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Monthly Archives: October 2014

Third Quarter 2014 Chicago Downtown Office Market Report

Vacancy and Availability Rates Continue to Decrease in Downtown Office Market

The downtown office market continues to decrease in vacancy and availability this quarter as net absorption is now over 1 million square feet for the year. Chicago’s economy has continued to improve as the unemployment rate decreased to 7.4% in August compared to 10.7% a year earlier. This decrease is the largest annual unemployment rate decline since September of 1994 (-3.5%). Overall this is translating into a tighter Chicago office market with vacancy and availability rates at 13.0% and 16.4% compared to 2013 Q3 numbers of 13.8% and 17.8%, respectively.

Read Full Market Report Here

 

Bradford Allen Represents Epsilon in 42,435 SF Office Relocation in Itasca

CHICAGO, IL – Bradford Allen Realty Services is pleased to announce that Senior Managing Director Ben Azulay and Director Ryan Moen have completed a new 42,435 square foot lease on behalf of Epsilon at 1 Pierce Place in Itasca, Illinois.

Epsilon, a global marketing services firm, is relocating to 1 Pierce Place from 1100 East Woodfield Road in Schaumburg, Illinois. Founded in 1969 and recognized by Ad Age as the #1 U.S. Agency from All Disciplines, #1 World CRM/Direct Marketing Network and #3 U.S. Digital Agency Network, the firm has 60 offices worldwide and over 5000 employees. With six offices in the Chicago area, the firm is consolidating its existing Schaumburg location with its office in West Chicago, Illinois.

Azulay and Moen assisted the firm with its site selection analysis, ultimately securing space at 1 Pierce Place in Itasca based on its location between Schaumburg and West Chicago as well as the building’s high-end, professional environment. Epsilon will move into the new 42,435 square foot office space in two phases beginning in November 2014 and culminating in May 2015.

“We are pleased to have assisted Epsilon in streamlining its operations to create greater efficiencies and foster deeper collaboration. This transaction enables Epsilon to combine employees from two suburban offices under one roof in a convenient and centralized location,” said Bradford Allen’s Azulay. “It also offers Epsilon flexible expansion options within the same property if needed down the road.”

“It’s an exciting time for Bradford Allen with our continued expansion and the growth of our multi-market platform,” added Jeffrey Bernstein, principal and co-founder of Bradford Allen. “In this particular transaction, Ben and Ryan teamed with Cassidy Turley’s Boston office and drew from their market knowledge and analysis skills to find a high-end, move-in ready space to accommodate the firm’s near and long-term growth.”

Azulay and Moen represented Epsilon in the lease negotiations and co-brokered the deal with John Boyle and Denise Orlando from Cassidy Turley’s Boston office. Scott Schroeder of Hamilton Partners represented building ownership.

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.

 

Chicago Commercial Real Estate – In the News

Tom’s Recommended Reading for the Week

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

  1. Transportation Drives CRE Development – Cushman & Wakefield has released a new report that explores the consequences of rapid population growth in 10 major North American cities. Entitled “Urban Development: Faster Greener Commutes Key to Sustained City Growth,” the report discusses the impact of intensified gridlock and slow commutes that impact work productivity and quality of life, along with the transit-oriented real estate developments helping to relieve congestion and support growth… Globe St.
  2. Cision signs lease in Prudential Plaza in Chicago’s East Loop – The owners of Prudential Plaza landed their first big tenant since taking over the East Loop office complex last year, the first deal of many they will need to turn the property around. Swedish public relations software provider Cision AB leased 49,464 square feet at One Prudential Plaza, which will become the firm’s headquarters after it merges with rival firm Vocus Inc. Stockholm-based Cision will move about 400 Chicago workers to the seventh floor of the 41-story tower at 130 E. Randolph St. in the first quarter of 2015, moving from a nearby building, a Vocus spokeswoman said… Crain’s Chicago
  3. Downtown Chicago office vacancy rate falls – As more companies move their offices, the downtown office vacancy rate keeps moving lower. The overall downtown Chicago vacancy rate fell to 13.8 percent in the third quarter, its lowest point in 5½ years, according to Los Angeles-based CBRE Inc. Vacancy fell from 14.1 percent in the second quarter, which already was a five-year low, and from 14.7 percent a year earlier… Crain’s Chicago
  4. Office Investors Decide It’s Time to Buy Vacancy – An economy producing a steady stream of new jobs, combined with a dwindling supply of affordable core office properties, has reversed investor sentiment for office properties that were largely discredited and ignored by investors as recently as one year ago… CoStar Group
  5. Urban Locations Are Most Desirable for New HQs – Developers are trying two distinct approaches to attracting new office tenants in a market that is rapidly seeing cheap, big-block space dry up: the tried-and-true new class-A headquarters building and repositioning a dated property. Office vacancy rates declined again in most major U.S. markets during the third quarter 2014, and asking rates are increasing as tenants’ appetite for space continues to grow, according to a report this week from CBRE… NREI