Tom’s Recommended Reading for the Week

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

1. Developers jockey for anchor tenants to fill Chicago office towers – How many major office towers will join Chicago’s skyline over the rest of this decade could be decided soon by just three big tenants. When developer John O’Donnell recently secured a $296 million construction loan, it meant he’ll be able to complete his long-planned 53-story tower on the Chicago River, only the second big office development started downtown since the previous development cycle fell victim to the recession… Crain’s Chicago
   
2. How different are Millennials than the rest of us? – Just how different are Millennials, Gen Xers and Baby Boomers when it comes to how they want to work? Which of these groups prefer working from home? Which thrive in a traditional office environment? Coldwell Banker Commercial Affiliates looked at these questions in its recent survey of more than 2,000 adults… RE Journals
   
3. Playing field tilts toward landlords – As the US economy and overall office market continue to improve, more cities have approached the tipping point between a landlord’s market and a tenant’s market, according to CBRE’s latest quarterly OccupierView report, which analyzes the nation’s office markets from the tenant perspective. Tenants in most downtown markets have begun to experience tightening conditions that have curtailed availability and boosted costs, the report finds, though suburban office markets have experienced little change… Globe St.
   
4. Sterling Bay venture paying $28 million for River North loft – Chicago developer Sterling Bay Cos. and a partner are paying almost $28 million for a River North loft office building that wound up in foreclosure after the crash, nearly double its 2004 price. A joint venture between New York-based DRA Advisors LLC and Sterling Bay, one of the city’s most active developers and acquirers of non-traditional office space, agreed to buy the seven-story building at 213 W. Institute Place for about $185 per square foot, which would be about $27.5 million, according to people familiar with the transaction… Crain’s Chicago
   
5.  TPG Group to acquire Cassidy Turley, rebrand as DTZ – Confirming rumors and reports that have been floating around the industry for several weeks, a group led by private-equity giant TPG Capital has agreed to acquire U.S.-based Cassidy Turley and combine it with its previously acquisition target DTZ to form what could become the world’s third-largest CRE services company… CoStar Group

Tom’s Recommended Reading for the Week

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

1. It’s the hottest commercial property market since 2007 – Sales of Chicago-area commercial properties are on pace for their best year since the crash amid an improving economy and low interest rates. Investors acquired more than $9.15 billion in local apartments, hotels, retail, office and industrial properties through August, up 28 percent from the $7.14 billion spent through the first eight months of last year, according to New York-based Real Capital Analytics Inc… Crain’s Chicago
   
2. HFF Closes $62M Sub. Office Sale – Although the suburbs suffer from an elevated vacancy rate and continue to see some of its office tenants move into Chicago’s CBD, many top properties seem immune to these troubles and remain very attractive to investors. HFF recently closed, for example, the $62 million sale of Highland Landmark II, a 284,278-square-foot class A office building in the western suburb of Downers Grove. HFF marketed the property on behalf of GLL Real Estate Partners. James Campbell Company LLC, which was advised by Colony Realty Partners, purchased the building… Globe St.
   
3. Rise Interactive expanding at 1 S Wacker – Rise Interactive Inc. plans to hire as many as 150 employees and double the size of its West Loop headquarters as it prepares for torrid growth in its digital marketing business. Rise said it agreed to expand its space at 1 S. Wacker Drive to about 34,000 square feet in a new 12-year lease, from its current 15,000 square feet… Crain’s Chicago
   
4. West Loop site could fetch $35 million – A West Loop site where Steve Fifield envisioned a 75-story skyscraper is up for sale, possibly ending the Chicago developer’s ambitious plan for the property. CBRE Global Investors, Mr. Fifield’s financial partner in his planned development at 601-625 W. Monroe St., hired CBRE Inc. to sell the 60,000-square-foot property, which could fetch as much as $35 million, according to people familiar with the property… Crain’s Chicago
   
5.  Uber accelerates Chicago growth with new West Loop lease – Rideshare firm Uber Technologies Inc. is stepping on the gas in Chicago, adding a large chunk of office space in the West Loop to make room for potentially hundreds of new employees. Just months after moving its Midwest headquarters into a much smaller building… Crain’s Chicago

CHICAGO, IL – As commercial real estate needs have become more complex and specific to each client, Bradford Allen has begun offering project management services to ensure each client’s transaction goes seamlessly, saving them time and money, and ensuring the environment will be a good fit.

Project management has become an important part of commercial real estate for a variety of reasons, including growing technology demands, planned stages of growth, and greater specialized services. The scope of project management from beginning to end includes: project planning and design oversight; strategic planning; budget and schedule development; occupancy planning; risk management; site selection analysis; construction management, and move management.

 “It’s site selection, it’s looking at your needs now and in the long term, it’s the pricing and selection of furniture, ensuring the IT infrastructure, the moving and much more,’’ said Steven Lerner, a one-time corporate real estate manager turned broker  whom Bradford Allen brought in to start its project management practice. “Essentially, our focus is on customization so the space is tailored to the exact needs of the client.’’

Lerner notes some of the reasons project management is critical:

• An end-to-end solution — From the planning stage to the day you get the keys, a project manager will maximize the potential of your new space and assure it comes in at or under budget. Hiring one at the very start is most beneficial, but a project manager will add value at any time in the process.
• Efficiency and accountability — The goal of a project manager is to save the client 10% to 20% of the total cost and reduce the commitment of their internal resources. This positive return on investment comes from timely coordination and the savings that come from experience and existing vendor relationships.
• Single point of contact — Managing a variety of vendors and specialized tasks requires more time, expertise and focus that most people realize. The project manager will keep everything from the drywall to the telephone installation on a tight and orderly schedule while your employees excel at your core business.
• Professional expertise — Real estate project managers have the expertise to consult on a client’s individual needs. Perhaps a company is experienced planned stage growth and needs an office that can be expanded in a year. The project manager can plan ahead for how your space will look now, a year from now, and five years from now.
• Risk management — People think about the cost of hiring a project manager, but what is the potential cost of not hiring one? The very real potential for disruption in your business due to building or permitting delays is likely to far exceed the cost of ensuring your project is done on time and meets your needs.

Lerner has consulted for Bradford Allen clients that include small firms lacking the resources to even begin seeking input on sophisticated IT infrastructure and space management issues, large companies with a firm budget and strict timeline, businesses not yet present in the Chicago market, and even for projects outside of Chicago.

“We would have spent a lot more time and money if there were no project manager overseeing the project, said Biren Jethwa, a recent Bradford Allen client who says project management work was critical for the office space it recently rented at 55 E. Monroe. “It was exceptionally helpful on the IT front. You will have cost overruns if you don’t hire one.”

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.

Tom’s Recommended Reading for the Week

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

1. CRE Execs Feeling “Bullish” on US – DLA Piper just released its “State of the Market Survey” at its 12th Global Real Estate Summit in Chicago this week, and of the commercial real estate executives surveyed, 89% were “bullish” on the prospects for the US economy. This was slightly higher than last year, when 85% responded optimistically, and even higher than in 2007, when 77% did so… Globe St.
   
2. For sale: Another $1.8 billion of office towers – More downtown office landlords are hanging up For Sale signs, an end-of-summer tradition getting an extra boost this year from an unusually strong investment sales market in Chicago.Five more buildings with an estimated combined value of about $1.8 billion are going on the market, according to people familiar with the properties… Crain’s Chicago
   
3. Is this the start of office building boom in the Loop? – Nothing shapes perceptions of a city like its skyline, and nothing defines a skyline like towering office buildings. Successive waves of office construction over the past 30 years added striking new features to Chicago’s profile, showcasing a vibrant commercial hub… Crain’s Chicago
   
4. Tech Turns Chicago Skid Row Into Top Market – Chicago’s River North, a district once notorious for its prostitutes and dilapidated warehouses, has become one of the hottest office markets in the U.S. The neighborhood has transformed from a wasteland in the 1970s to a trendy spot for living, dining and entertainment that’s also attracting technology tenants… Bloomberg
   
5. West Loop Gets Another Tech Firm – The West Loop has become the CBD’s hottest office market and one of the reasons is the desire of many tech firms to find a downtown home. And Newark element14, an electronics and engineering firm, is just the latest tech company to make this move after spending the last 34 years in Ravenswood on the North Side… Globe St.

Tom’s Recommended Reading for the Week

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

1. 11 Historic Buildings Getting New Life as Hotels & Apartments – Chicago’s strong architectural legacy lives on not only in our minds and in history books, but also in the dozens of historic buildings all around the city whose age and pedigree make them too important to get rid of, but too outdated to still serve their original purpose. Buildings meant to be offices a century ago no longer meet the needs of office tenants today, so in order to avoid money-wasting vacancy or tragic dilapidation, these buildings need to find new uses. Fortunately, the rebounding economy is seeing a lot of interest in rescuing these historic buildings by changing their use from offices to something new… Curbed Chicago
   
2. Citizens Financial Co-Finances $296M for West Loop Tower – Citizens Financial Group recently helped complete a $296 million construction loan to finance the development of 150 N. Riverside, one of several new office towers beginning to rise along the Chicago River in the West Loop. The O’Donnell Investment Co. began construction on the 53-story, 1.2-million-square-foot building in July and the loan closed in August, Citizens’ officials tell GlobeSt.com. The bank was the joint lead arranger and joint bookrunner along with Bank of America and Helaba… Globe St.
   
3. Hearn poised for big gain in $241 million Loop office sale – After buying a 40-story Loop office tower three years ago and filling up most of its empty space, Hearn Co. is selling out for a big profit. The Chicago-based office investor agreed to sell the Helmut Jahn-designed tower at 55 W. Monroe St. for about $300 per square foot, or $241 million, to John Hancock Real Estate, according to people familiar with the deal… Crain’s Chicago
   
4. South Street Capital plans office project on Chicago’s Goose Island – A Chicago real estate investor is doubling down on its bet that Goose Island will emerge as an office market, planning a $90 million project accessible by a new cycling and pedestrian bridge over the Chicago River. A venture of South Street Capital paid almost $8.25 million Aug. 28 for the Goose Island Boat Yard, a three-acre property along the Chicago River where it plans to build a six-story, 350,000-square-foot office building, said South Street Co-founder Matt Garrison… Crain’s Chicago
   
5. What Corporations Can Coopt from Co-Working  – Companies seeking to attract top, young talent—and who isn’t?—by creating dynamic work environments should look not only at the non-traditional spaces seen in large tech companies, but also at smaller incubators offering co-working spaces. Co-working originated within the corporate environment in the early 2000s to support “co-opetition”—collaborations and even partnerships between competitors with synergistic strengths (think of Microsoft and Cisco)… NREI