Browse Tag: industrial real estate

Milwaukee Industrial Market: Latest Deals And Market Numbers

Map of the Milwaukee area including the Milwaukee industrial market

 

The Milwaukee industrial market is a healthy one, offering midwestern location, pre-recession market characteristics and a high level of cooperation among commercial real estate practitioners.  In Brew-town, brokers share data easily and in doing so, drive transaction counts across the whole market. Shared data means more options for making client needs fit inventories.  A quick sampling of recent listings and deals includes:

What’s behind Milwaukee’s industrial market? We ask veteran broker Brian Parrish

Specialist in the sale and lease of industrial property in Milwaukee, Brian Parrish has been building expertise in the market for fifteen years. Currently President and CEO of PARADIGM Real Estate, Brian took a few minutes to share his expert perspective on what makes this market tick.

Xceligent data shows combined vacancy rates for the industrial market in Milwaukee have held at 4.2% from 1Q 2016 to 4Q2016. Does what you're seeing 'on the street' match with this finding?
Brian: Yes, we are back to pre-recession levels. The only reason it isn’t lower is that some new construction has come onto the market and is in the process of being absorbed.  It is common to hear brokers and buyers lamenting about lack of inventory, so to the street it may feel like even less is available. Quite a bit of the vacancy at this point constitutes larger and older buildings that require some repurposing. Nonetheless, this is still an attractive proposition compared to the increasing costs of new construction.

Another marketplace factor is that bank financing is readily available for industrial users (buyers). Much of the vacant space tends to be in properties for lease, where a sale is not possible.  As interest rates rise and users become more frustrated with inventory, the pendulum should swing towards leasing again.

Talk a little about your most recent transaction. How long was it in the pipeline?
Brian: PARADIGM recently represented General Capital in the purchase of a 135,000sf former Sam’s Club on 76th Street near Good Hope Road in Milwaukee. The deal took about 8 months from beginning to close, and involved rezoning the property from retail to industrial. The building has been leased on a long term basis to Sellars Absorbent Materials. It is a great example of how a vacant building can be repurposed from one economic driver to another, continuing to provide employment to the local community.
What do you think the big story in 2017 will be in Milwaukee industrial property?
Brian: Milwaukee — particularly Downtown — is truly experiencing a renaissance. Every day a new construction project gets announced, so it is hard to contemplate a story that would draw more buzz than the noteworthy projects we already have in town.  With that said, I think we will see some more speculative development in the north and the west submarkets of southeastern Wisconsin where such has lacked over the last several years.

Get the latest Milwaukee industrial market numbers from Xceligent

Click here to request a free copy of Xceligent’s latest Market Report for the Milwaukee industrial market.

 

Commercial Real Estate National News Roundup For July 7, 2015

REITs cautious because of possible interest rate hikes, offices surge in some secondary markets, good news and bad news about Atlanta’s CRE, industrial property will be hot for the rest of 2015.  It’s all here at the Commercial Real Estate national news roundup for June 22, 2015.

General

Office

 

Industrial

 

Retail

 

Multifamily

Commercial Real Estate News Roundup For June 8, 2015

Multi-family drives market nationally, 65 percent increase in loan origination nationally, industrial is industrial-strength and top multifamily amenities capture the imagination – it’s all here in the Commercial Real Estate News Roundup for June 8, 2015.

General

The commercial real estate industry continues to grow at a very healthy pace, and we have been extremely active in this recovery period. Part of our growth in activity is a result of some growth initiatives we undertook a couple of years ago. We have added a significant number of professionals to our origination staff. – See more at: http://www.rejournals.com/2015/06/05/recovering-cre-market-keeping-commercial-lenders-busy/#sthash.F0SGbWwE.dpuf
The commercial real estate industry continues to grow at a very healthy pace, and we have been extremely active in this recovery period. Part of our growth in activity is a result of some growth initiatives we undertook a couple of years ago. We have added a significant number of professionals to our origination staff. – See more at: http://www.rejournals.com/2015/06/05/recovering-cre-market-keeping-commercial-lenders-busy/#sthash.F0SGbWwE.dpuf
The commercial real estate industry continues to grow at a very healthy pace, and we have been extremely active in this recovery period. Part of our growth in activity is a result of some growth initiatives we undertook a couple of years ago. We have added a significant number of professionals to our origination staff. – See more at: http://www.rejournals.com/2015/06/05/recovering-cre-market-keeping-commercial-lenders-busy/#sthash.F0SGbWwE.dpuf
commercial real estate industry continues to grow at a very healthy pace, and we have been extremely active in this recovery period. Part of our growth in activity is a result of some growth initiatives we undertook a couple of years ago. We have added a significant number of professionals to our origination staff. But some of that in – See more at: http://www.rejournals.com/2015/06/05/recovering-cre-market-keeping-commercial-lenders-busy/#sthash.F0SGbWwE.dpuf
  • How Low Oil Prices Could Benefit CRE GlobeSt.com, June 4,2015 – Low prices will affect various property segments, especially energy dependent locations over the next several years. Not all the news is great.

Office

Industrial

  • The Recession-Proof Sector, Commercial Property Executive, June 3, 2015 – Self-storage real estate investment trusts (REITs) do well in an up economy and a down economy.

Retail

ell and lease back more of its major stores, a strategy that has been employed by other major retailers.Read more at: https://www.bisnow.com/national/news/retail/investors-pressure-macys-to-sell-real-estate-46498?utm_source=CopyShare&utm_medium=Browser

ell and lease back more of its major stores, a strategy that has been employed by other major retailers.Read more at: https://www.bisnow.com/national/news/retail/investors-pressure-macys-to-sell-real-estate-46498?utm_source=CopyShare&utm_medium=Browser
  • “Perfect Storm” Driving Up Retail Assets, GlobeSt.com, June 1, 2015 – An aggressive market driven by retail that is anchored by grocery stores such as Trader Joes’s and Mariano’s is driving prices up and cap rates down per driving prices up and cap rates down whenever well-located product hits the market. (Requires registration).

 

Multifamily

  • City Needs More Multifamily Development, GlobeSt.com, June 3, 2015 – Urban Land Institute’s recent presentation in Los Angeles sites more multifamily development needed with affordable housing and creative use of densely populated spaces.
  • This Firm is Winning Emerging Multifamily Markets, GlobeSt.com, June 3, 2015 – Indoor-outdoor space, rooftop decks, pet-friendly amenities top the list among the elements desirable in apartment development during “Multifamily Momentum” panel at RealShare San Diego.

Commerical Real Estate News Roundup For May 13, 2015

Crowdfunding continues to catch on, mall re-designs may be a new national trend, CRE investor dollars are targeting the Midwest, industrial development booms.  It’s all here in the Commercial Real Estate roundup for May 11, 2015.

It’s all here in the latest Commercial Real Estate News Roundup for January 14, 2015. – See more at: http://www.investmentpropertyofcharleston.com/2015/01/14/commercial-real-estate-news-roundup-for-january-14-2015-3/#sthash.6CoSTKPI.dpuf

General

 

Office

 

Industrial

Retail


Multifamily

 

Hotel

 

CCIMs: Getting Busy With Industrial Deals

The 2Q14 CCIM Quarterly Market Trends Report has “dropped,” as the kids say.  What’s in the fine print? Growth. The second quarter of this year has extended a strong national trend in increased dealmaking for industrial real estate.  The businesses of making and moving stuff — manufacturing, logistics, warehousing — are lending strength to markets in associated properties, with 82 percent of CCIM members reporting they had received more serious inquiries from buyers over the same time period last year.

Industrial transaction activity jumped for 70 percent of CCIM Institute members who responded to a May/June 2014 transaction survey. Members of the CCIM Institute, a global commercial real estate affiliate of the National Association of Realtors, also experienced positive overall transaction and investment activity in the second quarter, according to the organization’s Quarterly Market Trends report. Approximately 54 percent of CCIM respondents reported greater overall deal flow than the same period last year and 66 percent reported more inquiries from serious buyers year over year in 2Q14. 

[…]

Industrial asset prices were higher for 52 percent of respondents and remained flat for 40 percent of members. Capitalization rates for industrial properties held steady for 60 percent of members; 32 percent said cap rates declined YOY. Industrial investments also registered highest on the investment value vs. price scale, coming in at 3.2 percent on a scale of 1 to 5 (with 1 being lowest and 5 being highest). 

Industrial isn’t the only sector that has enjoyed year-over-year growth, with retail, office, multi-family and hotel also posting gains.

Read the entire 2Q2014 CCIM Quarterly Market Trends report here.

 

 

Fed: Industrial Production, Capacity Utilization Up

Marked as a “leading economic indicator” in the Federal Reserve Board’s repository of statistical data, the central bank’s report on Industrial Production And Capacity Utilization sticks out amongst the reams of statistics pumped regularly out by the Fed.

It’s little wonder this report is given the spotlight, since counting the national number of items produced (and the capacity to produce them) results in numbers that speak volumes about the current and potential economic health of the country.

More stuff, goes the theory, means more demand, both for the stuff and for the space and infrastructure to move, warehouse and sell the stuff. And of course it’s the job of the industrial commercial property sector to match that demand for that space with supply. As far as Fed utterances go, industrial REALTORS® might not have a more important national report to review than good old G.17 Industrial Production And Capacity Utilization.

Industrial Production: 2007 As Benchmark

As a nod to the peak before the valley of the recession, categories in the industrial production report are expressed as percentages of that 2007 peak.  So, 100=(2007 levels).  Numbers north of 100 mean numbers in excess of 2007 levels and of course numbers south mean a shortfall.

Federal Reserve: Industrial Production And Capacity Utilization

(Click for full-size chart.  Download full report PDF here.)

“Industrial production increased 0.3 percent in December after having risen 1.0 percent in November when production rebounded in the industries that had been negatively affected by Hurricane Sandy in late October. For the fourth quarter as a whole, total industrial production moved up at an annual rate of 1.0 percent. Manufacturing output advanced 0.8 percent in December following a gain of 1.3 percent in November; production edged up at an annual rate of 0.2 percent in the fourth quarter. The output at mines rose 0.6 percent in December, and the output of utilities fell 4.8 percent as unseasonably warm weather held down the demand for heating. At 98.1 percent of its 2007 average, total industrial production in December was 2.2 percent above its year-earlier level. Capacity utilization for total industry moved up 0.1 percentage point to 78.8 percent, a rate 1.5 percentage points below its long-run (1972–2011) average.”

The manufacture of more stuff, and the accompanying upward pressure on industrial capacity utilization means heightened national demand for industrial property.