cirexviews

cbg brokers breakfast 2/10/10

2010-02-11T10:19:00.000-08:00

Had our Commercial Brokers Group Inc. of Madison Brokers Breakfast the other day at Bonfyre Grill. Great turnout after 6 inches of snow, but when there are free eats, well, commercial brokers will come. Mortenson Realty hosted the breakfast since Bonfyre is located in their Arbor Gate Office & Retail Complex. Brad Hutter of MRG informed the 80 attendees on the space opportunities that remain. Phil Salkin, of the WRA & Realtors Assoc. of SC WI spoke on potential Dane County Shoreland Zoning that can have a huge impact on Commercial Properties and Development. A tour of Arbor Gate was held after the meeting. There will also be a tour of Arbor Gate on Feb. 25th through Wisconsin Development News. Go to http://www.wisconsindevelopment.com/to sign up. A reception and discussion will follow at Bonfyre Grill.
The short slide show gives you an insight on the meeting.

on golden pond

2010-02-08T11:22:00.000-08:00

Golden Retriever Rescue of WI (GRRoW) had a meet n greet event at Boston Store Sat. & Sunday. Never ceases to amaze me how much of a people magnet they are. You can go to www.grrow.org and read about them and see the golden's that are in need of a "Forever" Home. Check it out.

curiousity

2010-02-05T11:02:00.000-08:00

I am taking care of my daughter's little kitten while she is in KC. The picture of Pinckney just brought the thought of the old saying "curiosity killed the cat". But I see it it a bit different. What is new, intriguing and makes us wonder, is what makes the human spirit grow as well as the intellect. Pinckney has no idea what is going on with the computer but she is still intrigued nonetheless. She doesn't need to know the bits and bites, the cpu workings, how the display projects an image. None of that is important. It is a warm and inviting spot and entertaining as well. Gets the job done as far as she's concerned. But for us humans, that will not do. We need to know the intricacies and how to improve on them. Maybe it's time we all just look at things from Pinckney's viewpoint. A bit more basic. A bit more relaxing. After all, "curiosity killed the cat". (Pic on the right is what the computer probably saw)

year end is good time to review your lease

2009-11-18T15:44:00.000-08:00

When the year is ending and you are reviewing your financials for your business don't forget to review your current lease.

Here are some key elements to look at.
When does your lease expire? It may be sooner than you think. It is never too early to think about renewing or even changing your location. Many leases require a 60 to 90 day notice that you do not intend to renew, or that it goes to a month to month. That may make you vulnerable to having the landlord lease to someone else.

Is the space adequate? You may need to expand or even get a bit smaller and more efficient. Possibly a more or less visible location is needed. Maybe a loading dock or being near public transportation and linkages is crucial to your business.

What will be the new lease rate? Are there built in escalators each year that will be activated. Are you responsible for a portion of the real estate taxes, insurance and common area expenses. What or how much will they be. Are you paying the correct amounts or being over charged or under charged. Can you ad then to your rental rate and pay them off monthly.

Finally, do the payments fit your budget. Can your business make a profit at this location. If it is tight , you may want to talk with your landlord or your commercial real estate agent on these key areas before a small problem becomes a large one.

virtual staging vs imagination

2009-10-09T10:28:00.000-07:00

I just read an excerpt from our WRA Realtor News Update on virtual staging. You can now remodel, replace furniture etc. virtually to show someone how a home might look but not the way it looks today. I wonder how upfront this may be. Does it leave the persons own imagination from working on what can be done? Does it say that if not done the way it is staged your tastes are not in vogue? Or does it actually give a few ideas on how a space should be and your imagination is stimulated even further. Hard to say. I do believe this would be a great Commercial Real Estate application. How many times have brokers shown a large baron 10,000 sq. ft space of concrete and windows to a client and trying to show and tell how the open space could fit their needs? I know I have been there. So open that it shuts down the senses on overload of where to start. Now without expensive drawings and draftings a client can be shown how it might layout for their specific needs and what it would look like in a 3D environment. Pretty cool, as long as we do not let our imaginations go to sleep.

the corridor of life

2009-08-26T09:19:00.000-07:00

Life seems to me like an endless corridor of doors and gateways of opportunity. With each passing segment we can learn and grow or just pass through. Our men's tennis team's season gave me the opportunity to reflect on this last weekend. We started out as a bunch of ragamuffins early in the year, each match saw us grow and come together until we won our USTA League. Again at State Championships it was the same as we fought our way through. Then on to Indy for the Midwest Regionals. A very high level of competition but we adjusted, and went undefeated as we learned and passed through that corridor and seized the opportunity. We also learned a lot about each other. Now the next gateway awaits this team of young pups and old grizzlies at the National Championships in Tucson AZ. How many corridors are left? Just like life's many passages we all hope that exit sign at he end is a bit further out there.

freemium

2009-07-09T08:58:00.000-07:00

Just read excerpts by Financial Times John Grapper and Wired Magazine's Editor Chris Anderson about the new business model some are calling "Freemium". It is definitely geared towards the new Internet model 2.0 where things are not pushed at the consumer but rather given openly and freely and on a "Hi, I am here to help you if needed and in the meantime here is free information etc." This model or idea is not new to the real estate industry when you think about it. Google is the master. It does not get the information we give it free information and it aggregates it. So in essence it does not pay for content and in return gives it back out. A "Freemium" to us the user. It makes it's money by having ads placed by a few who want to be first or higher in the search content results.
But the real estate industry has not taken it to the full extent that Google has. We still pay to place or view information on a system (MLS, PropertyDrive,CoStar etc.) and very little in the advertising or placement venue as a revenue stream. As a broker we offer this information to clients or customers and the real value is we are able to interpret and make sense out of the information. Guidance Counselors in a sense. That is why and where our value comes from. Our experience and knowledge in the profession. We can help our clients get the best possible price, in the shortest amount of time with the least inconvenience and we are paid well to do it. Of course, there are some out there that do not need us to do so and that is all well and fine. 80/20 rule. We will work with the 80% and that is more than enough.
So let's embrace all that free information out there. All that "Freemium" means more work for us to help clients make sense of it all.

summer sentinels

2009-06-08T11:14:00.000-07:00

Just another typical cool rainy day Monday here in "Madtown". Barely 60 degrees, cool and wet. In two weeks it will be the Summer Solstice.
photo "union sentinels" by dmk
Daylight will get shorter. Less time to spend outside especially at one of my favorite places. The UW Memorial Union on Lake Mendota. It is a special place on a Friday or Saturday early evening. Reminds me of my College Days but yet is even more exciting and entertaining now than it was then. Those famed chairs staring like sentinels until one by one, as they beckon people to sit down and relax, fill up through early eve.
The feeling of the warm sun as it starts to descend to be extinguished by the Lake, the smell of popcorn, burgers and chicken on the grill, and the refreshing taste of a cold beverage( beer is my choice on a night like this) as one listens to the lapping waves of water. Soon almost all chairs and picnic tables are filled and a band starts to set up for evening entertainment. The Boathouse Whistle screams as the steam is released warning everyone that the sun is setting and time for non lighted vessels to return safely home and enjoy the festivities. I love to bring my Golden Retriever down and she loves meeting the children and people that walk by. Maddie is a people magnet for sure. And knows she will be afforded a few treats for her great behavior. Being a Pet Pal at the UW Children's Hospital, well you can bet she knows what to do and is so mellow. I marvel at her and her demeanor. When a child tugs on her long fur she just stares up at me as if to say "Don't worry Dad, they need to do this and it doesn't bother me at all". Then I toss her some popcorn and I understand. One in the mouth is worth two in the bag. It is getting late so we head out and immediately our spaces are gobbled up by others. It is truly one of Madison's Gems and an eclectic vibrant place to be. But tomorrow the chairs will be empty again and gradually work their magic to attract any and all of those who need to unwind and get a taste of summer.

don't choke the chicken to lay the eggs

2009-05-06T09:18:00.000-07:00

Like many of you in the industry, it came time to refinance one of our commercial real estate buildings. The 3 year term came due. Now with the slow down in the economy ( I refuse to use the word "recession" unless in a really foul mood) we have experienced vacancies that are above average. We have also given some rent concessions to keep certain tenants, and a few have just gone "dark" or out of business. This lowers your cash flow for as you know, expenses do not proportionately fall at the same rate.
This in turn is how lenders value your property, mainly on the cash flows. It came down to the point where we almost had to put more equity into the property to get to the loan to value(L/V) ratio required. If not, we could have been in default of our mortgage terms and basically out of luck. I am sure many of you have gone through or are in the midst of this quandary yourselves. Even though the new rate would lower our payments, they said at first we were possibly in default of our mortgage due to the L/V ratio. We have never missed a payment, always on time for 20 years. How ironic. Basically told it was due to the new lending guidelines and that since the institution in question had taken government bailout funds, their hands were tied. Well, we came in under their L/V after some lengthy negotiation and we did refinance.
But many others have not been so lucky I have to believe. It is a catch 22 in the real sense. When this will all change is any ones guess. I am sure when we come out of the downturn, commercial lending guidelines will be a new and different animal than before. I just hope it is for the better and lessons learned. Don't choke the chicken to lay the eggs.

Tax day with a capital T

2009-04-15T11:30:00.000-07:00

Like many, I have just signed sealed and delivered, albeit electronically, our 2008 tax returns plus checks. Ironically, there are protesters at the State Capitol, dropping off tea bags as a symbol of the original Boston Tea Party, which was a protest of "Taxation without Representation". Lipton Tea's parent stock is soaring. Great marketing idea, ha. Actually, we seem to be getting back to revolutionary times more and more. And maybe we should get back to a simple single pay taxation and a balancing of the budgets on all levels. Seems we the people need some real representation and the ground swell has just started. The Founding Fathers were very wise and the Constitution of the United States is more relevant now than ever. Maybe time we all review it as well as the Amendments and our Rights as citizens.
Also ironic, is that Abraham Lincoln died this day in 1865 from his assassins' wounds. Here are the last words of his Gettysburg Address to remind us all that freedom and our great government does not come without some sacrifice no matter how small it may be.
"It is rather for us to be here dedicated to the great task remaining before us — that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion — that we here highly resolve that these dead shall not have died in vain, that this nation under God shall have a new birth of freedom, and that government of the people, by the people, for the people shall not perish from the earth."

Voting is a privilege and may require some sacrifice..getting off our chairs and going to the polls. Not sure if we can count writing a check to the IRS as a privilege, but it is sure a sacrifice.

the times they are a changing

2009-04-06T10:32:00.000-07:00

More than just the name of a great old song things keep on a changing. Who would have thought Michigan State would be in the NCAA BB Championship, an upstart looking to unravel the grip of a perennial champ. No, I am not just talking BB here, but the same could be said for the Dane County Executive Race. I am comparing the two, Michigan State and Nancy Mistele both in a great position to make a major upset bid. Can you believe it? Both have a chance and both are the underdog and the trip to the finals has been what everyone expected it to be. Hopefully it will be a knock down drag 'em out championship game with the best team/person ( and I guess we could say team for Mistele's campaign team) winning. The one thing we know is constant is "change". Change in the good sense. Some cents and sensibility back in the Dane County and back in Big Ten Country. Just make sure your voice is heard in front of the TV and more importantly on election day. "You make the call!" in the very sense of the word.
And for Major League Baseball? That generates millions of dollars in revenue for southern Wisconsin and especially SE Wis. Let's wish them all the luck and keep the Cubs/Brewers rivalry going. They drink beer too don't they?

real estate spring madness or numbness

2009-03-19T10:10:00.000-07:00

The anticipated Spring Madness has finally arrived and no doubt many of us are numb to the events and how and why Bucky should have or should not have made the Big Dance. We probably put more time into Bracketology than into our businesses of Commercial Real Estate.
But Spring is finally here and the feeling of a new awakening should have our spirits lifted. But does it? Is there that looming economic cloud hanging over our heads that dampens the excitement or are we feeling the change and realizing that we are not that much worse off than last year and in fact see some progress and gain. I certainly hope so because I feel it myself.
And that brings me to our next survey. Do you think 2009 will be better or worse for your Commercial Real Estate Practice or just the same drudgery. Let us know your opinion.
Ralph

transportation to somewhere?

2009-02-25T16:07:00.000-08:00

The Governor has just stated we are looking into rail service from Madison to Milwaukee to Chicago and possibly use some of the states economic stimulus for it. I know I have driven many times to Columbus to catch the Amtrak Empire Builder to Chicago for the weekend. A bit pricey but an easy ride right to downtown. Just think if it left from downtown Madison? Brewers Games, Shopping and Musicals in Chi Town. But at what price? If the convenience does not outweigh the price, we will still be hard pressed to give up our auto's. I am curious aren't you? Take the next survey to sound off or reply to our Blog.

The results are in for our survey on "how will the economic stimulus bill affect commercial real estate in our local greater madison economy"
33% say will depress it.
46% say not much
3 % say somewhat

2009-02-25T15:59:00.000-08:00

Our last survey results are in. The question being Do you think the stimulus package will have any effect on our local commercial real estate were 33% depress it, 46% not much but a bit, and 3% somewhat.

we are not down & out

2009-02-18T10:06:00.000-08:00

Seems that the doom and gloom has smitten the Commercial Real Estate Industry now just like Residential a year ago. Activity on leasing of property seems to be there, but like a ghost the transaction keep disappearing. No one seems to want to pull the proverbial trigger on a lease commitment. This is all a matter of consumer confidence in what the future will bring.
Well, guess what, if we are seeing that now it is already passed the market. As the market always looks ahead and we concentrate on the here and now, the next wave is on its way. Just as it took a few years to decline before we realized we were in a recession, the same is true of the bottom. We are in it and the only way up we presume, is happening now. So let's enjoy the ride up. Get geared for the new wave economy, start marketing wisely but by all means keep you and your product in front of your target market. After all, we may be down but not out...just on our way up from a long bottom.