Suburban Chicago’s medical office market continued to thrive through the end of 2016, but some uncertainty awaits in 2017.
Check out Bradford Allen’s latest report here.
Suburban Chicago’s medical office market continued to thrive through the end of 2016, but some uncertainty awaits in 2017.
Check out Bradford Allen’s latest report here.
At mid-year 2016 the total occupancy for on-campus medical office space in suburban Chicago remained flat from the start of the year. Activity and overall deal velocity has remained strong, but the vast majority of Q1 and Q2 deals have not resulted in any positive space absorption. This is due to several ongoing trends:
There is still ongoing demand for regional hospital systems to continue to merge operations (Northshore and Advocate are the most recent), that these trends in health care real estate will likely continue, resulting in flat absorption rates for vacant space.
Jill’s Top 5 Articles From This Week
Jill’s Top 5 Articles From This Week
Jill’s Top 5 Articles From This Week
Jill’s Top 5 Articles From This Week
Jill’s Top 5 Articles From This Week
Jill’s Top 5 Articles From This Week
Glassdoor, the online human resources site where users can rate their bosses and jobs, said it plans to open a Chicago office early next month and hire more than 250 people over the next three years. Glassdoor said this will be the company’s fifth worldwide office and it will announce the Chicago office location “shortly.” – Chicago Business Journal
Jill’s Top 5 Articles From This Week
Jill’s Top 5 Articles From This Week
Jill’s Top 5 Articles From This Week
Jill’s Top 5 Articles From This Week
Chicago’s downtown office market saw the vacancy rate increase this quarter for the first time since 2013. The slight increase from 13.1% in Q4 2014 to 13.3% was attributable to the BMO Harris relocation/contraction and downsizing of showroom tenants at 311 W. Monroe and the Merchandise Mart, respectively. Please note however the vacancy rate of 13.3% is well below the 14.0% in Q1 2014.
The suburban office market saw multiple statistical improvements to end the year. The overall vacancy rate decreased from 18.9% Mid-Year to 17.5%. Availability also decreased from 24.4% at Mid-Year to 23.2%. Even though a large tenant migration to the CBD occurred earlier in 2014, the suburban office market was able to record 929,540 SF of positive absorption for the year. These statistical improvements have led to a healthier suburban office market.
The Chicago economy continues to show signs of improvement as the unemployment rate in the metropolitan area decreased from 8.7% to 6.3% year over year. This translated into a healthier downtown office market with the vacancy rate decreasing from 14.1% to 13.1% year over year. Attributing to this was net absorption for the year of 1,141,848 SF. Vacancy however did increase slightly from 13.0% last quarter due to the former Chicago Public Schools (CPS) office building being added to the downtown inventory.
Check out the top Chicago commercial real estate news before heading into the weekend!
Check out the top Chicago commercial real estate news before heading into the weekend!
Check out the top Chicago commercial real estate news before heading into the weekend!
Check out the top Chicago commercial real estate news before heading into the weekend!
Check out the top Chicago commercial real estate news before heading into the weekend!
Check out the top Chicago commercial real estate news before heading into the weekend!
Check out the top Chicago commercial real estate news before heading into the weekend!
Check out the top Chicago commercial real estate news before heading into the weekend!
Check out the top Chicago commercial real estate news before heading into the weekend!
Check out the top Chicago commercial real estate news before heading into the weekend!
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.
Check out the top Chicago commercial real estate news before heading into the weekend!
Check out the top Chicago commercial real estate news before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
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:
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.
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
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…
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.
Chicago’s office market and the economy improved again this quarter. Despite a surprise contraction in 1Q GDP growth, the unemployment rate hit a low this June. National and statewide unemployment rates dropped to 6.1% and 7.9%, respectively. Both of these rates haven’t been this low since 2008. The improving economy correlated into vacancy and availability rates decreasing YOY from 14.1% and 18.4% to 13.4% and 16.6%, respectively.
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
Check out the top news in Chicago commercial real estate before heading into the weekend!
I’m sorry about jinxing the weather everyone. I clearly forgot where I lived. Check out the top news stories in Chicago Commercial Real Estate before heading into the weekend!
It’s starting to feel like summer in Chicago with the temperature rising (keep your fingers crossed). Check out our top Chicago Commercial Real Estate articles before heading into the weekend!
After the 4 day break this week, the Blackhawks continue their road to the Stanley Cup finals. Check out our top Chicago commercial real estate articles before the game tonight!
Eventful week in Chicago as summer approaches. Check out our top Chicago commercial real estate articles before heading into the weekend!
The NHL playoff season has begun. Lets go Blackhawks!! Check out our top Chicago Commercial Real Estate articles as you head into the weekend.
It looks like Chicago has finally decided that it’s time for spring and great weather! Check out the top news in the Chicago Commercial Real Estate Industry before heading into the weekend and happy Friday!
Overall conditions in the CBD office market tightened during the 1st quarter as certain economic indicators improved. Although GDP growth for the U.S. is slow, the country’s unemployment rate has continued to drop. Chicago’s fell to 9.9% in February – the lowest since February 2009. While this rate is relatively high compared to New York City and other metros; it’s still a good sign for Chicago’s economy. This translated into CBD vacancy and availability decreasing year over year from 13.9% to 13.5% and 18.1% to 17.3%, respectively.
Baseball season has finally started! Too bad the Cubs and White Sox didn’t bring the warm weather back with them from Spring Training. Enjoy these Chicago Commercial Real Estate news articles and have a great weekend!
This week I was able to make a trip out to sunny California. Unfortunately, I was not able to bring back the nice weather. Hopefully this week’s recommended articles can warm you up a bit. Enjoy!
An exciting couple days ahead of us with the NCAA tournament starting yesterday. Check out these articles before heading into the action packed weekend!
Happy St Patrick’s Day weekend! Does this mean that spring is finally here? Lets hope so. Check out these 5 articles before heading into the festive holiday weekend.
Eventful week with two technology based tenants announcing moves within the CBD! Check out those articles and others below.
Happy Friday! Take a look at these articles heading into the weekend.
Hope everyone enjoys the last weekend of Olympic action. Catch up on your CRE news and take a look at these articles below.
With the Olympics rounding up its first week, here are my 5 articles to start off your weekend. Enjoy!
This frigid week did not cool off the week’s news. Enjoy!
Looking for a quick glimpse into the Chicago commercial real estate world? Our Research Associate, Tom Hanrahan will be sharing his picks for the week’s top CRE articles. He’ll continue to update this with breaking news and feature stories for and about the commercial real estate industry. Here are five to check out this weekend…
Economic improvement in Chicago’s CBD office market continued slowly at the close of 2013. Uncertainty regarding interest rates and the effects of the Affordable Care Act continued to hamper momentum. Subject to these conditions, the Chicago CBD also improved slowly. Overall availability reached 16.4%, almost on par with last year’s 16.5%, and overall vacancy decreased to 12.5%, down slightly from 12.7% in 2012. Quarterly net absorption totaled -245,211 SF versus last year’s 298,126 SF, while yearly net absorption reached -17,920 SF compared to 794,398 SF in 2012. Although the business environment is improving overall, the trend to downsize square footage per employee and its effect on overall office size is a factor driving in negative net absorption for the year.
Chicago Suburban Year-End Market Report 2013 |
Class A Suburban Improvement Continues as Single-Tenant Listings Keep Vacancy High Suburban availability and vacancy both rose YOY to end 2013 at 23.8% (up from 23.6%), and 18.6% (up from 17.3%), respectively. Although data suggest worsening conditions, Class A buildings and certain submarkets are improving. Availability and vacancy of Class A space in the Eastern East-West corridor both decreased, reaching 24.2% versus 29.3% of a year ago, and 20.5% versus 21.3% in 2012. The North Suburbs also continued to improve as availability and vacancy rates dropped to 18.8% from 19.2% and 12.2% from 13.4%, respectively. The Central-North micro market shows the lowest vacancy and availability of all the North Suburbs at 8.3% and 15.9%
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Since 2010, the healthcare industry has been preparing for the Patient Protection and Affordable Care Act (ACA). As surgeons,
physicians and nurses prepped for the insurance exchanges to open up this October, it is still unclear what will happen in 2014.
Medical professionals are proceeding with extreme caution when making major decisions that will impact their core business
operations, specifically with regards to their real estate expenses. Hospital administrators are increasingly looking at their real estate
to control costs in response to revenue constraints and operating cost pressures. Much of this uncertainty has resulted in mergers,
acquisitions and strategic alliances. These consolidations are providing medical practitioners easier access to capital and greater
bargaining power with insurance companies.
While the future is somewhat uncertain, the healthcare sector is expected to remain relatively robust because of an aging “Baby
Boomer” population and the expansion of health insurance increasing traffic to health care facilities. The following are three distinct
trends that we continue to see within hospitals, healthcare systems, surgery centers and physician practices.