Original Post www.worldpropertyjournal.com | Re-post Cawley Chicago 5.25.17
While the fairly dramatic increase in long-term interest rates that occurred in late Q4 2016 continued into early Q1 2017, its impact on commercial real estate markets has been fairly limited, especially given the more recent decline in Treasury rates.
While banks maintained their standing as the second most popular lending group in Q1, their market share slipped substantially to 25.5% of loan volume, down from 43% a year earlier. Many key bank interest rates and spreads have not been materially affected by the recent increases in Treasury rates. However, bank construction lending remains limited and banks are selective in granting loans.
Original Post www.GlobeSt.com | Re-post Cawley Chicago 5.23.17
Another Chicago-area firm has decided to stick with the suburbs. The Opus Group has just completed a new 175,000-square-foot corporate headquarters for MC Machinery Systems, Inc. in Elk Grove Village. The two-story building features 50,000 square feet of office space, 75,000 square feet of warehouse and storage space and a 50,000-square-foot industrial machinery showroom to showcase the company’s equipment and host customer walkthroughs. Company officials say their new home will accommodates their rowing workforce and changing business needs
“We have very talented people with us and staying within a five-mile radius of our previous facility located in Wood Dale, IL assured us that we wouldn’t lose our employees,” Patrick Simon, senior marketing and corporate planning manager, MC Machinery, tells GlobeSt.com. “We also wanted to stay close to Chicago’s I-90 due to the numerous partners in the area as well as the proximity to O’Hare International Airport.”
Original article: www.BisNow.com | Re-post Cawley Chicago 5.18.17
The record number of crane permits issued last year only tell part of the story about Chicago’s construction boom. Last year, over 20,000 people pulled 44,000 permits in the City of Chicago. Permit forms, while available online, are mostly filled out manually, and confusing building code interpretations can result in even the most experienced users missing forms or submitting incorrect documents, leading to weeks in delays and cost overruns. But a new platform may change all of that.
Original post www.BisNow.com | Re-post Cawley Chicago 5.16.17
The past two years have seen a steady resurgence in suburban commercial real estate. But that rebound has not followed any traditional patterns and, depending on the submarket and asset class, can be almost unpredictable.
Origin Investments vice president of acquisitions Tom Briney has been predicting another 18 months in this upmarket for the past 18 months, and yet the suburbs continue to exhibit organic growth that runs counter to the “migration to the CBD” headlines. Briney said net absorption in the suburbs has outpaced the central business district from 2011 through last year, and he feels that is the foundation of a pendulum swing that will particularly benefit trophy assets.
Original Post: www.BisNow.com | Re-post Cawley Chicago 5.5.17
Downtown Chicago commercial real estate gets all the glitz, glamour and headlines, but while few were looking, suburban real estate has been in a slow rebound. Depending on who one talks to, however, this is either a steady recovery or more of the same, with well-located suburban submarkets thriving and the far-reaching suburbs lagging behind….
The biggest change to the renewed interest in suburban real estate is a flight to quality, Rolfs said. The sales happening in the suburban office sector are weighted heavily toward well-located trophy assets with strong amenity packages, and most of those deals involved high-net-worth, local private equity players. Rolfs said it is still hard to attract institutional capital to the burbs. Interest has not trickled down into Class-B assets, and private companies seeking suburban office space are feeling more confident signing long-term leases with larger footprints in the Class-A assets.
Original Post: BisNow.com | Re-post: Cawley Chicago 4.26.17
The first three months of the year boded well for the industrial sector, which remains red-hot, hitting record low vacancies nationally and record net occupancy gains. Below are five key trends investors and commercial real estate players should be aware of within the industry.
- Lowest Vacancy Levels in Three Years: National industrial vacancy levels hit 30-year lows this quarter. Vacancies continued to decline across the country by 20 basis points in Q1 to 5.3%. This is 300 basis points below the 10-year historical average of 8.3%, Cushman & Wakefield’s Industrial Market Beat reports.
Original Post: www.GlobeSt.com | Re-post Cawley Chicago 4.20.17
Leasing activity for the Chicago industrial market totaled a little more than 3.5 million square feet in the first quarter of 2017, 37.9% less than the total in the first quarter of 2016…Most observers, however, believe the slowdown is just a pause in transaction activity, and the market still has a healthy number of tenants actively looking for space.