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Monthly Archives: July 2014

Chicago Commercial Real Estate – In the News

Tom’s Recommended Reading for the Week

Check out the top news in Chicago commercial real estate before heading into the weekend!

  1. GoHealth subleases River North building near HQ – In the latest real estate deal involving a fast-growing technology company, GoHealth LLC added space in River North in a building that backs up to its headquarters. GoHealth subleased a three-story, 42,000-square-foot loft building at 219 W. Superior St., said CBRE Inc., which represented the health care tech firm in the transaction. GoHealth accomplished a difficult feat in finding a larger block of space in River North, the city’s tightest office market. The area has 10.8 percent vacancy, well below 14.1 percent for all of downtown, according to Los Angeles-based CBRE… Crain’s Chicago
  2. Sale clears obstacle for potential Wacker Drive tower – At five stories, the headquarters of General Growth Properties Inc. is a stump in the forest of office towers that stand tall on Wacker Drive. But the building’s owner has moved a step closer to replacing the stubby structure with a high-rise of its own. A venture of Howard Hughes Corp. paid $12.3 million for the 43,000-square-foot parcel beneath the building at 110 N. Wacker Drive, according to Cook County property records. Dallas-based Howard Hughes has said it wants to redevelop the property, a more attainable goal now that it owns both the building and land underneath it… Crain’s Chicago
  3. The New Business Casual Is Still Uptight – Every workplace imposes certain behavioral standards on its workers — dress this way, talk that way, get lunch here and not there. Learning these standards is, we’re told, a big part of being successful. But what do we do if they’re constantly shifting, or if we’re not even sure what they are? At The Billfold, Megan Reynolds tackles one aspect of this question — the meaning of the word “professional.” As she notes, many of us have certain received ideas about what counts as professional — she mentions “pants that are not jeans” and “org charts… The New York Times 
  4. With two LaSalle Street hotels already, Reschke comes back for thirds – After developing one hotel on LaSalle Street and starting another last year, Michael Reschke is laying plans for No. 3, the latest in a wave of new hotels planned for the city’s financial district. The Chicago developer plans to convert part of a vintage office building at 208 S. LaSalle St. into hotel rooms, according to an operating agreement for the property filed this month with the Cook County Recorder… Crain’s Chicago
  5. Workspace Variety’s the Key – A mix of workspace options is essential improving worker productivity, CBRE Group suggests in a new report. Titled “The Evolving Workplace: How US Office Space is Changing,” the study suggests a direction for the future of office-using tenants. “Organizations that provide flexibility and choice will create greater office efficiencies and higher levels of employee satisfaction,” the report states. “By more intensely utilizing their assets, they are able to reinvest in technology and a suite of services that can make the new workplace environment a reality for their workforce… Globe St.
 

Bradford Allen Suburban Team Negotiates Multiple Leases Throughout The Second Quarter

CHICAGO – Bradford Allen Realty Services’ suburban tenant representation team has arranged several leases throughout the second quarter in the Chicagoland suburbs.    Senior managing director Joel Berger, director John Millner and director Ryan Moen have negotiated leases on behalf of five new clients.

Silgan White Cap, a leading worldwide supplier of metal, composite and plastic vacuum closures for food and beverage products, has renewed their office lease at 1140 31st Street in Downers Grove.  Both Berger and Moen represented the firm in the 42,000 square foot renewal.   The lease will accommodate the growing firm who acquired Naperville-based Portola Packaging late last year.  Doug Jones, a Senior Vice President with HSA Commercial, represented the landlord.

Dex Media, a provider of social, local and mobile marketing solutions through direct relationships with local businesses, has leased 9,800 square feet of office space at 300 North Martingale Road in Schaumburg.  The Dallas, Texas based firm, represented by Berger and Bob Acuff from Case Commercial, is consolidating four regional Regus office suites spread across the northwest market.   Joe Stevens, a Senior Vice President with Transwestern, represented the landlord, LNR Realty Partners.

Additionally, the suburban tenant representation team has completed leases on behalf of:

  • Trinity Holistic Health Center – in a renewal at 8501 W Higgins Rd in Chicago.  Represented by Berger.
  • Mortgage Services III, Inc – in a renewal at Brittany Towers, 17 W662 Butterfield Road in Oakbrook Terrace.  Represented by both Berger and Moen.

About Bradford Allen Realty Services

Bradford Allen Realty Services, a Chicago-based commercial real estate firm, offers a full range of services and expertise to entrepreneurial and corporate business entities as well as not-for-profit organizations. The firm provides real estate strategy, advice, marketing, and transaction execution for occupiers, investors and owners of real estate. For more information please visit our website at www.bradfordallen.com.

 

Chicago Commercial Real Estate – In the News

Tom’s Recommended Reading for the Week

Check out the top news in Chicago commercial real estate before heading into the weekend!

  1. CBRE acquires Chicago’s U.S. Equities – Chicago boutique brokerage U.S. Equities Realty LLC has been acquired by CBRE Inc., the world’s largest commercial real estate firm, following months of rumors of a deal swirling in local real estate circles. Los Angeles-based CBRE today completed the deal for the U.S. business of the firm that was founded in 1978, the companies said. Terms of the deal were not disclosed. The deal does not include U.S. Equities’ Latin American business… Crain’s Chicago
  2. Chicago slowly, but steadily, increasing construction activity – Although not as strong as the robust economic recoveries experienced in Texas and along the West Coast, Mathew R. Dougherty, P.E., executive vice president and regional manager –Midwest at McShane Construction Company, says Chicago and the Midwest Region has experienced a slow, but steady increase in construction activity over the past 12 months. “Most notably, two large market sectors, industrial and multi-family, comprise the majority of new construction activity,” he said. “Within the industrial market, there has been a shift over the past 18 months in supply and demand… RE Journals
  3. Uncle Sam wants ideas for State Street buildings – The federal government is trying to figure out what to do with a stretch of State Street that’s not so great. The U.S. General Services Administration is seeking ideas for four vacant and vintage buildings it owns on the 200 block of South State Street, the beginning of a process that could lead to an opportunity for developers to revitalize a key Loop block that progress left behind. The GSA, which runs the Everett M. Dirksen Federal Office Building & Courthouse behind the buildings, took them over nearly a decade ago, thinking it might need the properties for a new office building… Crain’s Chicago
  4. Publisher books suburbs’ second-largest office lease of 2014 – Textbook publisher Houghton Mifflin Harcourt Co. leased 106,000 square feet in Itasca, the second-largest office lease this year in the Chicago suburbs. The Boston-based publisher and educational content producer signed a 12-year deal at 1 Pierce Place in the west suburb and plans to move 340 employees there from Rolling Meadows in October 2015, a company spokeswoman said. The employees, who work in product development, research, sales, marketing and customer service, will move from 110,000 square feet Houghton Mifflin leases in the Atrium Corporate Center, 3800 Golf Road in Rolling Meadows, the spokeswoman said… Crain’s Chicago
  5. Sterling Bay Expanding Into Midwest – As reported yesterday in GlobeSt.com, Sterling Bay Companies just entered into a partnership with New York-based J.P. Morgan Asset Management that makes the latter a co-developer of the many Near West Side buildings Sterling has bought since 2012. And today Sterling principal John Gavin tells GlobeSt.com that such a partnership was essential. Renovating the more than 20 assets, which includes the giant Fulton Market Cold Storage building at 1000 W. Fulton and Fulton West, a portfolio of existing and partially completed office, retail and parking facilities, would run up about $750 million in project costs, far beyond Sterling’s capacity if it were to go it alone… Globe St.
 

Bradford Allen Special Report: Take Your Office Search To The Next Level

The technology scene is witnessing tremendous growth. According to Built in Chicago, funding to Chicago start-ups has increased 169% from 2012 to 2013. This additional funding has the best of the best go from fledging idea to growing company in no time. With the growth, operational challenges start to multiply as well. Perhaps the biggest of these challenges involves real estate, which is one of the largest line items on a company’s balance sheet.

In a recovering economy where office space is getting tighter, the challenges are heightened. The right space at the right price can foster a culture to help you attract the talent necessary for success. The wrong location or a lease under dubious terms could undermine the very viability of a business.

Major company relocations from the suburbs to downtown by Motorola Mobility and Gogo, as well as expansions by kCura, Fieldglass, Vivid Seats and Punchkick Interactive illustrate that the pendulum is beginning to swing in favor of the landlords, especially in the River North submarke

The competitive office conditions may be particularly acute for smaller, entrepreneurial companies that often focus narrowly on the brick and timber loft buildings common in River North. With a total inventory of just over 17 million square feet, the River North submarket continues to record positive net absorption, which helped keep the vacancy rate at only 9.4% at the end of the first quarter

While landing the right space is tough, here are a few considerations that can help companies stay nimble and successfully navigate through the commercial office space market in downtown Chicago…

Read Full Report

 

Mid-Year 2014 Chicago Suburban Office Market Report

Suburban Office Market: Vacancy and Availability Numbers Don’t Tell True Story

The suburban Chicago office market saw mixed statistical conditions during the first part of the year. Demand improved significantly in 2Q. 493,984 SF of net absorption was recorded decreasing YTD net absorption to -518,096 SF. This positive absorption in 2Q was not enough to decrease the vacancy rate, as it stands at 18.9% overall compared to 18.6% at year-end 2013. However, these current statistical conditions do not tell the entire story in suburban Chicago. Another large tenant migration to the CBD had a great impact on the overall vacancy and availability numbers since year-end 2013. Taking out the single 1,121,186 SF that Motorola left vacant, the net absorption for the year would jump to 603,090 SF; a very positive statistic.

Read Full Market Report Here