Sunday, August 10, 2008

Cooling Economy Has Minimal Impact on CBD Office Market in Chicago

(Above, The Magnificent Mile shopping district in Downtown Chicago,)

CHICAGO, IL — After a solid performance in 2007, office fundamentals in Chicago began to soften in the first half of this year due to a cooling local economy, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm. (O'Hare International Airport, top right photo)

The CBD office market, on the other hand, is relatively insulated from housing-related weakness, and fundamentals in the area are anticipated to remain healthy this year.

“Investors with market knowledge and elevated risk tolerance are seeking value-add properties in the Northwest suburbs and O’Hare submarkets, where cap rates are in the low- to-mid-8 percent range,” says John Przybyla, regional manager of the Chicago Downtown office of Marcus & Millichap.

Following are some of the most significant aspects of the Chicago Office Research Report:

· Completions are expected to reach nearly 2.6 million square feet in 2008, adding 1.1 percent to inventory.

· Vacancy is forecast to end the year at 16.4 percent.

· Asking rents are projected to finish the year at $27.43 per square foot, rising
2.9 percent.

· Effective rents will gain 1.9 percent to $22.39 per square foot.

· Office-using employment growth in Lake and Kenosha counties has outpaced the rest of the metro with roughly 2,000 jobs added, a 1.9 percent increase.

For a copy of the complete Chicago Office Research Report, as well as reports on other markets nationwide, visit our website at

Press Contact: Stacey Corso
Communications Department
(925) 953-1716
(Bottom right photo, Downtown shopping district)

MSI Starts Work on Major Expansion of Northrop Grumman’s Clean Rooms and Central Energy Plant in Apopka, FL

ORLANDO, FL – Orlando-based Mechanical Services, Inc. (MSI) is under way on a major expansion of Northrop Grumman’s Clean Rooms and Central Energy Plant in Apopka, FL, near Orlando, under its contract with Gettysburg Commercial Corporation, Orlando. (Photo of Northrop's Defensive Systems Division in Apopka at top right).

MSI is supplying and installing precise tolerance air conditioning systems designed by Peninsula Engineering, Orlando.
In addition, MSI’s scope of work includes construction of a new Class 10,000 Clean Room including air handling systems, duct work, controls and high efficiency filtration along with a 550-ton expansion of the factory’s Central Cooling Plant.

“State-of-the-art mechanical systems are a critical component of today’s high-tech office environments,” said William M. Dillard, Chief Executive officer of MSI. “We are pleased to provide the latest in Clean Room and Central Energy Plant Technology to Northrop Grumman in Orlando.”

Contact: Kenneth H. Cristol 407-774-2515

CB Richard Ellis Named Exclusive Sales Agent for 184-Unit Apartment Community in Orlando, FL

ORLANDO, FL-- CB Richard Ellis, the world's leading commercial real estate services provider, has been named the exclusive sales agent for The Outrigger Apartments (top right photo) located at 1001 Shoreview Drive in Orlando, Fla. The 184-unit property consists of 17 two-story garden-style apartment buildings with an average unit size of 754 sq. ft.

Shelton Granade, (top left photo) first vice president, and Luke Wickham,(bottom right photo) associate, have been retained to exclusively represent the owner of the residential community.

"The Outrigger offers potential investors a great opportunity to acquire a stabilized, infill asset with tremendous upside potential," Granade said. "The property is a value-add opportunity next to the prestigious Baldwin Park planned community and just five minutes from downtown Orlando. As gas prices continue to rise, infill communities like Outrigger should be in high demand."

Built in 1975, The Outrigger Apartments is located near the intersection of State Road 50 (Colonial Drive) and State Road 436 (Semoran Boulevard).


Rebecca Thomas, 305.381.6485,

Shelton Granade,

Luke Wickham,

Adelaide Polsinelli Joins Manhattan Office of Marcus & Millichap

NEW YORK, N.Y.-– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has hired Adelaide Polsinelli (top right photo) as an associate vice president investments in the Manhattan office, according to Edward Jordan, regional manger of the Manhattan office.

“Several local real estate firms were pursuing Adelaide for her many talents, including her excellent negotiating skills, her long-term relationships with many of New York City’s high-profile investors and her impressive track record of investment sales.

"Adelaide is one of the most successful commercial real estate brokers in New York,” explains Jordan. “We are honored that she ultimately selected Marcus & Millichap. Our firm’s access to a nationwide pool of investment capital was one of the factors that attracted her to Marcus & Millichap.”

As an associate vice president investments, Polsinelli will handle a variety of property types, including land developments; multi-family, retail, office, loft buildings, user-owner properties, hotels and parking garages.

“Marcus & Millichap’s extensive national platform and its ability to access more investment capital than any other company are very impressive,” Polsinelli says. “This platform, along with the firm’s commitment to providing the business development tools necessary to grow my business, were very enticing.

"Furthermore, Marcus & Millichap has developed an excellent reputation as a leading investment sales brokerage firm in New York City.

"As a result, the firm has captured a significant market share and will continue to be competitive in the high-stakes New York market.”

Polsinelli has a wide variety of clients, including pension funds, institutions, high-net worth individuals and entrepreneurs.

Prior to joining Marcus & Millichap, Polsinelli was a senior investment broker at Besen & Associates, where she closed over 200 transactions in investment sales. Throughout her career, Polsinelli has arranged more than 660 commercial real estate transactions.

Press Contact: Stacey Corso,
Communications Department,
(925) 953-1716

NAI Realvest Negotiates New Lease Agreement in Orlando Central Park

ORLANDO, Fla. NAI Realvest has negotiated a lease agreement for 1,500 square feet of office space at Orlando Central Park (bottom right photo), 7200 Lake Ellenor Dr., suite 245 in Orlando.

Tom Kelley, CCIM, principal and office leasing specialist at NAI Realvest and associate Don Rudolph,(top left photo) CCIM, negotiated the transaction representing the landlord, Dallas-based Tarragon Corporation.

The tenant is Global Travel Alliance, LCC of Billings, Mont.

For more information, contact:
Tom Kelley, CCIM, Principal NAI Realvest 407-875-9989,

Don Rudolph, CCIM, associate at NAI Realvest 407-875-9989

Janice Paiano, Director of Marketing, NAI Realvest 407-875-9989

Larry Vershel or Beth Payan, LV Communications, 407-644-4142