February 2024 Illinois Real Estate Journal by Benton Mahaffey

MARKETPLACE (pg 34): ASSET/PROPERTY MANAGEMENT

FIRMSCONSTRUCTION COMPANIES/ GENERAL CONTRACTORS ECONOMIC DEVELOPMENT CORPORATIONS (EDCS)

MULTIFAMILY LENDING

How Luxury Multifamily Construction Won Chicago’s West Loop By Ray Cisco, Chief Operating Officer, McHugh Construction

Embry. Photo Courtesy of Lamar Johnson Collaborative

o say the greater West Loop area has truly become one of Chicago’s hottest neighborhoods for live-work-play lifestyles with its cutting-edge eateries, boutique shops and high-profile employers is an understatement. Since 2022, the neighborhood has delivered or is in the process of delivering more than 9,000 units across high-end, luxury rental and condominium towers. While McHugh Construction has completed iconic multifamily buildings throughout various neighborhoods in

Chicago, Miami, Nashville and other cities, we’re particularly proud to be part of this West Loop building boom. In fact, having just finished work on the fastest-selling condominium building in the West Loop, and currently wrapping up work on two Class-A rentals, we’re in the thick of the neighborhood’s transformation to the city’s most in-demand zip code. Here’s a closer look at how McHugh’s best building practices are helping developers and architects bring their

conceptual designs to reality for more than 700 units in the area. Embry McHugh Construction worked hand-in-hand with project architect Lamar Johnson Collaborative (LJC) and owner Sulo Development to build Embry, a 58-unit luxury condominium building at 21 N. May St. that has become the MULTIFAMILY (continued on page 16)

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F E B R UA RY 2 0 2 4 I L L I N O I S R E A L E S TAT E J O U R N A L

C O N T E N T S F E AT U R E S LUXURY MULTIFAMILY 1 HOW CONSTRUCTION WON CHICAGO’S WEST LOOP

To say the greater West Loop area has truly become one of Chicago’s hottest neighborhoods for live-work-play lifestyles with its cutting-edge eateries, boutique shops and high-profile employers is an understatement.

FROM THE GREAT 4 LESSONS RECESSION CAN HELP NAVIGATE TODAY’S COMMERCIAL REAL ESTATE

F E B RUA RY 2 0 2 4

I L L I N O I S R E A L E S TAT E J O U R N A L INDUSTRY LEADERS GATHER 20 CHICAGO TOGETHER TO DISCUSS THE STATE OF SUBURBAN OFFICE On January 16,

2023, REJournals hosted its 22nd annual Chicago Forecast Conference at the Chicago Marriott Downtown Magnificent Mile.

CHALLENGES Two phrases echoed

CONSTRUCTION TOPICS In the face of today’s

MARKET STILL EVOLVING IN RESPONSE TO WORK FROM HOME 23 OFFICE

economic landscape, the construction industry is facing a variety of business issues and challenges.

FUTURE LEADERS Bradford Allen’s Nathan Meisner, a key player in the firm’s Chicago tenant representation division, expertly assists companies with lease renewals, relocations and lease restructuring, while also managing office space changes.

OFFERINGS PROPEL SURGE 10 DIVERSE IN SUBURBAN CHICAGO MULTIFAMILY MARKET

CBRE REPORT: MULTIFAMILY DEVELOPERS ENJOYED A BOOM YEAR IN 2023. BUT EXPECT A SLOWDOWN IN NEW DELIVERIES THIS YEAR How busy were multifamily developers last year? They added more than 416,000 new apartment units to the United States’ multifamily supply in 2023,

throughout January’s REJournals Chicago Forecast: Survive ‘til ‘25 and Do More in ‘24.

OPERATIONS, LABOR 6 BUSINESS COSTS AND INNOVATION ARE LEADING

1010 Lake St. #210 Oak Park, IL 60301 312.933.8559 Website: www.rejournals.com

The rising demand for cold storage. And Chicago’s status as the hub of the country’s warehousing and distribution network. They will all play a role in what is expected to be a busy 2024 for Chicago’s industrial sector.

as the office market continues to struggle across the country: Developers are turning outdated office space into apartment units.

OF THE MIDWEST It’s a growing trend

28 NEWS BRIEFS:

published by the Journal of Environmental Horticulture found that well landscaped businesses have a higher perceived value, and consumers are willing to pay more for goods and services when the landscaping is aesthetically pleasing.

EDITORIAL ADVISORY BOARD

ALISSA ADLER Colliers GEORGE KOHL Savills

Jeff Krusinski Krusinski Construction Co.

The latest deals in Illinois

UNTIL ’25?” AT CHICAGO 14 “SURVIVE FORECAST CONFERENCE IT’S ABOUT “DO TECHNOLOGIES SURVEY: 32 BUILT MORE IN ‘24” COMMERCIAL LENDERS CONFIDENT THAT 2024 WILL BE A BETTER YEAR

VICE PRESIDENT OF SALES Frank E. Biondo frank.biondo@rejournals.com

2024? NAI HIFFMAN EXPERT PREDICTS A STRONG NEW NORMAL IN CHICAGO’S INDUSTRIAL SECTOR Reshoring.

THE THEME OF THIS YEAR’S CHICAGO FORECAST? APPRECIATE THE POWER OF THE CITY If a theme emerged during

6 STRATEGIES TO REVITALIZE YOUR COMMERCIAL LANDSCAPING A study

VICE PRESIDENT OF SALES & MW CONFERENCE SERIES MANAGER Ernie Abood eabood@rejournals.com

CLASSIFIED DIRECTOR Susan Mickey smickey@rejournals.com

OFFICIAL: THE OFFICE-TO26 IT’S APARTMENT CONVERSION BOOM HAS HIT CHICAGO … AND THE REST

It’s a common refrain among commercial real estate professionals today: “Survive until ’25,” meaning do what you can to get through 2024 and expect better times in 2025.

EDITOR Dan Rafter drafter@rejournals.com

While the work from home trend is firmly embedded in the market, the effects are still evolving. It may take a few more years for these effects to be fully felt.

Shifting demographics, changing lifestyles and a lower cost of living have led to robust demand for suburban living.

this year’s Chicago Forecast event, it was a simple one: Appreciate the fact that you work in the economic engine of the Midwest.

PUBLISHER Mark Menzies menzies@rejournals.com

A new survey suggests that commercial lenders expect a busier year in 2024, thanks largely to a more stable interest-rate environment.

34 CRE MARKETPLACE

RONALD C. LUNT Hamilton Partners

JOHN M. MOYSEY Avison Young

NANCY A. PACHER CBRE

JONATHAN STEIN Inland Real Estate Group

GREGORY T. WARSEK Associated Bank

The Illinois Real Estate Journal is published bi-monthly by Real Estate Publishing Corp.© 2024 Real Estate Publishing Corporation. No part of this publication may be reproduced without the written permission of the publisher. Phone: 312.933-8559

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Lessons from the Great Recession can help navigate today’s commercial real estate challenges By Starr McCaffrey, Head of Brand & Communication Strategy, Calamos Real Estate

wo phrases echoed throughout January’s REJournals Chicago Forecast: Survive ‘til ‘25 and Do More in ‘24.

They are not mutually exclusive.

In 2005, Calamos moved into its new HQ. While construction of another million square feet of real estate was underway at CityGate Centre development the global financial crisis struck. Calamos’ next steps contributed to the community’s current success. These are lessons to be shared. Lesson 1: Consider what success looks like. Generally, owners and investors hone-in on the obvious: Cap rate as a primary measure. Value of less tangible attributes is subjective…yet meaningful. “As CityGate Centre approaches that tangible measure of 90% leased, tenant testimonial and anecdotal evidence shows intangibles—reputation, community impact, distinction and pride—absolutely contributed to success,” Witkowski said. For Calamos, CityGate Centre was never simply a cluster of beautiful buildings. His vision was to create a destination where his employees would want to be, where their clients would feel appreciated and exceptional, and that the community could enjoy; one that could stand up to the best of the world-class locations he had the privilege to visit. Lesson 2: Find opportunity in adversity. The original site plan for CityGate Centre illustrated a traditional business park dominated

employees are proud to work for a globally conscious developer.”

Those actions are key factors in CityGate Centre’s success today, according to Witkowski.

For existing properties, choosing green at equipment replacement intervals, for maintenance products and for minimal-footprint disposal methods can make an impact to both the environment and marketing.

“Tenants tell us the amenities make a difference,” he said. “And investment into amenities can be scaled.”

“With current market challenges triggered by a first-in-a-century global event there’s no obvious recovery playbook,” said Calamos Real Estate SVP Ken Witkowski. “But there are 21st century events on which to focus our 20:20 hindsight: the 2007 market downturn and Great Recession that followed.” In November 2023, Illinois Real Estate Journal ran a story about Naperville’s CityGate Centre, managed by Calamos Real Estate, outperforming the current high-vacancy office market. Developed by Calamos Investments LLC Founder, Chairman and Chief Investment Officer John P. Calamos, Sr., the 176,000-gross-square-foot global headquarters for the namesake financial firm he launched in 1977 was the first building completed on the 31-acres that comprise CityGate Centre.

new tenants to the property as the economy stabilized.

During the REJournal Forecast’s Suburban Office Panel, Julia Klairmont of Imperial Realty Company mentioned adding a tenant-amenity fitness center in an unleased suite of a small office building.

Starr McCaffery by five office buildings and five parking garages set among a hotel, dining and retail, and a performing arts center. It projected more than 2.7 million gross-square-feet of construction. But in October 2008, when the global financial crisis reached its climax, construction was paused on all but the just over a million square feet that Calamos had built or was actively building. “This new-construction suspension was not inaction,” Witkowski said. “Rather, it was different action: Evaluating the changing climate— financial and political—and reimagining the vision that began as a five-office-building business park in the suburbs.” From the start of the recession and through its long recovery there was another force at play: the suburban exodus attributed to pro-business Chicago Mayor Rahm Emanuel when 68 suburban headquarters or major offices moved from Chicago’s suburbs to the city. It peaked during Emanuel’s second year in office, 2008, when 15 businesses moved to Chicago from the suburbs and continued through his 12 years as mayor. It drove an even more dynamic vision for CityGate Centre’s role in the community. Lesson 3: Quality and amenities matter Focus shifted from building an office park to creating an amenity-rich community and, chiefly, high-quality amenities. Calamos formed a hospitality management company, today known as CityGate Hospitality LLC, led by hand-picked individuals to take over operation of CityGate Centre’s hotel and restaurants. The goal was to maintain and improve excellence, to further boost the world-class service and surroundings enjoyed by employees, clients, tenants and community and, ultimately, to draw

Whether a PUD or a small building, turning unleased space into an amenity—a tool to generate other revenue—makes sense. Today, CityGate Hospitality manages Hotel Arista—the only Forbes-recommended hotel in Illinois outside of Chicago—five food & beverage amenities, a world-class fitness center and a Forbes 4 Star spa—also, the state’s only outside of Chicago—at CityGate Centre. The community has become both a business- and celebratory-event destination; two of its event venues—Hotel Arista and the indoor-outdoor event space at CityGate Grille—earned Hall of Fame status with theknot.com Best of Weddings. In 2018 CityGate Hospitality opened Che Figata. The upscale, authentic Italian dining experience won three Wine Spectator Awards (2019, 2022 and 2023). Investment into amenities continues with a 40,000-square-foot event center that will open atop the 285-unit luxury apartment building, Domain CityGate, developed in a JV with Willow Bridge Property Group. With its first residents in October 2022, Domain CityGate reached 98.9% leased by October 2023 and was named NAIOP Chicago’s multifamily development of 2023. Lesson 4: Be a good global citizen A visionary who embraced sustainability before it became mainstream, Calamos’ second office building at CityGate Centre, the over 219,000gross-square-foot cornerstone building opened in 2007, is LEED Silver®. Next door, Calamos’ Hotel Arista opened in 2008 as the first LEED Certified® hotel in Illinois. “Beyond the greater good, sustainability is good business,” Witkowski said. “Office tenants and hotel guests often cite green standards at CityGate Centre among reasons they choose to lease in or stay at the community, and our

Lesson 5: We’re all in this together While Emanuel’s pro-business policies had significant impact on the landscape of the suburbs, today Chicagoland’s seven counties are working together through the Greater Chicagoland Economic Partnership (GCEP). On a regional panel during this year’s Forecast event, GCEP Chair and Choose DuPage CEO Greg Bedalov explained the relatively new, formalized collaboration between Cook—including Chicago—DuPage, Kane, Kendall, Lake and McHenry Counties was formed on the premise that the region can achieve more to strengthen jobs and capital investment by working together than any one community can on its own. Established in January 2023, GCEP partners have worked collaboratively to identify market sectors within the region primed for growth, developed strategies for enhanced penetration into those markets, created the first interactive regional asset map and secured more than 50 pro-Chicagoland decisions. GCEP partners have traveled nationally and internationally to market the region and attract foreign investment. In 2024 GCEP is working to establish marketing programs including tools that present a common identity amplifying the strengths of Chicagoland. GCEP will expand foreign direct investment outreach and build on its successes from 2023 including joint participation in national site selection events. Most importantly, GCEP will continue to work to bring more businesses to the region for the benefit of all. The final lesson: Do what works for you While these challenges are universal, the solutions are widely varied. Even if circumstances have you in the Survive ‘til mindset, use the time to think—not worry—about how you’ll do that.

Starr McCaffery leads brand & communication strategy for Calamos Real Estate. She also sits on the board of directors for Choose DuPage, of which Calamos is a founding member.

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Business Operations, Labor Costs and Innovation Are Leading Construction Topics By Brian J. Kassalen, Partner and construction industry leader, Baker Tilly

n the face of today’s economic landscape, the construction industry is facing a variety of business issues and challenges. These issues are not uncommon as far as business dynamics go, but there are certain characteristics that make them uniquely taxing and require specialized strategies to provide impactful outcomes. The issues affecting virtually all construction businesses according to their unique circumstances or nuances include: 1. maximizing business operations as expenses rise and profits narrow. 2. controlling labor issues and costs at a time when wage inflation still exists, and 3. identifying and leveraging the benefits of technology without investing too heavily with human or financial capital. Maximizing business operations and profitability With the volume of construction projects slowing because of the economic climate, there likely will be increasing competition for projects that may put pressure on companies to sharpen their pencils to win. With other expenses including materials, labor and insurance increasing, profit margins already are being squeezed. This makes efficient operations and a focus on profitability even more critical. Profitability can vary significantly among general contractors, subcontractors, and specialty trades, depending on size, sophistication, and management practices. According to the Construction Financial Management Association’s 2023 benchmarking study, in 2022 the top quartile performing construction firms averaged a 9.9% net profitability level. The overall average was a net 4.9%. The difference between “best of class” and “average” likely can be attributed to greater efficiencies, more accurate estimating, better managing of overhead expenses, and quicker responsiveness to challenging business issues and market conditions. Monitoring and paying close attention to cash flow trends and benchmarking profitability are among the best solutions for construction and related companies of any size to mitigate certain pressures associated with improving business and financial operations. • Cash flow options— examining payables and receivables is imperative to understand

cash flow patterns and concerns. If it takes longer for money to come in than it does for it to be dispersed, the gap can cause significant operational problems. The greater the gap, the bigger the problem(s). Typically, the only way to address that gap—as it is occurring—is to take cash from the business or to rely on the availability of a business line of credit. Each of those “remedies” has a cost. Taking cash from the business may deplete capital that was targeted for investment in the business to allow it to grow and expand. Delaying certain accounts payable can result in credit issues. A business line of credit can be expensive, especially because of interest rates that have risen dramatically in the last 18-24 months. The long-term solution is to narrow the gap between payables and receivables. In fact, managing the gap should be part of standard operating procedures. There is hope on the horizon however as many leading economists are projecting interest rates to start decreasing in 2024. In a recent survey of 40 economists, completed by the Financial Times and Kent A. Clark Center for Global Markets, 35% of the respondents believe interest rates will decrease by 50 basis points, with another 26% believing interest rates will decrease between 75 and 150 basis points. • Benchmarking profitability is another effective solution because it identifies what processes and procedures are working well and making a positive contribution, and those that are creating a financial deterrent to the business. For example, the benchmarking analysis should lead to identifying systems that can improve operational efficiencies by capturing overhead expenses in the bidding process. This analysis can also look more closely at and evaluate alternative ways of doing business that may have become standard but should be re-evaluated, such as whether to buy, rent or lease equipment. Controlling labor issues The cost and availability of labor are increasingly important and challenging issues. Based on data from the Bureau of Labor and Statistics, in the construction industry there is an employment gap of more than 4 million jobs: the difference between the number of job openings and the number of people actively looking for employment. While there may be seasonal peaks and valleys, it generally is an issue that knows no geographic boundaries. Further, the issue is not unique to the availability of labor, but the costs too. Traditionally since

• Clearly defined future advancement opportunities. • Bonus structures for those who are integral to projects staying on-time and on-budget; this typically applies to estimators and project managers. • Phantom stock options that reward employees who contribute to overall company performance. Innovation and artificial intelligence

Brian Kassalen at least 2016, construction wages have increased on average 2.8% to 3.8% per year, according to the Bureau of Labor Statistics. However, in November 2022 the annual rate of increase averaged about 6.1%, according to ConstructionConnect. That’s a sharp increase, even if the rate has experienced a slight flattening lately. Historically, employment in the construction industry, which is physically demanding, could be lucrative, especially considered with other employment options. More recently, the gap has been narrowing. With employers like Amazon and McDonalds paying $18 to $20 an hour with limited or minimal physical demands, people who otherwise may have opted for a construction job are finding other opportunities. The older people get, the more they look for a job that isn’t as physically taxing. In times such as these, where there may be a limited number of potential job candidates, construction firms can turn their attention to a couple of different solutions, one that is direct and one that is more universal. • Incentive and compensation planning— when the pool of available workers is constricted it becomes more important than ever to retain the employees the company already has in place. Further, employee retention isn’t just about the hourly wage and paycheck. Therefore, a more comprehensive incentive and compensation planning exercise may be critical. Such an evaluation can help conceptualize creative programs that will keep people engaged and loyal to the company. Among some of the examples that can provide tangible, quantifiable employee loyalty and performance incentives include:

Artificial Intelligence may be one of the most consequential developments impacting all types of businesses, including the construction industry. Yet like all forms of technology and innovation, the extent to which it is being utilized varies by company and industry. In the construction industry, the two most prominent uses include a focus on safety and 3D modeling. Drones and cameras are commonly found on job sites not only to track construction progress, but also to monitor safety issues as well as potential hazards. For example, a drone camera flying a job site can identify whether construction workers are following all safety protocols in the work they are doing and appropriately wearing goggles, hard hats and other equipment. Further, 3D modeling can help the construction team see what’s going to happen with each subsequent stage of construction. With AI early in its infancy, especially in the construction industry, there almost assuredly will be significant change in products and capabilities over time. Of critical importance to construction firms, whose profit margins already are being squeezed, is the ability to calculate the return on investment associated with any given AI solution. This requires an analysis of the different solutions that are available, and the costs associated with acquisition and training. Navigating today’s business challenges is increasingly challenging. Yet in most situations, with innovation, expert assessments and well-thought-out plans, there are ample opportunities to make improvements in business efficiencies, operations and profitability.

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FUTURE LEADERS: Bradford Allen’s Nathan Meisner

radford Allen’s Nathan Meisner, a key player in the firm’s Chicago tenant representation division, expertly assists companies with lease renewals, relocations and lease restructuring, while also managing office space changes. Nathan’s role extends beyond local projects, as he also handles international office lease negotiations for clients on a global scale. Tell us about your background. Where did you grow up? Where did you go to school? I’m originally from Cincinnati. Growing up in a household with five siblings was an adventure filled with constant activity and camaraderie, but through all the chaos, my parents instilled the values of hard work and commitment. Being one of the middle children, I had the unique opportunity to learn from my older siblings while also striving to set a positive example for the younger ones. We were quite the unit – you could say the Meisners were the Brady Bunch of our neighborhood! I attended Ohio University, where I was actively involved with the Student Advisory Board of the College of Business and was a member of Epsilon Nu Tau. This involvement was about fully engaging in university life. My focus academically was on business, specifically real estate and financial management. Networking was also a significant part of my time at university. I aimed to connect with as many people as possible, recognizing the value of diverse connections. That approach to building relationships and expanding my professional network has been fundamental in my career. Making meaningful connections is the lifeblood of our business. How did you get your start in the CRE industry? My path into commercial real estate started with my family’s involvement in the field. Several of my cousins work in commercial real estate in New York and I have an aunt in residential real estate. Their experiences piqued my interest from a young age. During my high school and even middle school years, I was fortunate to get a first-hand taste of real estate. My dad had a friend who was into flipping houses, and I learned a lot just by being around these projects. It wasn’t just about the hands-on work; I was absorbing the basics of the business side, too. This early exposure was what led me to pursue the business right away. I landed internships early on in capital markets, then asset management, where I gained a

Nathan Meisner deeper understanding of the industry and how various asset classes operate. It was during those experiences that I started to grasp the complexities of commercial real estate and began to see a future for myself in this field. Did you have a mentor who helped you get on your feet, or is there someone you turn to now for support? I’ve been fortunate to have several mentors and supporters throughout my journey. My fiancé has been a tremendous support in both my personal life and career. My parents have been great mentors, teaching me the value of a dollar and the importance of a strong work ethic. In the professional sphere, Ben Azulay, principal at Bradford Allen, has been a pivotal figure. More than just guiding me through the industry, Ben has invested in my overall growth. He’s a sounding board for my career goals, always willing to share his experiences and insights. His mentorship—both personal and professional—has made all the difference. It’s helped me navigate complex situations with confidence and provided a well-rounded perspective on difficult decisions. I hope to have the chance to pay forward that caliber of mentorship one day.

What does an average day at work look like? In commercial real estate, there isn’t necessarily an “average” day. The job requires a lot of flexibility and the ability to pivot quickly, which is what makes it so exciting. Some days, I’m in back-to-back client meetings; other days, I’m strategizing on deals or navigating through unexpected challenges. No two days are ever the same, so you need to stay on your toes. What do you like most about your job? What I find most rewarding about my job is the opportunity to witness and contribute to the growth of various businesses. It’s rewarding to be a part of their story. The diversity of my work is another aspect I thoroughly enjoy. One day I might be assisting a law firm, and the next, I could be working with a daycare center—I’m always learning something new. Helping companies align their business operations with their real estate needs is a particularly fulfilling part of my role, as it directly impacts their success and growth. Looking to the future, what do you hope to work on/achieve that you haven’t already? Going forward, I’m excited about deepening my relationships with clients, partic-

ularly those I’ve been working with for a while. There’s something extra rewarding about being trusted with a business and its goals over time. I also have my sights set on managing more extensive portfolios, specifically for clients based in Chicago with a national footprint. As I mentioned, I’m genuinely passionate about mentorship. Working on more projects in a mentorship role is a big goal of mine. I’m involved in the Big Brother program, which has been incredibly fulfilling, and I’m eager to bring that mentorship spirit into my professional life. How do you spend your time away from the office? Currently, I’m passionate about a new project I’ve taken on — home ownership! I recently purchased a duplex and I’m in the process of renovating it to rent out. It’s a larger undertaking than I expected, but I’m enjoying the process. It’s an opportunity to put my professional real estate knowledge to use in a very personal way. The renovation has its share of challenges, but again, that’s what makes for a rewarding experience. Every step—even the unexpected ones—is a learning experience. Plus, there’s something satisfying about transforming a space and making it my own. A major life lesson learned: the thing about a plan is sometimes nothing goes according to plan.

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I L L I N O I S R E A L E S TAT E J O U R N A L F E B R UA RY 2 0 2 4

Diverse Offerings Propel Surge in Suburban Chicago Multifamily Market By Emily Johnson, president of Taylor Johnson Public Relations

hifting demographics, changing lifestyles and a lower cost of living have led to robust demand for suburban living. The Chicago suburbs in particular are highly attractive, as noted by a study from RentCafe that named the area one of the Top 5 most competitive rental markets last year. According to RentCafe, there were 14 renters competing for each available suburban unit in 2023, with apartments filled in an average of 35 days. Moreover, the region experienced a 95.3% occupancy rate, with a lease renewal rate of 66.7% – well ahead of the 57% recorded in Chicago proper. One reason suburban rentals are outperforming downtown apartments is the variety of available product types. Class A communities are no longer confined to the CBD, for example, while build-to-rent (BTR) single-family communities are virtually unheard of in the city. Here’s a look at four rental products helping the suburbs shine in 2024. Mixed-Use The automobile may still reign in the suburbs, but an increasing number of suburban renters crave walkable and transit-served neighborhoods, with easy access to shopping, dining and entertainment. This is why many investors are willing to pay top dollar for mixed-use properties that would be just as fitting in a vibrant urban center. In January, Chicago-based multifamily brokerage Interra Realty closed on the $10.4 million sale of reVerb Century Station, a 52-unit mixed-use property in Berwyn. The sale price set a record for multifamily or mixed-use properties in the suburb, per CoStar data. According to Interra managing director Paul Waterloo, who closed the deal along with Interra senior managing partner Joe Smazal and managing partner Patrick Kennelly, the buyer was attracted to the quality of the construction, large-format units and location in downtown Berwyn with nearby retail and restaurant options and a Metra station across the street, providing a convenient transportation option. “As a result of the growing trend in remote work, many people are opting for the lower cost of living afforded by moving to the suburbs; however, they don’t necessarily want to give up their urban lifestyle,” Waterloo said. “Investors have keyed in on this and are exhibiting strong demand for mixed-use assets in walkable locations.” Build-to-Rent

The Quin

In December 2023, median existing-home sales prices were 4.4% higher than in December 2022, according to data from the National Association of Realtors, marking the sixth consecutive month of year-overyear price hikes. Given these high costs, along with elevated interest rates and other barriers to homeownership, more wouldbe buyers are opting to rent instead, fueling the growth of the BTR sector. Last year, construction wrapped on the first phase of Conservancy at Gilberts, a new-construction community of 94 rental townhomes and 90 rental single-family homes in northwest-suburban Gilberts, as well as on the initial phase of Bristol Bay of Yorkville, a new community offering 240 rental townhomes in southwest-suburban Yorkville. According to Anthony Rossi Jr., president of Chicago-based RMK Management – the property management firm for both communities – these BTR developments represent a fresh strategy for suburban Chicago that is resonating with renters. “Build-to-rent single-family-home communities, as well as large-scale rental townhome developments, are a relatively new concept in the Chicago area, but the trend is definitely gaining traction,” said Rossi. “These housing products are increasing in

popularity among renters who desire larger floor plans and more green space than what is typically available with traditional rental apartments. Residents also enjoy all the perks of a large new-construction home with the latest on-trend finishes and features that today’s renters want but can be hard to find, such as in-unit work-fromhome spaces like lofts and flex rooms, which are offered in many of the build-torent communities we manage.” Noting high conversion rates and steadily increasing rents, San Antonio-based developer Lynd has sought to tap into the steady demand for new rental developments with more privacy and larger square footage in Chicago’s suburbs. This includes BTR communities such as Home at Ashcroft in Oswego, which offers 178 BTR attached single-family homes in ranch and two-story designs, some with basements, as well as attached garages, upgraded finishes and access to community clubhouses with outdoor pools, on-site wellness programming, social events, fitness centers and coworking areas. “Home at Ashcroft started as a for-sale single-family community, and it shows – these are larger rentals with open floor plans, basements, fenced yards and twocar garages with extended driveways for

an additional two cars (total of four per house),” said Anthony Tiritilli, president of development for Lynd. “It’s really the best of both worlds because our residents enjoy the space and autonomy of single-family living with the convenience of a maintenance-free, highly amenitized lifestyle. We’ll receive their packages, walk their dogs and water their plants while they’re on vacation and more.” Workforce Housing Competition for workforce housing remains strong in the Chicago suburbs as higher living costs have made affordability a top priority for many renters, and demand has outpaced the supply of new buildings in this category. Both local and out-of-state investors showed a strong appetite for suburban workforce housing in 2023, according to Interra’s Waterloo, and that trend should continue in 2024. “This is true for stabilized assets as well as value-add properties,” Waterloo said, “and there’s nothing in the tea leaves suggesting this will change anytime soon.” For example, Waterloo brokered the December sale of Westwood Apartments in Waukegan; the 11-building, 132-unit property was 96% occupied at the time

F E B R UA RY 2 0 2 4 I L L I N O I S R E A L E S TAT E J O U R N A L of sale and traded for $11 million – the largest dollar amount in Waukegan in the past four years, per CoStar. Waterloo also brokered the sale of 722-726 N. Austin Blvd. in Oak Park, which sold this month for $1.4 million to a buyer who will gut-rehab several units that were impacted by a recent fire. Class-A The appeal of Suburban Class-A properties persists for qualified renters. They are drawn to the prospect of a premium living experience characterized by modern amenities and upscale finishes, without sacrificing the tranquility and space of suburban living. Last year, The Finger Companies opened The Quin, a 373-unit luxury rental community in Schaumburg. Unit finishes include features that would not seem out of place in a new building downtown, including 9- and 10-foot ceilings, floorto-ceiling windows with solar shades, Nest home automation systems and smart appliances, built-in wine chillers and spalike bathrooms with frameless walk-in showers and soaking tubs. Amenities there rival those of city center communities but with the added bonus of extra space for features like multiple pools and a 2-acre private park.

“The location is a draw, especially for the more established professionals that are nearing their first home purchase, but still need access to the city and want to have the space and comfort of the suburbs.” Draper and Kramer, Incorporated, who owns and manages North 680, a luxury rental multifamily community in Schaumburg, experienced an influx in demand from prospective tenants during the pandemic and that level of interest has sustained in the current market, with the property remaining at or above 95% occupancy throughout the recent economic ups and downs.

“The location is a draw, especially for the more established professionals that are nearing their first home purchase, but still need access to the city and want to have the space and comfort of the suburbs,” said Draper and Kramer’s Colleen Needham, assistant vice president, regional property manager. “The high-end unit finishes and suite of amenities are very popular with the residents and continue

to be among the most important factors for those deciding on rental properties in the northwest suburbs.”

Emily Johnson is president of Taylor Johnson Public Relations, a PR firm that has been 100% niched in real estate for more than four decades.

Chapter at Madison Student Housing

THE ART & SCIENCE OF BUILDING

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The theme of this year’s Chicago Forecast? Appreciate the power of the city By Dan Rafter, Editor

f a theme emerged during this year’s Chicago Forecast event, it was a simple one: Appreciate the fact that you work in the economic engine of the Midwest.

Several speakers during Illinois Real Estate Journal’s 22nd annual Chicago Forecast, held Jan. 16 at the Chicago Marriott Downtown Magnificent Mile, emphasized that commercial real estate brokers are fortunate to be working in the city of Chicago. As many said, it’s important for CRE professionals to tout the advantages of the city. And as others said? Yes, these are challenging times. But Chicago and its surrounding suburbs have faced difficult times before. And the city has always emerged stronger. The big takeaway: Chicago’s commercial real estate community will work though the challenges of high interest rates, stubborn inflation, the work-from-home movement and public-safety issues in downtown. Why? Because it always has. The resiliency and strength of the Chicago-area market was one of the main points that speakers made during the forecast’s first panel discussion, Forecasting Downtown Chicago & Beyond: What’s in Store for ’24? This panel featured an all-star cast of CRE professionals:

Despite frigid temperatures, more than 400 CRE professionals attended the 22nd annual Chicago Forecast event held by Illinois Real Estate Journal.

• Bob Six, chief executive officer of Zeller

There is hope

• Quintin Primo, chairman of Capri Investment Group

“The things we have, such as a strong public transportation system, a strong labor force and access to Lake Michigan, make a difference. People talk about the interest rates that went up. Well, we were blessed for many years with artificially low rates. Unfortunately, that creates a mirage. The owners of Class-C office buildings thought that they could earn solid profits without making any investments in their buildings. That isn’t the case when rates aren’t so low. Today, office owners need to create community in their buildings if they expect to attract tenants. We all need to be patient. We need to see the Fed lower rates. There’s hope here. Be patient.”

• Brad Serot, vice chairman of CBRE • John Tomlinson, managing director of Hines • Meredith O’Connor, director of JLL These five CRE stars discussed a host of topics during their panel, which attracted a crowded house of more than 400 attendees. A resilient market “We will get through this. The governor is correcting our finances. The state of Illinois has seen nine credit rating upgrades. The CHIPs and Science Act and Inflation Reduction Act are already having positive impacts. National site selectors who never looked at Illinois before are now looking at our state. That is a breath of fresh air to see that Illinois is in competition again for major projects.” - Meredith O’Connor, JLL

- Bob Six, Zeller The economic engine “Patience really is key. We saw that with Wolf Point East, which is a big success story now. What’s important is that you also have to build communities outside of the office buildings. You need to bring in retail and restaurants. That’s what brings people to an area. Those outside areas matter, too. We have seen a lot of negative

headlines about Chicago. But I believe that Chicago has the best business community in the world. Chicago is the economic engine of the Midwest.”

space that I’ve ever seen. Owners are competing with this.”

- John Tomlinson, Hines

The need for a less segregated community

There is still demand for Chicago-area office space

“Segregation is a big challenge for this city. A two-year study by the Metropolitan Planning Council tried to determine the true costs of segregation. It found that because of segregation, the city of Chicago loses out on $4.4 billion in extra income each year. If the city were less segregated, there would also be 30% fewer homicides and its residents would earn 83,000 more bachelor’s degrees. Just think what we could do with $4.4 billion of additional income each year. Just think how we could make the city stronger. Keeping a significant population of the city from achieving success hurts all of us.”

“There is demand for office space. The flight to quality we’ve been hearing about? It’s true. Class-A buildings are outperforming others. The Fulton Market area is a winner today. Salesforce Tower is a winner. Since 2020, the center of gravity has been moving back to the West Loop. I hope it travels out to the Central Loop, too. In 2024, I think demand for commercial real estate in Chicago will increase. Hybrid work will remain, though. All our clients are frustrated. They want their employees back. They are considering mandating that their workers return to the office three or four days a week.” “There are challenges. Since 2020, concessions are way up. Then there is the sublease market that is looming over Chicago. This is some of the highest-quality sublease

- Brad Serot, CBRE

- Quintin Primo, Capri Investment Group A controversial take: An increase in real estate transfer taxes high-end properties in Chicago might not be all bad?

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“The extra money raised from an increase in real estate transfer taxes would go toward fighting homelessness in the city. Homelessness is a focus for me. I hear a lot of whining that taxes are already so bad, that the real estate market is depressed because of COVID and high interest rates. But, in my opinion, we must roll up our sleeves. What can we do? Our real estate taxes pale in comparison to other cities. The revenue from this increase is going to be used to address homelessness in the city. I’d argue that the impact of homeless people in front of their buildings is more of a negative than the impact of higher transfer taxes.”

to encourage more conversions from office to residential.”

- Quintin Primo, Capri Investment Group

“Crime and high taxes are deterring people from making real estate decisions. Clients are worried about crime in certain neighborhoods. It is deterring clients from developing in those areas.”

- Bob Six, Zeller “Many of the people not going back to work are women. They are facing childcare and transportation issues. We have to figure that out if we want these women to return to the office. We ae also need incentives to encourage more development here. If we want bigger projects in the Chicago area, we have to offer the same incentives provided by other states.” - Meredith O’Connor, JLL

Meeting the challenges Though panelists were optimistic on the strength and future of downtown Chicago’s real estate market. They did say that the city faces several problems that it must resolve. “We need to fix the issue of rising crime in the Central Loop. Having more activity there will help do that. We need to create more vibrancy in the Central Loop. That is probably the least diverse of all our Chi-

John Tomlinson, Hines; Michael Fishman, Greenberg Traurig LLP, moderator; Meredith O’Connor, JLL; Bob Six, Zeller; Quintin Primo, Capri Investment Group; and Brad Serot, CBRE. cago neighborhoods. It is almost all office with a bit of retail.” - John Tomlinson, Hines

“We are far behind on the number of residential units we need in the city. Conversions can help with that, but the costs of construction are up. That makes it difficult. The city needs to offer financial incentives

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- Brad Serot, CBRE “It is great that Google has developed such a strong presence in Chicago. It’s wonderful having all these Googlers walking around the Fulton Market. But Google, while important, is not enough. We need to continually attract new companies to the city.” - Quintin Primo, Capri Investment Group

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“Survive until ’25?” At Chicago Forecast conference it’s about “Do more in ‘24” By Dan Rafter, Editor

t’s a common refrain among commercial real estate professionals today: “Survive until ’25,” meaning do what you can to get through 2024 and expect better times in 2025. But the speakers participating in the State of the Market panel at Illinois Real Estate Journal’s 22nd annual Chicago Forecast had a different outlook. Their mantra, spoken by panelist Steven Weinstock, senior vice president and regional manager with Marcus & Millichap? “Do more in ’24.”

increase this year, setting the stage for a brighter future. Joining Weinstock on the panel were Barry Missner, chief executive officer of The Missner Group; Nick Cannon, group senior vice president with Wintrust Bank; Ralph Zucker, chief executive officer of Inspired by Somerset Development; Scott Kurinsky, executive vice president of BEAR Construction; and Steve Schnur, chief operating officer of CRG. Marcia Owen, partner with law firm Honigman, served as the panel’s moderator.

And what that means is simple: Don’t treat 2024 as a year to endure. Instead, commercial real estate professionals should build the relationships, make the plans and start the projects that will pay off big come 2025 and beyond.

Here is some of what these industry leaders had to say about the state of the Chicago-area commercial real estate market, today and in the future.

That bit of optimism wasn’t unusual, either. All the panelists speaking during this session predicted that commercial real estate activity in Chicago and its suburbs would

“On the industrial side, we are seeing smaller developments happen. On the leasing end, the activity is good. A lot of smaller tenants are out there seeking space. We are

A resilient industrial market

still seeing rents increasing, too. The challenge has been on the sale side and when it comes to developing new projects. It is still a challenge to get projects financed. “There are opportunities in this market, though. People who take risks will be rewarded.” - Barry Missner, The Missner Group. The risks companies need to take “No one ever got rich by buying T-bills. Generational wealth is built through real estate. Chicago is an attractive market. We have the people, the processes and the resources. The opportunity for growth in Chicago should be attractive to investors. Every cycle puts us in a position to generate new wealth. It’s about taking the risks and taking advantage of the opportunities.” - Steven Weinstock, Marcus & Millichap

Reason for optimism in the lending market “I’m still an optimist when it comes to commercial financing. The situation is more nuanced than what you hear, that everything is bad. There are several asset types that are performing well and that are receiving financing today, self-storage, student housing, warehouse and distribution centers. It’s the old ‘meds, beds and sheds,’ healthcare, housing and industrial, that are performing well today. “When you talk about the challenges in receiving financing, we are looking more at a capital markets problem, not a real estate problem. Office might be the one exception. We can provide financing today, even for spec projects. What we are reserving that for, though, are clients with a long track record and capital stability. That’s who is getting financing for spec projects.” - Nick Cannon, Wintrust Bank

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Happy to be in industrial

the last year. That was a relief. We have one of the best labor pools in the world here, too, and the increases in the cost of labor are predictable. They are not a wildcard like what you see with materials costs.

“Demand has fallen off some, starting last year. But I am still happy to be in industrial. This market is resilient. Chicago is a bit overbuilt at the moment, but that will change throughout this year. New-construction starts in industrial were down at the end of last year, so some of that excess supply will be filled this year. A lot of users delayed activity in 2023, so I think that 2024 will be a busier year.” - Steve Schnur, CRG

“It’s important to remember that the price of construction is increasing in part because of what we are building. We are building some high-quality projects today. All of those amenities and features we talk about that are necessary today? They are not inexpensive. We are taking on a different type of product than we used to build.”

Boring vs. interesting is the new shift

- Scott Kurinsky, BEAR Construction

“There has been a societal shift, a change in the way we go to work. The need to go into the office every day of the week is no longer there. COVID accelerated this shift, which was already happening before 2020. That’s why it is becoming so important to create great places that will encourage people to want to come to work. It’s not about Class-A or Class-B buildings today. It’s about interesting vs. boring buildings.

Do more in ‘24

“We predict that as people are again getting out, they want to return to interesting places. The boring building is out. There is a downsizing happening in the office market. Companies want smaller square footage. But that isn’t the only factor they

Barry Missner, The Missner Group; Steve Schnur, CRG; Nick Cannon, Wintrust Bank; Ralph Zucker, Inspired by Somerset Development; Marcia Owen, Honigman; Steven Weinstock, Marcus & Millichap; and Scott Kurinski, BEAR Construction. are considering: The space they take also has to be interesting.”

Some relief from rising construction costs?

- Ralph Zucker, Inspired by Somerset Development

“In the last year, construction prices have normalized. There was less than a 1% overall increase in the price of materials during

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“I like ‘Do more in ‘24’ instead of ‘Survive until ’25.’ This is about investing in our city. If we don’t believe in Chicago, then who will? If you don’t believe in Chicago, move somewhere else. I think it’s ‘Do more in ’24 and be rewarded in ’25.” - Steven Weinstock “Every crisis creates an opportunity. There are tremendous opportunities in Chicago in 2024. I am optimistic about this year and very excited about 2025.” - Scott Kurinsky

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16 MULTIFAMILY (continued from page 1)

West Loop’s fastest-selling condominium building over the last year. Embry opened with 80% of its residences pre-sold, and as of mid-February, buyers had moved into approximately 50% of the building. LJC’s design of spacious column-free layouts and high-end features gives each condominium the feel of a luxury single-family home. Embry’s exterior architecture features large, framed window openings surrounded by dark bronze-colored aluminum panels adorned with Art Deco-inspired fluting, channels and beveling designed to change hues as the sun moves across the sky. And to execute Kara Mann’s interior design vision, we tapped our long-held relationships with local subcontractors who typically operate in the high-end single-family market. For instance, we hired Bovelli Custom Millwork to handcraft cabinetry, doors and stain-grade baseboards in the units and Cain Millwork for woodwork in the amenity and common areas. Also, we released specifications early to stone supplier and fabricator GI Stone to secure stone from Italy, Turkey, Brazil and Spain even before construction began. Ranging from 1,828 to 5,187 square feet in size and priced from $1.4 million to $7.5 million, the homes at Embry are offered in two-, three- and four-bedroom layouts, including four duplex units and two penthouses with 2,300-square-foot private terraces that were engineered to accommodate private swimming pools. The Elizabeth For The Elizabeth, a 28-story mixeduse tower at 225 N. Elizabeth St. in the West Loop submarket of Fulton Market, McHugh started working early and closely with developer Sterling Bay and designer Hartshorne Plunkard Architecture to build a mixed-use tower with features that complement the industrial character of the neighborhood while offering all the in-demand urban living amenities today’s renters want. The glassy building is accented with black metal panels, and will offer 350 modern residential units and approximately 10,000 square feet of ground floor retail. As having an abundance of premium onsite amenities ranks high on renter’s wish lists, we leaned into our experience in expert craftsmanship and attention to detail to ensure every square inch of amenity space was finished to perfection and on budget. Residents will enjoy lush rooftop spaces, a state-of-the art fitness center, outdoor pool, private dog run and dog spa. Indoors, dedicated coworking spaces with private breakout rooms will cater to the increasing demand for work-from-home arrangements.

The Elizabeth. Photo courtesy of McHugh Construction.

“We’re proud to bring the vision of Chicago’s top developers and architects to fruition and to help meet the demand for luxury residences in the West Loop.” The building features balconies on east and west-facing units, floor-to-ceiling windows, walk-in closets with custom shelving, in-unit laundry, and slightly textured,

waterfall-edged, white Quartz countertops and exposed concrete ceilings. Cassidy on Canal

Developed by Chicago-based The Habitat Company and Diversified Real Estate Capital, LLC, and designed by Solomon Cordwell Buenz, Cassidy on Canal is a 33-story, mixed-use 343-unit rental tower

F E B R UA RY 2 0 2 4 I L L I N O I S R E A L E S TAT E J O U R N A L with first-floor retail space that McHugh is building at 350 N. Canal St. in the West Loop-adjacent Fulton River District submarket.

Cassidy on Canal. Photo courtesy of McHugh Construction.

Located on site of the former Cassidy Tire building, the project borders both Metra and Union Pacific train lines in a densely populated area, which required McHugh to time material delivery and storage down to the second so as not to interrupt any traffic or train operations. In fact, even the project’s official ground-breaking ceremony couldn’t slow down construction. Because timing was of the essence, attendees at the event were treated to an active project site with McHugh crews drilling pilons into the ground behind the ceremonial tent. Currently pre-leasing, the 355-foot-tall tower offers studios as well as one- and two-bedroom units. Residents will be able to enjoy the fifth-floor amenity space, which includes a fitness center, game room, various club rooms, coworking center, spa with sauna, steam and whirlpool rooms, swimming pool with cabanas, a north and south sun deck, grilling areas, fire pits, cool weather heaters, and dining areas on each deck surrounded by richly landscaped grounds. Cassidy on Canal’s garage will offer 123 parking spaces, a bike room and 185 additional bike parking spaces on the ground floor.

Fun fact: As a testament to our successful construction process, McHugh has been one of Habitat’s preferred general contractors for more than 30 years.

“ Knowledge of Midwest industrial real estate is DarwinPW’s strength. We want to share that strength and knowledge with you.” For over 45 years, DarwinPW Realty/ CORFAC International has been a leader in industrial and commercial real estate. The company specializes in brokerage, property management, investment and development services primarily in the Midwest. DarwinPW Realty’s highly qualified professionals are problem solvers and utilize a breadth of tools and knowledge to serve our clients best.

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We’re proud to bring the vision of Chicago’s top developers and architects to fruition and to help meet the demand for luxury residences in the West Loop. As more people seek to live near the top-tier restaurants, retail stores and recently

George Cibula, SIOR Managing Broker

relocated corporations that make up this vibrant neighborhood, they’re looking for the exact buildings we love to build – ones with forward-looking designs, smart layouts with gracious living spaces and abundant amenities.

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6 strategies to revitalize your commercial landscaping By Tom Marsan

study published by the Journal of Environmental Horticulture found that well landscaped businesses have a higher perceived value, and consumers are willing to pay more for goods and services when the landscaping is aesthetically pleasing. Beyond this study, various research endeavors have consistently highlighted the positive impact of well-crafted landscaping across different sectors, ranging from retail and hospitality to restaurants and public spaces like parks. The common thread running through these findings is that effective landscaping not only attracts more visitors but also instills trust and enhances the overall visual allure. If a positive reputation and more visitors is important to you, consider acting on these 6 landscaping tips to improve your commercial curb appeal. Landscape maintenance A well-maintained landscape serves as a powerful ambassador for any business, leaving a lasting impression on visitors and clients. Imagine a lush, green lawn free of unsightly brown or dead spots, meticulously trimmed bushes, and a complete absence of litter. This visual appeal is not merely an aesthetic preference but a strategic move that communicates professionalism and attention to detail. A good landscape maintenance program encompasses essential practices such as fertilization, pruning, regular mowing, bed maintenance, edging, and seasonal cleanups. The benefits extend beyond aesthetics; a well-maintained landscape acts as a natural deterrent to weeds and ensures a seamless transition into the fall season, preventing clutter from accumulating amidst the falling leaves. In essence, the commitment to a consistently fresh and vibrant outdoor space not only elevates the overall appeal of your commercial property but also communicates a dedication to excellence. Focus on what will be seen Highlight those prominent areas that grab attention on your commercial property. These key locations, including entrances, signage, walkways, street-facing sides of buildings, and facility doorways, are pivotal in shaping first impressions. Ensuring these areas remain in great condition involves strategic landscaping. Trim trees and shrubs to maintain readable signage and visible entryways, creating an in-

Tom Marsan viting atmosphere. Elevate the visual allure by incorporating bountiful and beautiful blooms in containers, introducing vibrance to these high-traffic zones. Utilize a layered approach to draw attention. Begin with groundcovers at the forefront, progress to perennials, medium-sized shrubs, and finally, taller shrubs, ornamental grasses, and trees in the background. Enhance signage by placing low-growing, bold annuals in front, complemented by tall shrubs behind, contributing to an overall boost in your property’s curb appeal. In landscape beds, striking a balance between perennials and annuals ensures year-round interest and visual appeal. Don’t overlook the impact of annual mulch applications, not only for weed control but also for tidiness and added visual impact. Your business’s front door, a potent impression-maker, warrants special attention. Whether opting for a fresh coat of vibrant paint, decorative enhancements, or a rejuvenating touch, investing in your entryway enhances your property’s overall curb appeal, leaving a lasting mark on potential and returning customers alike. Benches / seating options

Use your landscaping to tell people what they should do and where they should go. Business owners aim to create a welcoming atmosphere for customers from the moment they approach the storefront. An effective way to achieve this is by integrating benches and seating options into outdoor areas. These areas offer employees, guests, and visitors the opportunity to enjoy nature and fresh air while staying in close proximity to your building. When considering outdoor seating areas and pathways, it’s important to opt for furniture materials that can endure varying weather conditions, such as wood, plastic, or painted metal. Shiny metals might become uncomfortably hot or cold depending on the season, so selecting resilient materials is key. Maintain sidewalks / parking lots A walkway with potholes or large cracks is not only an eye-sore, but can also be a liability issue. Among the most visible and frequently traversed areas on your commercial property, the sidewalks and parking lot demand particular attention. The condition of these spaces speaks volumes about your commitment to professionalism, with even a minor crack or

pothole potentially dissuading customers from engaging with your business. Avoid the pitfalls of preventable damage tarnishing your public image. Instead, prioritize the meticulous maintenance and prompt repair of sidewalks and parking lots to ensure your commercial property maintains its inviting appearance. Outdoor lighting Integrating new outdoor light fixtures not only introduces an added layer of sophistication but also fosters a heightened sense of safety, significantly elevating the nighttime curb appeal of your business. Modern lights contribute to a secure environment, assisting customers as they navigate in and out of their vehicles. The inclusion of supplementary pathway lighting further enhances the overall curb appeal, embellishing the approach to your building and creating a welcoming atmosphere for approaching customers. Strategically illuminating key architectural features of your building allows you to leave a lasting impression on potential customers and clients. Beyond aesthetics, outdoor lighting enhances the security of your property during after-hours. Don’t let your business fade into the darkness; instead, amplify the visual and experien-

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tial aspects of your space. Moreover, the addition of lighting serves as a deterrent to potential criminal activity, discouraging burglars who prefer to operate unnoticed in the dark. Illuminate your business’s presence and safeguard its surroundings through thoughtfully implemented outdoor lighting solutions. Design with people in mind & stay relevant A study in the “Journal of Urban Design” found that parks and urban green spaces designed with attention to aesthetics and landscaping features tend to be more popular among residents and visitors. Apart from establishing a pop of robust color, remember the four aspects of design; proportion, order, repetition, and unity. It takes intentionality and smart planning to be the best in the neighborhood. Install a creative bike rack, hide or decorate the trash bins, and always stay up to date on holiday décor. A Christmas tree still up at Easter shows lazy management and can create a very distasteful atmosphere for people. By implementing these strategies, businesses can create visually appealing spaces and foster trust, attract more visitors, and communicate a dedication to excellence.

Leaving a lasting impression on customers and clients with your landscaping is just one way to gain an advantage in a world where everyone is competing for the attention of the customer. Whether you hire a landscaping company to design and install,

or you plan to do it yourself, there’s no telling how valuable a beautiful exterior can be for your property.

Tom Marsan is a certified snow professional who has been in the landscaping

and snow removal industry for about two decades. He is an active member of ILCA and SIMA and is currently the general manager at Beverly Companies in Chicagoland.

THERE’S A SPARK OF EXCITEMENT IN This past year was one of the busiest and most exciting for economic development in Hoffman Estates in recent memory. For the first time in decades, a new multifamily development is under construction, with more Class A rental development proposals expected soon. To encourage targeted future development, the Village recently created a Tax Increment Financing district, the Village’s 5th TIF district, to incentivize mixed-use redevelopment along the I-90 corridor in an area that includes older industrial buildings. Phase 1 work is complete on the first 200,000 square foot building for the $450 million Microsoft Data Center in Hoffman Estates, with plans calling for a second similarly-sized building on the on 53-acre site. These buildings, and the significant infrastructure improvements for both sewer and electric on the site, reflect a longterm investment in the community. Bell Works Chicagoland continues to attract a variety of new

businesses. Located in a former AT&T Campus, Bell Works has a unique, malllike atmosphere, with office and co-working space, a conference center, fitness centers, restaurants, and event spaces.

S E T A T S E N A M HOF F

The Village also recently facilitated significant reinvestment its the retail sector, with Home Goods, Crumbl Cookies, and Bath & Body Works opening in 2022. New retail outlets for 2023 include two approved marijuana dispensaries – Sparked Dispensary and Exxotic Strains, two Popeye’s Chicken restaurants, and a new Dunkin’ Donuts. There is certainly a lot of energy right now in Hoffman Estates! Explore how your business can be part of this dynamic community.

ALL IN THE PAST 12 MONTHS: $750M INVESTMENT IN THE COMMUNITY 500+ JOBS ADDED MANY NEW RETAILERS AND RESTAURANTS OPENED, UNDER CONSTRUCTION OR APPROVED

NEW TIF DISTRICT TO INCENTIVIZE REDEVELOPMENT BELL WORKS CHICAGOLAND REINVENTION CONTINUES WITH NEW LEASES

FEEL THE ENERGY • HOFFMANESATES.ORG/ECDEV

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Chicago industry leaders gather together to discuss the state of suburban office By Ryan Moen, SIOR, Vice President, SIOR Chicago Chapter, Principal and Co-Founder at Versa Real Estate Services

n January 16, 2023, REJournals hosted its 22nd annual Chicago Forecast Conference at the Chicago Marriott Downtown Magnificent Mile. After providing remarks on behalf of the SIOR Chicago Chapter, I was pleased to join a panel of experts for the Suburban Office Market Update breakout session. All panelists agreed that while the Chicago suburban office market is experiencing a transformative landscape – influenced by remote work trends, corporate preferences, vacancy rates and absorption, and city versus suburbs dynamics — all also agreed that there are some promising opportunities on the horizon. Joining me during the session was Moderator Lisa Skolnick, partner, SVP and content chief of Purpose Brand; Julia Klairmont, EVP of Imperial Realty Company; Alissa Adler, SVP of Colliers; Chris Landis, VP and managing broker of Calamos Real Estate; and Steve Chrastka, EVP of NAI Hiffman. Navigating Vacancy Rates In analyzing vacancy rates in the North and Northwest markets, Klairmont discussed the cyclical nature of the broader picture. While the current rates are not at their peak, they are certainly not the lowest

Chrastka provided a comprehensive perspective on suburban vacancy rates, indicating an overall 25% vacancy when considering all classes. But when considering the single-story office space segment of the market, the vacancy rate drops to 15%. Class B properties show varying performance, with some markets outperforming others. For instance, in Schaumburg and the Northwest market, the vacancy rate is around 30%, rising to nearly 40% for buildings in the 100,000- to 250,000-squarefoot range.

Ryan Moen ever recorded. Despite this, Klairmont said there has recently been considerable improvement, noting that Imperial Realty, for one, is in a much stronger position than it has been in the past, with a 90% renewal rate across the firm’s properties. She explained that this achievement is significant when considering the various challenges associated with lease renewals, such as retirements, sales, closures, relocations, and downsizing. However, she cautioned that not every renewal comes easy, often requiring more flexibility than in the past.

Adler also weighed in on the challenges from a capital markets perspective, pointing out the negative investor sentiment looming over the office market as a primary hurdle. The unpredictability of when the market will rebound makes it challenging for both investors and lenders, Adler said. Promising Opportunities in Smaller Tenants The ample availability of big block space is a significant factor influencing the current statistics. Depending which market reports you read, you will find varying figures for total blocks of office space greater than 20,000 square feet that are up for grabs in any given submarket. Presently, the market is not experiencing historically normal levels of absorption, leading to higher vacancy

and availability rates. However, with these challenges, there is a silver lining when shifting attention to smaller buildings — particularly Class B buildings ranging from 50,000 to 75,000 square feet or less, catering to average tenants occupying 2,000 to 5,000 square feet. There is a noticeable leasing momentum in this size range, and in overall occupancy, these buildings tend to outperform their larger counterparts. It is also worth noting that the Class B market constitutes about 40% of the overall marketplace. While industry attention often gravitates towards Class A and larger blocks, there are promising opportunities by targeting smaller tenants—a segment that has exhibited significant activity, suggesting that exploring these opportunities could yield positive outcomes. The Business Park Debacle I’ve had numerous discussions regarding the future of the office campus with my clients and colleagues. Many of the single user campuses are functionally obsolete, characterized by older blocks of space lacking modern amenities or burdened by costly renovations. A notable exception is Bell Works in Hoffman Estates, which is an example of successful revitalization. However, the demand for large blocks of space, such as 200,000, 300,000, or 400,000 square

22nd Annual Chicago CRE

Summit

Suburban Office Market Panel

Julia Klairmont

Imperial Realty Company

Alissa Adler Colliers

Chris Landis

Calamos Real Estate

Lisa Skolnik

Purpose Brand

Ryan Moen, SIOR

Versa Real Estate Services

Steve Chrastka NAI Hiffman

F E B R UA RY 2 0 2 4 I L L I N O I S R E A L E S TAT E J O U R N A L feet, has diminished, and the extended lead time to find suitable tenants for this kind of space profile further complicates the situation. Many of these properties are being sold at a substantial discount based on their land value rather than the value of the office buildings. Developers are stepping in to repurpose these outdated structures, with examples like Allstate and Nokia undergoing adaptive reuse. The market is witnessing a shift, whether through demolition or transformation into alternative uses beyond offices such as data centers. This trend not only addresses the current excess inventory but also contributes to the revitalization of the suburban office market. It is also worth noting that new office buildings are not being constructed in the suburbs, so reducing existing inventories may positively impact the overall market dynamics over time. Adler agreed with my perspective and noted during the panel that when selling vacant or significantly vacant office buildings, clients often inquire about the feasibility of conversion to multifamily, industrial, or data center usage. Unfortunately, Adler said that many of these buildings face limitations, restricting their adaptability to alternative purposes. However, for those willing to take

“All panelists ...encouraged the audience to instead focus on raising cash, identifying opportunities, and positioning themselves as early movers to capitalize on capturing market share.” risks and acquire these properties at a low basis, holding them as strategic land investments can offer potential opportunities that may materialize in the future. City vs. Suburbs The city versus suburbs dialogue is nothing new, but it is certainly heightened in a time

SINCE 1925

with so much uncertainty. Adler emphasized that there is a rental rate competition between urban and suburban areas, noting that concessions play a comparable role. However, she said that when considering rent as a factor, companies are notably leaning towards suburban options.

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Chrastka brought attention to the huband-spoke model of downtown and suburban office locations and pointed out that current activity is not as robust as was initially anticipated during the COVID era. At a broader level, Class A suburban spaces are priced in the middle to low $30s per square foot, varying across different markets, and Class B spaces tend to hover around the high teens to low $20s. The complexity, according to Chrastka, comes from the challenge of categorizing buildings, especially when dealing with A+, A, A-, and B classes. The key distinguishing factor among these structures lies in the landlord’s profile, the type of capital they possess, and their access to capital for building improvements. Essentially, this aspect dictates rental rates. The session concluded with panelists highlighting the Federal Reserve’s unexpected shift towards considering a rate drop. Initially, there was speculation about a significant rate decrease, but as job reports emerged, the Fed seemed to reconsider. All panelists agreed that it appears that initial enthusiasm for substantial rate reductions may have been overly optimistic and encouraged the audience to instead focus on raising cash, identifying opportunities, and positioning themselves as early movers to capitalize on capturing market share.

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CBRE report: Multifamily developers enjoyed a boom year in 2023. But expect a slowdown in new deliveries this year By Dan Rafter, Editor

Image by Pexels from Pixabay

ow busy were multifamily developers last year? They added more than 416,000 new apartment units to the United States’ multifamily supply in 2023, including a record-setting number of new units in the fourth quarter. That’s the big takeaway from CBRE’s U.S. fourth-quarter multifamily market report, a report that highlights an apartment sector that is still booming despite the challenges brought by higher interest rates and persistent inflation. As the CBRE research shows, demand remains high for modern multifamily units. And that demand isn’t about to slow as higher mortgage interest rates push many potential homebuyers out of the single-family housing market. According to the latest numbers from CBRE, the multifamily market in the United States witnessed a significant surge in new construction deliveries throughout

2023. The high number of new units did bring about one negative stat for apartment owners: Multifamily rent growth did slow in 2023, largely because of all the new supply. In the fourth quarter of 2023, new apartment construction deliveries soared to a record high of 140,800 units, contributing to an impressive four-quarter total of 416,500 new units. Don’t, though, expect a similar surge in 2024. CBRE said that fewer construction starts in the last half of 2023 means that developers will bring fewer new multifamily buildings in 2025. The multifamily vacancy rate experienced a slight uptick in the fourth quarter, rising by 20 basis points quarter-over-quarter to 5.4% by the end of 2023. Despite this, net absorption in the fourth quarter of 2023 was strong, reaching 84,800 units, marking a performance more than four times the pre-pandemic fourth-quarter average.

“Record new construction was met with robust renter demand in the fourth quarter,” said Kelli Carhart, leader of Multifamily Capital Markets for CBRE. Carhart said that she anticipates an upturn in investment activity in the multifamily market, most likely starting in the second quarter. This uptick will be driven by potential rate cuts by the Federal Reserve, which are expected to improve capital market conditions, Carhart said. Additionally, an increase in loan maturities should create transaction opportunities for investors focusing on distressed assets. The average monthly net effective rent saw a modest year-over-year growth of 0.4% in the fourth quarter of 2023. This growth rate stands significantly lower than the pre-pandemic five-year average of 2.7% and is notably below the peak of 15.2% recorded in first quarter of 2022.

The Midwest and Northeast were the sole regions to experience positive year-overyear rent growth across all markets. The Midwest led with 2.7% growth, slightly down from 2.9% in the third quarter of 2023, followed by the Northeast with 2.4%, also down from 2.9%. Among the 69 markets tracked by CBRE, 56 reported positive net absorption in the fourth quarter of last year, with New York (8,800 units), Austin (6,700 units) and Atlanta (6,000 units) leading in absorption. The top-five markets for new apartment deliveries in 2023 -- New York, Dallas, Austin, Houston, and Atlanta -- made up 27% of the national total. A total of 68 out of the 69 markets monitored by CBRE had vacancy rates at or above 3%, with Madison, Wisconsin, boasting the lowest vacancy rate at just 2.8%.

Office market still evolving in response to work From home By Thomas G. Koelzer, Partner, Tenant Advisors/CORFAC International

hile the work from home trend is firmly embedded in the market, the effects are still evolving. It may take a few more years for these effects to be fully felt. For example, many tenants are downsizing, and some are giving up brick-and-mortar offices altogether. That said, many tenants have long-term leases (signed before the pandemic) that haven’t yet expired. Those leases will expire over the next three to five years. When they do, it’s certain there will be more space put back on the market. This will compound problems for landlords. Many landlords who have mortgages coming due are faced with a difficult dilemma. In many cases, the value of the property no longer supports the principal amount of the mortgage. If a landlord wants an extension of the loan, lenders typically require them to inject more equity to pay

When lenders foreclose, most don’t want to carry the properties on their books and will often sell the assets at a steep discount. Investors who buy at such a low basis are then in a position to make needed improvements and still offer aggressive, below-market rental rates. This phenomenon will eventually force the rest of the market to drop their rates to the new market levels.

Thomas Koelzer down the principal balance. If the landlord isn’t willing or able to do that, they may have to hand the keys to the lender in a deed in lieu of foreclosure. While many lenders have foreclosed, there are many more loans coming due in the next two to three years, so the resetting of office values may have a long way to go.

Some properties were struggling before the pandemic, and now the land on which these buildings sit is worth more than the buildings themselves. These properties are being repurposed when possible, or simply demolished to make way for another use. What does all of this mean for tenants? The most common response we’ve seen has been a hybrid model, where employees are required to be in the office a certain number of days a week while the rest they can spend working remote. With this

arrangement, tenants find they can reduce their footprint and still function well. When tenants downsize, many are electing to “trade up” to a nicer building, the socalled “flight to quality.” Often a tenant can do this with no increase in occupancy cost, thanks to the smaller footprint. Many tenants feel that being in a nicer property is a way to attract employees back to the office. In conclusion, the market is now decidedly in favor of the tenant. Landlords, while trying to keep their asking rates (or “face rates”) at pre-pandemic levels, are sweetening their deals with above standard rent abatement, higher tenant improvement allowances, and various non-financial concessions (signage, options to terminate, expand, contract, etc.) In the next one to two years, we believe that face rates will begin to soften and drop down as well. It’s a good time to be a tenant!

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2024? NAI Hiffman expert predicts a strong new normal in Chicago’s industrial sector By Dan Rafter, Editor

The I-55 industrial corridor remains a top performer in the Chicago market. (Photo courtesy of NAI Hiffman.)

eshoring. The rising demand for cold storage. And Chicago’s status as the hub of the country’s warehousing and distribution network. These are all reasons why Nick Schlanger, director of research services for Oakbrook Terrace, Illinois-based NAI Hiffman, is predicting an even stronger year for Chicago’s industrial sector in 2024. We recently spoke with Schlanger about what he expects to see when it comes to the demand for industrial space and sales in the Chicago market this year. Here is some of what he had to say. Now that the Federal Reserve has brought some stability to the interest-rate environment, do you think we’ll see more sales activity in the Chicago industrial market throughout 2024? Nick Schlanger: I definitely think we are going to see a much stronger industrial sales year in 2024 than we did in 2023. There is a lot of dry powder on the sidelines. Large institutional investors are eager to deploy capital. I anticipate several rate cuts from the Fed throughout 2024. The second half of

the year is when some of these economic changes will start to manifest and we will start to see some of the activity really pick up. Between all the dry powder that is waiting on the sidelines, the rate cuts we expect to see and the amount of interest in the industrial capital markets, I expect to see more industrial sales in 2024. Despite the challenges that the sector has gone through as interest rates rose last year, is industrial still the preferred commercial asset class for investors? Schlanger: Industrial has very clearly supplanted office and multifamily as the premier asset for the large institutional investors. Something that I have been looking at is the rise in industrial valuations. The valuations for industrial buildings are at an all-time high. I think that there might be some discrepancy between buyers and sellers in terms of where sellers want to set their pricing. That held us back a bit in 2023. We did see significant growth in the Chicago market in 2023. But the record years of 2021 and 2022 that we saw following COVID? Those are gone. What we are heading to now is a strong but new normal for the Chicago market.

It’s important to keep things in perspective on where Chicago is in the national picture. Nationally, we are never going to keep up the pace that we saw during the last three years. But our market has clearly established itself as one of the, if not the, preeminent industrial market in the country. In the fourth quarter of last year Chicago had the third-highest amount of net absorption of any market in the country. It did that while maintaining the lowest vacancy rate of any of the top-10 largest industrial markets. While industrial market fundamentals might have softened, the numbers show that Chicago continues to perform. I anticipate it will stay that way. Leasing activity remained strong in the Chicago market throughout 2023, even with economic uncertainty. What are some of the reasons for the strong demand we continue to see for industrial space in the Chicago market? Schlanger: It starts with our transportation infrastructure. We have great access to rail. O’Hare is one of the largest airports in the country. And we have a great location in the center of the country. Chicago really is the center of transportation and logistics in America.

In 2023 we saw 44 million square feet of new industrial leases signed. In 2021 and 2022, we saw more of an average of 75 million square feet of industrial leases each year. But there are some trends that should bode well for Chicago. In 2024, we will see even more of a rise in cold storage. There is a notable increase in the demand for cold-storage facilities in the Chicago market. That is a product of the rapid growth of online grocery stores and meat distributors and their need for efficient distribution channels. COVID accelerated this trend with online shopping. Chicago is well-positioned to perform well in the cold-storage market. Then there is the reshoring movement bringing production activities back to the United States. This has been influencing demand in Chicago over the last few years. We’ll see even more of an uptick in reshoring in 2024. Companies are looking to reduce their dependence on long international supply chains, particularly now that we saw the disruption that resulted during COVID. Now we have the war in Ukraine, the conflict with Israel and Hamas and attacks on

F E B R UA RY 2 0 2 4 I L L I N O I S R E A L E S TAT E J O U R N A L key shipping routes. These ongoing events are forcing business leaders to rethink their macroeconomic strategies. I feel that we are going to see that play out and bring additional reshoring to Chicago. Reshoring creates more demand for industrial space, particularly for manufacturing, which has lagged the distribution and logistics sector.

25 40 million square feet of new industrial product come to the market. I think these new spaces will lease very well this year as companies look for smaller facilities that will help them get their products to their customers faster. We have these great interconnected highways. About 80% of the inventory that delivered in 2023 was on a speculative basis. Even though the market has slowed, developers are confident that they will get this space leased. Record new deliveries and new availability should drive leasing this year.

Do you expect leasing activity to remain strong this year in Chicago’s industrial market? Schlanger: I do. One factor to keep an eye on is a negative trend in 2023 that might turn positive in 2024? Big-box industrial leasing.

Nick Schlanger (Photo courtesy of NAI Hiffman.)

I consider big-box industrial to be anything 200,000 square feet, Class-A and built after 2000. At the onset of the pandemic, big-box industrial was red hot thanks to the rise of ecommerce. We saw crazy demand for these large warehouse and shipping centers. The volume of bigbox leases has since moderated significantly. Last year, leasing activity in this part of the market was down 40% from 2022 and 2023.

around major population centers. With the complexity of today’s shipping, we are seeing a shift to a more complex network of local distribution centers. There is a growing need for last-mile, same-day delivery. Instead of looking for a 500,000-square-foot building, more companies are going with smaller warehouses or distribution centers to get their products to their customers.

Nationally, we are seeing a shift from these large singular hubs that are located

Last year was a record year in the Chicago industrial market. We saw almost

There won’t be as much industrial space delivered in the Chicago market this year, right? Schlanger: Construction starts slowed in the second half of 2023. While we still have 16 million square feet in the pipeline, that is a far cry from where we were a year ago. The cost of capital is making it harder to go forward with these spec projects. If you have a build-to-suit with a tenant committed, any developer can figure out a way to make that happen. But with a slight cooling in market fundamentals in 2023, developers were hesitant to break ground on a new project without committed tenants.

There isn’t a massive amount of new inventory breaking ground for major tenants to lease over the next two years. As that inventory stabilizes and we see the pipeline slow, competition will ramp up. Tenants might get more aggressive when it comes to finding new space. There might be a higher sense of urgency for tenants who want new, modern space. That will drive leasing. Are there any Chicago submarkets that you think will perform especially well in 2024? Schlanger: It should be the usual suspects. The I-80 and I-55 corridors have stood out for the last couple of years in leasing activity and occupancy gains. The O’Hare submarket has long been one of the premier industrial markets in the country. O’Hare did not lead the Chicago area last year, but I think we’ll see it back on top in 2024. The I-80 Joliet market stands out for me. There was a lot of new construction in that submarket that has leased well. In 2023 alone, we saw Target, GE and Unilever all leasing very large new-construction spaces in that submarket.

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It’s official: The office-to-apartment conversion boom has hit Chicago … and the rest of the Midwest By Dan Rafter, Editor

t’s a growing trend as the office market continues to struggle across the country: Developers are turning outdated office space into apartment units. But how strong is this trend in Chicago? Very, according to new research from RentCafe. In its latest adaptive reuse report released at the end of January, RentCafe said that Chicago ranks fourth in the country in the number of office-to-apartment conversions now underway. The Chicago market trails only Washington, D.C., New York City and Dallas in the number of conversions. According to RentCafe, Chicago is set to bring 2,822 new apartment units to the market by converting old office spaces into multifamily. Office-to-apartment projects account for 55% of all conversions under-

“Demand for multifamily housing is on the rise and has been for years. There simply aren’t enough apartment units available to meet the number of renters searching for multifamily space.” way in the Chicago market. Conversions from office to retail stores make up 10.3% of Chicago-area conversion projects, while community centers account for 9.36%.

Many of the office-to-apartment conversion projects in Chicago are significant ones, too. A conversion from office to multifamily at 135 S. LaSalle St. will bring 430 new apartment units to the city. That

ranks as the largest office-to-apartment conversion underway. Other major office-to-apartment conversions include Bell Works Chicagoland,

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which will bring 375 new multifamily units to the Chicago market, and 30 N. LaSalle St., which will add 349 units. This isn’t surprising to anyone who’s been following the multifamily and office sectors. Demand for multifamily housing is on the rise and has been for years. There simply aren’t enough apartment units available to meet the number of renters searching for multifamily space. At the same time, the demand for office space among companies has dipped thanks largely to the large number of employees who are still working at least part of the time from home. Add to that the demand that many companies now have for higher-quality office space, and the country is left with many older office buildings that are no longer in demand in today’s market. Converting these spaces into apartment units makes sense. The challenge, of course, is that conversions can be expensive, sometimes too expensive for them to make financial sense. And many office buildings don’t work for conversions because of their location and structural issues.

ington, D.C., conversions now underway are expected to bring 5,820 new apartment units, while that number stands at 5,215 in New York City and 3,163 in Dallas.

Chicago isn’t alone in seeing a rise in office-to-apartment conversions. In Wash-

In Cleveland, conversions underway are expected to bring 2,012 new apartment

Image by 652234 from Pixabay.

units, while in Kansas City, Missouri, they are expected to add 1,510 new multifamily residences to the market. That number stands at 1,334 in Minneapolis, 1,070 in Detroit, 1,006 in Columbus and 911 in Milwaukee.

RentCafe reported that from 2021 to 2024, the number of apartments scheduled for conversion from old office spaces increased from 12,100 to 55,300 nationwide.

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I L L I N O I S R E A L E S TAT E J O U R N A L F E B R UA RY 2 0 2 4

NEWS BRIEFS: The latest deals in Illinois Leopardo completes 29,000-square-foot buildout for Chicago Loop HQ of Mintel

Interra Managing Partner Patrick Kennelly and Director Paul Waterloo represented the private seller. Kennelly and Waterloo also represented the confidential buyer. The property, located at 722-726 N. Austin Blvd., was 85% occupied at the time of sale.

Photo courtesy of McHugh Construction Co.

The four-story property comprises 15 one-bedroom and four two-bedroom apartments. Originally built in 1940, it has been partially updated. A recent fire impacted six units, which the new owner plans to fully gut and upgrade. The building also includes four garage parking spaces. Photo courtesy of Leopardo.

Marcus & Millichap closes $2.75 million sale of Waukegan retail property Photo courtesy of Marcus & Millichap.

Leopardo recently completed a 29,000-square-foot build-out for the Chicago Loop headquarters of global market intelligence agency Mintel Americas. The project relocated the firm from its current headquarters at 333 W. Wacker, which was completed by Leopardo in 2013. The project consisted of an interior build-out of an existing tenant office suite on the 26th floor of the 203 N. LaSalle building. Work included specialty ceilings and lighting, extensive audiovisual capabilities, new washrooms, custom millwork throughout, operable partitions, green walls, and high-end wall finishes, as well as upgrades to existing HVAC, electrical, plumbing, sprinkler, and fire alarm systems. Like its previous space, Mintel’s new headquarters will serve as a highly productive and flexible workplace for employees and clients. Leopardo worked closely with Mintel Americas, RLE Project Management, Kent Consulting Engineers (KCE), Transwestern, and architecture firm Griskelis Young Harrell to deliver the project. Interra Realty closes sale of 19-unit apartment building in Oak Park

Marcus & Millichap brokered the sale of a 7,100-squarefoot retail property featuring a dispensary and Tropical Smoothie Café in Waukegan, Illinois. The asset sold for $2.75 million. Senior managing directors Austin Weisenbeck and Sean Sharko, investment specialists in Marcus & Millichap’s Chicago Oak Brook office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. This 10-year dispensary and seven-year Tropical Smoothie Center is located at 992 S. Waukegan Road. It is an outlot to a high-end casino and hotel that is currently under construction and scheduled to open in 2025. Both tenants feature 10% rental increases every five years and have attractive lease terms. This center is situated at a stoplight intersection and shares ingress/egress points with the adjacent strip, creating a symbiotic shopping center. McHugh Construction completes $30 million transformation of Chicago’s Ramova Theatre McHugh Construction has completed the $30 million adaptive reuse transformation of Chicago’s historic Ramova Theatre from a long-shuttered single-screen cinema to an 1,800-person concert hall in Chicago’s Bridgeport neighborhood.

Photo courtesy of Interra Realty.

Interra Realty brokered the sale of a 19-unit multifamily building in Oak Park, Illinois, a western suburb of Chicago. The property sold for $1.4 million, equating to $73,684 per unit.

As part of the 36,000-square-foot project at 3510-3520 S. Halsted St., McHugh also built out space for Other Half Brewing, an independent craft brewery and taproom; Ramova Grill, an 18-seat diner; and Ramova Loft, a second-floor 200-person event venue.

Ramova Theatre originally opened at the tail end of the Roaring Twenties and quickly became the jewel of the Bridgeport neighborhood with its neon red marquee and Spanish-inspired architecture. However, decades later ticket sales slowed, leading to Ramova’s closure in 1985. After sitting dormant for nearly 40 years, Ramova’s historical and artistic significance was officially recognized with its addition to the National Register of Historic Places in 2021; the same year McHugh embarked on the building’s restoration. For more than two years, McHugh Construction worked closely with project architect O’Riley Office, Baum Revision and historic preservation specialists to meticulously restore the ornate architectural details in Ramova’s original Spanish courtyard-style lobby and auditorium. Revived are the pale-yellow stucco-style walls, rednotched archways and columns, decorative bronze wrought-iron faux windows and balconies, a clay-tile roof line and a ceiling painted midnight blue – all evoking the beautiful and inviting hacienda ambiance, just like the day Ramova opened in 1929. Gone are the velvety movie theater seats. In their place is a 22,000-square-foot barrier-free multi-level concrete floor in front of an expansive stage. While rows of spotlights hang from the ceiling, casting multi-colored glows throughout the concert hall, the venue’s new speaker system amplifies the onstage vocals and instruments, connecting artists with the audience. Multiple bars were installed in the back of the auditorium and a second-floor balcony was revived to offer clear views of the stage. With an eye to attracting big-name performers, Ramova’s new greenroom is worthy of any A-lister, with four separate suites – each with full baths – and an office for tour managers to conduct business, noted Nevius. To protect artists from paparazzi and unauthorized personnel, McHugh created direct paths for touring vehicles to arrive, unload equipment and privately access the greenroom and performance area. That required McHugh and its subcontractor teams to draw on decades of historic restoration experience to conceal state-of-the-art HVAC, electrical, sound and

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fire protection systems within the early 20th century fabric of the theater building. McHugh also tapped its in-house structural engineering team, McHugh Engineering Group, for expertise on structural modifications and additions to historic and complex structures.

27-story, 624,724-square-foot office building in Chicago’s Central Loop submarket. The new tenant, Mintel, signed the 30,000-square-foot lease in December 2022 and has now moved into its new space. The building owner, Sumitomo Corporation of Americas, was represented by Transwestern Senior Vice President Kathleen Bertrand, Executive Vice President Eric Myers and Senior Associate John Nelson. The building is leased and managed by Transwestern.

Staying true to its mission as a neighborhood gathering place, Ramova Loft, the 200-person venue on the second floor above the brewery and taproom, offers space for smaller performances by up-and-coming artists as well as events for local schools and community groups. The parking lot across the street from the building can also be used for community events such as farmers markets, and the empty lot adjacent to the south side of Ramova has been reimagined as a new outdoor beer garden.

Mintel, a global market intelligence agency, leaves behind a 26,000-square-foot office at 333 W. Wacker Drive in the West Loop upon its move to 203 N. LaSalle. The Chicago office is the international organization’s only address in North America.

The renovated Ramova Theatre grand opened on Dec. 31, 2023, with a 1920s-themed live performance of music and dancing to ring in the new year. The glitzy marquee once again lit up Halsted and 35th streets, and the auditorium’s atmosphere transplanted revelers to a grand Andalusian patio. The adaptive reuse project was funded by investments from the local populace, tax-increment financing subsidies from the city of Chicago, a state grant, and a Historic Places loan. McHugh drew on its years of experience in Chicago public-private projects, such as 43 Green and 508 Pershing at Oakwood Shores in Bronzeville as well as Ogden Commons in Douglas Park, to ensure the renovation’s success for all parties.

203 N. LaSalle. (Photo courtesy of Transwestern)

Transwestern reps building ownership on new lease at 203 N. LaSalle in Chicago Transwestern Real Estate Services has represented building ownership on a new lease at 203 N. LaSalle, a

203 N. LaSalle is a LEED Platinum tower with access to considerable options for transportation. It offers a 1,200-space parking garage as well as a direct connection to the CTA Clark/Lake Station and the Pedway system. The building features newly constructed, world-class amenities, including a state-of-the-art conference center, complimentary fitness center, and multiple tenant lounges with unique touches like a working fireplace. The building also possesses a 12-story interior atrium that allows for an abundance of natural light. There is currently a 92,000-square-foot, big-block space available in the building. Michelle Wiedman of Wiedman Real Estate represented Mintel in the transaction.

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Wrigleyville Lofts (Photo courtesy of Draper & Kramer.)

I L L I N O I S R E A L E S TAT E J O U R N A L F E B R UA RY 2 0 2 4 • Crest at Las Colinas Station (871 Lake Carolyn Parkway), a 374-unit luxury rental community in Irving, Texas, a northwest suburb of Dallas, featuring a mix of studio, one- and two-bedroom residences • Homestead Apartments (443 Sherwood Rd.) in La Grange Park, Ill., a suburb of Chicago, offering 366 oneand two-bedroom residences • HUBBARD221 (221 W. Hubbard St.) in Chicago’s River North neighborhood, a 195-unit luxury apartment tower with studio, one-, two- and three-bedroom units

11 Draper & Kramer properties named 2023 SatisFacts award winners Draper and Kramer, Incorporated announced that 11 rental communities from its national management portfolio were named 2023 Resident Satisfaction award winners by SatisFacts.

The five Draper and Kramer communities receiving an ApartmentRatings Top-Rated award for resident satisfaction include: • 1350-1360 Lake Shore Drive in Chicago’s Gold Coast, a 740-unit property with studio, one- and two-bedroom rentals • Burnham Pointe (730 S. Clark St.), a 298-unit rental community in Chicago’s Printers Row neighborhood with a mix of one- and two-bedroom apartments • Eleven Thirty (1130 South Michigan Ave.), a 656-unit high rise in Chicago’s South Loop neighborhood featuring studio, one- and two-bedroom rentals • North 680 (680 E. Algonquin Rd.), a 180-unit luxury community in Schaumburg, Ill., a suburb of Chicago, featuring one- and two-bedroom plans and four tri-level, two-bedroom rental townhomes • Wrigleyville Lofts (949 W. Dakin St.), a seven-story, 120-unit mixed-use building near historic Wrigley Field in Chicago, offering one- and two-bedroom rentals The 11 Draper and Kramer properties receiving Resident Satisfaction awards for achieving high scores on SatisFacts surveys include the five listed above as well as: • Bell Tower Flats (470 Adriatic Parkway), a 211-unit luxury mid-rise offering one-, two- and three-bedroom rentals set within Adriatica Village, a mixed-use lakeside community in McKinney, Texas • Grand Plaza (530 N. State St.), a 482-unit luxury property in Chicago’s River North neighborhood offering studio, convertible, and one-, two- and three-bedroom apartments

Seefried Properties closes sale of 144,414-square-foot industrial facility in Elgin Photo courtesy of Seefried Properties.

• Moda at The Hill (2100 Boardman St.) in St. Louis’ historic The Hill neighborhood, which offers 225 apartments including studio, one- and two-bedroom units. The Feil Organization making big changes to North Riverside Park Mall

In addition, five of those same Draper and Kramer-managed rental communities won an ApartmentRatings Top-Rated award for resident satisfaction as measured by ApartmentRatings.com reviews, a recognition earned by only about 5% of all properties on the ApartmentRatings site. Draper and Kramer was also listed eighth in its category for the Top 100 management companies. This rating measures management firms using renter ratings, review count, manager review engagements and manager review time.

North Riverside Park has added new tenants recently, including Miniso, Pandora, Kids Empire, Kong Dog and the Kids Foot Locker House of Play concept. North Riverside is the first mall location in the nation for Foot Locker’s newly expanded youth concept store.

Seefried Properties has closed the sale of a 144,414-square-foot industrial facility in Elgin, Illinois, to a custom plastic molded parts manufacturer. The transaction details remain confidential. Jason West and Doug Pilcher with Cushman and Wakefield represented Seefried in the sale, while Noel Liston of Core Industrial Realty represented the buyer. Rendering courtesy of The Feil Organization.

National real estate investment firm The Feil Organization is bringing major improvements to one of the busier indoor malls in suburban Chicago. The Feil Organization earlier this month announced an $8 million capital-improvement plan for North Riverside Park Mall, a 1.4-million-square-foot shopping center in the Chicago suburb of North Riverside. Designed by JP2 Architects and fabricated by AECom Hunt Construction Group, the renovations include modernized flooring, updated ceilings and a revamped main entrance. Interior renovations began in January. The entire renovation project is scheduled to be completed by October of this year. “For years, North Riverside Park Mall has been a landmark shopping destination for the Chicago metropolitan area, and we’re thrilled to breathe new life into it with these renovations,” said Brian Feil, principal at the Feil Organization, in a written statement. “We are committed to ensuring consumers have an unparalleled retail experience and can’t wait to unveil an entirely new, modern shopping center for all to enjoy.” “As we approach our 50th anniversary, this renovation represents a commitment to our community and our retailers, marking the beginning of a new era that better represents who we serve,” said Glenn Lindholm, general manager of North Riverside Park Mall, also in a written statement. “Providing new and enhanced opportunities to our tenants is of the utmost importance, and we look forward to witnessing their long-term success upon completion of the renovations.” The Feil Organization acquired North Riverside Pak Mall in 2004. The indoor mall has a roster of 130 national and boutique stores, services and eateries. It also attracts more than 12 million visitors each year. It is located 10 miles from downtown Chicago and five miles from the busy suburb of Oakbrook.

Located at 1705 Madeline Lane in Elgin, the building features a 32-foot clear height, 19 dock doors with two drive-in doors, 205 car parking stalls and an ESFR fire sprinkler system. The property is part of a two-building 465,360-squarefoot Class-A campus that commenced construction in July of 2023. Seefried is actively seeking users to lease or purchase the adjacent property at 1700 Madeline Lane. Following shell completion in March 2024, the building will include 320,946 square feet of space with divisibility down to 150,000 square feet. Additional features include a 36foot clear height, 42 dock doors with room for six future dock doors, two drive-in doors, 259 car parking stalls and an ESFR fire sprinkler system. Both buildings are strategically located one mile south of a full four-way interchange at I90 and Randall Road, providing proximity to a population of 3.8 million within a 30-mile radius. McShane building 124 apartments in Crystal Lake

Photo courtesy McShane.

McShane Construction Company was selected by Redwood Living, Inc. to build Redwood Crystal Lake, a new neighborhood of 124 single-story apartments in Crystal Lake, Illinois.

F E B R UA RY 2 0 2 4 I L L I N O I S R E A L E S TAT E J O U R N A L The community will feature 25 single-story townhome buildings with four to six units each. The ranch-style wood frame homes will feature vinyl siding and stone veneer exteriors.

Photo courtesy of Trammell Crow Company.)

Designed by Mann Parsons Gray Architects, each apartment will offer a two-bedroom, two-bathroom open-concept floorplan, a private attached two-car garage, stainless-steel appliances, in-unit laundry hookups, luxury vinyl tile flooring, and a private patio. Completion of Redwood Crystal Lake is scheduled for December 2024. Trammell Crow, Beacon Capital celebrate topping out at Hyde Park Labs in Chicago Trammell Crow Company and Beacon Capital Partners announced that construction has topped out at Hyde Park Labs in Chicago. The South Side’s first commercial, purpose-built advanced R&D lab, Hyde Park Labs is in the diverse and vibrant neighborhood of Hyde Park, located at 5207 Harper Court. The building is expected to welcome its first tenants in early 2025, after the delivery of the base building in Q4 2024. The University of Chicago has already pre-leased approximately 55,000 square feet at the building, which will house a half-floor incubator space to support early-stage science research.

Rising 13 stories above grade and spanning more than 300,000 square feet, Hyde Park Labs will feature nine full floors of Class A lab and office space, as well as activated ground-level retail and lobby; parking will be available on one level of below-grade and three floors of above-grade space. The facility will include 40,000 square feet of tenant amenities, including a fifth-floor terrace dubbed “The Lawn” that will feature grills, firepits, views of Lake Michigan and connection to the interior tenant lounge. The building will also offer private terraces on every floor, secure on-site bike storage, an indoor bar and lounge, an executive boardroom, as well as a STEM engagement center for students on the ground floor.

31 Hyde Park Labs is the second phase of development at Harper Court, which currently includes a hotel, an office building that houses UChicago administrative offices, and retail space. The TCC/Beacon development plan and design was crafted to create an innovative R&D and science hub with direct community benefits. As the City of Chicago aims to strengthen its position as a technology and advanced sciences hub, the project will contribute lab space and infrastructure needed to support that ecosystem, including nine floors of lab-enabled space and heavy infrastructure for lab or technology uses. The project will feature a range of spaces to meet the needs of startups, interim-stage companies, and larger corporations, including shared wet or dry lab and office space. The building will also include new levels of parking, ground-floor retail and community space, and outdoor green space, as well as a full-time community engagement specialist to lead programming. Dan Lyne and Brandon Green of CBRE are the exclusive marketing and leasing agents for the project. Additional partners include Elkus Manfredi Architects, Interactive Design Architects, Power Construction, Ujamaa, and Trinal, who is acting as the development’s diversity and inclusion consulting company.

I L L I N O I S R E A L E S TAT E J O U R N A L F E B R UA RY 2 0 2 4

Built Technologies survey: Commercial lenders confident that 2024 will be a better year By Dan Rafter, Editor

“A majority of participating lenders also express concerns about the extended duration of construction projects over the next 18 months.”

new survey suggests that commercial lenders expect a busier year in 2024, thanks largely to a more stable interest-rate environment. The survey conducted by Nashville-based Built Technologies, a provider of construction and real estate finance technology, shows that lenders in the United States are largely optimistic about the financial viability of real estate investment in 2024. The company’s first State of Lending Survey gathered responses from 117 national, regional and global lending institutions. According to Dan Gendler, director of analytics at Built, lenders expressed confidence that Federal Reserve Board rate cuts will boost lending activity in the commercial real estate market. They expressed concerns, though, over government regulations and project completion timelines. Lenders responding to the survey also said that they expect alternative lending sources to fill the gaps left by traditional institutions unable to bear certain risks, either due to regulatory constraints or balance sheet considerations. More optimistic times Key findings from the survey underscore the prevailing optimism among U.S. lenders regarding the economic climate. While a significant 66% of respondents believe that the United States is not currently experiencing or nearing a recession, 75% did express apprehension about the macroeconomic outlook moving forward.

A total of 59% of respondents said that they anticipated that government regulations will exert a notable influence on their financing decisions in the coming year. An overwhelming majority (80%) of participating lenders also express concerns about the extended duration of construction projects over the next 18 months. As traditional lending institutions grapple with regulatory constraints and balance sheet limitations, alternative sources of lending are increasingly filling the void. A total of 41% of respondents foresee becoming referral sources for construction loans to non-bank lenders, including major players like Apollo and Blackstone, as liquidity tightens and balance sheets constrict. Only a minority (11%) report experiencing no liquidity or balance sheet tightening within their lending institutions. Looking ahead to the year’s end, 74% of respondents anticipate a decrease in the 30-year mortgage rate by Jan. 1, 2025. Among these, approximately one-third project rate reductions ranging from 0.51 to 1 percentage points, while 24% expect declines between 1.01 and 1.5 percentage points. Respondents also ranked various technologies based on their perceived impact on strategic investments. Topping the list were products aimed at enhancing collaboration among project stakeholders, followed by software solutions to improve workflow efficiency and revenue outcomes. Marketplace solutions facilitating more efficient procurement of goods and services, as well as data products for informed decision-making, also garnered notable attention.

FEBRUARY MARKETPLACE

34 AS SE T / P ROP E RT Y M A NAG E M E N T F I R M S

OUTLOOK MANAGEMENT GROUP, LLC AMO

S74 W16853 Janesville Road Muskego, WI 53150 P: 414.369.3511 | F: 414.435.0251 Website: outlookmgmt.com Key Contact: Ray Balfanz, President/Partner, ray@outlookmgmt.com Services Provided: Full service property and asset management services, financial analysis and reporting; budget preparation and expense reconciliations; lease administration; construction management; preventative maintenance and consulting services. Company Profile: Outlook Management Group, LLC AMO provides comprehensive property and asset management services for all asset classes in multiple states and markets. Notable Properties Managed: Washington Corners, Naperville, IL; Ironwood Office Park, Glendale, WI; Wood River Condominiums, West Bend, WI; Seven 10 West Luxury Apartments, Chicago, IL; MDJD Aesthetic MOB, Rockford, IL, Ascension Health MOB Milwaukee, WI; Henry Ford Health Systems Pharmacy Services Bldg. in Rochester Hills, MI; Henry Ford Medical Center in West Bloomfield, MI; Baptist Medical Center South, Montgomery, AL; and Lee Memorial Health Systems Building in Fort Myers, FL.

VICTOR CONSTRUCTION

2000 Center Dr., Suite East C219 Hoffman Estates, IL 60192 P: 847.392.6900 Website: victorconstruction.com Key Contact: Zak Schuttler, President, ZakS@victorconstruction.com Services Provided: Victor Construction Co., Inc. manages projects from ground-up site developments to interior buildouts, specializing in retail, industrial, and commercial markets. Company Profile: Established in 1954, Victor Construction Co., Inc. is a thirdgeneration general contractor that specializes in commercial, industrial, and retail construction. Victor Construction is known as one of the most efficient and dependable general contractors in the Chicago metropolitan area and has earned the reputation due to meticulous project management, cost-effectiveness, budget awareness, and prime first-rate workmanship. Commitment to the clients’ goals is what keeps satisfied customers returning to Victor Construction for all of their construction needs— We Build for Your Success! Notable/Recent Projects: Owens + Minor Distribution – 600K SqFt distribution facility that involved a full LED lighting upgrade, new HVLS fans, 200K SqFt section that required new cooling for medical distribution, an office renovation of 20K SqFt, and a new exterior employee pavilion.

E C ONOM IC DE V E L OP M E N T C OR P OR AT I ON S ( E D C S )

C ON ST RU C T ION C OM PA N I E S / G E N E R A L C ON T R AC TOR S

MERIDIAN DESIGN BUILD

9550 W. Higgins Road, Suite 400 Rosemont, IL 60018 P: 847.374.9200 | F: 847.374.9222 Website: meridiandb.com Key Contacts: Paul Chuma, President; Howard Green, Executive Vice President Services Provided: Meridian Design Build provides construction and design/ build construction services on a national basis with a primary focus on industrial, office, medical office, retail and food and beverage work. Company Profile: With a team of in-house professional project managers, Meridian has extensive experience coordinating the design and construction of new buildings, tenant improvements, and additions/ renovations from 15,000 square feet to 1,000,000+ square feet. Meridian Design Build has been a Member of the U.S. Green Building Council since 2007. Notable/Recent Projects: Clarius Park Joliet Building #2, Joliet, IL - 906,517 sf speculative industrial facility for Clarius Partners. Commerce Park Chicago Building B, Chicago, IL - 602,545 sf speculative multi-tenant industrial facility for NorthPoint Development. Halsted Delivery Station, Chicago, IL 112.000 sf package delivery station on a 17-acre redevelopment site for Prologis

FOR ADVERTISING OPPORTUNITIES IN THIS SECTION, PLEASE CONTACT SUSAN MICKEY AT SMICKEY@REJOURNALS.COM OR 773.575.9030

ECONOMIC DEVELOPMENT CORPORATION OF MICHIGAN CITY

Two Cadence Park Plaza Michigan City, IN 46360 P: 219.873.1211 Website: www.edcmc.com Key Contacts: Clarence Hulse, Executive Director, chulse@edcmc.com Karaline Cartagena Edwards, Economic Development Manager, kcedwards@edcmc.com Services/Demographic Info: Up-to-date inventory of commercial buildings, site selection and orientation tours Incentives: Tax-Increment Financing, Façade Improvement Grants, Property Tax Abatements, Enterprise Zones, Job Training Programs Recent CRE Activity: Double Track Northwest Indiana: $1.6 Billion development reducing train travel to Chicago to 60 minutes; The Franklin at 11th St. Station: $100 Million Development with Residential & Retail Space; “You are Beautiful”/ SoLa: $311 Million Mixed-Use Multi-Family Development with 235 boutique hotel rooms & 174 Luxury Condos; Burn ‘Em Brewing: $3 Million Expansion project with 30 new jobs.

M U LT I FA M I LY L E N DI N G

MARQUETTE BANK

1628 W. Irving Park Road, Unit 1D Chicago, IL 60613 P: 708-873-8639 Website: emarquettebank.com Key Contacts: Bill Hinsberger, Executive Vice President, bhinsberger@emarquettebank.com; Patrick Tuohy, Senior Vice President, ptuohy@emarquettebank.com Services Provided: Multifamily/apartment building lending for all Chicagoland. Fast, local decision making. Dedicated local servicing staff. Simple, no-hassle paperwork. Quick close. Flexible terms. All clients enjoy ZRent – an automated, hassle-free, nocost way to collect monthly payments from tenants. Company Profile: Marquette Bank has 20 branches, 2 loan offices and $2 billion in assets. Independently owned/operated since 1945. Offering clients full-service, banking, financing, insurance, trust and wealth management services.

2024 Illinois

WOMEN in commercial real estate summit

March 6, 2024

5th Annual

Ivy Room (12 EAST OHIO STREET CHICAGO, IL 60611) | 1:30pm - 6:00pm Program Amanda Ortiz CBRE

Jessica Caffrey

SPEAKERS & SPONSORS

Amy Hall

Candace Small

CATON Commercial

Karen Kulczycki

Mortenson

Kristen Fuentes

Cook County Land Bank Authority

SVN Chicago Commercial

Pepper Construction Company

Mary Person

Melanie Jefferies

Neely Sadowski

Collete English Dixon

Sophie Bidek

Clayco

Milhouse Development

CMarshall Bennett Institute of Real Hartshorne Plunkard Architecture Estate, Roosevelt University

The Missner Group

Stephanie Cotey

W.E. O’Neil Construction

TOPICS & AGENDA 1:30pm Registration & Networking 1:55pm 2:00pm 2:30pm 3:15pm 4:00pm 4:45pm

Carrie Szarzynski

Elizabeth O’Brien

Hiffman National

Levenfeld Pearlstein, LLC

Lori Healey

Mary Ludgin

Obama Presidential Center

Randy Fifield

Heitman

Regina Stilp

Randy Fifield Modern Living

Farpoint Development

Susan Tjarksen

Melissa Bogusch

Cushman & Wakefield

Whitney Architects

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Opening Remarks Fireside Chat: Lori Healey, Obama Presidential Center Women Paving the Way in Commercial Construction State of the Market Update: Industrial, Office, Retail, Multifamily Finance & Investments Notable Women in Commercial Real Estate CLINK! A Toast to Women Cocktail Hour www.rejournals.com/upcomingevent/

Registration inquiries, contact:

sponsorship opportunities contact: Mark Menzies menzies@rejournals.com 312-933-8559

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