Market Insights

Janesville, WI (March 22, 2021) – Adam Shultz of Coldwell Banker Commercial McGuire Mears & Associates has been named as one of Coldwell Banker Commercial’s 3 Under 30 for 2020. Shultz was recognized as a young commercial real estate professional who is making strides in the industry by understanding the importance of building strong customer and community relationships.

Gates Auto needed to find a new facility where they could open one of the largest indoor car showrooms in the Midwest. Given that Wisconsin is a cold weather state for roughly half the year, the ability to bring the car buying process almost completely indoors is a game-changer, both protecting the vehicles and shielding the customers from frigid Wisconsin winters.

Rock Energy Systems, LLC a manufacturer of waste oil heaters founded and headquartered in Janesville, Wisconsin, purchased a competitor located in Nashville. With that acquisition came a new challenge—should they manage the new company as a satellite operation or should they consolidate both companies inside their current manufacturing and warehouse facility in Janesville? After an evaluation of existing floor space, Rock Energy opted for consolidation but realized that they would need more square footage and engaged Coldwell Banker Commercial McGuire Mears & Associates for assistance.

Coldwell Banker Commercial McGuire Mears & Associates is pleased to have represented ownership in the sale of the 305,000 square foot industrial manufacturing building in Janesville, Wisconsin. Hufcor Inc, founded in 1900, designs and manufactures operable partitions worldwide. The Hufcor business was sold to a private equity firm in 2017, but then-current owner, the Borden Family Trust, retained the real estate.

The Rock County Development Alliance has released its Rock Ready Index for the second quarter. Notable highlights from the economic development dashboard include:

Increasing e-commerce and food distribution demand was stressing manufacturer Pratt Industries’ production capabilities. Pratt, the fifth largest corrugated packaging company in the United States, had outgrown its satellite distribution facility and needed to expand into at least 100,000 square feet. Finding that space close enough to the production facility was difficult; at the time, the vacancy rate for the Janesville/Beloit market was less than 5%. In addition, Pratt still had more than 12 months remaining on its warehouse lease.

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Well, of course not—but for some tenants, it may seem so! In their recent article “Tenant’s Acceptance of Leased Premises: May The Tenant Always Beware”, authors Jim Hochman and David Lieberman point out five issues that tenants should consider before accepting a space. As they note, most landlords include in their leases a clause that absolves them of responsibility once the tenant takes possession.

As the 2019 fiscal year draws to a close, it is now almost two years after the Tax Cuts and Jobs Act was passed and more than a year and a half since the first opportunity zones were designated. Designed to spur economic development by delaying taxation on capital gains, the impact so far for investors has been somewhat nominal, to say the least (especially in our market).

As any commercial real estate professional will tell you, the industry has been witness to a number of changes—being subject to the impacts of the economy, industry trends, market challenges, and more. When looking at commercial real estate, it is crucial to focus not only on generational activity, but also on lifestyle trends.