Milwaukee January 2024 Key Take Aways!
Mike Bahr (Plunkett Raysich Architects)– Concerned about qualified talent coming in. Noted a deficit in knowledge base in current upcoming talent. Anticipating a boomerang of retirees returning to contribute. Fears younger client’s decision making, risk aversion, and project management in 2024.
Nick Hepner (JLL)- Concerned with this year’s election and the dynamic shift in decision making, progress on projects, and navigating through changes. Noted optimism, preparation, and associates with varying expertise as strong foundation markers for 2024.
Scott Lurie (F Street Development Group)-Concerned with current workforce and interest rate expenses. Noted a societal shift in drive for success and reliance on government support. Is optimistic and hopeful for interest curtailment in 2024.
Gard Pecor (Costar Group)- Concerned with workforce, interest rates, and construction prices. Noted MKE is the lowest growth market in the Midwest, and down 3-4% in employment. Seeing q4’s vacancy rates, construction prices, and financing costs making it increasingly difficult to get projects done in 2024.
Steven DeVougas (DeVougas Law Group LLC)- Concerned with staffing challenges. Anticipating that lack of reliable/quality workers; will hamper business growth, force owner/operator situations, and does not bode well for the economy in 2024.
Jerry Krings (Carlson Dash)- Surprised by continued lending, deals being made, and bidding wars. Seeing defaults/foreclosures at a historic low. Anticipating dairy costs continuing to decrease in 2024.
E.J. Herr (F Street Development Group)- Concerned with project quality and balance of labor/goods/material costs. Echoed many of the group’s concerns. Noted people/groups, such as RPN, provide an opportunity to navigate through and find solutions in 2024.
Nancy Leary Haggerty (Michael Best)- Concerned with current younger workforce drive and generational turnovers. Seeing more experienced people making deals and no younger successors. Noted that experience/training, patience/participation, and creativity are qualities in good and seasoned employees but severely lacking in upcoming workers. Anticipating automation of business will help with time efficiency and project planning/progress in 2024.
Allen Witt (Terracon)- Concerned with business development, increased wages tied to increased inflation, and decreased labor force. Noted that despite the small labor force and limited talent, the pool is much more diverse. Aiming to be solution minded vs reaction minded in 2024.
Kathleen Ellis (Kakoon)- Concerned with other markets, such as TN and GA, gaining investments for sustainability/clean tech capital. Noted MKE is well positioned for growth. Seeing clients move businesses from other markets into Wisconsin due to weather resilience and climate forecast. Anticipates having a more positive outlook as Midwesterners and taking advantage of the large movement of capital for clean energy as top things to improve on in 2024.
Luke Geiger (MSA Professional Services)- Concerned with what has actually created the current work climate and why the younger workforce feels the way they do. Noted increased pricing, stress of balancing multiple jobs, and differing views of success as factors. Seeing a lack of infrastructure for energy development and repercussions to current infrastructure. Anticipates assessing these points further in 2024.
Dayna Miller (Landmark Credit Union)- Concerned with borrowers’ unrealistic expectations on loan to value lending. Seeing an uptick in competitors’ market delinquency, other lenders uninterested in referrals, and a decrease in MKE multi-family assets. Anticipating deposit rates above 4% and interest rates at 6-8% sustaining in 2024.
Presentation – Real Estate with Impact (Scott Lurie, F Street Development Group)
- Focus on industrial, commercial, multi-family, & hotel to multi-family
- Industrial development in the Fox Valley area primarily
- Takes into consideration municipalities
- Current Muti-family development in Oak Creek, at almost half capacity & seeing high demand
- Capitalized on market conditions since 2008 by adapting to economic trends (ie. interest rate fluctuation, tightening underwriting, and prioritizing partnerships/projects rooted in community support)
- Values extensive networking and consistent progress meetings
- 1-5 year window on projects depending on planning and construction stages
- Seek TID , TIFs, & financial incentives
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