Market Insights

Coldwell Banker Commercial McGuire Mears & Associates managing broker William Mears, CCIM, SIOR gives his thoughts gauging the performance of the commercial real estate market during Q2 2021.

Coldwell Banker Commercial McGuire Mears & Associates represented both sides in the 6.52% cap rate transaction transferring ownership of the building located at 2747 Milwaukee Rd in Beloit.

A Milton chocolate factory will get its ingredients delivered by rail thanks to a grant from the Wisconsin Department of Transportation. Gov. Tony Evers announced the grant Monday saying it will let the city of Milton to extend a Wisconsin Southern/WATCO rail line to the Clasen Quality Chocolate factory. The Transportation Economic Assistance grant will cover roughly 25% of the $1 million project.

Local plastics manufacturer GOEX has been riding a wave of increased demand that company officials say has them needing more capacity for more train cars of production materials at once.

What a difference a decade makes. While some may characterize the evolution of the development and investment climate of the Janesville- Beloit, Wisconsin metropolitan statistical area (MSA) with a population of 160,120 as an extreme makeover, others will note the area has been south central Wisconsin’s best kept secret. Case in point: the numbers speak for themselves, and local real estate and economic development officials are bullish on this location’s growth trajectory. For starters, the area’s logistical friendly environment, its value-add real estate and workforce assets and its seasoned development team provide the right ingredients to facilitate development opportunities.

Computers Nationwide approached Coldwell Banker Commercial McGuire Mears & Associates in late 2019 to help with their search for a new office space. Specifically, they were looking for a more central location for their employees; their labor force hails from southeastern Wisconsin down into northern Illinois. Moreover, the owner requested that the acquisition costs remain under one million dollars and for a prospective building to provide rental income that would help offset their debt service.

Beloit, WI (March 25, 2021) – Bill Mears of Coldwell Banker Commercial McGuire Mears & Associates has negotiated the sale of a 0.72-acre lot next to the Holiday Inn Express & Suites, representing the seller in the $376,000 transaction. The 124-room hotel, built in 2019, and its surrounding lots comprise the redevelopment of the former Wickes lumber yard.

We hear of sticker shock in and outside our market when it comes to construction prices. A recent article posited that the US construction industry is sputtering, impacting construction costs and timelines. In SC Wisconsin, we do not see a slowdown yet. Currently, SSI Technologies just broke ground on a 20,000 square foot addition, while Freedom Graphic Systems in Milton and Gallina USA in Janesville are wrapping up expansions of 90,000 square feet and 40,000 square feet, respectively. Badger Property Investments is scheduled to break ground on a 60,000 square foot building in Janesville on Monday, April 12th.

What Will Drive The Recovery of Commercial Real Estate Markets in 2021? 2020 has been an unprecedented year, with COVID-19 impacting nearly every industry across the country, including commercial real estate. Shutdowns due to the coronavirus pandemic caused a large portion of employees to work from home for much of the year. As the economy stalled, many businesses and property owners found themselves negotiating with both tenants and lenders on rent relief and loan modifications. While the pandemic accelerated trends that were already taking place in retail, it upended the strong momentum in the office and hospitality sectors, as well as urban markets. These trends will likely continue in 2021 and reshape what buyers, owners, tenants, and residents may ultimately want to occupy.

The submarine sandwich soon will return to a former sandwich shop along the Humes Road restaurant strip on Janesville’s northeast side. Commercial real estate broker Barry Badertscher confirmed Wednesday that a Jersey Mike’s Subs franchise will fill a space at 2228 Humes Road that recently housed Milio’s Sandwiches.