Tom’s Recommended Reading for the Week

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

1. Corporations Prepare for Upcoming Lease Accounting Changes – Corporations have resigned themselves to the fact that, at some point, new lease accounting standards will be in place that will effectively shift leases from off-balance sheet to on-balance sheet reporting. Although the big question still remains as to when those new rules will become effective, companies are already preparing for the new requirements… NREI 
   
2. Golub/Alcion Launch Oak Brook Renovation – The suburban office market may suffer from an overall high vacancy rate, but some investors still see opportunities. As reported in GlobeSt.com yesterday, for example, Golub & Company and its partner Alcion Ventures just bought Oak Brook Executive Plaza, a 389,000-square-foot office complex on W. 22nd St. in west suburban Oak Brook… Globe St.
   
3. New Office Conversion Planned for Goose Island Warehouse – Another developer is banking on the Goose Island tech renaissance with a new renovation of the 42,744 square foot Burhop Box & Packaging warehouse at 1071 W. Division Street to create new office space. Design and development outfit Summit Design + Build is leading the effort to transform the aging structure into an office complex, joining several other adaptive reuse projects currently underway on the man-made island… Curbed Chicago
   
4. Once Again, Office Vacancy Rate Doesn’t Budge – The national vacancy rate for the office sector remained unchanged at 16.8 percent in the third quarter. The vacancy has not budged all year, wedged at a level that is only 80 basis points below the cyclical high observed four years ago. On a year-over-year basis, vacancy has fallen just 10 basis points, with the only decline coming in the fourth quarter of 2013… NREI
5. To Sell or Refinance? In a CRE Market Flush With Capital, Owners Enjoy Luxury of Choice – One can forgive commercial property owners if they seem a bit giddy lately. Just four short years ago, their property values had been cut in half in the wake of the crippling global economic recession. No lender would return their calls and those unfortunate enough to have loans come due often lost their properties to the dreaded special servicers… CoStar Group