive programming in a space designed to evolve throughout the year. Every four to 12 weeks H&M will unveil a new "chapter,” bringing to life a new store concept “that moves at the speed of style,” the retailer said. The store will be open through January 2024.
The first "chapter" of H&M Williamsburg celebrates the brand’s holiday campaign and will run from December 1 to December 30...
RSK: Lots of art in this setup and wasted space. Hope they have workers to fill it since they have gone on strike.
Retailer had nearly 700 stores four years ago, now down to 15
Sears has emerged from bankruptcy after four years, but the company Americans relied on for decades is essentially dead....more
Its reorganization plan took effect at the end of last month, ending a process that dragged on for four years, Fox Business reported. Next up for the former retail behemoth is a liquidation of its remaining assets.
There ain’t much...
RSK: Well, not like we didn`t se this freight train coming for some time now. Sears assets were the real estate it held. They will now sell them (not the best market conditions to do so) and distribute the proceeds to the shareholders.
Ken Notes: Hard to imagine the king of from home shopping killed by from home shopping????
Question:Can a condominium association`s board decide on its own to charge a fee to current and future owners who rent out the condominium? The agent is expected to get an offer on a condominium from an investor who intends to rent it out. The unit is currently unoccupied but has been used as a rental.
A board member that was sworn to secrecy...
RSK: Best of the WRA Legal Hottips for you agents and brokers.
New Retail 2022 Research Report unveils what today’s consumers want from the shopping experience and 5 top trends in the industry.
In its NEW Retail 2022 Research Report, Near surveyed consumers and combined the results with mobile location data to get a unique glimpse into the top trends in shopping patterns and winning strategies to navigate the new world of consumer behavior....more
Download the report to learn about key findings, including how:
RSK: This just solidifies the above results...it is becoming an experience. Just like the restaurant world. There is dining in...there is going to the restaurant ...getting a to go meal and having a drink while you wait so you can socialize, there is going to the restaurant just to pick up food and minimal socialization and finally there is ordering food to be delivered with no interaction at all. Just like retail shopping. It is the experience and socialization that makes the magic...
CAPITOL SQUAREGreat location on the Capitol Square surrounded by long-term tenants such as Cooper`s Tavern, Septi Fitness, Fromagination, Genna`s Lounge, and more. Simple changes will expand this open concept to fit your use and reduce build-out costs as restroom is already installed. Nearby parking garage and easy access for bicycle and bus transit. Be amidst new development projected for the Square and Judge Doyle Square...
Since 1975, Flad Development & Investment Corp. has emerged as a leader in the development of quality commercial real estate projects in Madison and Milwaukee.
On a Paris street in the late 19th century, the first-ever electric streetlight flickered to life. Now, nearly 150 years later, the electricity coursing through street and traffic poles powers a lot more than just lights.
In recent years, the humble streetlight and traffic light have become the backbone of the modern smart city, housing a bevy of sensors, communication devices, cameras, and other technologies used to help digitize the streets. The fact that so many such posts already exist—New York City has over 315,000 streetlights, for example—makes them an ideal jumping-off point for installing “smart” add-ons...
RSK: Not only for charging stations for EVs but how about cell towers to keep from too many dead spots in densely populated urban areas with tall buildings or in rural areas with power poles. Sky is the limit here.
Amazon has been closing dozens of logistics centers this year, and its strategy for determining which buildings are on the chopping black is coming into focus.
Nearly two-thirds of the 48 Amazon distribution centers across the states that are available for other companies to lease are 150K SF or smaller, per a CoStar analysis of sublease offerings this year.
The listings are in addition to the millions of square feet of construction Amazon has delayed or canceled this year. In all, Amazon has some 7.8M SF on the sublease market across the country, according to CoStar.......more
RSK: Again... wonder if this will affect the Cottage Grove proposed warehouse? Anyone out their know how that is proceeding?
The industrial real estate landlord has installed new electric truck charging stations in Los Angeles County.
It’s not just the passenger vehicle market that is increasingly going electric: Commercial vehicle operators are also making the move to zero-emission electric trucks for their hauling needs, spurred on by both government regulations and private sector sustainability targets....more
That’s why one of the largest industrial real estate landlords in the world, Prologis, is investing in new electric vehicle infrastructure meant to ease the transition to net zero for its supply chain and logistics tenants. This week, Prologis unveiled that it has installed electric truck charging stations at two Los Angeles County facilities occupied by warehousing and distribution company Performance Team, which is in the process of converting its trucking fleet to electric vehicles. ..
RSK: Yup, that`s California for you. Two things come to mind. Technology changes in a heartbeat. Your Windows Vista or 10 is no longer supported. So, all the charging stations will still be viable 5 years from now?
A new report ranks the top retail districts across 92 cities around the world and ranks the most expensive by prime rental value.
With an average rent of $2,000 per square foot, Upper Fifth Avenue (49th St. to 60th Streets) in Manhattan took the top spot as the most expensive retail corridor in the world, according to real estate services firm Cushman & Wakefield’s annual “Main Streets Across the World” report.
Tsim Sha Tsui in Hong Kong came in second, at $1,436.00 per sq. ft., followed by the Via Montenapoleone in Milan, at $1,380. Rounding out the top five most expensive retail streets were London’s New Bond Street, at $1,361, and Avenues des Champs Elysees in Paris, at $1,050. (Via Montenapoleone and New Bond Street also ranked as the most expensive shopping streets in Europe, respectively.)...
RSK: No surprises here, but what it does mean is the real estate values and rents are the highest.
U L T I M A T E FRONTAGEEnjoy the sunrise over Lake Monona with > 134` of Frontage at this newer BTS Mixed-Use development. Parking is made easy with both Covered Parking and an additional parking lot or access the Bike Path on the same block! This space bridges E. Washington, Williamson/Atwood and the First Settlement District which is ideal for pedestrian traffic and >28,500 VPD. Enjoy Built-In Customers with 55 Beds at the property. Design the space to fit your needs. Ask me about the $10,000 grant!...
CARW & NAIOP Market Update
Based on occupancy levels, conventionally leased offices were found to exert three times more carbon emissions than flex spaces.
Environmental, social, and corporate governance policies have become a critical part of a company’s longevity. Although there are many ways to address environmental issues, flexible offices may provide some of the biggest savings.
According to new analysis from Incendium Consulting, owned by The Instant Group, flexible workspaces can greatly reduce a company’s carbon footprint.
When taking into account the size of a flexible office, these workspaces can actually be twice as carbon intensive than traditional offices. However, based on occupancy levels, conventionally leased offices are found to exert three times more carbon emissions than flex spaces...
RSK: I`m sorry but let`s look at the human aspect of this. Flex space usually has less workers at anyone time...but those workers have to be somewhere right? Working from home, driving kids places, etc. So they are emitting the same carbon from themselves. I`m sure people at home do not have the most high tech HVAC and lighting in their homes...plus they are probably doing laundry, dishes running hot water for cleaning on the side, besides their computers on full bore. Does flex space really make that much of a difference? This study is incomplete at best. Sorry for the rant.
Let us harken back to a time long, long ago, when “apps” referred only to the mozzarella sticks and potato skins the server brought before the entrée, and the only way you were being tracked was if you were wearing an ankle monitor. In those halcyon days, an essential way that retailers piqued shoppers’ interest in upcoming sales was the weekly advertising circular they inserted into the local newspaper.
Recently, though, print circulars have taken their lumps:...
RSK: Amen to that...print is still alive and well, although not as robust. I know so many people who see things on their computer and then print reams of paper to read it. I am not one however.
Ken Notes: This is not a circular issue, this is a volume and cost of distribution issue. We are buying less newspapers so stores need to find new ways of reaching the masses. The format is sound if you can get it in the hands of the consumer.
Former Brasserie V For LeaseFormer Brasserie V at 1923 Monroe Street For Lease. TURN-KEY restaurant with all FF&E included with the Lease. 3,000 sq. ft. first floor space with a 3,000 sq. ft. basemen that has a walk-in cooler, freezer and a 50 keg beer cooler. Multiple recent updates to the building.
Visibility!Expand your client base at this Highly Visible Campus location that offers >2.5M annual pedestrian foot traffic steps from your door. Ideal for an established operator looking to lease a prime location in the Heart of Downtown Madison. 947 SF is available. The property is surrounded by over ~4100 beds which is revenue for you! Proximate to the new Target, Mooyah, Raising Cain`s Chicken Fingers, Colectivo Coffee and other strong local, regional and national retailers. Designated #6 in the nation for Top Livability according to SmartAsset`s 2021 study...
Brett Heimes of DP Management/TCN Worldwide on why strip malls remain a viable asset class for investors.
After two terrible years—when stores closed due to lockdown mandates and foot traffic plummeted—the retail industry has had to reinvent itself to gain its customers back. Shopping malls expanded their offerings to include more gyms, entertainment spaces and theme parks, but other types of retail spaces are also undergoing significant changes.
Commercial Property Executive reached out to DP Management‘s Director of Retail Leasing Brett Heimes and asked him to share his thoughts on how strip centers can stay relevant in today’s business climate. The TCN Worldwide member has a significant presence in the Midwest, with its portfolio currently encompassing more than 30 strip centers and malls...
RSK: Well maintained and located strip malls are doing well at the moment. The best ones in my estimation are ones like Fiore`s Lakepoint on University Ave...where they have apartment units above.
With the largest Real Estate Practice of any law firm in Wisconsin, Reinhart offers clients custom-tailored real estate insight.
With cases of the omicron variant on a downswing and mask mandates lifting, companies that delayed bringing workers back to the office for two long years are starting to bite the bullet. And nowhere has been more successful in bringing employees back to their desks than the Lone Star State, where major cities in the Texas Triangle — Austin, Dallas and Houston — lead the nation in office returnees, offering some lessons learned and a look into the crystal ball about how things might shake out for the rest of the country.
The short version: Things will likely level out at a 55%-65% return rate and only on some days, the claim the office must be a more appealing place than home is not hype, and friendly design and culture will be more than buzzwords going forward......more
RSK: Another good case of being flexible and using hybrid work, Those that want to go to the office daily can, those that wish to work from home for a few days can. It will work itself out as most things do.
How to create building features that encourage a return to the workplace.
Over the past two years, the office sector has undergone a transformation. At a time of economic headwinds and the rising appeal of remote work, office managers and developers must rethink how their spaces can best appeal to tenants and encourage a return to in-person work.
One place where they have seen particular success is upgrading amenities, from greenery-draped courtyards to flexible retail space. According to industry experts, these physical upgrades are indeed important, but so is how the buildings are used and the irreplaceable value of working in person.
RSK: I guess what is old is new again with a twist. The darling development used to be commercial on the first floor and apartments above. Now it is becoming commercial and hospitality on the first floors and office on the upper floors.
An academic study on the effects of hybrid work has found that staff who work from home two days a week are significantly happier than they were working in an office full time. They`re quite a bit more productive, too.
The recent shift to more remote work has also assisted the creation of new business startups, according to Stanford University William D. Eberle professor of economics Nick Bloom, who spoke about his findings on the Freakonomics podcast this week.
Bloom has been studying the impacts of working from home on business for almost a decade. In 2014, he conducted an experiment at trip.com, an online Chinese travel agency that is the third biggest in the world..
RSK: Hybrid work schedules are here to stay in most office workers lives. The downside of this is a loss of tax revenue for cities so the residential home owners may see their taxes increase or services diminished.
Catalyst Investment Partners closed on 23 industrial outdoor storage properties this year through two funds in its IOS series. All together, the investor has acquired properties in eight markets in the eastern U.S.
The company further says that the two funds, Catalyst IOS Fund I and II, are seeking over $500M of assets all together, though it didn`t say how much more IOS that would represent on top of the properties it bought this year. Catalyst focuses on infill IOS properties with access to ports and highway corridors.
Industrial outdoor storage properties are typically used to store vehicles, equipment and other materials in a secure outdoor facility. As industrial demand spiked since the beginning of 2020, so has demand for IOS, though it isn`t clear yet what impact the recent relative softening of the industrial market will have on IOS......more
RSK: I have to say that I have seen a few wants and needs come across my desk for this very type of storage....hard to find with zoning laws in Dane Co...
Macy’s is adding distribution space not only to prepare itself for the busy holiday season, but to also create more space at other facilities for new products down the line.
RSK: Ken and I have been talking about this for a long time. Kudos to them for making the move.
Secondly, it says people will not have to invest anything. Well, that energy comes from some sort of fossil fuel to make electricity and thew cost of the electric vehicles?
Warehouse and office space available with exceptional location just six blocks off the Capitol Square in the vibrant Cap East District. The property offers free onsite parking, excellent signage for tenant visibility and prime Capitol views.
2 private offices, retail front, open work area, small closet...
December 7 @ 5:00 pm - 8:00 pm
Crossroads Supper Club - 9315 State Rd 80
$10 per person, includes appetizers and full holiday dinner buffet. Bring at least one gift for a child of any age and receive two drink tickets.
RASCW Members may bring one non-member guest......more
4161 SF | Large Outdoor PatioCharming space with exposed brick, high ceiling, partial hardwood flooring, and abundant sunlight leads to a large outdoor patio. Ideal location for a breakfast operator or cafe, restaurant, or a creative design/decore firm. Enjoy density in a relaxed environment with 5:1000 parking. Co-Tenants include Lone Girl Brewing Company, Orange Shoe, Edward Jones, Knight Barry Title, Medispa and more.
Investors in the sector have been more reluctant to close deals as the cost of capital rises. But given a strong outlook for income growth, many acquisitions are still going through.
All through the pandemic, industrial properties have been among the most desired by commercial real estate investors. But in the current market environment, are industrial assets holding up just as well?
In fact, demand for industrial properties is down considerably from the first quarter of this year, says Chris Riley, president of U.S. industrial & logistics capital markets with real estate services firm CBRE. “While the market for investment sales is uneven, there remains a small contingent of investors that possess a ‘motivation of the moment’ to acquire properties,” he adds, noting that CBRE National Partners closed 18 transactions in October—evidence that the market is still active....
RSK: A few things come to mind here. First, lack of new construction and increase in interest rates. Also the cutback by some major players in the amount of space needed as the logistics of delivery keeps honing itself.
When the coronavirus pandemic swept through the world in March 2020, layoffs cut through commercial real estate. But while COVID-19 restrictions have largely been lifted in the U.S., brokerage firms are again tightening their belts amid an uncertain economic climate, putting pressure on young professionals to abandon an increasingly volatile, and less profitable, industry.
For brokers who remember the office market of 2019, those relatively high occupancy rates and asking rents might seem like a far-off dream compared to now. Today’s concrete jungle remains marred by high availability rates and remote work, which threatens office property values nationally. Plus....
RSK: I can see where this is a problem...especially in the office sector and in larger metro areas. Here in Madison, young broker agents are more diverse in their leasing and sales areas. Correct me if I am wrong. Drop me an email with your experience. Your name will not be shown.
In the CENTER of the ACTION!
>2.5M Pedestrians within steps of your door AND 33,200 VPD with an adjacent city parking ramp. Ideal for an Established Operator looking to lease a Prime Location in the Heart of Downtown Madison. Space includes a Mezzanine. One of several Multi-Family developments with >4100 beds which is revenue for you! Near the NEW Target, Mooyah, Raising Cain`s Chicken Fingers, Colectivo Coffee and other strong local, regional and national retailers. Designated #6 in the nation for Top Livability according to SmartAsset`s 2021 study. Ask me about the $10,000 grant!...
High Point Office Park is an 11-building, 217,418 square foot office park located in one of Madison, Wisconsin’s finest western locations.
Investor Patrick Carroll expects high interest rates, record maturities to create “perfect storm”
Last week, apartment developer Patrick Carroll launched a venture to provide rescue capital to apartment owners across the Sun Belt. The platform plans to invest $250 million in equity to troubled borrowers.
Carroll is not alone. As rising interest rates and a record amount of debt put more real estate owners at risk, a growing number of players are preparing to feast on distressed assets...
RSK: Unfortunately this is the case...especially in the office market. But it is also a time for opportunity for investors who are sitting on cash. The ying and yang of it all.
Once slow to let go of office space, management teams are being pushed along by macroeconomic conditions.
Some companies have shrunk their real estate footprints to reflect a need for fewer or smaller offices. More employees working remotely sparked the early wave of that. But now, that’s not the only reason organizations are abandoning spaces. Macroeconomic forces, including inflation, have nudged reluctant management teams into making decisions on office space reductions.
The switch to remote work can’t be discounted. Two-and-a-half years after the start of the pandemic, remote work seems to have some staying power. EY’s Future Workplace Index survey released this week found that more than 70% of employees are working from home at least two to three days a week...
RSK: Not going to be pretty in the larger space office market. Subleasing may be a temporary fix but at what cost.
THRIVE`s Chris Smith on the company’s business approach and expansion strategy.
An unexpected outcome of the pandemic was that it brought people together by reviving their sense of community belonging. Now, people buy locally to support small businesses, they spend more time with families and friends, and they commute a lot less than three years ago because they work remotely or in a hybrid model. This shift has accelerated demand for flex office spaces as an increasing number of companies adapted their work policies to offer more flexibility to their employees.
Flex office space provider THRIVE | Coworking has built a business model that enables shared office space users to support the businesses in the neighborhoods where they live, and also help local charities. The company is building sizeable portfolios across the U.S., adding multiple locations in secondary markets...
RSK: Excellent idea. Why not use flex space as a neighborhood concept. Such as the Monroe Street area, Schenks Atwood, Third Ward on and on. Create a sense of community etc.
From Seventies sitcoms with expository jams to modern prestige classics with experimental scores, from `Sanford and Son` to `Succession,` from `Match Game` to `Game of Thrones`...more
RSK: Just had to through this in....bet you have a few favorites in this list and a few you probably never want to hear again. Ready for some ear-worms?
Market Street Diner/Bakery
Turn Key Restaurant building with drive thru and complete bakery in lower level, w/ locker rooms and bathrooms. Each floor has over 5490 sq. ft plus elevator. Adjacent Municipal parking lot plus 7 on site stalls. Patio. Building could be converted to other uses such as legal or accounting offices. Plans available. Agent has small interest in property...
Chipotle Mexican Grill has reached a new milestone.
The fast-casual giant — the only restaurant company of its size that owns and operates all its restaurants — has opened its 500th location that features the brand’s digital order drive-thru pick-up lane (“Chipotlane”). Located in Louisville, Ky., the restaurant also features a dining room and patio.
Chipotle said it is building a real estate pipeline to accelerate new unit growth with an emphasis on Chipotlanes. Next year, the company plans to open between 255 to 285 new restaurants, with at least 80% including the digital order drive-thru lane....
RSK: Have an out-lot or space in an upscale strip center...I`d contact them.
Rising interest rates are putting further pressure on the new-supply pipeline and transaction deal flow, according to the latest CommercialEdge report.
Economic headwinds, coupled with consecutive interest rate increases, the further adoption of work-from-home and remote office arrangements, and growing office footprint reductions contributed to an increase in vacancy rates throughout the year while maintaining uneven—yet historic in some places—rent growth, according to the latest CommercialEdge office report.
RSK: If you deal in the office sector this is preaching to the choir. Some good points here however.
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
Sally Beauty Holdings is accelerating its store optimization plans.
The company said it plans to close approximately 350 stores during December 2022 amid ongoing efforts to improve its profitability. Most of the store closings will be in the United States. (The retailer currently operates more than 5,000 stores worldwide, with approximately 4,500 in North America.)
“Over the last several quarters, the company has been piloting store closures in various markets with the goal of maximizing the value of its large store portfolio and providing a seamless omnichannel experience to its customers,” Sally Beauty stated....
RSK: There are two Sally`s in our Market...one east and one west. I do not think they are on the list however.
Drought conditions pose major risk to properties
Most techies live in fear of spilling water on their devices. Data center owners, however, live in fear of not having enough water to cool down their commercial properties.Worsening drought conditions across the nation could have an outsized impact on data centers, CNBC reported. Water is frequently used to cool data centers, which generate an enormous amount of heat because of the power needed to generate servers...
...Researchers at Virginia Tech estimated the average data center uses 300,000 gallons of water a day to keep cool......more
RSK: I didn`t realize data centers were such high consumers of water. Some companies however have figured out a few partial solutions.
Ken Notes: Since the water is clean for the most part, locating center near the great lakes may be a boon for Wisconsin.
According to new research from Zillow, U.S. home buyers looking for a Black Friday type deal may want to shop on Thursdays. That`s the day of the week when sellers are most likely to slash their list price.
This fall, a record 28% of sellers had cut their list price, meaning bargain hunters who can afford today`s mortgage rates are more likely to snag a discount......more
RSK: I`m not surprised. If you think about it it seems obvious...lower the price before the weekend search and open houses.
Across from Golf Course on newly revamped Monona Dr. Many suite sizes available from 100 sf up to 2,300 sf. Spaces can be combined for smaller/larger suites. Plenty of parking and new improvements going in. Rates from $10-$12 per sf. Common Conference room. 3 floors with elevator. Easy access to beltline and interstate, downtown....more
How will the report benefit you?
Tap into the mind of 3000+ office tenants
RSK: Another survey of over 3,000 tenants in what they want in an office space.
Updated 2019?20 Wis. Stats. Published and certified under s. 35.18. December 2, 2022.
Once a salesperson passes the broker’s license test, do they have to work under another broker for two years before they can open their own office, even if they have been in the business for several years?
The applicant is required to meet both the requirements for the time under direct broker supervision and points reflecting transaction experience. The two years of experience must occur within the last four years. The time can occur before the applicant takes the broker examination.
Wis. Admin. Code § REEB 12.017(3)(a):
Each applicant for a real estate broker’s license shall submit evidence satisfactory to the board that the applicant has practiced as a licensed salesperson under the direct supervision of a licensed broker for at least 2 years within the last 4 years preceding the date of application, excluding any time the applicant spent in an apprenticeship. Except as provided in pars. (b) to (d), the evidence shall demonstrate that the applicant’s experience as a licensed salesperson qualifies the applicant for a total of at least 40 points based on the following point system: ...
At least 40 points of experience must be documented to be eligible for a broker`s license:
Endcap | Garage Doors | PatioNEW Mixed-Use Development, BTS with venting chase in place, patio space, > 17,100 VPD, 10:1 Parking Ratio (with 3 access points). Built-In Customers, new Veridian neighborhood (over 650 homes) directly behind. Top Tier demographic beckons stand-out retailers such as Lone Girl Brewery, Buttercup Beauty, Anytime Fitness, Dunkin Donuts and convenience around the corner with Kwik Trip and Walgreens...
Max Contig. SF:960
Rent PSF (Annual):$22.50
Lease Term (Yrs):1 - 5
Offering real estate services and design-build construction solutions for growth oriented clients... ...more
Available retail/office coming July 1, 2023
1,200 square feet consisting of reception area, private offices, work area and storage area plus 3 0ff-street parking stalls behind building.
Just off E. Washington behind the new Hy-Vee. Many suite options ranging from 150 sf to 1,880 sf with rates from $10.00 to $14 gross, depending on size term and TI`s. Landlord pays all. On bus line. Great for non profits, small office/service reps. Interstate and airport a minute away. Agent interest. Controlled storage also available for pharmaceutical reps, suppliers etc......more
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