THE AMERICAN MALL – A DYING BREED?

Everywhere I look I see headlines proclaiming that malls are “out.” CBS News reports, a dying breed: The American shopping mall, Business Insider reads, America’s Shopping Malls Are Dying a Slow, Ugly Death, Bloomberg says, Malled: The Hollowing Out of an American Institution and the New Yorker delivers, Goodbye, Malls of America, Are Malls Over? These headlines are alarming especially considering the recent news of the Janesville Mall JC Penney store closing and the Diamond Center relocation. What headline will appear next in our local newspaper? Luckily it’s all been good so far.

Self-Storage: The New Investment Darling

“Maybe we should rent a mini warehouse.” My wife makes this statement every fall as we put away our lawn furniture. My response years ago should have been “No, let’s buy some!”

A recent Globe Street column by Brian J. Rogal of M J Partners, a Chicago-based firm, reports that the largest self-storage REIT now has an implied cap rate of 4.0%. Competitor REIT cap rates are ranging from 4.5% to 5.7%.

Courtesy of A+ Self Storage 

1031 Exchange Basics (Part 1 of 2)

The 1031 exchange is a popular tool used to defer capital gain taxes (or losses) for business and investment real estate transactions. It is derived from the Internal Revenue Service’s code Section 1031 and gives investors the opportunity to earn a rate of return on funds that would otherwise be paid to the IRS.

It is also great for portfolio adjustments: diversify, expand, risk averse, down size, location selection, etc. These details can be very important and help with major investor and business owner decisions. To start off, we will go over the types of 1031 exchanges:

#FeaturedListingFriday - 2085 Morse St

Retail Space for Lease - 2085 Morse St, Janesville, WI

1,500 sf inline space available in new 5,100 sf strip center just off a controlled intersection with Milton Ave, Janesville's main commercial corridor, and extremely close to an I-90/39 interchange.
Lease rate is $24.00 psf, NNN (est. $6.90 psf) for gray shell finish.