Mid-America Blog

To outsiders looking in, the surprising announcements of bankruptcy filings and store closures from large brands like Toys “R” Us and Bon-Ton seem to indicate the doom of brick and mortar retail as we know it. For others, the news of these brands vacating space suggests opportunity and dollar signs.

In property management, one of our core responsibilities is rent collection. This is the “blood flow” of a property and the means in which we maintain or increase its value. While usually our tenants simply toss their rent payments in the mail, it comes to pass that others are not as disciplined or organized when paying or adjusting their monthly amounts. When that happens, it’s up to us as property managers and accountants to resolve the issue, often drawing on personal experience and values to get the job done.

Over the past few years new technologies and the allure of convenience have forced many retailers to compete at a level they probably never anticipated. While the industry has dedicated considerable time towards understanding consumer habits, the equation doesn’t appear simple and is far from solved. Some retailers just can’t compete, some are frightened and unwilling to evolve, while others welcome the challenge, fully understanding the considerable lengths they will need to go to in order to generate an acceptable bottom line.

As a leasing agent of properties residing in Cook County, real estate taxes are at the forefront of most deal negotiations. To some, high real estate taxes are just “the cost of doing business in Cook County” but to others it’s become a deterrent in wanting to do business in the county. We’ve especially seen this in the last few months as many are uncertain of where the County’s taxes are headed as property’s continued to get reassessed in 2018.

Mid-America Real Estate-Wisconsin Vice Presidents Scott Satula and Joe Kleiman know a thing or two about putting on a show, of sorts. Scott and Joe serve on the planning committee for the Wisconsin ICSC/CARW Retail Conference, The Show, an annual conference focusing on retail real estate development and trends in Wisconsin. The program, which has grown into a full-day event, draws over 400 industry professionals including retailers, brokers, developers, investors, attorneys, contractors, bankers, and municipal officials.

As a commercial real estate broker specializing in landlord representation, productive cold-calling is essential to your success. It is an adventure, not a chore, and the best way to learn about what tenants are expanding and what is important to their business. Cold-calling is not difficult, it just takes a little practice and understanding. Here are 3 tips that will get you into the swing of things

Online retailing is profoundly changing the landscape of our business, forcing our industry to think of the future now more than ever. Despite these changes, I am optimistic that e-commerce will remain just a small piece of the overall shopping pie. My optimism lies in the following assumptions: in many cases, brick and mortar stores continue to be more convenient or cost effective; digitally native retailers are opening stores in order to expand their supply; and consumers often use the internet to purchase goods for in-store pickup.

Gas stations are becoming a rapidly expanding category throughout Michigan. Many vacant and under-utilized corners are seeing development by both local and national operators. As a result, land prices are increasing for high traffic intersections throughout the state. Companies like Speedway are assembling land around their existing gas stations to scrape and re-build with larger footprint convenience stores including more gas pumps, food offerings and charging stations for electric vehicles.

Sustainability is nothing new for the retail industry. It has ceased to be a one-off element of design and build, but now sustainability has become a core element of industry ethics. Solar panels on roof tops, the use of recycled materials such as re-claimed wood, and efficient energy use. The shipping container trend is global and growing. This re-use phenomenon is not limited to retail shops, but also residential and hotel developments. The shipping container concepts strive to be a part of the fabric of local life by adding to the communities they are placed.

Catalogs and mailers are ancient history. Today, retailers are able to have a more direct, intimate connection with consumers via social media platforms. Companies are not only creating an increased awareness of its brand/product with their own profile accounts but also by partnering with influencers to further the reach and opportunity for sales.

The Reaper is coming to a mall, shopping center, power center or free standing building near you soon if he hasn’t struck already. The Reaper is also attending your clients Real Estate Committee meetings and dropping the ax on your pipeline. The Reaper, more commonly known as E-Commerce/Omni channel retailing, is forever altering how we operate and transact in a field where you are only as good as your last deal. Now more than ever it’s paramount to become a chameleon, adapt and take advantage of the new opportunities created in an industry undergoing a major transformation.

The solid economic data and subsequent development is not confined to the Twin Cities metro area. While much of what we hear about or see in the news is focused on retail developments happening in the metro, there are many new developments and new tenants entering the outstate markets of Minnesota. The following is a summary highlighting notable happenings in the most active outstate markets.

Recently, the Mid-America Real Estate – Wisconsin team participated in the annual “Storm the Bastille” 5k race through the streets of downtown Milwaukee. The race, celebrating the revolutionary storming of the Bastille prison by Parisians on July 14, 1790, has been a commemorative staple of downtown festivities since 1981. While the run/walk is an exciting way to celebrate France’s national holiday, it also serves as a vehicle for team bonding and culture development for the entire Mid-America – Wisconsin family.

Fifteen years, six months and thirteen days have passed since I joined Mid-America’s construction management department. A lot has changed in that time, and I’ve learned a lot from my clients, coworkers, consultants and contractors. I’ve been fortunate to work with some wonderful people, and I’ve also seen others behave in ways that have left me wondering how they manage to hold down a job. I’ve learned a lot from both.

It has been an exciting journey finding my place at Mid-America Asset Management. My first week began on December 21, 2016. I was overwhelmed with names and faces of new colleagues. I quickly realized it was just the tip of the ice berg since most of the company was on holiday vacation. In the first week of January, a helping hand was offered by everyone that passed by my door as they welcomed me to Mid-America. It feels like home when you are surrounded by people that want to see you succeed.

Whether you’ve been in our industry for three months or thirty years - there is one simple thread that binds our network: building relationships. If you're a “people person” like me, you’re deemed the “outgoing friend” and truly want to help others succeed. I've always had a passion for commercial real estate and the tight knit community it produces. From day one I treated networking as an essential way of gaining and maintaining my success.

It’s hard to imagine that almost three years ago I started my career at Mid-America. This time, three years ago, I was a typical college senior enjoying my last few months of “freedom.” I still had not found a job, and to be honest, was not set on what I wanted to do. Real Estate had been in my family for a few generations and while I knew I always had an interest in it, I also knew I wanted to stray away from the residential real estate industry that my family was involved in.

Healthcare providers throughout the country continue to put emphasis on keeping their patients well rather than caring for the ill. Hospitals want to maximize doctor visits while making it a part of our daily need to travel and coordinate with our busy schedules. Therefore, we continue to see medical related retailers in shopping center and neighborhood environments to make the process more convenient for patients. The typical doctor office is in a tucked away medical office building or in Chicago’s case, on a major medical campus such as: Northwestern, Loyola, and Rush. All of which aren’t always the most convenient for patients.

For those of us in the retail real estate world, we’ve spent years watching retailers grow their online presence and shrink their brick and mortar footprints. While internet sales equate to only 8% of total retail sales, we’re continuing to hear about retailers scaling back their traditional retail presence in favor of growing their e-commerce business. Internet sales continue to grow and we won’t be seeing the end of this trend any time soon. However, there are a few e-commerce retailers that are heading in the opposite direction by dabbling in a more traditional retail platform, proving e-commerce nor traditional brick and mortar can stand alone. Amazon, the e-commerce giant, is beginning to substantially grow their traditional brick and mortar presence.

Property management of a shopping center is critical in the overall success of the property, therefore Property Managers should always be looking for opportunities to improve the shopping center’s tenant mix and to increase NOI.