Tuesday, July 26, 2011
The Chicago office market continued to improve in the quarter ended June 30. In fact, for the first time since 2009 a majority of submarkets in the city and suburbs showed positive absorption. Vacancy rates throughout the metropolitan area declined 50 basis points and drove nearly 696,000 square feet of positive absorption during the quarter.
At the same time, asking rental rates for Class A office space inched upward in both the city and suburbs, to $35.86 and $24.40 square per foot, respectively. More lower-rate subleases are being filled in the Loop, while prime Class A spaces are becoming harder to find, driving up asking prices.
The weighted average asking rate for Class A space in the Central Loop increased by 16 cents per square foot to $36.73 in the second quarter.
Approximately 3.5 million square feet of sublease space remained available in the Loop at the end of the quarter, down from 3.6 million during the prior quarter. This was offset by an increase of 146,000 square feet available for sublease in the Chicago suburbs.
Looking ahead, the office market is expected to continue improving through the end of the year, as large employers are anticipated to boost hiring. However, current tax laws are restraining new business development in Chicago, with no new major construction projects expected to break ground for the balance of 2011.
Analysis: The sluggish economy is still a major factor in the pace of the office market recovery. The principal stimulus for office space demand – job growth – was nonexistent in the second quarter, as the U.S. unemployment rate ticked up to 9.2 percent.
In Chicago, joblessness was even more pronounced, with an unemployment rate of 9.8 percent in June. Consequently, it is still too early to describe the office market as strong because of persistently high unemployment, rising delinquencies on CMBS loans and Chicago’s challenging tax laws.
INDUSTRIAL TRENDS HIGHLIGHTS
Vacancy in the Chicago metropolitan area dropped by 20 basis points during the second quarter ended June 30, to 11.1 percent from 11.3 percent, suggesting continued positive growth for the local industrial real estate market.
Many submarkets reported a continuing recovery in filling unoccupied spaces, with economic factors such as fuel costs, as well as location, contributing to second quarter leasing activity. In addition, some retailers were positioning themselves for future expansion, another positive indicator for that sector.
Also, LEED-certified buildings remained attractive to local tenants as a means of reducing expenses.
The Chicago metropolitan area posted 466,000 square feet of positive net absorption during the period, bringing the year-to-date total to nearly 4.4 million square feet absorbed, led by solid gains in the Fox Valley, I-55 Corridor and Central Will submarkets.
Asking rental rates averaged $3.91 per square foot for warehouse/distribution space, a very slight increase from the first quarter. Quarter-over-quarter, average asking rental rates dropped for general industrial and R&D/flex space, declining 10 cents and 47 cents to $4.26 and $7.95 per square foot, respectively.
Analysis: Overall, the industrial market is expected to show further progress over the balance of 2011. Manufacturing has contributed greatly to the economic recovery over the past two years.
The automotive industry continues to improve, with sales expected to increase by approximately 25 percent since 2009.
More deals for mid-size distribution space are anticipated, particularly in the retail sector, where demand for warehouse space has been on the rise as more and more consumers shift their preference to online shopping.
To access the full Chicago Metro Trends reports and other Grubb & Ellis research publications, visit www.grubb-ellis.com/research.
CONSHOHOCKEN, Pa., July 25, 2011 /PRNewswire/ -- Seagis Property Group announced today that it has acquired an 87,000 square foot warehouse/distribution facility in the Airport West submarket of Miami, Florida.
The building, which is located at 3450 NW 115th Avenue in Doral (top left photo), fronts the Florida Turnpike and is fully leased on a single tenant basis. The Building, completed in 1998 features 15 dock high doors and 1 drive-in, 10,000 sf of finished office and an approved secure outdoor storage area.
Seagis Property Group LP owns and operates over 8 million square feet of industrial buildings in logistically driven locations along the Eastern Seaboard.
Seagis is headquartered in suburban Philadelphia, with offices at One Tower Bridge, 100 Front Street, Suite 350, Conshohocken, PA 19428.
Company Contact: Charles C. Lee, Jr., Principal, Seagis Property Group LP, +1-484-530-9135, email@example.com; or
Investor contact: John B. Begier, Principal, Seagis Property Group LP, +1-484-530-9134, firstname.lastname@example.org,
Web Site: http://www.seagisproperty.com
“He has 25 years of helping companies reach their real estate goals in Phoenix and I am very happy to have him with us.”
Throughout his career, Waldrom has primarily specialized in office tenant representation. Additionally, he has been involved in the development of numerous commercial real estate properties, including a medical office condo project and industrial condo project.
Waldrom joins the company from Strategic Commercial Realty, a company he owned and operated for the past seven years. Earlier he was a principal of CRESA Partners from 1999 to 2004. He began his career in 1986 with DAUM Commercial Real Estate Services.
During his career, Waldrom has represented a number of clients, including National City Mortgage, Alltel Communications Inc., Microchip Technology Inc. and the Universal Technical Institute.
He holds a bachelor’s degree from Brigham Young University and is a member of the Arizona Commercial Brokers Association. He serves on the board of directors of Business Advisory Services and is a former advisory board member of Pinnacle Bank and a former board member of The Foundation for Public Education.
Contact: Julia McCartney, Phone: 714.975.2230
NAI Realvest negotiates long-term Office/Warehouse Lease in South Orlando for Wittenbach Business Systems
The landlord is Orlando-based DCT Orlando ADC LP. Moses Salcido of Southern Commercial Real Estate Advisors represented the landlord.
For more information, contact:
Robert Blackwell SIOR, Principal, NAI Realvest, 407-875-9989 email@example.com;
NAI Realvest negotiates leases for 10,000 SF of land and 4,000 SF office/warehouse space at south Orlando industrial facility
Penney Lawrence of Realty Executives Seminole represented the tenant, Albritton Williams, Inc. a full-service general contractor and construction management firm based in Tallahassee.
For more information, contact:
Michael Heidrich, Principal NAI Realvest, 407-875-9989 firstname.lastname@example.org
The new tenant Ascension Salon, LLC, a full service hair care salon, joins current tenants at Jourdan Crossing including Sushi Pop, Atlas Pools and Carpets and More.
For more information, contact:
George Viele, Vice President NAI Realvest, 407-875-9989 email@example.com;
Maximize Angel Investments Orlando Seeking Sponsors for Sept. 15 Presentation by Angel Investments Guru Dave Berkus
Berkus has been a manager, CEO and board member for some of the best-known corporations in the U.S.
Registration for the event is $249.
De Temple, is likewise an expert on angel investing with more than 20 years of experience in California and is now headquartered in Ormond Beach. His book, How to Raise Capital Quickly, is available free at www.RaiseCapitalQuickly.com.
For more information about sponsoring the angel investing seminar Sept. 15 or registering visit www.maxangelinvestments.com.
For more information, contact
William C. De Temple, Maximize Angel Investments Orlando, Inc. 386 843-1919 or 407-674-1925, firstname.lastname@example.org
Larry Vershel or Beth Payan, Larry Vershel Communications 407-644 4142 Lvershelco@aol.com
FLORHAM PARK, NJ – HFF announced today that it has closed the sale of 200 Milik Street (top left photo), a two-story, 148,399-square-foot office building in Carteret, New Jersey.
HFF marketed the property on behalf of the seller, Cofinance, Inc. The Hampshire Companies purchased 200 Milik Street for $5.85 million free and clear of debt.
200 Milik Street was originally constructed in 1981 as the headquarters for Pathmark Stores, Inc. and was expanded in 1987 to its current size.
The property features a full-service cafeteria and parking for 655 vehicles. Situated on 12 acres, 200 Milik Street is accessible via Exit 12 of the New Jersey Turnpike and is close to Interstates 287, 78 and 278 in northern New Jersey.
The HFF team representing Cofinance, Inc. included senior managing directors Jose Cruz (top right photo), Andrew Scandalios (middle left photo), managing director Michael Nachamkin and directors Kevin O’Hearn and Jeffrey Julien.
“200 Milik Street was developed to headquarters-quality standards and has highly divisible floorplates ideal for either single or multi-tenancy layout, which should appeal to a broad range of tenants when the new buyers seek to lease-up the vacant property,” said Cruz.
Cofinance Inc. is the United States subsidiary of Cofinance Group, a French-owned real estate investment company.
The Hampshire Companies is a full-service, private real estate firm with equity in assets valued at more than $2 billion, based in Morristown, New Jersey. The Hampshire Companies is a vibrant, dynamic organization that combines creative vision and superior execution, thereby enabling it to create and enhance value in real estate investments. www.hampshireco.com.
Jose R. Cruz, HFF Senior Managing Director, (973) 549-2000, http://email@example.com
Andrew G. Scandalios, HFF Senior Managing Director, (212) 245-2425 firstname.lastname@example.org
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500
The Buyer was Goldenrod & Hoffner, LLC who intends to develop a Wawa store on the site. Carter retained 2.56± acres on the northwest corner and also owns property on the northeast and southwest corners of Hoffner Avenue and Goldenrod Road.
Daryl M. Carter with Maury L. Carter & Associates, Inc. represented the Seller and Wood Belcher with CB Richard Ellis represented the Buyer.
Joan M. Fisher, Maury L. Carter & Associates, Inc., 3333 S. Orange Avenue, Suite 200Orlando, FL 32806-8500. (407) 581-6207 direct; (407) 422-3144 office; (407) 422-3155; fax email@example.com; http://www.maurycarter.com/; http://www.disneyuniversalland.com/