Peter Fitzgerald

If you're considering a move to Grand Rapids, Michigan, the time is now. In Q2 2024, the U.S. office market recorded the strongest quarterly leasing activity since the onset of the pandemic, yet, Grand Rapids is outperforming the national averages. Grand Rapids is seeing: - Low Vacancy: 12.7%, among the lowest in the nation. - Rising Rents: Average rents up to $25.95 p.s.f. due to strong demand and limited new construction. - Positive Absorption: Highest level since Q2 2022, with 95,412 s.f. absorbed in Q1. In contrast, the U.S. office market faces higher vacancy rates (20.5%) and negative absorption (8.7 million s.f.), despite a surge in leasing activity post-pandemic. Grand Rapids continues to thrive and is positioning itself for future growth and redevelopment opportunities.

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So proud of this team. CRE transaction velocity is picking up across all assets and our partners are humming. This was one deal from a batch of others but relevant since the value add buyer, a repeat customer, has been cautiously exploring opportunities for a long time and evidence is there, tides are changing. Mark Halloran #cre #mortgage #commerciallending #studenthousing #creinvestment #underwriting #interestrates #cmbs #mortgagebrokers #investmentsales #agencylenders #lifecos #constructionfinancing

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The 12-month average lease term peaked in 2022 reaching just over 67 months and has since decreased 11% to slightly under 60 months. This decrease is attributable to tenant’s uncertainty on the economic environment and desire to maintain flexibility to adapt to market conditions and operational needs. #avisonyoung #chicagoindustrial #industrialdevelopment #cre

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The median asking rent for multifamily properties fell by 0.7% in April compared with a year ago to reach $1,723, according to Realtor.com. However, three Midwestern markets -- Indianapolis, Milwaukee and Minneapolis -- saw median asking rents climb to a five-year high. Meanwhile, several markets in the South and the West posted significant declines.

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Land sales have been a strong segment of sales within Coldwell Banker Commercial over the past year. We generally note that the land sales are primarily purchased to be used for residential development, and related uses, or secondary industrial/distribution space. However, after listening to a podcast this morning about a potential quantum computing campus and reading this article about a land sale for data center use, I realize that this may be part of growing demand for raw land. While I am not an expert in data center site selection, I imagine that in addition to adequate land parcels, data center operators need reliable power and a skilled workforce - not something available in all markets across the U.S. It could be the midwest has an advantage (and no earthquakes or hurricanes). Curious if anyone else has insight into how the need for more data centers may be driving the demand for land sales.

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Tight multifamily fundamentals in Milwaukee and Madison aren't positioned to let up any time soon. The two metros stand as some of the highest-occupancy markets in the country and demand for new supply relative to the pace of new supply additions has been among the strongest nationwide. In fact, Madison ranks as the top market in the country for what I would call a severe supply-demand imbalance. Across the country, it would take an estimated 2.9 years on average for renters to absorb new and under-construction inventory if nothing else were to break ground today. In Madison, that figure falls to just 1.3 years, with Milwaukee also outperforming the average at 2.7. Construction activity has fallen in Milwaukee and Madison by roughly 35% and 50% from peak levels two years ago, and based on the recent velocity of construction starts, this figure is set to fall further in the coming quarters. With recent rate cuts, we could see some relief on the borrowing side that could help put more shovels in the ground early next year, but there really needs to be a concerted effort across state, county, and local governments to dig us out of these holes. And this isn't just true in Milwaukee and Madison. There's a statewide housing shortage. As announced by Lafayette Crump at the BizTimes Media Commercial Real Estate and Development Conference a couple of weeks ago, I applaud the City of Milwaukee for pursuing the development of a program that would help fund the development of housing at 60-100% of AMI. In conversations I have with developers across the state, it's clear that new tools are needed to help facilitate development across a variety of housing types and price points. There is no one-size-fits-all solution, and we don't know yet what it'll look like, but this program could be a great step toward progress and addressing prohibitive funding gaps that have seen many developers to go pencils down in a segment that sorely needs it. Thoughts? Questions? Seeing something else in the market? Drop a comment 👇

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“There are fewer landlords competing for tenants because so many buildings are in this zombie state,” said Michael Reschke, a leading Chicago developer. The Covid experience has expedited changes in work practices, rendering many second-tier office buildings functionally obsolete and creating political, financial, and safety issues for urban business districts nationwide. The attached WSJ article outlines Chicago's bold initiatives to repurpose these spaces into apartments and hotels. Faced with soaring vacancies and plummeting property values, urban centers are turning to innovative solutions, including generous subsidies and public-private partnerships. Can these transformations help tackle #ZombieBuildings? 🧟‍♂️🏢 Is it unfair to use public funds to bail out landlords, or is this the best way to save our cities? Or both? Strange alliances here and lots of competing issues. Would love to hear your thoughts... 💬 #DowntownRevival #Sustainability #Innovation #CommercialRealEstate #FutureOfCities https://lnkd.in/efDtKPGx

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At the end of Q3, this is where Grand Rapids office market stands... • Net absorption for the year remains negative with 66,200 s.f. of occupancy loss recorded through the first three quarters. • Average lease sizes continue to impact market fundamentals with leases being on average 1,386 s.f. smaller in 2024 in comparison to deals signed 2023. • Class A assets continue to outperform the broader market with 11.6% vacancy and 31,832 s.f. of positive net absorption seen in 2024. To read more about the GR Q3 office market report, check out the pdf below.

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Signs of Stabilization The total office availability rate in the downtown Chicago market decreased for a second consecutive quarter signaling a positive turn for the market. Over the last two quarters, total availability dropped by 70 basis points to 28.9%. The driver is sublease available space as it has decreased by just over 1.1 million square feet since the beginning of this year. This sharp decrease in available sublease space is an indicator that major tenants have finally right-sized their usable space and are offering less large blocks of sublease space to compete in the market. The power is expected to shift to owner’s hands to reset the market with the available direct space pricing.

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When you investment in real estate it is important to understand the macro headwinds, the big picture, what the broad markets are doing, but it is even more important to understand the micro side: - Is it on the right side of the street - Does access work? - is this a small Tenant market vs Large Tenant market? - what is the basis of the competing LL next door compared to my basis? -who are my 5 closest competitors? When we look at investments we need to understand the micro markets and the small details that determine success when you look at office properties. If I read about the broad market, all office buildings are bad and eventually going back to the bank, but that is not what the numbers tell us. We see smaller office buildings outperforming the market, we see trophy assets outperforming the market, and not just outperforming the market but thriving. I am not saying we dont have headwinds in office, we certainly do, but there are still good buys in office. Don't Believe me, check it out for yourself in the attached article. https://lnkd.in/gNyMTTaP

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We are officially in the market for sale the 100% fee simple interest in the Trilogy Midwest Multifamily Collection, a portfolio of 10 strategically positioned multifamily assets located in prime submarkets across the Midwest. The Portfolio includes properties in: Illinois (1), Indiana (1), Kentucky (1), Michigan (1), Missouri (2), Ohio (2), Oklahoma (1), and Tennessee (1) (the “Portfolio”). The Portfolio is being offered as both individual assets sales as well as on a Portfolio and sub-Portfolio basis. Deal Highlights • 10 Properties, 2,845 units or 2.5 MM SF spread throughout high-growth Midwest residential markets within Ohio, Indiana, Illinois, Michigan and Tennessee • The Portfolio’s average vintage is 1999 with most properties offering significant value-add potential as in-place rents are 11% below market across the portfolio • Institutionally Owned & Maintained by Trilogy Real Estate Group, offering investors operational efficiency with established systems and staffing in place • The Portfolio is currently 94% occupied • Opportunity through a Portfolio transaction to benefit from accretive assumable in-place debt given cross-collateralization of assets throughout existing funds • Key markets such as St. Louis, Louisville, and Columbus are experiencing low supply, offering a strategic advantage that drives immediate performance and enhances geographic diversity

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I was in downtown Chicago last week for a meeting of the housing council flight of the Urban Land Institute. In addition to it being a brilliant day, and a pleasure to be in a well designed high rise office space, I heard some interesting comments of the state of the commercial real estate market. Class A Office: While the office sector remains challenged, there is good leasing activity in class A, well located properties - aka "flight to quality". It could be that these trophy assets will fill up to the point of warranting new construction? TBD Class B/C Office: Functionally obsolete or low demand second generation office properties will struggle and a mass conversion to housing won’t be quick nor easy. Government subsidies will be required in many cases as well as modifications to zoning ordinances and significant retrofitting. Not to mention there is a need to add residential-related retail in former office markets. Apartment: The lack of new supply of multifamily product will likely mean rising rental income for MF investors. There’s little financing available at attractive terms for new MF development. Even in markets with excess supply in sunnier climates, there should be market equilibrium in the next 12-18 months. Affordable Housing: Affordable housing supply would increase if there weren’t so many hurdles to overcome an array of obstacles ranging from NIMBY opposition to the lack of coordination of requirements by the local, state and federal government entities, well intentioned, to facilitate increased supply. Take away - always good to get away from your office to reflect on business.

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JLL 12th Annual Industrial Demand Study has just been released from JLL Research reviewing over 60 markets. Just released: Our 12th annual U.S. hashtag #Industrial Tenant Demand Study! Gain insights from 60 markets #leasing trends for 2025-2026. #CRE #westmichigan #cfos #westmichiganbusiness #realestatedevelopment #economicoutlook #outlook2024 #business #westmichigan #grandrapids #holland #outlook2025 #cscmp #cscmpgreatlake

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Windy City rents soar as the Chicago multifamily market outpaces national recovery. National multifamily rents are finally showing signs of life, with the strongest growth in 20 months. But for Chicago investors, the news is even better. The latest Yardi Matrix report reveals a national average rent increase of just 0.9% year-over-year. However, Chicago's multifamily market is soaring, boasting a robust 3.1% growth, placing it firmly in the top 6 among the nation's hottest rental markets. This surge is fueled by a confluence of positive factors. Strong job creation and rising household formation are couple reasons contributing to healthy demand for apartments here in Chicago. These trends are evident on the ground, as I'm witnessing a renewed interest in rentals firsthand. While the past year presented some headwinds, the Yardi Matrix report suggests a clear turning point for multifamily rents, especially in Chicago. Looking ahead, financing strategies and submarket variations remain areas to watch. #ChicagoRealEstate #MultifamilyRealEstate #MultifamilyInvestor https://lnkd.in/gQym4wcF

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Q1 Market Reports out and the numbers do not always tell the "real" story of what's happening on the street. Give me a call if you would like to discuss in more detail!

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JUST LISTED | JAmber Storage | Green Bay, WI DEAL SUMMARY LIST PRICE $1,750,000 **NEWLY EXPANDED** NRSF 31,182 (19,866 just opened) UNITS 143 ACRES 5.19   INVESTMENT HIGHLIGHTS   PRIME LOCATION // Located right off Hwy 41, visible from the highway, with car counts exceeding 27K vehicles per day.   NEWLY EXPANDED // Four brand new buildings just completed, adding 19,866 NRSF, spread over 95 units, giving a new owner the opportunity to stabilize the property. The Facility was previously 100% physically occupied.   FAVORABLE DEMOS // The ten-mile trade area shows the average household income over $94,000, and exceeding $100,000 in the next five years. Plus, the five-year population growth is projected at 3.14 percent, supporting future demand for self storage   FAVORABLE SUPPLY INDEX // The three-mile supply index is 8.09 sq feet per capita, while the ten-mile is only 7.48 sq feet. No other sites within a 10 mile radius offer rentals online.   OPERATIONS // Opportunity for a new owner to automate the rental process further, improve current in place rental rates, as well as advertised rates. Also, there is opportunity for additional income; by charging late fees, admin fees, and tenant protection.   INVESTMENT SUMMARY   EquiCap Commercial has been selected to exclusively offer for sale JAmber Self Storage, located just northwest of Green Bay, WI, in the town of Abrams, WI.   JAmber Storage consists of two parcels, recently expanded by Forest Construction, and is conveniently located right off Highway 41 on Cedar Lane, just northwest of Green Bay. ​ JAmber Self Storage represents an excellent opportunity to purchase a well-located, newly expanded asset with in-place cash flow. Additionally, upside can be achieved through implementing an SEO advertising plan (no other facility within 10 miles offers rentals online), capitalizing on below-market rents, consistently charging late fees and admin fees, offering tenant insurance, and further automating operations. See the full Investment Summary and access the Offering Memorandum at https://lnkd.in/gsq-xhGm LISTED BY: EquiCap Commercial 1001 E Main St - Unit E St. Charles, IL 60174 PRESENTED BY: Scott Rihm EquiCap Commercial 630.669.5625 [email protected]  Jesse Luke EquiCap Commercial 630.696.7281 [email protected] #SelfStorage #SelfStorageBroker #SelfStorageBrokerage #InvestmentCRE #SelfStorageInvestment #EquiCapCommercial #SelfStorageOpportunities #SelfStorageforSale #WisconsinSelfStorage

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Going in the right direction

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