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Cirex News is emailed weekly to over 2,000 CRE Brokers/Agents and people interested in commercial real estate. Email Ralph or call 608-345-2880 to feature your business or properties in CirexNews...

Industrial vacancy beginning to plateau as new supply falls

The U.S. average vacancy rate climbed by 19 basis points, to 6.6%, during the third quarter of 2024, the smallest quarterly increase since it began to rise in late 2022. New supply totaled 76 million SF, the lowest since early 2021, and 54% below the 163 million SF delivered during the third quarter last year. Demand as measured by net absorption totaled 39 million SF, bringing the year-to-date tally to 115 million SF. Quarterly construction completions will fall further over the next few quarters, when new supply and rebuilding tenant demand will approach equilibrium, and vacancy will peak in most markets and start to fall again.   ...Full Story Here

RSK: If you are in the industrial sector this report is a must read.

1200 John Q Hammons Dr Madison, WI	8040 Excelsior Dr Madison, WI	1255 Fourier Dr Madison, WI	8000 Excelsior Dr Madison, WI
8025 Excelsior Dr Madison, WI	8030 Excelsior Dr Madison, WI	8020 Excelsior Dr Madison, WI	1241 John Q Hammons Dr Madison, WI

8150 Excelsior Dr Madison, WI

1289 Deming Way Madison, WI

918 Deming Way Madison, WI

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For over 45 years, The Gialamas Company has brought real estate development, brokerage, leasing and building management expertise to the City of Madison and the State of Wisconsin.

After two years of delay, construction has finally begun on an Amazon fulfillment center in Cottage Grove, heralding what local officials predicted would be an economic boon not only to the village but to the surrounding region.   ...Full Story Here

RSK: That will be a boost to the Villiage`s tax base. Only concern will be the heavy truck traffic 24/7/365...

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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For brokers who thrive on the daily grind of chasing deals, the past few years have been tough to say the least.

Last year, while interest rates were rising and transactions were frozen, brokerage giants reported negative cash flows and were forced to make painful budget cuts. To stem losses, many stopped hiring or laid off employees.

But the past few months have seen a seismic shift.

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RSK: Finally some good news thanks to retail, Industrial and even office leasing.

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Madison Lifestyle Office Portfolio comprises 14 Class A properties totaling over 1.7 million square feet of leasable area and an additional 8.3 acres of development land. The portfolio is located on the west side of Madison, Wisconsin.

Chicago’s historically tight vacancy and build rates should preserve its rent growth momentum into 2025

With historically low vacancy and less supply-side pressure than its peers across the country, Chicago’s multifamily market should maintain its standing on the asking-rent-growth leaderboard into 2025.

Likewise, the Midwest’s muted multifamily construction pipeline — especially compared with the Sun Belt markets — keeps its collective vacancy rate low and its year-over-year asking rent growth above the national norm...

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RSK: If you throw the Madison Market in this you would see numbers off the chart...unless they are already included in the Milwaukee SMSA which I doubt.

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

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Kenosha plan would include 4 data centers several miles from ongoing Microsoft project

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RSK: You knew it wouldn`t be long before someone took over the Foxconn land and what better than 4 data centers...Wisconsin and this location in SE Wisconsin has the power and the water to facilitate the centers.

Ken Notes: Of course when Russia looks for a US target.....

2024 Annual CBG/CCIM
Holiday Party

 December 11, 2024
    4pm-7pm
    Network222

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The A&W restaurant chain plans to expand the brand’s presence in Wisconsin through the Milwaukee and Madison markets with the help of existing and new franchisees.   ...Full Story Here

RSK: Have a good location or site for A&W I`d contact them.

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

The industrial sector has struggled to regain confidence, but there may be a silver lining coming in 2025.

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RSK: This is very interesting....a slow down in construction but rates remain steady with a 2-7% increase. Tenants just are not inking leases at this time...but I am betting the new regime in the White House may change all that. BE A CONTRARIAN?

CARW Happy Hour – Ope Brewing

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

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

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With over 350 experienced real estate professionals, Knight Barry provides exceptional support and service. Visit our website for more information about our 50+ commercial and residential offices throughout Wisconsin, Michigan, and Minnesota.

MADISON: 2450 Rimrock Road, Suite 204, 608-255-2700
CAP SQUARE: 44 E. Mifflin Street, Suite 101, 608-255-2700

Commercial property owners face many energy challenges today. The rising cost of energy is adding to the pain of high interest rates. Many cities across the country are starting to require buildings to report on energy usage, with some now levying fines for those that use more than their fare share. To add to all of this, extreme weather conditions and more frequent natural disasters are increasing the risk of power outages. As buildings strive for energy resilience and efficiency, there’s a critical need for solutions beyond traditional centralized power systems. That’s where microgrids come into play.

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RSK: Great idea about micro-grids....but solar will probably not be a good reliable source in the frozen tundra of Wisconsin or the upper Midwest.

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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While 59% of job seekers said they preferred “fully remote” roles, only 2% of job postings advertised such an arrangement, Flexa said.

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RSK: I do think work can be done remotely...but collaboration and new ideas and methods cannot or at best a poor imitation of in person.

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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When the American economy sneezes, the world catches a cold.

When a new president gives it a boost via tax cuts and imposes tariffs on imports, real estate markets around the globe weigh the possibility of higher interest rates, altered investment flows and changing patterns of corporate occupation.

Real estate investors from the UK to China via the Middle East are trying to work out whether President-Elect Donald Trump’s policies will match his campaign rhetoric and to what degree America’s economy might suck in real estate investment from other markets while pushing up global inflation and instigating higher-for-longer interest rates...
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RSK: Interesting article. Most of it saying that who really knows how markets and people will react. Time will tell.

75 Gasser Rd Wisconsin Dells, WI

4711 Farwell St McFarland, WI

808 Industry Rd Sauk City, WI

426 Gammon Pl Madison, WI

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Retail landlords could be in for a very happy holiday, with revenues and occupancies up, shopping center traffic on the rebound and consumers loosening the purse strings ahead of the most important shopping quarter of the year.

Many of the country’s largest publicly traded owners of retail real estate were optimistic enough to boost their full-year guidance in the third quarter, anticipating stronger earnings than previously expected and a better pay-off for investors to ring in the new year.

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RSK: Retail remains a hot sector. Even though many have declared bankruptcy, its not the real estate but the product line...same with the restaurant groups that went down.

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

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One area of expertise for Investors Associated is first class property management. To keep our properties running smoothly, we focus on the little things with the big picture in mind. Our team is comprised of a group of individuals that oversees the day-to-day operations such tenant retention, lease negotiations and property maintenance costs. Bottom line, if you’re not happy, we’re not happy! Check out our properties today and see why you should lease with us.

Office conversions have had a banner year to date in 2024, with 73 of them already completed and another 30 scheduled for delivery by year-end—the most since CBRE began tracking conversion projects in 2016.

Much of this activity is being driven by historically high office vacancy rates and falling asset values, prompting public/private partnerships that are incentivizing conversions. The pipeline of office conversions is expected to grow as cities offer more incentives and sellers of troubled assets further discount prices, particularly for older buildings.

As of Q3 2024, 71 million sq. ft. or 1.7% of U.S. office inventory was planned for or already undergoing conversion. This is the same amount of conversion activity as in Q1 2024, despite the completion of 45 projects totaling 7 million sq. ft. since then—an indication that the conversion pipeline is replenishing as projects are finished.

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RSK: I suppose you are thinking that the most successful conversions would be where other services for living such as grocery stores, health services etc, are located. But those retail and other services have a way of finding where people live. So if you convert, chances are these services will find you and locate you.

Tax Reduction Strategies for the Real Estate Professional

Description

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Public hotel brand companies set the tone for stock performance in October

Hotel brands continue to deliver strong results for the broader hotel industry based on the latest stock performance report.

The Baird Hotel Stock Index — which comprises 20 of the largest hotel brand companies and real estate investment trusts publicly traded on a U.S. stock exchange by market capitalization — rose 1.9% in October.

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RSK: Most hotels are doing well but there are some bottom feeders.

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Industrial tenants are keeping commercial real estate brokers busy with property tours and lease negotiations. But in today’s market, only 30% of potential deals even have the possibility of turning into a signed lease, according to a JLL report.

An uncertain macroeconomic picture — and an incoming U.S. president who has promised to upend global trade policy — is partially to blame for the lackluster conversion rate. But industrial users are also shifting their logistics strategies, often opting to outsource rather than execute a lease...

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RSK: Many industrial and warehouse users are letting third-party companies do their storage and distribution, making leases a bit of a problem.

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RSK: Not much retail development plus old leases renewing at much higher rates is a win for retail investors and owners for now.

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Building operators using IRA tax incentives “will be talking with their senators and representatives to express the need to keep these in place,” a U.S. Green Building Council official said.

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RSK: Some of the Bidens energy policies actually made sense while most others set this country back and helped increase inflation. There has to be a middle of the road policy and not an all at once shift...we need to go into these things gradually. Somewhat like hybrid vehicles that run on gas and battery...not a paradigm shift to all electric at once....that creates push-back and disfavor...

ABSTRACT Commercial Real Estate LLC	The Gialamas Company, Inc.	Artis Reit	Key Commercial Real Estate, LLC
Madison Commercial Real Estate LLC	St. John Properties	IA Management, LLC	Wisconsin Commercial Real Estate
Park Towne Realty LLC	Mullins Group, LLC	Crown Commercial	Flad Development & Investment Corp.
Evans Properties, LLC	Keller Real Estate Group		MIG Commercial Real Estate, LLC
First Weber Group, Inc - West Towne	Opitz Realty, Inc.	First Weber Group, Inc - Prairie Du Sac	Peterson Management Company Inc.
The Lenhart Company, Inc	Scott Faust & Associates	Shamrock Real Estate Services, LLC	Targa, Inc
Executive Management, Inc	Stark Commercial - East	Urban Land Interests	Slinde Realty Company
Assist-2-Sell/Pohlkamp & Associates	Berkshire Hathaway Home Services Matson Real Estate	Artisan Graham Real Estate

Hovde & Hovde, Inc

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