Tag Archives: Downtown Chicago

Q1/25 Downtown Chicago Office Market Report

Published April 10, 2025

Bradford Allen is pleased to share with you our latest office market report. Activity in Chicago’s downtown office market was steady, as firms expanded and well-capitalized owners continued robust leasing programs.

This quarter in the downtown office market:

Q1/25 direct net absorption was negative 173,000 square feet, significantly improved relative to negative 1.8 million square feet in Q1/24 and negative 1 million square feet in Q4/24.
Direct vacancy rose, reaching a record high of 23.4%.
Spec suites and full buildouts accounted for 38.9% of leasing activity, emphasizing the importance of user-friendly, move-in-ready space and financially committed ownership.
The West Loop secured over half of the quarter’s leasing activity, followed by River North (16.2%) and the Central Loop (11.8%).

Ten with Ben 029: Deals, Demand, & the Office Market Rebound

Published February 27, 2025

Ben is back with another episode of Ten with Ben, exploring the recent momentum in the commercial real estate market. Leasing velocity is up, transaction volume is rising, and distressed assets that once seemed stagnant are now trading hands. Post-election stability and renewed business confidence have fueled this shift, as companies gain clarity on their long-term office strategies. The return-to-office movement is no longer just a talking point with many firms solidifying in-person work policies, with some even requiring five-day attendance. Landlords are responding by enhancing assets with premium amenities to attract and retain tenants. As deal flow accelerates, the market is demonstrating greater resilience than many anticipated—particularly in Chicago, where leasing and investment activities showcase a revived sense of optimism.

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Client Success Story: Northwestern Mutual

Published January 28, 2025

Facing an expiring lease and a need for a refreshed office space, Northwestern Mutual partnered with Bradford Allen to explore relocation options. After an extensive market search, it became clear that the best solution was to expand within their existing building. Led by Ben Azulay, the Bradford Allen team negotiated favorable lease terms to expand and relocate to another floor, helping Northwestern Mutual achieve a modern, collaborative office that supports future growth and impresses clients.

Watch the video to hear Jeff Sons, wealth management advisor at Northwestern Mutual, discuss his successful partnership with the Bradford Allen’s Tenant Representation practice.

Q4/24 Downtown Chicago Office Market Report

Published January 24, 2025

Bradford Allen is pleased to share with you our latest office market report.

This quarter in the downtown office market:

2024 net absorption was negative 3.6 million square feet, nearly double the negative 1.9 million square feet recorded in 2023.
Direct vacancy continued to climb, reaching a record high of 23.2%.
The average gross asking rates were $42.85 per square foot.
Spec suites and full build-outs continued to outperform the market, accounting for an increasing share of leasing activity—28.6% in 2024 up from 9% in 2019.

Building the Future

Published November 25, 2024

Insights from Andy Gush and Chicago Build 2024

As top subject matter experts, Bradford Allen leaders are regularly asked to contribute to the industry conversations shaping the future of commercial real estate. Andy Gush, Vice President, Development, recently participated in the “High-Rise Development in the Midwest: Past, Present, Future” panel at Chicago Build 2024. Industry experts, including George Phillips Sorich of NORR, Jason Wilen of Klein & Hoffman, and John Peronto of Thornton Tomasetti, joined him in conversation.

Andy Gush, Bradford Allen’s Vice President, Development, discussed future developments in the Midwest at Chicago Build 2024, highlighting Arlington Med, our innovative redevelopment of the former Daily Herald building into a state-of-the-art medical office facility.
Photo by Guillermo Pizano Nuñez & Bradford Allen.

The panel provided a comprehensive overview of the evolving landscape of high-rise development in the Midwest, focusing in on economic trends, the increasing emphasis on sustainable building practices, and the necessity for adaptive reuse of the built environment. Reuse strategies are the most effective means of managing our carbon footprint, and recycling structure is a requisite step on the path to a climate-friendly future.

Among the pipeline projects discussed in the panel was Arlington Med, part of the first phase of Bradford Allen’s master-planned redevelopment of the south gateway to Arlington Heights, Illinois. The project includes a gut-rehabilitation of the 150,000-square-foot former Daily Herald building to a state-of-the-art medical office facility. As Gush noted in the panel, Arlington Med addresses the need for custom tenant solutions in the healthcare space, prioritizing the patient experience in all aspects of the buildout.

Panelists shared further insight into the challenges developers face, such as navigating complex zoning regulations and securing financing for ambitious projects. They also explored the importance of collaboration among architects, engineers, and developers to create spaces that meet the evolving needs of communities.

Our developments reflect our steadfast approach to building spaces that address market demands while being mindful of the communities they serve. For more information on Arlington Med and to read about our continuing commitment the Village of Arlington Heights, visit www.arlingtonmed.com.

Q3/24 Downtown Chicago Office Market Report

Published October 14, 2024

Bradford Allen is pleased to share with you our latest office market report.

It was a familiar story in Q3 for Chicago’s downtown office market as headline statistics didn’t improve, nor degrade, materially over the prior quarter.

Absorption was negative 600,000 square feet, bringing the year-to-date absorption to negative 2.6 million square feet.
The direct vacancy rate in the CBD reached 22.5%.
The CBD’s average gross asking rate dropped slightly to $42.85 per square foot.
Well-capitalized owners continued to withstand market fluctuations, attracting and retaining a strong tenant base.

Ten with Ben 027: Market Shifts and Opportunities

Published September 12, 2024

In the latest episode of Ten with Ben, Ben Azulay reflects on the year so far, highlighting consistent deal flow and how companies are renegotiating leases to take advantage of current market conditions. He discusses the recovery of distressed properties, with lenders and landlords working out solutions, and questions the real value of amenities in office buildings. Looking ahead, Ben is monitoring how these trends will shape the market through the end of 2024 and into 2025.

Prefer the audio? Listen to the MP3 or stream from your favorite podcast provider.

Q2/24 Downtown Chicago Office Market Report

Published July 11, 2024

Bradford Allen is pleased to share with you our latest office market report.

This quarter in the downtown office market:

Absorption improved but remained negative with -67,000 square feet absorbed through Q2/24, resulting in a total of -1.9 million square feet through the first half of 2024.
The direct vacancy rate reached 22% in Chicago’s CBD.
Demand for move-in-ready suites has increased significantly over the past several years.
The average gross asking rate for the CBD held steady at $43 per square foot.

Ten with Ben 026: Meet Aghfar Arun

Published June 7, 2024

In the latest episode of Ten with Ben, Ben Azulay dives into the world of hotel real estate with Aghfar Arun, Director, Hospitality at Bradford Allen. Aghfar discusses his journey into hospitality and the intricacies of acquiring hotel properties, emphasizing the importance of brand affiliation with major players like Hilton and Marriott. He also explores the specialized challenges of converting properties in the hotel sector compared to other real estate markets. The conversation also touches on the impact of the pandemic on operations and the disruption introduced by competitive platforms like Airbnb.

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Ten with Ben 025: Meet Jimmy Sarnoff

Published April 18, 2024

In the latest episode of Ten with Ben, Ben welcomes Jimmy Sarnoff, Managing Partner at Sarnoff & Baccash, to discuss the intricacies of property taxation in Chicago. They dive into how recent changes by the City’s Assessor have impacted property assessments and taxes, particularly highlighting the triennial reassessment cycle and various tax-saving strategies. Jimmy offers insights on leveraging property tax incentives for commercial and residential developments, and the potential benefits of converting commercial properties to residential to revitalize Chicago’s LaSalle Street. This episode provides crucial advice for navigating the complex landscape of property taxes and making informed real estate investment decisions in Chicago.

Prefer the audio? Listen to the MP3 or stream from your favorite podcast provider.

Q1 Chicago Office Report: CBD Rents Hold Steady as Vacancy Rate Continues to Rise

Published April 15, 2024

CHICAGO — Bradford Allen, a national full-service real estate firm, today released its Q1/24 Downtown Chicago Office Market Report showing that CBD average gross asking rents held steady at $43 per square foot. At the same time, the office vacancy rate continued to rise, surpassing 21%, and demand was soft, with negative absorption of 1.4 million square feet.

Leasing volume remained below historic levels, with only 1.3 million square feet leased in the first quarter versus 2.1 million square feet in first-quarter 2023 and 4.9 million square feet in first-quarter 2019, before the pandemic. Continuing a post-pandemic trend, many tenants are seeking prebuilt, move-in ready suites. Last quarter, 38% of leases signed in the CBD were for move-in-ready space. For all of 2023, approximately 33% of leases signed were for move-in-ready suites, compared with 15% in 2019, according to Bradford Allen research.

“The distress in Chicago’s CBD office market is likely to continue as owners, lenders and tenants navigate turbulent market conditions,” said Neil Bouhan, senior managing director, research and communications, for Bradford Allen. “Our data indicates more than half of all square footage leased prior to the pandemic has not yet expired, suggesting that many companies have yet to address their actual space needs in the CBD. This is likely to result in continued downsizing. But even in this environment, owners in the financial position to reinvest in their buildings and negotiate flexible lease terms with tenants have been able to keep their assets well occupied, outperforming the overall market.”

The benefit of financial strength in this market is exemplified by Ivanhoe Capital’s $75 million repositioning of 10 and 120 S. Riverside Plaza, a two-building, 1.4 million-square-foot office complex on the Chicago River in the West Loop. After renovations, Ivanhoe leased 156,000 square feet of office space in the property last year and an additional three leases totaling 75,000 square feet so far this year, with Attorneys’ Liability Assurance Society taking the largest lease at 37,000 square feet.

Other highlights of the Bradford Allen report include:

Bradford Allen researchers estimate there are 23 buildings in the CBD with distressed loans, almost half in the Central Loop. If interest rates remain high, the financial pressure on leveraged owners will mount as $2.8 billion of debt is set to expire by the end of 2025.
Investment sales remained at historic lows, with only $98 million trading last quarter, in line with first-quarter 2023 but still far below the average $750 million in sales in the first quarters of 2015 through 2019. Of the $98 million that has traded so far this year, $60 million was for the sale of 150 N. Michigan Ave., which was purchased by Chicago real estate firm R2.
The amount of sublease space on the market declined last quarter to 7 million square feet but remains at historically elevated levels. Most is large space; for example, a tenant seeking less than 10,000 square feet can only access about 9% of current sublease inventory. Meanwhile, 80% of leases signed in 2023 were for less than 10,000 square feet.

About Bradford Allen:
Bradford Allen (BA) is a commercial real estate firm based in the heart of downtown Chicago. Founded in 2003 by principals Jeffrey Bernstein and Laurence Elbaum as an office brokerage, the firm has grown into a vertically integrated commercial real estate company, offering a full array of services and expertise across multiple U.S. markets to entrepreneurial, corporate and not-for-profit clients, including strategy, marketing and transaction execution for occupiers, investors and owners. For more information, visit bradfordallen.com.

For immediate inquiries, contact Jeremy Barewin, jbarewin@taylorjohnson.com, (312) 267-4533.

Q1/24 Downtown Chicago Office Market Report

Published April 11, 2024

Bradford Allen is pleased to share with you our latest office market report.

This quarter in Chicago’s downtown office market:

Absorption remained negative with -1.4 million square feet absorbed through Q1/24.
The direct vacancy rate surpassed 21% in the CBD.
Demand is increasing for move-in ready office suites which accounted for more than 38% of deals in Q1/24.
The average gross asking rate in Chicago’s CBD remained at $43 per square foot.

Ten with Ben 024: Meet Aaron Letzeiser

Published March 8, 2024

This episode of Ten with Ben features Aaron Letzeiser, co-founder of Obie, who discusses the innovative ways his company is simplifying the insurance process for real estate investors and owners. Aaron shares insights on how Obie leverages technology to offer rates instantly and provide transparent insurance options, making the process more manageable and empowering for investors. Aaron’s journey from selling insurance in college to revolutionizing the insurance buying experience for real estate investors highlights the episode’s theme of innovation and adaptation in the real estate world.

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BA Development Company Names Michael Cannon as Senior Managing Director

Published February 22, 2024

Former Sterling Bay executive will oversee adaptive reuse, renovation, and new construction of residential and commercial real estate

CHICAGO, IL — BA Development Company today announced industry veteran Michael Cannon has joined the firm as senior managing director, overseeing adaptive reuse, renovation, and new construction of residential and commercial real estate. Before joining BA Development Company, Cannon was a vice president with Sterling Bay, where he managed the development of life science and other office properties as well as multifamily projects in Chicago and other major U.S. cities.

“Michael has vast knowledge of the construction industry and a proven track record of leadership and success building new developments in the U.S. and internationally,” said Jeff Bernstein, principal and co-founder of Bradford Allen. “As we identify more opportunities for ground-up construction or capital improvements in the office, retail, multifamily, and industrial sectors, Michael is a natural fit to help us accelerate our pipeline of large-scale projects in top-tier markets across the country.”

Cannon will manage design, construction, and consulting teams through every stage of the development process, from pre-construction to completion. He will play a pivotal role in several of BA Development Company’s current high-profile new construction and adaptive reuse projects in Illinois, Indiana, Florida, and Tennessee, including a mixed-use project in Arlington Heights, Ill., featuring 300 apartments, 25,000 square feet of retail and a 150,000-square-foot medical office complex known as ArlingtonMed.

Before Sterling Bay, Cannon served as senior development manager with Chicago-based Golub & Company, where his accomplishments included the successful adaptive reuse of Chicago’s Tribune Tower from office space to luxury condominiums and upscale retail on the Magnificent Mile. He also completed development of 1001 South State, a 40-story, 397-unit luxury apartment tower in Chicago’s South Loop.

His other roles included founding Viridios, Ltd., where he supervised the construction of a $225 million power plant in Kuwait, and project manager with ARCH Consultants, Ltd.

Cannon’s roots are in construction, having established his own firm in Chicago soon after finishing his undergraduate degree. After building a foundation in the industry, he pursued law school and transitioned for a time to a legal career, focusing on construction transactions and litigation.

He holds a B.A. from the University of Texas at Austin and a Juris Doctor from Loyola University Chicago. Cannon has been a LEED-accredited professional since 2004, is admitted to the Illinois State Bar and the United States District Court for the Northern District of Illinois and is president of the Old Irving Park Association.

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For more information, contact Jeremy Barewin, jbarewin@taylorjohnson.com, (312) 267-4533.

Q4/23 Downtown Chicago Office Market Report

Published January 11, 2024

Bradford Allen is pleased to share with you our latest office market report.

This quarter in the downtown office market:

Absorption remained negative with -530,000 s.f. absorbed through Q4/23, resulting in a total of -1.6 million s.f. of net absorption through 2023.
The direct vacancy rate surpassed 20% in the CBD.
Available sublease space on the market remained steady, sitting at 7.7 million s.f.
The average gross asking rate for the CBD declined to $43 per s.f.

Ten with Ben 023: Work Family

Published December 14, 2023

In this special episode of Ten with Ben Ben is joined by Justin Kessler, Nathan Meisner, and Lauryn Sussman for a compelling conversation on their unique team dynamics and experiences in real estate. The episode focuses on the team’s strong bond as they navigate various aspects of the industry together. Justin shares insights from a notable microbrewery deal, while Nathan reflects on adapting strategies during the pandemic and Lauren speaks to her development within the team’s nurturing environment. Together, they offer an optimistic but cautious outlook of the market headed into 2024. The episode wraps up with a friendly and insightful discussion, illustrating the team’s camaraderie and collective expertise.

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Ten with Ben 022: Opportunities in the Market

Published November 10, 2023

Ten with Ben is back to showcase the “power of the ask.” Today’s market is all about seizing opportunities through creative negotiation. Current conditions present unique opportunities for tenants to renegotiate leases and for landlords to showcase their financial stability as a major strength. Ben offers actionable insight to both tenants and landlords on how to navigate the market effectively, from securing favorable lease terms to arranging unexpected perks.

This week, Ben gets candid about the lessons he’s learned over twenty years in real estate—and how the best advice always transcends the business. As a proud American Jew, Ben also reminds us to check in on Jewish friends and colleagues as fallout from the war in Israel continues to be felt around the world. Be present for one another—we are in this together.

Prefer the audio? Listen to the MP3 or stream from your favorite podcast provider.

Ten with Ben 021: Wrapping Up Q3 2023

Published October 27, 2023

In this week’s episode, Ben reflects on his two-decade-long journey as a tenant rep broker, shares current market conditions, and identifies recent challenges the industry is facing. From the bustling Fulton Market district to new activity throughout the Loop, get an expert view on what’s shaping Chicago’s office landscape. Post-pandemic, the deals may be smaller, but leases are being signed. Ben also touches on the perseverance of brokers, the importance of location to tenants, and just what makes Chicago such a dynamic and resilient city.

In the wake of the unprecedented terrorist attack that ignited war in Israel, we recognize this is a time of immeasurable grief and hardship for many around the world. Ben begins this week’s podcast expressing his feelings with an open discussion about his connection to Israel.

Prefer the audio? Listen to the MP3 or stream from your favorite podcast provider.

Q3/23 Downtown Market Report

Published October 10, 2023

Bradford Allen is pleased to share with you our latest office market report.

This quarter in the downtown office market:

Absorption turned negative with -431,000 s.f. of net absorption through Q3/23, resulting in year-to-date levels of -933,000 s.f.
The direct vacancy rate remained steady, sitting at 19.8% for the CBD.
Available sublease space ticked down to 7.6 million s.f.
The gross asking rate for the market remained at $44 p.s.f.

Bradford Allen Names Jennifer Murphy as President of Management Services

Published October 9, 2023

20-year veteran of property and construction management will oversee firm’s national office portfolio

CHICAGO, IL — Bradford Allen, a national full-service real estate firm, today announced Jennifer Murphy has joined the firm as president of management services. In this role, Murphy will be responsible for managing Bradford Allen’s growing portfolio of office properties in Chicago and nationally. She will report to Brian Dovalovsky, senior managing director of Bradford Allen, and be based in the firm’s downtown Chicago headquarters.

“Jennifer’s appointment is strategically timed with the growth of our national office platform as we continue to acquire, improve and lease up high-quality assets in desirable markets across the country,” said Dovalovsky. “In today’s ever-evolving workplace landscape, she will be instrumental in helping us meet demand for modern, experiential office environments that are highly functional for occupiers and profitable for ownership.”

A 20-year veteran of property and construction management, Murphy has helped launch and reposition large-scale office properties, leveraging state-of-the-art technologies, lifestyle-oriented amenities and best-in-class services to enhance marketability and drive operational performance. She previously spent 16 years at Hines Interests Limited Partnership, most recently serving as senior construction manager for Salesforce Tower Chicago, the 1.2 million-square-foot high-rise at 333 W. Wolf Point Drive in downtown Chicago. In that role, Murphy oversaw the base building construction and managed the construction, FF&E and transition to operations for the tower’s 20,000-square-foot amenity suite, which includes conference facilities, a full-service fitness center, tenant lounges and more.

Prior to her work on Salesforce Tower, she was general manager for 333 W. Wacker Drive (890,000 square feet), which followed successful management roles at 1 S. Dearborn St. (870,000 square feet), 101 N. Wacker Drive (600,000 square feet) and other properties owned by Hines. She also was property operations manager for Northwestern Memorial Hospital.

Murphy holds an MBA with distinction from DePaul University’s Kellstadt Graduate School of Business, with a focus on real estate finance and investment. She earned her bachelor’s degree with honors in civil engineering, with a specialty in structural engineering and a minor in urban and regional planning, from the University of California, Irvine. She is a licensed real estate broker in Illinois and holds an EIT license in California.

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Editors:
For more information, contact Jeremy Barewin, jbarewin@taylorjohnson.com, (312) 267-4533.

Bradford Allen Acquires The Henry in Chicago’s Ravenswood Neighborhood

Published August 9, 2023

Mixed-use property completed in 2019 includes Culver’s restaurant and 38 luxury rental apartments

CHICAGO – August 8, 2023 – Bradford Allen Investment Advisors (BAIA) today announced it has closed on the purchase of The Henry, a mixed-use property at 4346 N. Honore St. in Chicago’s Ravenswood neighborhood. The five-story elevator building, completed in 2019 and located just steps away from the Montrose Brown Line CTA stop, includes 38 one- and two-bedroom luxury rental apartments and a ground-level Culver’s restaurant.

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John Butler, executive managing director, and Danielle Morse, senior managing director, negotiated the purchase on behalf of new ownership. The seller of the property was represented by Tyler Hague and Lauren Stoliar of Colliers.

Common resident amenities in the pet-friendly building include an indoor/outdoor rooftop lounge and terrace with built-in grills, a lobby lounge and bike storage room. Individual apartments feature in-unit laundry, custom cabinetry, subway tiling, quartz countertops and walk-in closets. At the time of purchase, the building was 97% occupied. Rents range from $1,751 to $3,000.

“The Henry’s Ravenswood location offers a neighborhood vibe and checks many of the boxes today’s renters desire, including modern amenities and easy access to bars, restaurants, shops and entertainment all located within a mile radius of the building,” said Morse. “We are excited to add this high-quality, newer construction, urban, transit-oriented property to our expanding Chicago-area multifamily portfolio.”

About Bradford Allen Investment Advisors
Founded in 2013, currently with over $4bn in assets under management and over 3 million square feet of real estate, Bradford Allen Investment Advisors (BAIA) is an alternative asset manager specializing in commercial real estate and private placements. A wholly owned subsidiary of Bradford Allen—a vertically integrated real estate firm—BAIA provides end-to-end real estate transaction and management solutions for multifamily, commercial office, and mixed-use development across the US. The firm’s roots are in brokerage and property operations, a lineage that traces back to 2003 when the firm’s principals—Jeffrey Bernstein and Laurence Elbaum—founded Bradford Allen Realty Services.

CRE Office Pulse 008: Tracking Chicagoland’s Return to the Office

Published June 8, 2023

While hybrid and remote work are here to stay, the benefits of in-person collaboration are compelling. Both employers and employees increasingly see the value of returning to the office, and tracking these trends reveals important insights, like the relative success of the suburban office markets. Still, for Chicago’s CBD, the long-term fundamentals remain strong and are moving in the right direction.

Read the full article now

Ten with Ben 019: Meet Rob Healy

Published April 21, 2023

In our latest Ten with Ben, we sit down with longtime property manager Rob Healy, Vice President and General Manager at CIM Group, L.P. to discuss the vital role of property management and why they’re too often an unsung hero in getting deals done. As a former property manager at the BMO Harris Bank building, Rob also shares his thoughts on the planned revitalization of LaSalle Street and the challenges of redeveloping its infrastructure for multifamily. Catch the full show to learn more about Rob and hear his take on current trends and market conditions:

Prefer the audio? Listen to the MP3 or stream from your favorite podcast provider.

Q1/23 Downtown Chicago Market Report

Published April 5, 2023

Bradford Allen is pleased to share with you our latest office market report.

This quarter in the downtown office market:

Absorption levels turned negative to start the year, posting -1.8 million s.f. in Q1/23
Direct vacancy increased to 19.8%
The gross asking rate for the market is $42.89 p.s.f.
Sublet availability remained steady at 4.5% in Q1/23

Bradford Allen Appoints Danielle Morse to lead Multifamily Investment Platform

Published February 7, 2023

CHICAGO – February 7, 2023 – Jeffrey A. Bernstein and Laurence B. Elbaum, principals and co-founders of Bradford Allen, are pleased to announce Danielle Morse has been named Senior Managing Director and will lead Bradford Allen Investment Advisors’ (BAIA) multifamily investment platform.

In this role, Danielle will manage the multifamily acquisitions program from deal sourcing to closing. Consistent with BA’s vertically integrated investment philosophy, she will also supervise the portfolio’s in-house asset and property management teams.

“We couldn’t be happier that Danielle is bringing her passion, extensive experience, and creativity to BAIA,” said founder Jeff Bernstein. “As we expand into new product segments, having a deep bench of experts with successful track records allows us to scale up nimbly and confidently. Danielle’s entrepreneurial approach, local market knowledge, and transactional experience are a great fit for what we’re trying to accomplish.”

In addition to her over two decades of experience in multifamily acquisitions and operations, she is an accomplished professional artist.

Ten with Ben 018: State of the Market

Published January 26, 2023

In our latest Ten with Ben, we sit down with BA’s own Dan Fernitz and Justin Kessler to discuss the state of the market. What were the big trends in 2022? Will they carry over to 2023? What’s next for the flight-to-quality, the return-to-office, supercharged amenities, suburbs vs downtown, foreclosures, and distress. With over a century’s worth of cumulative market knowledge at the table, the conversation was wide-ranging, well-informed, and chock full of insights.

Prefer the audio? Listen to the MP3 or stream from your favorite podcast provider.

Q4/22 Downtown Chicago Market Report

Published January 12, 2023

Bradford Allen is pleased to share with you our latest office market report.

This quarter in the downtown office market:

Absorption levels turned negative to end the year, posting -600,000 s.f. in Q4/22
Direct vacancy increased to 18.9%
The gross asking rate for the market is $42.64 p.s.f.
Sublet availability remained relatively unchanged at 4.2%

Bradford Allen expands Downtown Agency Leasing practice

Published October 19, 2022

CHICAGO, IL — Senior Managing Director Andy DeMoss is pleased to announce Craig Nadborne has been named the loft division leader on the downtown agency team.

“Loft has always been a focus at Bradford Allen, but as our downtown agency practice has grown, launching a dedicated team of loft specialists was the best way to continue delivering first-class service to our agency clients,” said Andy DeMoss, the downtown agency team lead. “Craig was the obvious choice to run it,” Andy continued, “with over three decades in the business, including the past 15 years with Bradford Allen, Craig has an outstanding track record representing loft buildings.”

“I couldn’t be more excited to step into this role and continue to build BA’s loft agency business, “Nadborne said. “I’ll bring the same customer-first approach and value-add market insights that have helped me close over 1,000 transactions in my career.”

“Our goal is to continue to grow our entire CBD agency business,” continued DeMoss. “We believe our street-level reconnaissance culture and focus on direct canvassing for tenants is advantageous to all building owners, especially in this leasing environment.”

Craig’s current assignments include 162 W Hubbard, 314 W Institute, 415 N Dearborn and 808 N Cleveland. With this new role, he will add these properties to his portfolio: 626 W Jackson, 900 N Franklin, 224 N Des Plaines 404 S Wells and 412 S Wells. Recent associate-level hires Lanie Trotter and Grace Garza will assist Craig, providing full-service coverage to BA’s agency relationships.

About Bradford Allen
Bradford Allen is a national commercial real estate firm based in the heart of downtown Chicago. The company offers a full array of brokerage services and expertise to entrepreneurial, corporate, and not-for-profit clients. Services include strategy, marketing, and transaction execution for occupiers, investors, and owners of commercial real estate. Bradford Allen is the brand name of Bradford Allen Realty Services.

Bradford Allen Represents the Law Office of Robert D. Ahlgren and Associates in 15,000 SF Renewal

Published October 19, 2022

CHICAGO, IL — Jeffrey A. Bernstein and Laurence B. Elbaum, Principals and Co-Founders of Bradford Allen, are pleased to announce that Ben Azulay, Principal, along with Riley Schleifer, Associate, completed a 15,000-square-foot-lease renewal for Ahlgren Law at 33 N LaSalle, a renovated and amenitized vintage art deco tower in the Central Loop.

“In a volatile leasing market like this, tenants have multiple opportunities to negotiate and improve their space. But there are also more risks, like historically high rents in some submarkets and potentially distressed buildings in others. We were able to work closely with Ahlgren, understand their needs, navigate the risks, and maximize their leverage in negotiating a renewal,” said Azulay.

Ahlgren Law is a Chicago-based immigration law firm. Since 1973, they have worked tirelessly to meet clients’ needs on the path to legal status. A full-service firm, Ahlgren’s passionate attorneys and dedicated staff represent individuals and families in a variety of immigration matters, including family cases, removal (deportation) defense, U.S. citizenship and naturalization, and appeals.

Q3/22 Downtown Chicago Market Report

Published October 7, 2022

Bradford Allen is pleased to share with you our latest office market report.

This quarter in the downtown office market:

Absorption levels turned positive for the first time this year at 221,780 s.f. for Q3
Direct vacancy remained relatively unchanged at 18.3%
The gross asking rate for the market is $43.94 p.s.f.
Sublet availability remained steady at 4.3%

CRE Office Pulse 006: Chicago Office Supply Growth Screeches to a Halt

Published July 28, 2022

In Chicago’s CBD, new office construction has come to a screeching halt, only a couple years after hitting record highs. And even as the effects of the pandemic dissipate, new development continues slowing. What’s behind this deceleration in supply growth? We identify four primary factors weighing on the office construction market and discuss long-run implications for the CBD.

Read on to find out more

Q2/22 Downtown Chicago Office Market Report

Published July 14, 2022

Bradford Allen is pleased to share with you our latest office market report.

This quarter in the downtown office market:

Absorption levels improved but remained negative at -300,000 s.f. for Q2
Direct vacancy increased to 18.4%
The gross asking rate for the market is $42.87 p.s.f.
Sublet availability slightly increased from 3.9% in Q1 to 4.1% in Q2

Q1/22 Downtown Chicago Office Market Report

Published April 19, 2022

Bradford Allen is pleased to share with you our latest office market reports.
Chicago’s downtown office market remained dynamic amid distress in Q1/22 as the flight-to-quality trend continued. With a direct vacancy rate above 18%, rising sublet availability, high-profile properties in distress and ample new deliveries, tenants are finding enticing concessions. Digging beneath the headline statistics, we note:

The direct vacant and available rate was slightly lower (14.9%) than last quarter (15.2%).
Net absorption turned negative after a positive Q4/21, but demand is robust for Class A space in red-hot submarkets
Sublet availability is skewed toward Class B buildings.
Class B buildings comprise the majority of properties with troubled loans.

Year-End 2021 Downtown Chicago Office Market Report

Published January 21, 2022

Bradford Allen is pleased to share with you our Year-End 2021 Downtown Chicago Office Market Report.

This quarter in the downtown office market:

The overall sublet availability rate remained relatively stable at 3.9%, quarter over quarter.
Quarter over quarter, overall direct availability and vacancy remained flat at 19.8% and 15.2%, respectively.
Overall, the market posted a $40.38 p.s.f. gross asking rate.
The quarter posted 370,000 s.f. of positive absorption.

Q3/21 Downtown Chicago Office Market Report

Published October 12, 2021

Bradford Allen is pleased to share with you our Q3/2021 Downtown Chicago Office Market Report.

This quarter in the downtown office market:

The overall sublet availability rate remained unchanged at 3.92%, quarter over quarter.
Quarter over quarter, overall direct availability and vacancy rates rose from 19.5% to 20.1% and from 14.0% to 15.1%, respectively.
Overall, gross average asking rates declined from $41.13 p.s.f. to $41.07 p.s.f., quarter over quarter.

Bradford Allen completes 35,000 SF of leasing in Downtown Chicago

Published July 20, 2021

Chicago, IL – Jeffrey A. Bernstein and Laurence B. Elbaum, Principals and Co-Founders of Bradford Allen, are pleased to announce the firm’s Downtown Agency Services practice has completed three new leases for a total of 35,000 square feet in downtown Chicago. Workbox (represented by Grant Rich and Kyle Hundelt of Colliers) signed a new 13,738-SF lease at 600 W. Jackson in the historic Burnham Otis Building, Windrose Recovery Chicago (represented by David Goldberg of Special Assets) signed a new 10,905-SF lease at 142 E. Ontario, and StrategIQ Commerce signed a 10,150-SF lease at 217 N. Jefferson (represented by Andy Davidson, Boris Yelyashov, and Nathan Miller of MBRE). The team is led by Senior Managing Director Andy DeMoss and includes Director Alex Gordon and Associate Amy Zelasco.

“Touring velocity is back, but getting to the finish line in still a challenge. The current leasing environment requires being nimble, so we are thankful our clients have been able to match our speed and creativity to see these through to fruition,” said DeMoss.

Bradford Allen Completes 7,000-SF Lease Renewal in Downtown Chicago

Published June 8, 2021

Chicago, IL — Jeffrey A. Bernstein and Laurence B. Elbaum, Principals and Co-Founders of Bradford Allen are pleased to announce that Managing Director Justin Kessler and Associate Riley Schleifer completed a 7,000-square-foot lease renewal for Stone & Johnson at 111 W. Washington Street in Chicago, IL. The Landlord was represented by Erica Rogers of Golub & Company.

“We presented Stone & Johnson with a number of alternatives in the market, but their current space was already a great fit, and coupled with an aggressive offer from ownership, it ultimately meant that remaining was their best option. By leveraging the current market, a renewal also offered Stone & Johnson a significant savings to their previous lease,” said Kessler.

Stone & Johnson is a civil litigation law firm headquartered in Chicago, IL. The firm has a broad range of experience which includes the defense of disputes involving insurance coverage, premises liability, construction accidents and defects, workers’ compensation, products liability, professional liability, school bus operation, and automobile accidents. The firm possesses Martindale-Hubbell’s highest AV rating, which ranks the firm’s legal ability as preeminent and its ethical standard as very high. The firm is also listed in Martindale-Hubbell’s coveted Bar Register as one of a select number of litigation firms in the Chicagoland area.

Bradford Allen secures 10,000-SF, ten-year renewal at 200 S. Michigan Ave

Published April 6, 2021

Chicago, IL — Jeffrey A. Bernstein and Laurence B. Elbaum, Principals and Co-Founders of Bradford Allen, are pleased to announce that Ben Azulay, Principal, completed a 10,000-square-foot, ten-year lease renewal for Rubinos and Mesia Engineers, Inc. (RME) at 200 S. Michigan Avenue. The renewal allows the engineering firm to remain on the 15^th floor of the Michigan Avenue office tower, where they have been a tenant for over 30 years. Craig Coupe of JLL represented the landlord in the transaction.

“Considering the ongoing impact of the pandemic on the marketplace, we were thrilled to be well-positioned to assist RME in accomplishing their goals. By successfully leveraging the market to their benefit, we were able to secure significant concessions as a component of their renewal for the next ten years,” explained Azulay.

Established in 1982, Rubinos & Mesia Engineers, Inc. is a structural/civil engineering and construction management firm who have established a reputation among leading consultants as diligent, well-diversified program managers who provide a uniquely intimate design evaluation experience. The recipient of over 20 industry awards, RME has successfully completed over 2,000 projects to date.

“Jeff and I are really proud of Ben. We are living in extremely challenging times, and he and his team have continued to produce at a high level throughout the pandemic,” said Elbaum.

Q4/20 Downtown Chicago Office Market Report

Published January 22, 2021

Bradford Allen is pleased to share with you our Q4 2020 Downtown Chicago Office Market Report.

This quarter in the downtown office market:

The overall sublet availability rate doubled from 1.90% to 3.83%, year over year.
Quarter over quarter, direct availability and vacancy rose to 17.90% from 16.51% and to 11.98% from 10.86%, respectively.
Overall, gross average asking rates declined to $40.71 p.s.f. from $41.51, quarter over quarter.

To read the full report, click here.

Bradford Allen secures 180 N. Wacker leasing assignment in Chicago CBD

Published January 12, 2021

Chicago, IL – Jeffrey A. Bernstein and Laurence B. Elbaum, Principals and Co-Founders, are pleased to announce that Bradford Allen has been appointed the exclusive leasing agent for 180 N. Wacker Drive in the Chicago CBD.

The team of Andy DeMoss (Senior Managing Director, Downtown Agency Leasing) and Alex Gordon (Director) will lease the six-story, 75,826-square-foot brick-and-timber loft. The property resides in the heart of Chicago’s West Loop and offers 21,915 square feet of availabilities. Built in 1923 and recently renovated in 2020, 180 N. Wacker features new spec suites and a private riverside patio. It has been owned by Greenstone Partners since 2019.

“There have not been many big wins for firms since the start of COVID, but our team has continued to secure new assignments and close deals, and this is another win for BA. The building will perform well as the majority of the vacancies have spectacular river views,” said DeMoss.

BA Secures New Leasing Assignment with Historic One North LaSalle

Published December 8, 2020

One North LaSalle, a 47-story, 500,000-square-foot office tower, is a Chicago landmark and one of the city’s best surviving examples of the Art Deco movement that defined architecture of the 1920s. Its central location and storied history make it a prominent piece of Chicago’s Loop. In 2016, the building was renovated to include the addition of an outdoor terrace, fitness center, advanced conferencing facilities, and an upgraded tenant lounge. It is also one of the only dog-friendly buildings in the CBD. The property has been owned by Bridge Investment Group since 2018. Andy DeMoss, Senior Managing Director, Downtown Agency Leasing, will lead the leasing team.

“We’ve had our eye on One North LaSalle since it was acquired by Bridge a couple years ago. The floorplate size and tenant mix of high-quality professional and technology firms are a great complement to our experience, and we’re proud that ownership has entrusted us to lease their historic property. With its strong amenity package and eleven newly constructed spec suites ready to go, the building is situated to perform very well,” said DeMoss.

About Bridge Investment Group, LLC
Headquartered in Salt Lake City, Bridge is a privately held real estate investment management firm with $20.2 billion in assets under management across the U.S. The firm’s 4,000 team members focus on select real estate verticals which offer above-market opportunities and returns: Office, Multifamily, Senior Housing and Medical Properties, Affordable Housing, Opportunity Zones and Real Estate Debt Strategies. For more information, visit bridgeig.com.