February 2024 Midwest Real Estate News

Becoming an EV player? Gotion’s $137 million purchase of former Kmart warehouse a big win for Illinois’ electric vehicle plans Page 10

Midloch’s view: Expect a stronger year for multifamily sales in the Midwest throughout 2024

With offices in Chicago, Milwaukee and the Minneapolis suburb of Eden Prairie, Midloch Investment Partners understands the multifamily market across the Midwest. And what do Midloch investment pros expect to see in this sector throughout the rest of 2024? A better year for investment sales and another strong year for leasing demand.

We spoke with Tim Donovan, managing director of Midloch Investment Partners, about the resilience of this sector and why he expects to see more multifamily sales in his favored Midwest markets this year.

Here is what he had to say.

A jump in sales activity

Donovan says that once the Federal Reserve Board late last year indicated that it was done increasing its benchmark interest rate, it immediately boosted the odds that the multifamily sector would see increased sales activity in 2024.

Donovan said that an environment of stable interest rates should inspire more investors to purchase multifamily assets this year. But as far as interest-rate cuts go? Donovan said that he’s not entirely certain that the Fed will deliver as many cuts as some in the commercial real estate industry expect.

“The sentiment is that 2024 will be a better year with increased transaction activity compared to 2023,” Donovan said. “Of course, we are starting with a bit of a low point with 2023. A lot of people are expecting multiple interest-rate cuts this year, maybe as early as late spring. We are more cautious and not overly optimistic that we’ll see cuts. But we do think the fact that rates won’t be going up will result in more multifamily sales.”

There’s another important factor in play, too, the high number of multifamily loans maturing in 2024. Donovan said that roughly 20% of outstanding commercial real estate mortgages are set to mature this year, a number that’s so high partly because lenders granted so many extensions in 2023. MULTIFAMILY

MILWAUKEE

Milwaukee CRE market poised for a rebound year in 2024? Signs are pointing to it

As in all major Midwest markets, Milwaukee’s commercial real estate sector faced plenty of challenges in 2023. High interest rates led the way, slowing commercial sales and development. The city’s office market continued to struggle thanks to the number of employees who are still working from home. Then there were the struggles contractors faced with high materials costs and a tight labor market.

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Midloch’s view: Expect a stronger year for multifamily sales in the Midwest throughout 2024: Midloch Investment Partners understands the multifamily market across the Midwest. And what do Midloch investment pros expect to see in this sector throughout the rest of 2024? A better year for investment sales and another strong year for leasing demand.

More commercial sales, steady leasing activity in Milwaukee’s CRE market this year?: As in all major Midwest markets, Milwaukee’s commercial real estate sector faced plenty of challenges in 2023. But the future is looking brighter.

The ever-increasing demand for new apartment units in Cincinnati? A lack of single-family homes is one of the biggest drivers: One of the main reasons for Cincinnati’s strong apartment market? Marcus & Millichap points to the limited number of single-family homes for sale in the market.

Becoming an EV player? Gotion’s $137 million purchase of former Kmart warehouse a big win for Illinois’ electric vehicle plans: One of the biggest industrial sales in Illinois happened in the final month of 2023. That’s when Chinese battery maker Gotion paid $137.4 million for a former Kmart distribution warehouse south in Chicago of Manteno, Illinois.

Oxford Companies, Crawford

Hoying: Building a new gateway to Ann Arbor: A new gateway to the city. That’s how project leaders describe Arbor South, a 20-acre mixed-use development planned for the south side of Ann Arbor, Michigan.

Surprisingly resilient: Milwaukee’s CBD outperformed other office submarkets last year: The Milwaukee office market was surprisingly resilient in 2023, ending the year with positive net absorption for the first time since 2019, according to new research from JLL.

The most important tech for renters today? It’s all about high-speed Internet and work-from-home space: What do today’s renters want? They want to live in multifamily buildings equipped with high-speed Internet. And they want space that allows them to work from home, whether that space is in their units or in their building’s common spaces.

Hines’ The Residences at Clari Park more evidence that mixed-use projects remain the development type of choice: The demand from consumers for mixed-use projects continues to rise. It’s little surprise, then, that real estate development firm Hines has embraced this concept in its Clari Park development planned for Murfreesboro, Tennessee.

One type of office space that isn’t seeing soaring vacancy rates? High-rises: While demand for office space has been sluggish since the start of the COVID-19 pandemic, there is one office sector that is still seeing lower vacancy rates: high-rise buildings.

COLUMNS/DEPARTMENTS

6 Editor’s Letter

26 How WBE certification can help your business (and how it won’t)

27 How to prepare your business for an uncertain real estate market

28 Want to avoid construction project lawsuits? Here’s how to do it

29 Leveraging technology to enhance relationship building

30 Top 10 features and amenities renters in the Midwest prioritize

31 Expansion mode on: These are the fastest-growing retailers in the United States

32 News Briefs

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Tough times not lessening for office market -- in Midwest or across the country

Tough times? The U.S. office sector is still struggling through them, according to the latest research from CommercialEdge. A key measure of these struggles: The listing price of U.S. office properties continued to fall during the first weeks of 2024.

In its February National Office Report, CommercialEdge reported that the average U.S. office listing rate stood at $37.35 a square foot in January, a dip of 1.8% when compared to the same month a year earlier.

And that’s just one bit of bad news from the report. CommercialEdge also reported that the national office vacancy rate rose to 18% in January, up 130 basis points from the same month in 2023.

The office real estate sector is cur-

rently facing steep discounts in asset values due to post-pandemic effects and rising interest rates, with average property values down by at least 25%, according to the latest U.S. office market report.

The downward trend in office valuation is more pronounced in older and less ideally located buildings, CommercialEdge said. More than 20% of office properties sold since the start of 2023 have fetched lower prices than their previous sales. CBD offices have been hit the hardest by the work-from-home changes bought by the pandemic, with 35% of properties trading at a lower sale price last year.

A good example? In Washington, D.C., a 13-story building with ground-floor retail sold for $18.2 million in 2023, down 70% from its 2017 price tag of $61.8 million. At the same time, only 21% of properties sold in the suburbs

recorded a decline in value, Commercial Edge said.

Unfortunately, this doesn’t look to be a trend that will reverse itself anytime soon.

“The lack of transactional volume makes comp identification more difficult, but lower-end buildings not in prime locations are suffering and we expect that trend to only accelerate,” said Peter Kolaczynski, director with CommercialEdge, in a written statement.

What’s happening in the Midwest office market? CommercialEdge said that in the Detroit market, the average office property listed at $22 a square foot in January, which is actually up 1.90% from the same month a year earlier. Unfortunately, Detoit’s office sector is also dealing with a high office vacancy rate of 25.40%, up 550 basis points from a year ago.

In the Minneapolis/St. Paul market, the average office property listed for $26 a square foot in January, up 0.70% when compared to the same month a year earlier. The Twin Cities’ office vacancy rate stood at 16.90% in January, up 190 basis points from a year earlier.

In Chicago, the average office property listed for $28 a square foot in the first month of this year, down 0.30% from a year ago. The office vacancy rate in the Chicago area came in at 18.10% in January, down 130 basis points from January of 2023.

In Austin, office properties listed for an average of $41 a square foot in January, down 0.40% from a year earlier. This market’s office vacancy rate stood at 22% in January, up 290 basis points from 12 months ago.

The ever-increasing demand for new apartment units in Cincinnati? A lack of single-family homes is one of the biggest drivers

One of the main reasons for Cincinnati’s strong apartment market?

Marcus & Millichap points to the limited number of single-family homes for sale in the market.

And because potential homebuyers don’t have as many options when looking for a single-family home as 2024 begins? Marcus & Millichap predicts that demand for apartment units in Cincinnati will remain high throughout this year. And that’s good news for the multifamily brokers working this market, local apartment building owners and the developers eager to add more multifamily units to Cincinnati’s supply.

Marcus & Millichap, in its 2024 multi -

family investment forecast, said that entering the fourth quarter of 2023, the Cincinnati metropolitan area saw 23 straight months when the number of active single-family home listings were under 3,000.

And as Marcus & Millichap says, a limited supply of single-family homes is one of the main drivers for apartment demand.

At the same time, higher mortgage interest rates and home prices are also discouraging homeowners from selling their current homes and moving up to more expensive properties. This has left an even smaller number of single-family homes for first-time buyers. Because of this, many of these potential homebuyers are remaining renters for a longer period.

What does this mean for Cincinnati’s multifamily sector in 2024?

The Cincinnati real estate market is poised to maintain a tight grip

on apartment vacancy rates, with Marcus & Millchap predicting that multifamily vacancy rates will remain below 5% until the end of 2024. Despite heightened construction

activity spurred by strong suburban demand, the influx of new supply is expected to mitigate rent growth for the year, according to Marcus & Millichap’s report.

The Cincinnati area’s overall demand is expected to mean good things for the area’s apartment market, too. With steady in-migration anticipated to bring more than 20,000 new residents to the area over the next five years, coupled with consistent household formation, Marcus & Millichap expressed optimism for longterm lease-up support. However, areas like Butler County and Southeast Cincinnati might experience the most significant impact from increased construction.

The metro area’s average effective rent is anticipated to surge nearly 40% above the 2019 year-end mean by December of this year. Low entry costs and favorable suburban rental conditions continue to attract investors, particularly those interested in close-in, suburban properties.

Investors have shown a preference for neighborhoods surrounding downtown Cincinnati, such as Westwood, Norwood, Avondale and

Walnut Hills. Meanwhile, current property owners in the metro area are eyeing opportunities to capitalize on price appreciation in 2024.

Cincinnati witnessed the fastest increase in mean price-per-unit among major Midwest metros last year, with this figure jumping by 15%. Despite this surge, the region still maintains one of the lowest entry costs, potentially attracting out-of-market investors from nearby regions.

Other predictions? Marcus & Millichap says that the Cincinnati market should see more than 2,000 new apartment units in 2024. This would be the sixth time since 2000 that the markets adds this many new units. This influx would increase the area’s apartment stock by 1.7%.

Marcus & Millichap also predicted that rent growth will slow this year in the Cincinnati market, with the average effective rent climbing modestly to $1,390 a month by the end of 2024.

Becoming an EV player? Gotion’s $137 million purchase of former Kmart warehouse a big win for Illinois’ electric vehicle plans

One of the biggest industrial sales in Illinois happened in the final month of 2023. That’s when Chinese battery maker Gotion paid $137.4 million for a former Kmart distribution warehouse south of Chicago in Manteno, Illinois.

Gotion has plans to transform the property into a $2 billion manufacturing facility that will make lithium batteries for electric vehicles on the site at

333 S. Spruce St. According to Gotion, the facility will create 2,600 jobs.

Transformco Properties, the real estate arm of Sears’ parent company, was the seller. Transformco in 2017 closed the Kmart warehouse that stood on the site.

How did this deal come together? Sam Durkin, managing director in industrial services for JLL, said that a bit of good fortune was involved.

Transformco had listed the Manteno property previously, but eventually took it off the market. At the time of the sale, Transformco was using the facility as a third-party logistics site when Gotion contacted the company. Gotion was considering sites in the Chicago area and was interested in Transformco’s property.

That bit of serendipity is rare, Durkin said.

“Transformco was using the building at the time and not looking to sell,” he said. “To find an end user that needs a building of this size, one of the largest buildings in the broader Chicago industrial market, is not easy. Finding a user of this size that would need every square foot of a building like this is extremely rare. Gotion thought it would be a perfect fit.”

Gotion was also considering a large facility in the Joliet market, Durkin said.

But the battery maker decided that the positives of the Manteno site were too difficult to pass up.

“They saw value in the large campus,” Durkin said. “Even though it is from 1990, it is a well-built functional building. There is infrastructure that they can re-use. When they compared it to the other asset, this one made more sense.”

It helped, too, that the state of Illinois kicked in financial incentives worth $536 million to help bring Gotion to

“Even though it is from 1990, it is a well-built functional building. There is infrastructure that they can re-use. When they compared it to the other asset, this one made more sense.”

the area. One of Gov. J.B. Pritzker’s priorities is to make Illinois a key player in the electric vehicle manufacturing market.

Durkin said that the strong labor market based in Kankakee County and the Joliet area was another positive for Gotion.

“You had an existing building here,” Durkin said. “Gotion didn’t have the time to create a new facility. That wasn’t an option for them. Obviously, taxes are cheaper in Kankakee County

than they are in Cook and the other collar counties, too.”

Durkin said that the electric vehicle industry is an unusual one because it is growing so large so quickly. This means that end users can’t always wait for a facility designed specifically for them. Instead, they often need to find an existing building that can meet their day-one operational needs while providing space for future expansion and growth, Durkin said.

While the Transformco-Gotion deal

ranked as one of the largest industrial sales in the Chicago market during the last several years, don’t expect it to be a rarity. Durkin said that Illinois, like most other states, is working to attract more companies working in the elective vehicle space. And these companies will need large industrial facilities in which to base their operations.

“This is definitely something that is going to continue,” Durkin said. “We are going to continue to see other projects in this space come in behind this one.”

Oxford Companies, Crawford Hoying: Building a new gateway to Ann Arbor

Anew gateway to the city. That’s how leaders with real estate services company Oxford Companies and real estate development and management company Crawford Hoying describe Arbor South, a 20-acre mixed-use development planned for the south side of Ann Arbor, Michigan.

When it is completed, Arbor South will feature a mix of retail, restaurant and entertainment venues along with public green spaces.

The project, to be developed in phases, is expected to include about 1,000 residential units, 76,000 square feet of ground-floor commercial space, three parking garages, an upscale hotel and multiple parks and community gathering spaces.

The development will rise from Eisenhower Parkway and South Street in Ann Arbor, adjacent to Interstate-94.

Jeff Hauptman, chief executive officer of Ann Arbor-based Oxford Companies, said that his company has been working on the concept for what has become Arbor South for five years. Teaming up with Crawford Hoying helped push the project to the point where he is now

comfortable presenting the plans for the development before the Ann Arbor City Planning Commission this summer.

The project is especially meaningful to Hauptman because the land on which it will rise sits right outside the headquarters building of Oxford Companies. Today, that land is just a surface parking lot.

“Ann Arbor is not different from most cities in the country where there is a strong demand for housing,” Hauptman said. “It’s hard not to look at a field of asphalt and not envision something bigger. It doesn’t just have to be parking. You can do so much more.”

If all goes according to plan, Arbor South will be the first project on Ann Arbor’s south side to earn approval under the City of Ann Arbor’s new TC1 zoning ordinance. The goal of this ordinance is to increase density in areas outside of Ann Arbor, with a focus on adding new housing to the market.

Arbor South’s residences will range from studios to three-bedroom apartments. About 10% to 15% of the units will fall under the city’s affordable-housing threshold.

“If we could rebuild downtown Ann

Arbor, development like this is what we would want,” Hauptman said. “This project is not auto-centric. It’s about creating a healthier environment for pedestrians. Our market is all about cars now. There has not been a lot of thought to how we can make it easier for people who want to walk around the city. We’ve made it very easy for people to get in their cars, go to work, drive home and never interact with each other. This project isn’t about that. It’s about showing people that there is more to the world than jumping into their car.”

Russ Hunter, executive vice president of design and development for Dublin, Ohio-based Crawford Hoying, worked hard to design Arbor South so that it will encourage residents to walk to shops, restaurants and green spaces.

This means that Hunter focused not only on the buildings that will make up Arbor South, but on the public spaces surrounding them, too.

“Buildings are important. But the space between them is more important,” Hunter said. “The space that people inhabit means so much. It’s the streets and public parks where community is built. We have taken great pains to make sure Arbor South will feature public spaces for everyone.”

And this space is designed to be used in multiple ways, Hunter said. One day, a green space might host a farmer’s market. Other days residents might use it for tailgating or attending outdoor concerts.

Also important to the design of Arbor South is the mix of residential, office, restaurants and entertainment centers. Hunter says the goal is to create an 18-hour daily window when residents and workers are active at the development. This makes it easier for retailers and restaurant owners to survive.

Hauptman said the goal is for Oxford Companies to appear before the Ann Arbor City Planning Commission this summer. Then he hopes that construction crews can begin sitework in the fall of this year with vertical work beginning in early 2025. This would mean that the first buildings of Arbor South would come online in the middle of 2026.

Additional development partners on the project include Detroit-based architecture and design firm Lord Aeck Sargent and Ann Arbor-based Midwestern Consulting for civil engineering.

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MILWAUKEE

But 2023 is in the rearview mirror. What will 2024 hold? Richard Donner, shareholder with Milwaukee-based law firm Reinhart Boerner Van Deuren, told Midwest Real Estate News that he expects a stronger commercial real estate market in the Milwaukee area this year.

Donner said that he is optimistic that commercial sales activity will increase and that leasing demand for most commercial property types will remain steady, too.

Here is some of what Donner had to say about the state of the Milwaukee area’s commercial real estate sector.

Now that the Federal Reserve Board has stopped hiking its benchmark interest rate, do you expect commercial real estate sales in the Milwaukee market to increase?

Richard Donner: A lot of deals were waiting on interest rates. The day (Chairman of the Federal Reserve Board) Jerome Powell talked about no longer increasing the interest rates, I started getting calls from people I had not heard from in a while. There has been a lot of money on the sidelines waiting for those interest rate hikes to

stop.

We have a pretty solid market in Milwaukee. Unemployment is low. In general, there has been a growing sense of confidence that we have gotten through the worst of it and rates will not spike again. There is more confidence that rates might even come down.

There was optimism that rates would come down in the third or fourth quarter of 2023. Obviously, that didn’t pan out. But more people ae confident that rates might come down in the third or fourth quarter of this year.

Will CRE sales activity increase this year in Milwaukee?

Donner: That depends. Some real estate sectors are still struggling now, office being the main one. The nice thing about the Midwest, though, is that we tend not to have the highs and lows that the coasts have. While the office market is certainly in a down cycle in Milwaukee, it is not suffering as much as it is in markets like San Francisco or New York City.

We still have the work-from-home movement here, but it is not as prevalent as it is in some markets. There is still quite a bit of value in a city the size of Milwaukee. I do think we will see more sales this year.

Commercial sales have been down drastically because of the higher interest rates. Unlike during the pandemic or other financial downturns, the interest rates today aren’t low when compared to recent history. That has turned off transactions.

Historically, though, interest rates aren’t overly high, right?

Donner: Everyone has a short memory in commercial real estate. The recent commercial market has been living on these lower interest rates, really made them part of their business plan. That makes the higher rates of today especially difficult. Even though historically rates are not high, they feel high when

compared to what we saw in 2021 and 2022.

As you said earlier, certain commercial sectors are stronger than others and should see more sales activity in 2024. Are multifamily and industrial still the strong performers?

Donner: Industrial appears pretty strong. And from what I am seeing from my limited perspective, it does look like it will continue to be strong in 2024, especially in the Southeast Wisconsin area. There isn’t as much new product coming online now, so that should boost demand.

When it comes to multifamily, Southeast Wisconsin needs quite a bit more workforce and affordable housing, where people can live and work in the areas around where they are building these new industrial spaces. My multifamily clients are building again throughout the region. They had slowed down a bit in 2023, but they are moving forward again. There is still demand for apartment units.

What makes the Milwaukee area such a good location for companies looking for headquarters space, expansions or warehouse space?

Donner: The quality of life here is very high. That helps companies attract tal-

MILWAUKEE

ent. At the same time, the cost of living is relatively low. It’s easier to get around here, too, than it is in a lot of other areas. Population-wise and size-wise in both the downtown and suburban areas, Milwaukee is the perfect size. You can move product and move your employees around relatively easily.

We are seeing now that a lot of the buyers who are targeting multifamily in our market are coming from out of state. They recognize the benefits of investing in the Milwaukee area. That bodes well for the future here.

Are there any positive signs in the Milwaukee office sector?

Donner: We are seeing a flight to quality. The newer or refurbished space is being leased today. Some of the older space will be converted to different uses. There is remote work here, of course. But there is still a need and demand for office space.

My impression is that both urban and suburban office properties are similarly challenged today. I am not seeing one doing better than the other. My guess would be that both are similarly

experiencing the same contraction or negative absorption.

Do you expect to see much new commercial construction in Milwaukee during 2024?

Donner: There will be a lot going online if interest rates do come down. The third and fourth quarters could be busy. Milwaukee has already experienced a lot of growth during the last 20 years. We are a much more sophis-

ticated market. With the Republican National Convention coming this summer, we expect to see a lot of attention paid to Milwaukee this year.

As Donovan says, nearly $930 billion of commercial real estate mortgages are set to mature this year, many of them originated in a very different interest-rate environment.

“In prior years, you could see neutral or cash-out refinances,” Donovan said. “In this environment, borrowers often need to bring additional capital to the transaction to close a refinance. Others are being forced to sell properties sooner than they anticipated for prices lower than they were originally hoping to sell at.”

A shrinking gulf between buyers and sellers?

One reason for such a shortage of multifamily sales last year? Buyers and sellers often didn’t agree on the appropriate prices for apartment properties.

Has the gap between buyers and sellers closed yet? Partly, Donovan says.

“For people who are not stuck between a rock and a hard place or people who are voluntary sellers, I would tell you

that the gap has shrunk in the first few weeks of this year,” Donovan said. “We ae starting see that buyer demand has picked up again to the point where some are willing to pay higher prices for multifamily properties. But at the same time, sellers’ expectations have begun to step up a little bit more, too, so we’ll have to see if that gap between buyers and sellers starts to widen again.”

Solid leasing activity

Demand for apartment units from renters remained high in 2023. This was

partly because higher mortgage interest rates made it more difficult for potential homebuyers to afford a mortgage loan.

These potential buyers, then, chose to rent an apartment instead of purchasing a single-family home.

But what about in 2024? Will leasing activity remain high in the multifamily sector?

Donovan said it will, especially in certain markets. Donovan said that he has seen a slowdown in leasing activity in certain overbuilt Sunbelt markets. But demand for apartment space from renters remains consistently strong in the Midwest, he said.

“Certain Sunbelt markets are struggling with excess amounts of supply,” Donovan said. “Some Midwest markets, though, have seen a more fixed stream of new units. A lot of markets in the Midwest have a healthier balance of supply and demand. That helps keep occupancy and rents more stable.”

Why are so many people renting today?

Donovan said that two groups of people are boosting the demand for apartment

units today, renters by necessity and those who because of the work-fromhome movement now have more flexibility on where they must live.

Donovan said that high interest rates have made mortgages less affordable for many people who would prefer to own but instead have chosen to rent until these rates fall.

High housing prices are also pushing more potential buyers into the renter-by-necessity category. There’s a shortage of single-family homes on the market, too, which is helping to keep housing prices too high for many potential buyers.

“A lot of people can’t afford not only the down payment but also the ongoing mortgage payments and taxes, insurance and maintenance of owning a home,” Donovan said.

The second group of people providing a boost to the apartment market are those who can work from home, even those who can work remotely on a parttime basis. These people now can work in locations that might otherwise have been too far for a daily commute.

“People are prioritizing flexibility. They don’t mind moving from one city to another. It’s easier to do that if you rent instead of own. People who are renters by choice are renting later into their lives. A lot of that has to do with them having jobs with more flexibility.”

“There is a whole new group of individuals who have more flexibility in terms of the location from which they work,” Donovan said. “People are prioritizing flexibility. They don’t mind moving from one city to another. It’s easier to do that if you rent instead of own. People who are renters by choice are renting later into their lives. A lot of that has to do with them having jobs with more flexibility.”

Suburban or urban?

And what about where renters are living? Are more choosing to rent in the urban centers of their cities or are they instead choosing the larger spaces and quiet of the suburbs?

Donovan said that the answer is both market- and individual-dependent. Simply put, some renters prefer the

larger spaces and amenities that you might find in suburban apartment projects. Others want to live in cities in which they can walk to public transportation, restaurants and theaters.

“It’s an interesting give and take,” Donovan said. “Younger people put more value on access to bars, restaurants and entertainment. They

might put more value on their time and want to be in close proximity with their job if they still work in the office. At the same time, there are forces in the other direction. Some renters prioritize the extra space that you can get in the suburbs because they are spending more time at home than they have in prior years. There are drivers for both urban and suburban living.”

2,540

Surprisingly resilient: Milwaukee’s CBD outperformed other office submarkets last year

The Milwaukee office market was surprisingly resilient in 2023, ending the year with positive net absorption for the first time since 2019, according to new research from JLL.

But 2024? JLL says that economic headwinds remain and might make it challenging for the sector to repeat that performance this year.

JLL in its fourth quarter 2023 Milwaukee office report, said that the Milwaukee office market saw 31,890 square feet of net absorption last year. Unfortunately, the positive absorption didn’t help the market’s vacancy rate: The Milwaukee-area office sector started the year with a high vacancy rate of 23.2%.

According to JLL’s report, Milwaukee’s CBD outperformed suburban areas. JLL said that the central business district saw more than 180,000 square feet of net absorption of office space in 2023.

This resilient performance continued in the third quarter, with the Marcus Corp. leasing more than 50,000 square feet of office space at the Associated Bank River Center and U.S. Citizenship and Immigration Services leasing more than 20,000 square feet at 310 W. Wisconsin.

How strong was the CBD compared to other Milwaukee submarkets? JLL said that the CBD accounted for nearly 70% of all office leasing activity in the Milwaukee area last year.

Part of this can be attributed to size. As

JLL reported, the average lease size in the CBD came in at more than 23,000 square feet last year. The average office lease size was just under 10,000 square feet in suburban submarkets.

Sales activity was down last year in the Milwaukee office sector. This should not come as a surprise: Higher interest rates slowed transactions in all sectors in 2023. Add in the struggles that the office sector faces because of the work-from-home movement, and it’s not shocking that investors weren’t buying as many office properties last year.

A slow year on the transaction side, though, ended with a relatively large deal in the Milwaukee market, as Woodside Capital Partners purchased One & Two Riverwood Place. The

two-building 205,646-square-foot office campus sold for just more than $57 a square foot. The property was nearly 70% occupied at the time of the sale.

What to expect in 2024? JLL said that it expects a similar year from Milwaukee’s office market. As JLL says, the office sector still faces economic headwinds and plenty of uncertainty. It’s certain that many tenants will continue to reevaluate their office space needs, with many electing to reduce their footprints in 2024.

JLL predicts that tenants will continue to prioritize high-quality amenity-rich office space and that Class-A office leasing will continue to outpace Class-B space.

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The most important tech for renters today?

It’s all about high-speed Internet and workfrom-home space

What do today’s renters want? They want to live in multifamily buildings equipped with high-speed Internet. And they want space that allows them to work from home, whether that space is in their units or in their building’s common spaces.

Dan Melton knows this. He is vice president of technology for Farmington Hills, Michigan-based Village Green, one of the country’s busier multifamily lease-up and property management companies.

And he says that this trend isn’t going to slow anytime soon. After all, a growing number of renters continue to work from home at least on a parttime basis. Because of this, they need fast and reliable online connections. They also need enough space to set up a home office.

Village Green manages more than 40,000 apartment homes within 50 cities. It made sense, then, to speak with Melton about the changes he is seeing within the multifamily sector, from the technology that clients and apartment owners want today to the economic and social changes that are driving more people to renting.

Here is some of what he had to say.

You’re obviously focused on technology in your role at Village Green. With that being said, what kind of tech are renters and multifamily property owners looking for today?

Dan Melton: If anyone tells you that the technology that is most important in the multifamily market stays consistent across the board and never changes, that would be a fabrication. It is constantly evolving.

But there are some trends that we are seeing today. For instance, renters are focused on ease-of-use. When renters are looking for new homes, they want to find them easily. They want to go online, put a couple of things into Google and have Google tell them exactly where those properties are. So our building owners need to make it easy for renters to tour their properties and get answers to any questions that they might have. That means AI technology. It might mean chatbots that prospective renters can interact with. These are important today.

The second thing that is important has to do with the many people who are working from home. Whether these renters want to work from home in their units or in a coworking space in their building’s common areas, they need the technology to support it. Our building owners, then, are offering fast high-speed Internet service to give

their renters that ability to be flexible in where they work. They don’t have to worry about having an office upstairs in their units. They can instead connect to broadband Internet in their buildings’ common spaces.

Last, but not least, this is an Amazon world. Renters want to do everything online. They want to put in a work order and pay their rent online. They want everything in an online one-stop shop. If their sink is dripping, they want to be able to put in a work order online through an app. If they want to pay their rent, they want to do it online.

Is that last part a trend that you think will gain strength?

Melton: Definitely. We want to put everything that our renters might need online. And not just online. It has to be mobile. We know that at least 95% of our renters have a cell phone with cel-

lular data. They can put in a work order from wherever they are using an app.

Some of our renters do want to call their property manager when they have problems. They like that human interaction. But some don’t want that at all. A good portion of our communities out there are filled with renters who would rather not bother talking to the staff on site. They want to get their work orders filed right away without picking up the phone.

What about security? Is there any tech that renters or building owners are looking for when it comes to boosting security in multifamily buildings?

Melton: We were just on a call this morning with a third-party partner looking for the right security solution for self-guided apartment tours. The security concerns we see from renters and property owners focus on who has access to the building, whether a potential renter taking a self-guided tour or a vendor in the building to do repairs or updates. The biggest question is how do you validate that this person should be there? How do we know who they are?

Consider a potential renter who wants to take a self-guided tour of an apartment property. That person might schedule a tour for Sunday at 7:30 at night. The staff won’t be there at that time. So maybe that potential renter takes a photo ID and a photo of their face. That validates them. We might also run a quick penny test on their credit card to help verify they are who they say they are. They are then approved and gain access to the building.

Security, then, isn’t just about a deadbolt and lock. It is about who is coming into the building.

Speaking of self-guided property tours, I know they gained popularity during the earliest days of COVID. Is that something potential renters still want?

Melton: It’s a mixed bag right now. We get people who enjoy the convenience of scheduling a self-guided tour. We also see good conversion rates from self-guided tours. We are converting almost 65% of the people who take self-guided tours into renters. For in-person tours, we are satisfied if we convert 40% of the people who tour a property.

The people who like self-guided tours don’t want to have the person with the sales pitch along with them on the tour. Or maybe they want to do a tour in their off-hours, when staff won’t be available. The people who like self-guided tours like the flexibility that comes with them.

A lot of the people who do self-guided tours have already seen the buildings they are touring online and have already decided that they like what they’ve seen. The self-guided tour is like the icing on the cake, the final piece before they decide to rent a space.

How important is technology like high-speed Internet for renters today?

Melton: When you look at physical amenities, the on-site fitness center is great to have. Renters can save money on gym memberships. But having highspeed Internet in a building, the ability for prospective renters to find a home that is accommodating to their current profession or will allow them to jump into a new profession, is extremely important today.

So many people need to have highspeed Internet. That has almost become the number-one must-have amenity at the properties that we manage. People want the ability to work from home and the ability to connect to the Internet at high speed, both in common areas and in their apartment units.

Are building owners making sure, then, that high-speed Internet access is included in their newly developed properties?

Melton: Absolutely. The research has been done. And in some of the older

properties that we manage, those built in the ‘60s or ‘70s, we are seeing owners retrofitting. They might repurpose space to make it more conducive to people who want to work from home. They are adding high-speed Internet. With new properties, high-speed Internet is the number-one or number-two priority.

Are you seeing more people make the decision to rent rather than purchase a single-family home today?

Melton: Higher interest rates and home costs have had an impact on the rental market. More people want to and need to stay in their apartments for a bit longer today. They need to save up more money to get ready to buy a home. Interest rates aren’t attractive enough that they feel they must jump on buying a single-family home now. It’s the same thing with home prices. If they continue to rent, they can save more money. Our average renter used to stay about two years in the properties we manage. Now we are seeing them stay three or four years.

We are also seeing more demand for build-to-rent homes. They look like

MULTIFAMILY

traditional single-family homes. They feel like neighborhood homes. But they are rentals. We manage some of these around the Twin Cities. They mimic the experience of owning a single-family home. They have a front yard and an attached garage. But you are renting. They also typically have some sort of community space. It gives you the best of both worlds: the space, the garage and the amenities of an apartment. And you are not locked into a mortgage or high interest rate. You can renew if you want.

These do tend to be located in the suburbs. There was a time when people really wanted to live in the downtown urban cores. But we’ve seen a little shift in that since 2020 and COVID. Now people want to get out to the suburbs. Many people have no need to live downtown. They might be working two days a week in the office and three days from home. They can live in the suburbs and get more space without worrying about commuting every day. We are still seeing the residual impact of this, increasing the demand for rental units in the suburbs.

Hines’ The Residences at Clari Park more evidence that mixed-use projects remain the development type of choice

The demand from consumers for mixed-use projects continues to rise. Projects that combine residential, retail, entertainment, office and hospitality are thriving across the Midwest. It’s little surprise, then, that real estate development firm Hines has embraced this concept in its Clari Park development planned for Murfreesboro, Tennessee.

Hines has acquired an 11.4-acre land parcel at 2600 Roby Corlew Lane in Murfreesboro for Clari Park. As part of the development’s first phase, Hines has begun construction on a Class-A 300-unit multifamily community, The Residences at Clari Park.

Located in the heart of the larger Hines Clari Park master-planned community, the property will offer future residents a walkable suburban experience in the core of Murfreesboro’s commercial and entertainment Gateway District adjacent to The Avenue Murfreesboro,

an existing 800,000-square-foot super-regional lifestyle center.

The Residences of Clari Park will include a state-of-the-art fitness center, two-story club space, grand lawn for social events and outdoor games, performance area, seating nooks and a link to Clari Park’s linear park system. The multifamily community will also feature a resort-style pool with cabanas and grill stations; a Zen Garden featuring a yoga lawn, reading nooks and fire pits; and a community dog park.

The overall Clari Park master plan will also include luxury for-sale housing and restaurant and entertainment offerings. Such retailers include Firebirds Wood Fired Grill, Main Event, P.F. Chang’s and Drake’s.

We spoke with Kevin Jund, director at Hines, about this new project and why this was the right time to bring it to fruition.

Why was this the right location for Clari Park?

Kevin Jund: The Nashville region as a whole has seen a major growth spurt since 2010. Murfreesboro which is located just 25 minutes southeast of downtown Nashville, has experienced significant in-migration in the last several years in accordance with broader migration trends toward the suburbs.

Murfreesboro has Rutherford County’s best schools, retail options, parks and healthcare. It’s also located along a growing employment corridor that includes Middle Tennessee State University, a substantial driver of population and job growth in the area. The robust demand for housing in and around Nashville, coupled with Clari Park’s strategic location, will accommodate residents looking for convenient and walkable suburban living while still being centrally located with access to Nashville’s major employment nodes.

What impact will this mixed-use development have on the area? What benefits will it bring?

Jund: Clari Park, in tandem with The Avenue, the adjacent 800,000-squarefoot super-regional lifestyle center, offers an inherent amenity base for residents with more than 110 retail storefronts, restaurants and other services within just a 10-minute walk, accommodating local demand for a walkable suburban community in a prime location. Clari Park’s suite of amenities, convenient access to employment centers and sense of community will offer residents a distinct experience unlike anything else in Murfreesboro.

The project’s buildings are designed to evoke different atmospheres throughout their courtyard spaces, creating opportunities for spontaneous interaction between residents. Additionally, its residential units are carefully designed to respond to consumer prefer-

ences, including elements like double vanities in restrooms, continuous luxury plank flooring throughout units, wine fridges, strategically designed kitchen islands that orient towards living areas, work-from-home spaces and a campus-wide Wi-Fi system to drive both demand and efficiency. Coworking spaces and rentable office suites will help create a more diverse mixed-use environment on the ground plane.

Why is the demand for mixed-use developments so strong today? Why do they appeal to both developers and consumers?

Jund: Consumers are looking for easy access to storefronts, dining and other amenities without having to hop in a car every day. These mixeduse destinations offer a little bit of everything and can add time back to people’s busy lives while helping them reconnect with their neighbors and the community in person, something that we believe we are all craving more of these days.

In addition, we are seeing a large demographic shift led by aging millennials entering the next chapter of their lives and moving out to the suburbs in search of more space, affordability and quality schools. However, even though they are leaving the urban core, they still want the convenience of the mixed-use environment from which they came. Suburban mixed-use communities like Clari Park provide just that.

Mixed-use destinations don’t nec-

essarily appeal to all developers, as a company undertaking one of these developments must have expertise across multiple asset classes to successfully pull it off. Hines is especially qualified to create developments like Clari Park because we have expertise across a wide range of asset classes, and understand the challenges associated with bringing different elements together to create transformative communities for the cities in which we invest.

Did the environment of higher interest rates in 2023 slow the plans for Clari Park? If so, how is Hines working around this challenge?

Jund: Last year’s market environment created unique challenges in the industry, and as one of the largest privately held real estate investors and managers in the world, Hines was able to deftly navigate these challenges to move the project forward. We are finding that in today’s environment, those projects that have a compelling investment thesis, strong sponsorship, a market-defining aim and a unique story to tell are the ones getting capitalized.

What other challenges has Hines overcome to get to this point in the project?

Jund: Like many larger mixed-use projects, Clari Park has had to overcome its share of hurdles to reach groundbreaking. Aside from the complexities of navigating through a more restrictive capital markets environment, the project, along with the greater Clari Park development it is a part of, had to be completely rezoned to ensure that

the right set of land uses could be developed to form a cohesive mixed-use community.

Projects that need this initial work require more upfront capital and carry more risk than those that are shovel

ready. This means that investors and sponsors must have even more conviction in the thesis for these types of investments to move forward. We have that conviction at Clari Park and are grateful for the opportunity to move this project forward.

One type of office space that isn’t seeing soaring vacancy rates? High-rises

While demand for office space has been sluggish since the start of the COVID19 pandemic, there is one office sector that is still seeing lower vacancy rates: high-rise buildings.

New research from JLL suggests that vacancy rates will remain low in the country’s high-rise office spaces, largely because the development of new office space in general, and high-rise buildings in particular, will slow during the next several years.

According to JLL, while office space

nationally had a vacancy rate of more than 20% as of December of 2023, office suites on floors 20 and above in high-rise buildings had a vacancy rate of just 12.4%, when excluding figures in New York City.

Signature high-rise buildings across the country also boast low office vacancy rates. JLL reported that the Empire State Building in New York City was 90.2% occupied as of December of last year while the Willis Tower in Chicago was 87% occupied. That Willis Tower figure is especially impressive considering that the overall office vacancy rate in the Chicago market was higher than

20% in December.

Jacob Rowden, JLL research manager, says that one of the reasons for the lower vacancy rates is that many highrise buildings are built in what he calls “ultra-core” locations.

He pointed to One Vanderbilt in New York City as an example. This 93-story skyscraper is located right across from Grand Central Terminal, making the building a desirable location for companies hoping to make it easier for commuters to reach their offices.

Taller buildings, because they rise so

much higher than their neighbors, also offer better natural light on their upper floors, something that companies increasingly strive to offer to their employees, Rowden said.

“These are rare assets,” Rowden said. “Only about 1% of our office space sits on the 40th floor or above. When you talk about those top-level penthouse suites in the highest buildings, those are even rarer. A lot of tenants are interested in that. There is very limited space of that kind available.”

Larger buildings also taper as they rise higher. This means that there isn’t as

much room for office space available on these buildings’ upper floors. That also limits the amount of top-floor office space available, helping to increase the demand for it.

At the same time, tenants have been more interested in smaller floor plates since the start of the pandemic. That, too, has boosted demand for the smaller office spaces typically offered on the higher floors of office buildings.

Don’t expect demand for high-rise office space to lessen in the future, either.

“We definitely see tenants that are interested in the architectural significance of these buildings.

Being in an iconic building carries a level of prominence that can elevate their brand.”

JLL says that there simply aren’t enough new high-rise spaces on the way. Of the 253 office buildings that remain under construction nationally, just 12 are planned to rise 30 stories or higher. At least six of those buildings have fully pre-leased their high-rise floors, according to JLL.

“The pipeline for super-tall buildings is very thin in most markets,” Rowden said. “Outside of Miami or Austin, we don’t expect to see the construction of any tallest buildings in any markets for a while.”

As Rowden says, since the pandemic, the demand for new office construction has fallen, and tall buildings represent the largest and most challenging office projects of all.

“These buildings are costly, difficult to propose, difficult to find financing for and challenging to build in this environment,” he said.

Don’t underestimate the power of brand names, either. Many high-rise office buildings rank among the most prominent and well-known office spac-

es in their cities. Rowden said that many tenants seek out that name recognition, often using it as a way to entice and retain top employees.

“We definitely see tenants that are interested in the architectural significance of these buildings,” Rowden said. “Being in an iconic building carries a level of prominence that can elevate their brand from a recruiting standpoint and overall branding of their company.”

Market Position: How WBE certification can help your business (and how it won’t)

Becoming a certified woman-owned business enterprise (WBE) has many benefits—but be aware: instantly lucrative projects aided by the magic wand of the Procurement Fairy are not among them.

Certainly, in the real estate and construction industries, there are public sector and large company projects where being a woman or minority-owned business will weigh in your favor. But certification is one factor among many—and that’s the way it should be.

In my experience of 13 years as a woman business owner, certification is a nice-to-have even for our clients with sophisticated supplier diversity programs. They’re looking for expertise, experience and results first, and certification is an appreciated value-add.

So is all that paperwork and verification a waste of time and energy? I say, definitely not. But every woman business owner should make sure she’s getting certified for all the right reasons.

The right reasons to get certified

For anyone who’s unfamiliar with the program, the WBE National Council certification (WBENC) is the most prominent certification for women-owned businesses in the U.S. Once certified as being at least 51% owned by a woman or multiple women, a woman-owned business (WBE) can tap into key benefits that range from access to targeted business opportunities and visibility in corporate and government supply chains to education, networking and mentorship.

Many large real estate developments have made commitments to achieve a percentage of woman-owned and minority-owned subcontractor representation, and typically it only counts if the developers choose certified businesses.

The certification can also provide business funding via specialized grant

“WBE certification is mere table stakes. You still need to be the best at what you do. Be confident in your expertise; that confidence is what really gets the referrals and revenue flowing.”

and loan programs, increasing the likelihood that your business can achieve access to the capital it needs.

Don’t brave the red tape for the wrong reasons

Clearly, there are a lot of good reasons to get certified. I am a huge advocate for going through the process every year. That said, please save yourself some time if the following ‘don’ts’ apply to you:

1. DON’T bother if you think it will make you a shoe-in for new business prospects. Even for government agencies and big companies with strong corporate social responsibility (CSR) missions, WBE certification is mere table stakes. You still need to be the best at what you do. Be confident in your expertise; that confidence is what really gets the referrals and revenue flowing.

2. DON’T bother if you’re expecting money to start rolling in the moment you post the news on your website. Although some of our clients appreciate that we are women-owned, in 13 years in business, not a single client has ever chosen us simply because we were certified.

3. DON’T bother if you think it’s the only thing you need to do to market your company. Holding a WBE certification is a proof point, but it is one of many. It’s not your core value proposition or your strongest marketing message.

4. DON’T bother if you assume certification automatically begets capital. While some lending programs target grants or loans to women-owned businesses, your company must also prove it is financially qualified.

The game-changer: Representation is worth it.

We’ve covered the wrong reasons to seek out a WBE. But in my view, one of the right reasons is the most important of all: representation.

I am a woman and the CEO of Akrete, a non-traditional national real estate and financial services PR firm that was hybrid before hybrid was cool, largely to support the needs of working women. I’m proud to play my part in the continuing effort to elevate women in business generally—and the commercial real estate industry specifically.

We go through the annual recertification process primarily because I believe in the power of standing up and being counted as a woman business owner. I am proud to show the world that women-owned businesses can be highly ranked, results-driving successful firms. I’m proud that companies like ours can and do lead their respective fields. After all, how can your example help counteract outdated gender norms in business, paving the way for other women, unless you get certified and show off your superpower?

Yes, you’ll still have to compete for business. And yes, every WBE is different and must work hard to be the best. But every woman-owned business does something well in part because of the woman who owns it. If you agree that’s worth celebrating, then join me in getting your woman-owned business certified as the women-led powerhouse that I’m sure it is.

Margy Sweeney is the Founder and CEO of Akrete, the nation’s #3 independent public relations firm for real estate investment and development and is passionate about expanding economic opportunity for women and minority-owned businesses. Based in Chicago, she leads a national team and has been in commercial real estate marketing and public relations since 1995. She is also the Chairman of the Board of Directors of SomerCor, a leading national SBA 504 certified development company based in Chicago.

How to prepare your business for an uncertain real estate market

If there’s one common theme that resonates across the real estate market from property owners and investors to developers and asset managers, it’s uncertainty.

Constant changes in the market, such as interest rates, inflation and rising operational costs, to name just a few, have the potential to negatively affect real estate businesses. With no crystal ball to illuminate a sure path, all levels of ownership are seeing changes to their investments and bottom lines.

This uncertainty applies to not only the owners but also their tenants. Changing work environments in the wake of the pandemic, an increase in automation and the rise of AI are just a few factors contributing to income shortfalls that result in late rent and lease payments.

Thankfully, uncertainty in the real estate market doesn’t have to spell misfortune.

Identifying the best approach for your business

The way in which companies are adapting to stay in good financial standing looks different for each business owner, but one thing is clear: Financial decisions made now have the potential to impact your business’s long-term financial state.

A few initial steps to take to manage risk while navigating the ever-changing state of the real estate industry include:

• Ensuring you have a comprehensive understanding of your current financial position with respect to real estate holdings, loan maturities and current interest rates.

• Communicating thoroughly, regularly and clearly with a banker who has experience working with real estate owners/investors and understands the full spectrum of market factors and solutions that can boost your success.

• Evaluating the financial position and health of any tenants you may have and assessing your revenue streams.

• Transparency with your banker regarding your short- and long-term goals and remaining open to new products and services your bank offers that may help you achieve those goals.

While many real estate companies focus on maintaining a strong cash position, owners and investors alike are concerned with rising costs.

To avoid cash flow impact in the short term, real estate companies may pass rising costs along to customers by raising rents. Despite high competition to acquire tenants, potential renters often must accept those rent increases, as many real estate companies will be in the same position, weathering market-wide expense fluctuations.

Build a customized strategic plan

For any business, financial strategies should consider efficiency and risk alongside growth. Whether you’re an investor, owner or asset manager, securing the best loan possible for acquisition, construction or refinancing is more important than ever.

For some real estate businesses, taking advantage of tax credit programs or nontraditional loans can prove essential in successfully positioning your company for future growth — even during market instability. Consider exploring specialized financing options, such as historic tax credits, bridge loans or the federal New Markets Tax Credit program.

To take an even more well-prepared approach to positioning for the future, include the following measures as you continue to strengthen your financial position:

1. Consider all the ways commercial real estate may change moving forward. Explore the opportunities and challenges that the different scenarios present.

2. Assess how you’re managing cash. Determine how priorities will shift on your list of future capital expenditures and tenant improvement costs.

3. dentify the efficiency levers you have based on the underlying performance of properties. Keep in mind that you are striving for a balance between increased rental income and increased expenses.

4. Develop a plan for any short-term liquidity management issues. Ask yourself what creative funding options you might explore with your bank to maintain liquidity in the short and long term. Most banks today require deposits to provide financing.

5. Diligently research technology and outsourcing solutions that drive topand bottom-line growth. Evaluate the advantages in your business process for automating operations, payments and processing.

As we continue to traverse an increasingly unpredictable path in the real estate sector, it is more essential than ever to have a nimble financial strategy that aligns with your business goals, and to have good communication with your banker.

Nancy Petersen is senior vice president and director of commercial real estate with Enterprise Bank & Trust in Creve Coeur, Missouri.

CONSTRUCTION

Want to avoid construction project lawsuits? Here’s how to do it

Commercial and residential construction projects are inherently complex undertakings involving numerous parties working under tight deadlines and limited budgets. Change is inevitable and unpredictable in these projects, most often due to changes in project scope, incomplete or incorrect design and unforeseen physical conditions.

When something doesn’t go according to plan, it can impact the other parties’ abilities to perform their jobs in a timely manner and lead to litigation. Claims and litigation can be costly, time-consuming and stressful for all parties, and may damage the relationship and reputation of the parties involved.

Proper contractual planning among project owners and contractors can reduce the likelihood of litigation. Making preliminary management plans and incorporating them into the project’s contracts provides effective ways to address changes that can occur during a project and keep things moving forward. While preparation cannot always prevent roadblocks in construction projects, preemptive planning can make for much smoother sailing, even in the face of unpredictable circumstances.

The best ways to avoid or minimize costly and time-consuming lawsuits include the following:

• Know your contract. Create a clear and comprehensive contract that defines the scope, schedule, budget, quality and responsibilities of each party. The contract should also include clauses that specify how to handle changes, delays, defects, disputes, and remedies. A well-written contract can prevent misunderstandings, ambiguities, and conflicts that may lead to claims and litigation.

• Finalize your budget. Entering into a construction contract where specifics will be worked out later is a common occurrence that can cause a slew of issues as a project progresses. Finalizing a project budget and obtaining a Guar-

“Proper contractual planning among project owners and contractors can reduce the likelihood of litigation. Making preliminary management plans and incorporating them into the project’s contracts provides effective ways to address changes that can occur during a project and keep things moving forward.”

Cushing

anteed Max Price contract guarantees a clear limit of the cost while expediting the bid process for contractors. Knowing the max budget of a construction project provides repose to the parties and confidence in the contract.

• Manage changes and delays. Contracts should include a clear and agreed-upon process for requesting, approving, and implementing changes, and for assessing and granting time extensions. Keep track of the impact of changes and delays on the project and document any agreements or adjustments. A clearly defined system for

change will prioritize organization and effective communication.

• Prepare for the unknown. Contracts can prepare for breaches and delays from the parties involved. But how can a contract prepare for something totally out of anyone’s control? Implementing force majeure clauses can alleviate the need for lengthy disputes over a breach of the contract. A force majeure clause, sometimes referred to as an “act of God clause,” removes liability for breach of contracts from catastrophic events and natural disasters, preventing blame in faultless situations.

• Resolve disputes early. Have a dispute resolution mechanism in place, such as negotiation, mediation, arbitration, or adjudication. Try to maintain a cooperative and respectful attitude towards the other party and focus on finding a mutually acceptable solution rather than assigning blame or seeking revenge.

One of the best ways to learn how to manage and mitigate the risks of construction claims and litigation is to study real-world examples of con-

struction disputes and how they were resolved or avoided. Case studies can provide valuable insights and lessons learned from the successes and failures of other projects and parties. Always seek legal advice and representation if necessary.

Kellen Cushing is an associate in St. Louis-based law firm Carmody MacDonald PC’s litigation group. He focuses his practice on general civil litigation and represents clients in a variety of business disputes, including breach of contract, partnership and shareholder disputes, and complex civil litigation. Cushing can be reached at kcc@carmodymacdonald.com or 314-854-8733. For more information, visit carmodymacdonald.com.

This column is for informational purposes only. Nothing herein should be treated as legal advice or as creating an attorney-client relationship. The choice of a lawyer is an important decision and should not be based solely upon advertisements.

Leveraging technology to enhance relationship building

Relationships are key.

As the business landscape continues to evolve, it’s key for relationship builders in all industries to reconsider the ways in which they connect and engage with both new and existing clients. In our fast-paced, digital world, new technologies have transformed how companies do business, including how they attract new prospects, foster relationships, create trust and maintain relevance.

While these new technologies are rooted in the basic principles of relationship building, business development professionals should take a close look at these new methods to consider how they can help reinforce their current approach to support their company’s growth and longevity.

A multi-channel approach

In the wake of the pandemic, companies across the globe sought out new platforms for conducting business, collaborating and connecting with colleagues and peers. Although these technologies, such as Zoom and Microsoft Teams, had been in existence for several years, they quickly became the go-to solution for staying connected regardless of physical location.

While these platforms remain relevant in the post-pandemic world, they are no longer the only option for maintaining connectivity and collaboration. After many months spent separated from society and the physical workplace, most individuals are eager to reconnect in person.

When considering the best way to connect with an existing client or prospects, it’s important to gauge personal preferences. More traditional clients will most likely prefer a face-to-face meeting while fast-paced, digitally driven individuals will be more inclined to opt for a virtual meeting without leaving the comfort of their workplace. Knowing the preferences of your contacts is crucial for conducting meaningful communications that deliver long-term relationships and results.

“Regardless of technology’s next greatest tool, effective communication and the ability to understand a client’s needs will always be at the center of all successful business relationships.”

Remember, connecting can happen with the click of a button.

Networking in the LinkedIn era

Gone are the days when networking was limited to attending industry-specific events and scouring through the pages of professional journals and newspapers to find new contacts. In the LinkedIn era, finding new leads can be as simple as sending a quick message or invitation to connect. While this type of networking should not be at the center of your efforts, it can be a simple touchpoint to initiate conversation and showcase your company’s capabilities to a broader audience.

It’s also important to know that your digital presence will be considered as well as your physical presence. Even if you prefer to keep your relationship

management offline, keeping your LinkedIn profile updated and relevant is important to show prospects that you are actively engaged and taking full advantage of this forward-thinking, digital approach to business development.

Personalized outreach and experiences

Whether a contact is a qualified lead or a long-term client, both benefit from thoughtful touchpoints throughout the year. Customer Relationship Management (CRM) systems have transformed the way business development professionals engage with clients and prospects. With birthdays, anniversaries, personal preferences and past interactions stored in one convenient place, you can create stronger, more meaningful connections with your contacts. Additionally, CRMs can also help you create customized, data-driven messages and, in turn, deliver highly customized experiences.

Prioritizing ethics and authenticity

Trust is at the root of all meaningful, long-lasting relationships. In the digital age, it’s become easier for companies to fabricate information or use unethical practices for gathering data. Regardless of how you decide to use technology tools to boost your outreach, transparency, authenticity and honesty should always remain at

the forefront of your practices. In a world where hidden agendas and misinformation run rampant, leading with authenticity will allow you to surpass the competition, highlighting your company’s consistent reliability and transparency.

Regardless of technology’s next greatest tool to support relationship building and business growth, effective communication and the ability to understand a client’s needs will always be at the center of all successful business relationships. Although we live in a society that often relies on technology to mimic the human experience, it will never be able to replicate the true nature of relationship building.

While it is highly encouraged to explore and implement new technologies to modernize your approach to relationship building, keep in mind that technology is intended to enhance personal connections, not replace them. When leveraged appropriately, technology can help relationship builders take their current practices to the next level, earning them repeat success in the ever-evolving global marketplace.

Rebecca Randolph is executive director of business development and marketing for St. Louis-based Brinkmann Constructors.

Top 10 features and amenities renters in the Midwest prioritize

Value-added features and amenities can make all the difference when attracting and retaining top-notch renters

Renters everywhere are looking for more balance in their lives and in their homes. And renters in the Midwest are no exception, according to findings from the 2023 NMHC and Grace Hill Renter Preferences Survey Report, a national report that includes responses from renters in 11 major Midwest markets.

The report highlights renters’ double-edged desire for both the latest bells and whistles and practical everyday features and amenities. The data paint a picture of Midwest renters focused on space, convenience and lifestyle when choosing a rental home.

Understanding these preferences can make all the difference between a rental property that’s simply attractive and one that’s irresistible. Multifamily developers, owners and operators must keep a finger on the pulse of renters’ wishes and wants. Knowing what they like, love and can’t live without can provide a competitive edge, keeping your units occupied and communities thriving.

Top 10 Features Ranked

Air Conditioning (95 percent)

In-Unit Washer/ Dryer (94 percent)

High-speed Internet Access (90 percent)

Dishwasher (89 percent)

Soundproof Walls (89 percent)

Walk-In Closet (87 percent)

Garbage Disposal (85 percent)

Pre-installed Window Shades/Blinds (83 percent)

Noise-reducing Windowpanes (81 percent)

Refrigerator with Water/ Ice Dispenser (79 percent)

There was a time when air conditioning and a washer/dryer in unit were nice-to-haves, especially in cooler Midwestern markets. Now, however, renters in the Midwest expect these features and place them at the very

top of their list of life’s necessities. Renters expect to be comfortable year-round, and they expect to be able to do their laundry without a trip to the laundromat or scaling flights of stairs.

Similarly, renters in the Midwest now also want all the conveniences in the kitchen. Updated and upgraded kitchen appliances were considered essential by many of the survey respondents, with a dishwasher, garbage disposal and refrigerator equipped with water/ice dispenser ranking high in this year’s features list. These ensure both everyday convenience and value-added convenience for entertaining and hosting.

High-speed internet is also a staple, made even more essential by things like a growing preference for streaming services, the adoption of smart home features and a shift to more remote work. Some of the other highly desired features and amenities in the Midwest seem tailor-made for workfrom-home lifestyles. Beyond highspeed internet access, Midwest renter respondents were very interested in soundproof walls and noise-reducing windowpanes—all of which ensure more privacy, more noise control and more reliable home office setups so that those Zoom meetings can go off without a hitch.

Rounding out the list were walk-in closets and pre-installed window shades and blinds, both reflecting a desire for more efficient space and easier move-ins for greater satisfaction with the home from day one.

Top 10 Amenities Ranked

Reliable Cell Reception (87 percent)

Secure Self-Service 24/7 Package Access (77 percent)

Covered Parking (76 percent)

Controlled Property/Amenity Access (75 percent)

Fitness Center (74 percent)

Non-Smoking Buildings (73 percent)

Swimming Pool (73 percent)

Dedicated Visitor/Guest Parking (70 percent)

Controlled-Access Parking (70 percent)

Property-Wide Recycling (65 percent)

In the Midwest, ensuring reliable cell phone connectivity is a top priority for renters. Today’s renters expect and value the ability to use their devices seamlessly at all times—an essential amenity for personal safety, community engagement and remote work.

These responses mirror what renters say nationally, further underscoring the importance of cell phone connectivity at home. In fact, data show that 46 percent of all renters responding to the survey said they checked cell phone connectivity when touring a property, suggesting it is an important factor when evaluating a property during a home search.

Midwest renters also value on-site amenities that can support their health and wellbeing. While Midwest renters showed a slightly lower level of interest in on-site swimming pools than the national average (76 percent), they have similarly strong interest in on-site fitness centers to

accommodate their daily workout routines. In another indication that health is top of mind for Midwestern renters, non-smoking buildings were a popular amenity for 73 percent of respondents.

One amenity that’s especially sought-after by Midwest survey respondents is secure and convenient parking options. Covered parking, controlled access parking and dedicated visitor parking are key considerations for renters in the region as they contend with colder winters and hot summers.

For property developers and managers, the message is clear: While advanced technology and luxury amenities may grab attention, satisfying renters’ cravings for everyday essentials is paramount. The key to success lies in listening to renters, understanding their needs and tailoring features and amenities accordingly.

By focusing on features and amenities that are must-haves, it’s easier to create and maintain spaces that are appealing to renters both shortterm and long-term. This is not only important for bringing in new renters and getting them to sign on the lease’s dotted line; providing renters with the everyday essentials can contribute to greater renter satisfaction and more successful retention.

Sarah Yaussi is Vice President, Business Strategy at the National Multifamily Housing Council. Since its inception in 2013, the NMHC and Grace Hill Renter Preferences Survey Report has been the authoritative data source for apartment owners, managers, developers and industry suppliers, as well as architects, financial institutions and others seeking insights into the minds of renters. For more information, visit NMHC.org.

Expansion mode on: These are the fastestgrowing retailers in the United States

The retail landscape is witnessing a diverse range of strategies among brands with a brick-and-mortar presence. While some companies are aggressively opening new locations and exploring innovative concepts and formats, others are taking a more cautious approach by evaluating their real estate footprints or even making the difficult decision to close store locations.

Price-conscious retailers among fastest-growing

Discount retailers continue to thrive in today’s uncertain economic environment, as consumers tighten purse strings.

Dollar General remains committed to its growth strategy with 800 new stores on the horizon for 2024. Five Below continues to expand, too, with up to 600 new locations planned for its next fiscal year.

Established big-box brands like Target and Walmart are taking divergent paths when it comes to the future of their stores, however. Target, with just 30 new locations planned, is exploring a large format concept of more than 150,000 square feet beginning in 2024, while Walmart is focused on remodeling existing stores with the goal of enticing customers to stay and shop longer.

In the apparel sector, Ross Dress For Less and Burlington have long-term plans to open 500 or more stores each. Additionally, both are now close to obtaining a nationwide presence, as Ross just recently entered the Minnesota and New York markets.

A variety of retail brands supporting the automotive industry are also looking to expand. Aftermarket parts retailers AutoZone and O’Reilly have each announced robust growth plans in 2024 and beyond, with a combined 700 or more new locations planned.

Take 5 Oil Change, which now has a presence across 41 states, has 300 new

units in the development pipeline. Gas station and convenience store brands Sheetz and Wawa have 300 and 800 stores, respectively, planned in the long-term, while 7-Eleven looks to operate a total of 20,000 locations in the U.S., resulting in future growth of several thousand stores.

ALDI leads the pack in grocery store expansion, with 45 new locations planned for 2024, while European rival Lidl continues to open stores along the east coast, although not at the originally expected pace announced several years ago.

Fast-food expansion goes global

Domestic growth among quick service restaurants continues at a fast pace, as U.S. consumers value their convenience and lower price points com-

pared to casual-dining restaurants. But a number of fast-food chains have announced a substantial focus on international expansion in 2024. Some of the fastest growing brands both home and abroad include:

• McDonald’s – planning 10,000 new locations globally by 2027, with 900 of them in the U.S.

• Starbucks – 2024’s exact plans are unknown, but the fourth quarter of 2023 saw 208 U.S. locations open and more than 800 stores open worldwide

• Chipotle – up to 315 restaurants are planned for 2024

• Bojangles – more than 250 new restaurants are in the pipeline

• Krystal – will open 200 locations in the next three to four years

• Raising Cane’s – plans to open 100 restaurants in 2024

Mergers, acquisitions, and bankruptcies to watch in 2024

In the past few months, several brands have made major announcements that may impact their brick-and-mortar presence in the coming years.

In the drugstore sector, Rite Aid filed for bankruptcy in October and has already closed 200 stores since the filing. Also

in the retail pharmacy sector, experts are watching Walgreens – not for bankruptcy or M&A activity necessarily, but in December, Moody’s downgraded the drugstore chain’s credit rating to Ba2, which could impact the pricing of net lease investments and influence the appetites of real estate investors.

ALDI is moving forward with its planned acquisition of Winn-Dixie’s parent company, which was announced in August. Plans call for some Winn-Dixie stores to be converted to the ALDI brand, and although no mention of store closures has been made yet, the company does intend to close all in-store pharmacies and transfer customers to CVS or Walgreens.

In May, Tempur Sealy announced plans to acquire Mattress Firm in a $4 billion deal that’s set to close in the second half of 2024. It’s unclear what impact, if any, the transaction will have on Mattress Firm’s retail footprint of more than 2,300 stores across the U.S., but it’s been several years since any meaningful growth has happened for the brand.

Read Northmarq’s Q4 2023 Top 100: Tenant Expansion Trends report for more information about these retailers and other top brands.

Lanie Beck is senior director of content and marketing research at Northmarq.

NEWS BRIEFS:

The latest deals in the Midwest

United Properties acquires seniors housing community in Champlin

United Properties has acquired Champlin Shores, a senior living community at 119 E. Hayden Lake Road in Champlin, Minnesota.

Under its new ownership, the property will be rebranded as Amira Choice Champlin. Operating partner Ebenezer Senior Living assumed service responsibilities at the community.

Under the Amira Choice brand, a continuum of care and support is offered to residents with independent living, assisted living and memory care options available, allowing residents to comfortably age in place. In addition to bringing on a new operating partner, United Properties plans to update the facility with new furniture, flooring, fixtures and more over the next three years.

Located a half-mile from the Mississippi River, the community features 133 units with studio, one-bedroom and two-bedroom floor plans featuring walk-in closets, full kitchens, individual climate control and shared wireless internet.

Other amenities include underground parking, a dining room with chef-prepared meals and tableside service, fitness studio, community room, fireside lounge and library, and an on-site salon and spa. The property also features a large deck overlooking Mill Pond and easy access to nearby walking paths.

Amira Choice Champlin will join six other Amira Choice communities developed and owned by United Properties in the Minneapolis-St. Paul metro, and two communities in Florida. The company also owns three Amira active adult communities for 55-plus residents in the Twin Cities, with plans to expand its portfolio in the years ahead.

Columbus Metropolitan Housing Authority approves $100 million to develop, preserve 700 apartments

The Columbus Metropolitan Housing Authority (CMHA) Board of Commissioners approved a combined total of nearly $100 million in new investments that will develop or preserve more than 700 apartments for Columbus-area seniors, families and people with disabilities.

“This major investment represents CMHA’s continuing commitment to provide affordable housing and meet the needs of our neighbors in Columbus and throughout Franklin County,” said CMHA Board Chair

James L. Ervin Jr., in a statement. “We remain dedicated to our values of community, commitment, and collaboration. CMHA will continue to leverage all our resources to find innovative paths to help meet the region’s evolving housing needs.”

The community investments approved by CMHA’s Board include:

• River and Rich (phase II): Authorizing the issuance and sale of $47.5 million in general revenue bonds to acquire, construct and equip an approximately 234-unit rental housing community with commercial space. Partners on this project include: Casto, The Robert Weiler Company, The Kelley Companies, and Mark Cain, of S. Cain Development and Construction.

• Country Ridge: Issuing $17.5 million in general revenue bonds to renovate the 96-unit multifamily residential apartment complex at 5656 Farmhouse Lane in Hilliard.

• Maplewood Heights Apartments & Sugar Grove Square Apartments: Issuing $25 million in general revenue bonds to renovate the 71-unit complex of one-bedroom apartments at 91 Maplewood Ave. in Westerville and the 120-unit complex of one-bedroom apartments at 530 S. State St. in Whitehall. These apartment complexes serve senior families and provide comprehensive support services.

• Southpoint Place – Family & Singles: Investing $9 million to renew CMHA’s Project-Based Vouchers (PBVs) through 2039 for residents of the 40-unit family complex of two-, three- and four-bedroom apartments and 15 single-unit apartments, which also receive comprehensive support services.

• Nelson Park Apartments: Acquiring and renovating the 172-unit multifamily community. Partners on this project include Renewal Housing Associates, LLC, and The Orlean Company. Financial details will be released pending final authorization of the terms.

The $90 million bond plan and $9 million allocation of PBVs is part of CMHA’s long-term strategy to grow investment in the region’s housing stock and to more effectively address central Ohio’s housing shortage, agency officials said. The additional $90 million in bonds will bring CMHA’s total bond issuance to more than $171 million for the development and preservation of affordable housing. This was spurred by the A+ rating the authority received from S&P Global Ratings.

CMHA’s PBV program is part of the federal Housing

Choice Voucher program administered by the U.S. Department of Housing and Urban Development.

Families or individuals in units with PBVs contribute 30% of their income for rent and utilities. The voucher pays the difference between the tenant contribution and the unit’s total rent and utility costs. Tenants in PBV units are assisted as long as they live in the unit and continue to qualify for the program.

PBVs are the largest, most available tool to create new project-based rental assistance, according to the Center on Budget and Policy Priorities, a nonpartisan research and policy institute that works at the federal and state levels on fiscal policy and public programs that affect low- and moderate-income families and individuals.

Hanley Investment Group brokers sale of 91,563-square-foot shopping center in Brooklyn Park

Hanley Investment Group Real Estate Advisors arranged the sale of Edinburgh Festival Centre, a 96%-occupied 91,563-square-foot grocery-anchored shopping center in Brooklyn Park, Minnesota. The sale price was $11.9 million.

Hanley Investment Group’s executive vice presidents Bill Asher and Jeff Lefko, in association with ParaSell, Inc., represented the seller, LS Capital, Inc., a real estate asset management investment firm based in Los Angeles, California, and the buyer, a private investor from Northern California.

Located at 8505-8595 Edinburgh Centre Drive in Brooklyn Park, Edinburgh Festival Centre is anchored by a 54,476-square-foot Festival Foods grocery store at the signalized intersection of Edinburgh Centre Drive and 85th Avenue, adjacent to State Highway MN-252.

The shopping center, which was built in 1996, spans

12.20 acres. In addition to Festival Foods, it features a synergistic mix of internet-resistant tenants, including food, service-based, medical, and goods-based retailers such as Dollar Tree, Caribou Coffee, Dairy Queen, Jackson Hewitt Tax Service, Kumon Reading and Math Center, and State Farm Insurance.

Festival Foods stores in St. Paul and Minneapolis are owned by Knowlan’s Super Markets, Inc. Based in Vadnais Heights, Minnesota, the company owns six Festival Foods stores and two Knowlan’s Fresh Foods stores.

SLIB sells assisted-living facility in Pleasant Prairie

SLIB closed the sale of an assisted living and memory care facility in Pleasant Prairie, Wisconsin.

Located 57 miles north of Chicago and 37 south of Milwaukee, the community houses 100 units. The property was built in 2016.

The seller was an East Coast-based private equity firm. The buyer is a regional owner/operator that had been looking to expand into this market.

Bradley Clousing, Ryan Saul and Jeff Binder from SLIB handled the transaction.

(Run Chase operations center photo with this caption: Photo courtesy of Sentinel Net Lease

Sentinel Net Lease closes disposition of Chase Operations Center in Missouri

Sentinel Net Lease closed the disposition of the Chase Operations Center, a 268,413-square-foot office building in Springfield, Missouri.

The transaction was brokered by Ross Murray, president of R.B. Murray Company in Springfield.

The property was sold to a local healthcare provider.

Holding the property for less than two years, Sentinel was able to generate a property-level IRR of 45% and produce a 1.9X return on invested capital, resulting in one of the most profitable office transactions in the nation over the past several years.

KeyBank provides $18.1 million in financing for construction of affordable homes in Cleveland

KeyBank Community Development Lending and Investment invested $10.2 million of 4% Federal LIHTC Equity and provided a $7.9 million construction loan to finance the development of Henrietta Homes. The development will consist of 40 lease-to-purchase affordable single-family homes to be built on vacant land throughout the Hough neighborhood of Cleveland, Ohio.

Henrietta Homes will target family households with incomes between 30% and 60% of area median income. The development will be partially subsidized, of which eight homes will be supported by a 20-year Section 8 project-based vouchers provided through Cuyahoga Metro Housing Authority.

Additional soft funding sources include $1.6 million from City of Cleveland Housing Trust Funds, a $450,000 Cuyahoga County HOME loan, and a $1.25 million equity bridge loan through Ohio Housing Finance Agency’s Housing Development Loan program. The project is a culmination of community planning efforts and will complement investments to revitalize the Hough neighborhood.

The Famicos Foundation is the sponsor for Henrietta Homes. The Famicos Foundation is one of Northeast Ohio’s largest nonprofit community development corporations, and its mission is to improve the quality of life in greater Cleveland through neighborhood revitalization, affordable housing, and integrated social services.

Henrietta Homes new construction will consist of 36 two-story three-bedroom homes with an unfinished basement and detached 1.5-car garage, as well as four three-bedroom one story homes with an attached 2-car garage (no basement level). The project will be built to meet Enterprise Green Communities standards to ensure energy and cost efficiencies for the tenant to maintain. Amenities include a private yard, full appliance package with dishwasher, washer, and dryer hook-ups, and in-unit alarms.

Derek Reed and Kory Clark of KeyBank CDLI structured the tax credit equity and debt financing for the transaction.

Marcus & Millichap sells 71,350-square-foot self-storage facility in Traverse City

Marcus & Millichap brokered the sale of Empire Self Storage, a 71,350-square-foot self-storage facility in Traverse City, Michigan.

Brian Kelly, Brett Hatcher, Gabriel Coe and Nathan Coe, investment specialists in Marcus & Millichap’s Columbus, Ohio, office, had the exclusive listing to market the property on behalf of the seller, a limited liability company.

The buyer, a limited liability company, was secured and represented by Kelly, Hatcher and Gabriel Coe and Nathan Coe. Steve Chaben, Michigan Broker of Record, assisted in closing this transaction.

Empire Self Storage is located in Traverse City, Michigan, about five miles west of the downtown area. This facility was built in 2015 and is situated on 14.35 acres of land. It currently features 500 non-climate-controlled self-storage units that make up 71,350 net rentable square feet and has approvals to build an additional six buildings totaling 300 additional units.

Mandel Group provides financing for 270-unit apartment community in Oconomowoc

Mandel Group, Inc. completed the financing for Norden Range, a 270-unit luxury apartment community in the City of Oconomowoc, Wisconsin.

The apartment community is located on a portion of lands once part of the fabled Olympia Resort complex at the Interstate 94/Highway 67 intersection in central Waukesha County. Construction will commence immediately.

The development covers over 27 acres of the former Olde Highlander Golf Club and will be completed in four phases, with the first units becoming available in late 2024. The entire development will be completed by the end of 2025.

BRIEFS

A broad variety of floorplans include one- bedroom, two-bedroom, three-bedroom and three-bedroom townhouse designs. Each home is entered via a private outdoor entrance, eliminating all interior corridors and elevators.

Mandel’s plan focuses on preserving large natural areas of the property organized along a stream that flows through the center of the property, flanked by wide prairie areas through which pathways will be cut for walking access. On-site amenities focus on a resident clubhouse with expansive entertainment spaces; a large fitness center with an outdoor fitness deck, and a 25-yard outdoor swimming pool flanked by cabanas and lounge areas.

All amenities are available for free to Norden Range residents. Other on-site amenities include two fencedin dog run/agility areas; a pet wash center; a car wash center and a bike repair shop.

Norden Range is part of a larger neighborhood development plan undertaken by Neumann Developments, Inc. Neumann’s Olde Highlander development will comprise multiple single-family, townhouse and condominium neighborhoods immediately west of Norden Range. A total of 352 homesites are contained within Neumann’s plan, and include neighborhood amenities such as clubhouses, pools and recreational space.

Cushman & Wakefield reps Epic Real Estate Partners in $100 million refinancing of grocery-anchored centers

Cushman & Wakefield represented Austin, Texas-based Epic Real Estate Partners in the $100 million refinancing of a portfolio of five grocery-anchored retail centers.

Cushman & Wakefield’s Dallas-based Equity Debt & Structured Finance team of Executive Managing Director Beth Lambert, Managing Director Chase Johnson, Senior Financial Analyst Caleb Riebe and Brokerage Analyst Andrew White represented Epic Real Estate Partners in the transaction.

The Class-A retail portfolio includes grocery-anchored centers in the Chicago, Minneapolis, Kauai, Tucson and Dallas markets. The 625,000-squarefoot portfolio is 93.2% leased and anchored by Cub Foods, Kroger, Bashas, Safeway and Jewel Osco.

Properties in the portfolio include:

- Eagan Towne Centre - 1276 Town Centre Dr, Eagan, Minnesota

- Ventana Village - 6890 E Sunrise Dr, Tucson, Arizona

- Preston Trail Village - 17194 Preston Rd, Dallas

- Kauai Village - 4-831 Kuhio Hwy, Kapa’a, Hawaii

- Cobbler Crossing - 1020 Summit St, Elgin, Illinois

TradeLane Properties closes long-term lease at 112,477-square-foot logistics center in Ohio

TradeLane Properties negotiated a new long-term lease with a logistics company to occupy the TLP Crossroads Logistics Center, a 112,477-square-foot speculative industrial facility situated on 9.49 acres at 11700 Chesterdale Road in Sharonville, Ohio.

In partnership with Phelan Development, this Class-A industrial facility will be delivered in the first quarter of 2024 and features top amenities including 32-foot clear height, 25 dock high doors, two drive-in-doors, 116 auto stalls, 130’ foot truck court and a state-ofthe-art LED lighting system.

TradeLane Properties was assisted by Rod MacEachen, Roddy MacEachen and Jared Wagoner of SqFt Commercial for their assistance in this transaction.