Milwaukee, a commercial and industrial hub for the Great Lakes region, is home to more than fifty fortune 1000 companies including the corporate headquarters for Northwestern Mutual, Manpower, Harley-Davidson, Kohl's Department Stores, Johnson Controls, Rockwell Automation and Fiserv. The region has a population of approximately 1.5 million with the actual city of Milwaukee at 600,000 ranking as one of the top 25 largest cities in the United States. The metropolitan area places among the top manufacturing centers in the country, ranking second among major metropolitan areas in the percentage of its workforce in manufacturing. The economy is dominated by small to medium-size firms with representatives in nearly every classification.
The Milwaukee office of Cresa is led by six principals with unparalleled expertise. Our leadership team collectively brings prior experience from all sides of the real estate transaction. Our talented associates provide exceptional service to our clients. Steve Palec, the office's managing principal has been consistently cited as one of the top brokers in the Midwest and has been involved in numerous high profile transactions.
As professional real estate advisors, we are passionate about understanding the needs of our clients and strive to deliver successful real estate solutions for area businesses. We collaborate with clients to provide service-oriented, rather than transaction-oriented, consulting. By choosing to represent the interests of tenants alone, Cresa avoids inherent conflicts of interest typical of the "standard" real estate provider model.
The Greater Milwaukee area continues to have a strong mix of business activity. The real estate supply will continue to meet the needs of this diverse cross-section of business, whether companies need office, industrial, or R&D space in the Central Business District or outlying areas.
Our mission is to provide customized solutions exclusively for corporate space users by offering fully integrated services that align their real estate needs with their business plans, delivering maximum cost savings and exceeding expectations.
Our vision is to be the exception in the commercial real estate industry: A company that is service-oriented rather than transaction-oriented, with advisors who are client focused not deal focused.
We are guided by the concept, “Do the Right Thing,” both internally and externally. We will always do what is right for the client’s best interest and put that interest before our own. We treat our clients and employees with respect, dignity and fairness in all matters.
(by Tim and Ross Rikkers)
In today’s market, most lease transactions include some level of rental abatement or free rent. Free rent typically occurs during times of high supply and is used by landlords to differentiate their property from the competition.
Most basically, free rent is the number of months during which the tenant is not required to make rental payments; depending upon what you negotiate, free rent can apply only to base rent, or base rent and operating expenses. Generally, speaking, there are three ways to consider the value of free rent:
1. Cost Avoidance – by not paying rent for some period of time, you can apply those dollars straight to our bottom line. Or, you can apply the savings to the costs of a relocation (e.g. cabling, moving, marketing, etc.) or it may be applied to some other necessary business expense.
2. Reducing your Net Effective Lease Rate – the net effective rate is the average dollar amount per square foot that a tenant will pay over the term. Essentially, it is the total rent paid over the term divided by the number of months and then divided again by the tenant’s square footage.
3. Budgeting – Although free rent is typically applied at the beginning of a lease term, it does not have to be applied at that point. Any number of businesses have predictable cash flow fluctuations during a calendar year and thus, it may be valuable to take free rent during a certain month over the term instead of receiving all of it up front.
In addition to being able to obtain free rent in the first place, there are significant economic and accounting ramifications with each of the scenarios listed above. Engaging an expert Tenant advocate to assist you in your lease negotiations will ensure that you receive the best value and are fully informed prior to making any long term real estate commitments.