What’s Going On? In the immortal words of Marvin Gaye, everyone wants to know what’s going on with the economy. The truth is no one knows whether we are heading for a double dip recession or whether the economy will continue to grow sluggishly. How has this uncertainty affected the industrial real estate market in the Chicago Metropolitan Area (...
Prologis, the world’s largest landlord, still has many challenges ahead as detailed in the Wall Street Journal:
http://online.wsj.com/ar...
The commercial-mortgage-backed-securities market, a leading source of financing in commercial property until the financial collapse of 2008, is showing signs of life.
http://online.wsj.com/article/SB10001424052748704723604575379543602271202.html?mod=djemRealEstate_Commercial_t
&...
July 1, 2010
A new accounting standard is taking shape that could change the way tenants choose to lease space, with broad consequences for the commercial real estate market. Click on the link below for the NY Times article.
http://www.nytimes.com/2010/06/23/realestate/commercial/23fasb...
April 19, 2010
Interesting article about how to motivate employees in Fortune Magazine
http://money.cnn.com/2010/04/05/news/economy/job_motivate.fortune/inde...
April 19, 2010
Chicago Metro
The Market Continues to Decline for Owners of Industrial Real Estate
The vacancy rate for industrial properties in the Chicago Metropolitan Area increased from 12.15% to 12.25% between January 1, 2010 and March 31, ...
March 16, 2010
Fred and I attended a National Association of Industrial and Office Parks (NAIOP) meeting this morning. Presenting were the CEO's of Duke Realty, CenterPoint Properties and First Industrial Realty Trust. In total, these firms own about 200 million SF of industrial properties.
The highlights of this meeting are as follows:
The industrial real estate investment trusts (REITs) have solved their debt and liquidity issues
New capital is getting ready to move back into real estate
Industrial leasing across the country still remains sluggish but..
Real estate owners are thinking about avoiding value destruction (which means avoiding long term low, low, low net rent deals).
As we said in our last posting, change is coming soon. Landlords will start to become more stingy with rent concessions.
You should feel some urgency in pursuing lease extension in exchange for current rent relief.Please call us for a free review of your situat...
February 19, 2010
2009 was the worst year ever for owners of industrial real estate. While there were 38.5 million square feet leased or sold in 2009, this total is down 36% from the Metro Chicago’s peak of 59.8 million square feet of deals in 2005. In addition, lease renewals accounted for a large portion of the 38.5 million square feet.
More importantly, the 22 million square feet of negative absorption for the Metro-Chicago Area is the key indicator of the lack of demand for industrial real estate. Companies are consolidating, companies are not moving and companies are not leasing or buying industrial real estate!
However, a change is gonna come. While we expect 2010 to resemble 2009, we think leasing demand will increase in 2011. Lease pricing will firm up once landlords sense that leasing demand is increasing.
If you are a tenant your window of opportunity is closing. Now is the time to renegotiate your current lease!
For a free evaluation of your lease situation, please contact:
Jack Rosenberg, SIOR 847-698-8208 Fred Regnery 847-698-8238 Ned Frank 847-698-8...
