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By Emily Johnson
Affordable housing developers continue to innovate and pioneer new strategies and approaches to address the significant lack of housing options in Illinois and across the country.
According to the National Low Income Housing Coalition (NLIHC), there is a national shortage of 7.1 million affordable and available rental homes, and this issue is only exacerbated by the current threat of potential cuts to federal housing programs. A recent NLIHC report found Illinois has only 34 affordable and avail -
able homes for every 100 extremely low-income renter households.
Many affordable housing developers today are delivering new communities that feature exceptional architecture and design, sustainable features, sought-after amenities, built-in social services and access to critical needs such as healthcare and childcare.
Here is a look at innovative solutions and approaches that four affordable housing developers are implementing in 2025:
The Intersection of Affordable Housing, Healthcare and Childcare
Chicago-based Habitat, a leading real estate developer and property manager committed to creating high-quality housing opportunities at all income levels, sees benefits from integrating essential services such as healthcare and childcare into its developments. Placing such providers in a multiphase affordable community’s commercial space eases financial and logistical burdens
HOUSING (continued on page 8)
AFFORDABLE HOUSING’S NEXT FRONTIER
Affordable housing developers continue to innovate and pioneer new strategies and approaches to address the significant lack of housing options in Illinois and across the country.
CONVENIENCE STORES VS. FAST FOOD? THE CONVENIENCE STORES ARE WINNING Remember when a convenience store meal meant a bag of chips, stick of beef jerky and a bottle of pop? You can still get all that. But you can also nab prepared meals, hot sandwiches, salads and wraps. And these increased offerings are hurting fast-food chains.
NO SLOWDOWN IN THE FLIGHT TO QUALITY: CLASS-A OFFICE BUILDINGS GENERATING MORE LEASING ACTIVITY IN SUBURBAN CHICAGO The flight to quality continues in the Chicago suburban office market, according to the latest research from JLL.
TURF TALK: COMMERCIAL LANDSCAPING & SNOW REMOVAL STRATEGIES
Common commercial landscaping challenges and how to overcome them.
CRE FUTURE LEADERS: BRADFORD ALLEN’S JESSE MIRANDA Since he was a boy admiring Chicago’s skyline, Jesse Miranda has been fascinated by the city’s-built environment.
POWERING THE DIGITAL REAL ESTATE BOOM: INSIDE CHICAGO’S DATA CENTER CONSTRUCTION REVOLUTION
Few sectors are experiencing more explosive growth than data centers in commercial real estate today.
WOMEN’S HISTORY MONTH: NOTABLE WOMEN IN CRE March was Women’s History Month, a time to honor the achievements, resilience and contributions of women throughout history.
INSIGHTS FROM THE CHICAGO AREA’S TOP FEMALE LEADERS DRAW BIG CROWD TO CHICAGOLAND WOMEN IN REAL ESTATE SUMMIT A big crowd featuring even bigger names packed the Ivy Room in Chicago April 16 for Illinois Real Estate Journal’s sixth annual Chicagoland Women in Real Estate Summit.
WOMEN IN CONSTRUCTION WEEK 2025: A LOOK AT THREE LEADERS FROM CHICAGO’S LEOPARDO Women in Construction Week began March 2 of this year.
A CENTURY OF BIG BUILDS: CHICAGO’S W.E. O’NEIL CELEBRATES 100 YEARS IN BUSINESS Building a successful small business is no easy task. And one that lasts a century? That’s especially impressive. And it’s what Chicago’s W.E. O’Neil Construction has done.
LEASING ACTIVITY SURGES IN CHICAGO INDUSTRIAL MARKET DURING FIRST QUARTER Tenant demand for industrial space in the Chicago market jumped significantly in the first quarter of the year.
WILL THE GREAT UNCERTAINTY ACCELERATE OR DERAIL THE GREAT RESET? In June 2024, John Barkidjija authored an article titled “Reset Ready: Navigating the Great Reset in commercial real estate.”
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JONATHAN STEIN Inland Real Estate Group
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By Dan Rafter
Remember when a convenience store meal meant a bag of chips, stick of beef jerky and a bottle of pop? You can still get all that. But you can also nab prepared meals, hot sandwiches, salads and wraps. And these increased offerings are hitting fast-food chains.
Coldwell Banker Commercial in its latest Trend Report focused on how convenience stores have shifted from a place for consumers to stop quickly for snacks and fuel to popular food destinations. This shift has made these stores an increasingly attractive asset class for commercial real estate investors, according to the Coldwell Banker Commercial report.
These stores are especially popular for investors in the net-lease market.
“The convenience store industry is evolving to meet changing consumer needs,” said Dan Spiegel, senior vice president and managing director of Coldwell Banker Commercial, in a statement. “With smaller households, more urban locations and evolving food preferences, the sector is undergoing significant transformation. Given their frequent visits, convenience stores must stay closely connected to shifting consumer lifestyles to remain competitive in the retail market.”
Convenience store product mix drives growth
The report highlights how convenience stores have evolved from fuel and snack retailers into quick-service food and grocery alternatives.
This shift is most evident in the type of products that convenience stores offer. According to Coldwell Banker Commercial’s report, the sales of prepared food at convenience stores have risen 12.2% year-over-year.
In bad news for the country’s fast-food restaurants, the report also found that 56% of consumers now consider convenience stores to be viable substitutes for fast-food chains.
This growth, fueled by consumers’ demand for convenient, affordable and healthier food options, has added to the sector’s stability, even though profit margins remain narrow at around 5% to 7%. Coldwell Banker Commercial reported that the high turnover of products and steady consumer visits overcome the tight margins, making convenience stores a reliable source of income for investors.
The shift in consumer behavior–especially as inflation raises grocery prices–has positioned convenience stores as an attractive alternative for those seeking fresh food at affordable prices, according to the trends report.
“In bad news for the country’s fast-food restaurants, the report also found that 56% of consumers now consider convenience stores to be viable substitutes for fast-food chains.”
As convenience stores continue to add to their food offerings, their real estate needs are expanding.
In its report, Coldwell Banker Commercial points to chains like QuikTrip, Casey’s General Stores, RaceTrac and Wawa. These chains are investing in larger store formats to accommodate their expanding food preparation areas.
Many operators are also opening new locations in urban centers and exploring non-traditional spaces such as college campuses and downtown
locations. These provide new opportunities for real estate investors.
Investment 0pportunities for convenience stores
Even though 60% of convenience stores are independently owned, the sector is seeing significant consolidation. Major players like 7-Eleven plan to open 500 new stores in the United States and Canada by 2027, while regional chains such as Wawa, Sheetz and Buc-ee’s are expanding into new markets.
This consolidation creates opportunities for investors to acquire properties with stronger tenant profiles and more predictable cash flows.
The sector’s strong position, driven by convenient locations, long-term leases (up to 20 years) and low vacancy rates, makes this asset class a stable investment option in the netlease market. These factors, combined with steady demand, make the sector appealing to net-lease investors seeking reliable, long-term returns.
By Dan Rafter
The flight to quality continues in the Chicago suburban office market, according to the latest research from JLL.
JLL reported that the Chicago suburban office market saw negative 114,714 square feet of net absorption during the first quarter of the year. But not all classes performed equally.
JLL reported that Class-A suburban office properties saw 50,961 square feet of positive net absorption during the first quarter. This positive absorption, though, was more than offset by the performance of Class-B and Class-C suburban office properties.
According to JLL, Class-B Chicago suburban office properties saw negative 153,397 square feet of net absorption during the first quarter. Class-C suburban Chicago office spaces notched negative 12,278 square feet of absorption during the same period.
This isn’t surprising. Across the country, companies are seeking higher-quality space
“The goal is to encourage workers to return to the office, at least on a part-time basis, through the lure of these higher-quality work spaces.”
in modern Class-A office buildings with top amenities. The goal is to encourage workers to return to the office, at least on a part-time basis, through the lure of these higher-quality work spaces.
Companies are frequently renting less office space. Because they need fewer square feet, they are able to lease space in costlier higher-quality buildings. This is leaving older, often outdated Class-B and Class-C office properties behind.
The office market, then, remains in a state of flux, in Chicago and across the country. JLL reported that the total office vacancy rate for the Chicago suburbs stood at 32.2% in the first quarter. That is up 0.76% on a quarter-over-quarter basis.
The direct vacancy rate for suburban Class-A office properties stood at 30.2%, while it stood at 32.6% for Class-B suburban buildings. This number was a lower 27.3% for Class-C suburban office buildings in the first quarter.
The largest lease signed in the Chicago suburban office market in the first quarter came from Fortune Brands, which announced a 360,000-square-foot headquarters relocation to the former Horizon Therapeutics campus in Deerfield, Illinois.
Relocations accounted for more than half of the first quarter leasing volume in the Chicago suburban office market, with deals signed this quarter by Comcast, Ryerson and Matson Logistics.
for lower-income families while creating a multiuse destination that helps catalyze investment in the surrounding neighborhood.
Access to on-site healthcare services helps individuals, families and seniors receive regular and preventative care, leading to healthier outcomes and reduced costs. Recognizing the role of housing as a vital component of health, Habitat’s Ogden Commons, a $200 million multiphase community in Chicago’s North Lawndale neighborhood developed in partnership with Sinai Chicago and the city of Chicago, features primarily affordable mixed-income housing near Sinai’s North Lawndale Medical Campus as well as commercial space occupied by Sinai Chicago’s One Lawndale Community Care and Surgery Center. The communities Sinai Chicago serves face some of the city’s most severe systemic barriers and greatest health disparities. Habitat’s partnership with Sinai Chicago enhances holistic care by providing safe, affordable housing where residents can walk to medical appointments.
Meanwhile, Habitat’s upcoming redevelopment of LeClaire Courts with Cabrera Capital Partners will bring as many as 700 residential units, 90% of which will be affordable, to Chicago’s Southwest Side as well as new commercial space, including a much-needed daycare. Integrating childcare facilities into the development will be a game-changer for the future residents of LeClaire Courts, providing working par-
ents with a convenient option steps from their front door.
Inspired Solutions For Urban Planning, Social Impact and Sustainability
A full-service design and architecture firm based in Chicago, Lamar Johnson Collaborative (LJC) has designed numerous affordable housing developments with sustainable features. Designing for energy efficiency and access to transportation offers financial and environmental benefits, as residents who can easily commute via bus, train or bike may opt out of owning a car and all the associated expenses. Similarly, sustainability features that promote energy efficiency also result in lower energy bills and a lower carbon footprint.
Recently, LJC designed two affordable housing projects with such features :
Morgan Park Commons, a proposed 286-unit mixed-use development on Chicago’s Far South Side will set aside 160 homes as affordable housing. The project will also include 18,750 square feet of retail space, 289 parking spaces, a 3-acre park with a field house and connection to a bike trail, and community center with a new bus rapid transit station offering direct access to downtown Chicago.
The firm also designed 750 N. Avers Ave., a 60-unit housing development nearing the start of construction in Chicago’s Humboldt Park neighborhood. When completed, 750 N. Avers will be the largest building in Chicago to integrate Passive House standards, which use about 90% less energy than older buildings and 75% less than new ones built to modern standards, according to the Passive House Institute. Designed by LJC to achieve Enterprise Green Communities Certification Plus, the all-electric building will have ultra-thick walls, high-performance operable windows and an energy recovery ventilator system, creating an airtight, highly insulated environment that maximizes user comfort by providing pre-conditioned air tempered through rooftop units.
Creating Supportive Communities with a Long-Term Focus
With intergenerational poverty continuing to burden households across the U.S.,
Baker Barrios Architects has adopted a more holistic approach to the design of affordable housing communities, with the goal of empowering residents to build wealth and eventually relocate to unsubsidized alternatives.
In the initial planning phase of an affordable housing development or redevelopment, Baker Barrios works closely with residents and community stakeholders to identify the greatest needs of community. Those are assessed against four pillars the firm seeks to incorporate into such projects, including: 1) health and wellness programs, 2) economic vitality programs; 3) cradle-to-career education services, and 4) emergency services to stabilize a resident in crisis with rapid rehousing services and case management.
These programs and services can take many forms, such as a centralized community hub or, in a larger master plan, different offices woven throughout the community. Resident feedback also informs how much space and resources are dedicated to the different support pillars, with some communities in greater need of healthcare versus childcare, for example.
By providing a community-centered system of support services rather than simply a safe place to call home, the public, private and nonprofit sectors can work together to create new models for affordable and mixed-income housing that help end the cycle of intergenerational poverty.
Our expert advice to property occupiers, owners and investors leads the industry into the future. We invest in relationships to create enduring value.
By Tom Marsan
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.
Recently, a commercial property manager in the heart of Chicagoland faced a steep lesson in the hazards of landscaping maintenance. When a severe spring rainstorm triggered flash flooding in a newly landscaped parking lot at a prominent shopping center in suburban Chicago, several tenants reported significant water damage and hazardous conditions. These conditions led to an injury and a lawsuit.
In the Chicagoland area, where weather extremes and urban complexities combine to challenge property upkeep, commercial landscaping is more than just an aesthetic element. It can be a linchpin in managing liability, driving tenant satisfaction, and enhancing property value.
One of the most frequent issues seen in commercial landscapes is poor drainage. When proper grading and water management design are neglected, natural elements such as heavy spring rain can cause pooling and flash floods. The flood at the shopping center was not an isolated incident; drainage problems can lead to erosion, plant stress, and unsafe walking surfaces that dramatically increase liability exposure.
Strategies to Overcome:
• Perform a Site Drainage Analysis: Regularly assess the property after major weather events to ensure the landscape design can manage water flow effectively. Consider employing professionals to review drainage plans and recommend adjustments where necessary.
• Design with Natural Contours in Mind: Select materials for hardscape areas that promote water dispersal. Permeable pavements and strategically placed swales can redirect water away from key pedestrian pathways.
• Integrate Rain Gardens and Bioswales: These elements absorb excess water, filter pollutants, and add an attractive, functional aesthetic while reducing water accumulation.
Many property managers wait until visible problems arise—a strategy that transforms manageable issues into major costs. A reactive approach to maintenance, rather than a scheduled, preventive plan, can lead to rapid
deterioration of landscaping elements, which undermines aesthetic appeal and safety.
Strategies to Overcome:
• Establish a Detailed Maintenance Schedule: Develop a routine checklist that covers seasonal cleanups, pruning, fertilization, and irrigation system inspections. Document maintenance activities meticulously for both internal review and potential legal defense.
• Train In-House Teams and Vet Vendors: Ensure that maintenance personnel or contracted vendors follow best practices and are educated on the importance of timely interventions. Communication channels should be clear, with contingency plans outlined in vendor contracts.
• Use Preventative Assessments: Regular evaluations help identify issues such as weed overgrowth or plant health declines before they cause significant damage or safety hazards.
Improper irrigation can either starve plants of necessary moisture or saturate soils to the point of causing root rot and increased runoff. Both
overwatering and underwatering disrupt plant health and can compromise the safe condition of paved areas, contributing to slippery surfaces.
Strategies to Overcome:
• Automate the Irrigation System: Install smart irrigation controllers that adjust watering based on real-time weather data. These systems prevent overwatering during sudden rain events and ensure plants receive optimal moisture levels.
• Conduct Regular Inspections: Monitor sprinkler heads, valves, and system efficiency. Address leaks and adjust sprinkler ranges to ensure uniform coverage without oversaturation.
• Adopt Water-Efficient Landscaping Practices: Select drought-resistant, native plants that require less water and are better suited to local conditions. This not only conserves water but also reduces maintenance costs and minimizes the risk of water-induced landscape failures.
Seasonal Adjustments and Appropriate Plant Selection
Using a one-size-fits-all landscape plan often backfires in areas where climates vary dramatically from season to season. Plant species unsuited to local extremes can result in poor plant performance, and insufficient seasonal adjustments may leave spaces looking untidy or unsafe.
Strategies to Overcome:
• Choose Native and Climate-Resilient Species: Native plants are naturally adapted to the local climate and soil conditions, making them a cost-effective option that requires less maintenance.
• Implement a Seasonal Landscape Plan: Adjust maintenance practices throughout the year to address unique challenges such as spring storms, summer heat, and early autumn frosts. For instance, schedule pruning in late summer to avoid damaging young growth in the fall.
• Update Landscape Design Periodically: Engage landscape architects to refresh designs every few years, ensuring the layout keeps pace with evolving aesthetics, sustainability practices, and safety standards.
Vendor Management and Contractual Clarity
Property managers often face challenges with vendors who promise low bids but deliver subpar performance, leaving the property vulnerable to damage and legal liability. This pitfall can result in unresolved maintenance issues, poor quality work, and contractual disputes that drive up costs.
Strategies to Overcome:
• Set Clear Contractual Terms: Develop comprehensive contracts with landscaping and maintenance vendors that include service-level agreements, defined response times, and penalties for missed deadlines.
• Vet and Choose Reputable Vendors: Research vendors thoroughly, review past case studies, ask for references, and ensure that they have a proven track record in managing commercial properties in the Chicagoland area.
• Regularly Monitor and Audit Vendor
Performance: Conduct routine performance reviews and site inspections to verify that contracted work meets the necessary quality standards. Open communication with vendors helps ensure any emerging issues are addressed promptly.
Inadequate attention to safety standards and legal requirements can lead to slip-and-fall accidents or other injuries, which not only harm tenants or visitors but also expose
“At Darwin PW, clients rely on our deep experience in the Commercial and Industrial real estate industry to accurately value their holdings, and much more.”
For over 45 years, Darwin Realty 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. Darwin’s highly qualified professionals are problem solvers and utilize a breadth of tools and knowledge to serve our clients best.
property managers to lawsuits and insurance claims. Liability issues often arise when maintenance practices are neglected or when vendors fail to meet contractual safety obligations.
Ed Wabick, SIOR
Principal
Strategies to Overcome:
• Maintain Detailed Documentation: Keep meticulous records of all maintenance activities, inspections, and repairs. In the event of an in-
cident, these records serve as critical evidence that proper care was exercised.
• Review and Update Safety Protocols: Regularly update safety measures and ensure compliance with local regulations regarding drainage, walkway conditions, and landscaping maintenance.
• Conduct Regular Risk Assessments: Proactively identify and remedy potential hazards, such as uneven surfaces, overgrown vegetation, or improperly maintained hardscapes.
• Train Staff on Safety and Emergency Procedures: Ensure both in-house teams and external vendors are educated about safety protocols and are trained to respond swiftly to adverse conditions.
Leveraging Technology for Superior Landscape Management
Reliance on outdated manual processes and sporadic communication can result in lapses in maintenance that are difficult to track and rectify promptly. In today’s digital era, inefficient management systems impede proactive upkeep and cost control.
Strategies to Overcome:
• Adopt Landscape Management Software: Utilize platforms that offer scheduling, work
order tracking, and real-time reporting. Technology can automate maintenance reminders and streamline vendor communications to ensure timely responses.
• Integrate Weather Alert Systems: Implement systems that link local weather data with your maintenance schedule, triggering proactive actions like pre-storm inspections or emergency water management strategies.
• Use Digital Documentation Tools: Encourage the use of mobile apps that allow on-site teams to upload photographs and notes immediately after maintenance tasks. Digital records provide transparency and a reliable audit trail for addressing any future disputes.
The challenges of managing commercial landscapes in Chicagoland require property managers to be both proactive and adaptive.
From designing effective drainage systems to implementing rigorous preventive maintenance schedules, efficient irrigation practices, and strategic vendor management, every aspect of the landscape must be engineered for safety, beauty, and efficiency. With proper planning and modern technology, property managers can reduce liability risks, control operating costs, and significantly enhance the appeal and value of their properties.
Since he was a boy admiring Chicago’s skyline, Jesse Miranda has been fascinated by the city’s-built environment.
Now Miranda is a senior associate and key industrial broker for Bradford Allen, a full-service commercial real estate firm based in Chicago with offices across the U.S., where among other things, he tours potential industrial megasites across the country and helps companies find their next location.
Miranda’s expertise in site selection, infrastructure development and incentive negotiation positions him as a trusted advisor for national companies in high-growth sectors, including battery and electric vehicle manufacturing, as well as data centers.
How did you get your start in the industry?
“I’ve been fascinated with real estate since I was a little kid living in Chicago’s Pilsen neighborhood.”
I’ve been fascinated with real estate since I was a little kid living in Chicago’s Pilsen neighborhood. There were a lot of industrial buildings in that area. I looked at buildings going up during drives with my parents and thought, “They’re super cool.”
After I became a licensed real estate broker in 2017, I quickly realized residential real estate was not the right fit for my career goals, and commercial real estate might be a better choice. Many insightful discussions with es-
tablished commercial real estate professionals helped me pursue my career in this industry.
I had the opportunity to work at Hansen Realty on Chicago’s North Side, where I focused on investments, redevelopments and multifamily assets. During my time there, I spoke with Ronan Remandaban at Bradford Allen, and I thought that industrial real estate was exactly where I wanted to be. I believe industrial real estate is the backbone of the economy—it drives job creation, supply chain efficiency, and business growth across industries.
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 be surrounded by hardworking people my entire life, but my biggest inspiration has always been my parents. They
immigrated to the U.S. in the 1980s and worked tirelessly to instill in me and my siblings the values of resilience, adaptability and discipline—lessons that continue to shape me today. I still turn to them for guidance, and my wife has also been an incredible source of strength and encouragement.
Professionally, mentorship has been essential to my growth, and I’ve made it a point to seek out people I can learn from at every stage. I’m especially grateful for Ronan Remandaban, executive managing director at Bradford Allen. From day one, Ronan has taken an active role in my development. His insight and support have accelerated my learning curve by years. More than that, he’s treated me like a true partner—something I deeply appreciate.
Walk me through a typical day. What types of deals are you working on these days?
I’m sure you hear it all the time, but no two days are the same. This morning, for example, I was on a call at 10 a.m. about a megasite opportunity that spans nearly 1,000 acres. Later, I toured the south suburban market with a manufacturing client looking for 20,000 square feet of space.
There are days I could be two hours away from my office, having lunch with a farmer, discussing their land and the opportunities that come with that. Then there are days I spend maybe
“Professionally, mentorship has been essential to my growth, and I’ve made it a point to seek out people I can learn from at every stage. I’m
especially grateful for Ronan Remandaban,
executive managing director at Bradford Allen.”
10-plus hours in the office working on deals, paperwork and business.
What I enjoy most is the fast pace, the critical thinking, the dealmaking and the relationships we make.
What do you hope to work on that you haven’t already?
We’re currently working on a megasite I mentioned earlier and hoping to bring it to market soon. The broader goal is to have multiple sites across different states for our clients.
How do you like to spend your free time?
My free time used to be for me, but now it’s for my 18-month-old son. When I do have free time I mainly just exercise and stay active.
During the summer that means biking, hiking and anything outdoors. During the winter it’s the gym and basketball.
Where do you bike?
These days, I mostly bike at Waterfall Glen out in Darien, Ill., but the (Chicago) lakefront is always pretty fun.
By Elbert Walters III, Executive Director, Powering Chicago
Few sectors are experiencing more explosive growth than data centers in commercial real estate today. With Chicago emerging as a top-five data center market nationally—experiencing a 17% year-over-year capacity increase in 2024—the infrastructure behind these digital fortresses deserves closer examination.
Behind every successful data center development lies a complex web of electrical systems that determines whether a facility will thrive or fail in our increasingly digital economy.
The critical infrastructure powering modern business
The physical systems that support our essential applications often remain unnoticed, yet they are crucial to our daily operations. Data centers form the core of this infrastructure, ensuring that everything from communications to financial transactions operate smoothly. They provide a dedicated space for storing, processing and sharing critical information that modern businesses rely on.
In essence, data centers secure an organization’s most crucial data. These facilities are designed to support a wide range of services—from facilitating cloud operations to powering devices that connect our world. They ensure that digital processes remain uninterrupted through advanced systems that manage vast information flows.
A key aspect of data center design is redundancy. These facilities integrate multiple backup systems to
maintain continuous operations during unexpected outages or transitions between power sources. Utility lines, generators, and battery arrays work together to provide a constant power supply. This layered approach means that if one component fails, another immediately takes over, virtually eliminating downtime in our always-on environment.
Precision in planning and execution: The role of qualified electrical contractors
Building a data center requires meticulous planning and flawless execution. It begins with comprehensive virtual design work that models every system component before on-site construction begins, ensuring that each element—from power distribution to cooling systems—is optimized for efficiency and resilience.
Qualified electrical contractors play a vital role in this process. These experienced professionals bring the technical expertise and industry certifications needed to ensure that every phase of construction meets the highest standards of quality, reliability, and safety. Their collaboration with design teams help keep projects on schedule and within budget while integrating advanced systems that minimize downtime.
Case Study: T-5 Data Center’s expansion in Chicago’s prime market
The T-5 Data Center in Elk Grove Village exemplifies the sophisticated electrical work central to these developments. Currently serving multiple enterprise clients across 174,000 square feet with 17 megawatts of capacity, the facility is undergoing a strategic expansion to reach 30 megawatts—a 76% increase in power capacity that will significantly boost its commercial value.
Gibson Electric, a leading Chicago-area electrical contractor, has been integral to this project’s success.
Their team oversaw:
• Installation of N+1 redundant power systems ensuring 99.999% uptime reliability
• Coordination of eight 3-megawatt diesel generators with synchronized startup sequences
• Integration of uninterruptible power supply (UPS) systems with millisecond response times
• Implementation of advanced power distribution units (PDUs) with remote monitoring capabilities
• Design and installation of sophisticated grounding systems to protect sensitive IT equipment
This complex electrical infrastructure represents approximately 35% of the total construction budget—underscoring how critical proper electrical planning and execution are to data center investments.
Additionally, the project has benefited from Chicago’s highly trained, unionized workforce. While national data shows that data centers staffed by certified electrical professionals experience 27% fewer operational disruptions, Chicago’s specialized teams have delivered even more impressive results. Local projects have consistently demonstrated 40% faster deployment timelines when utilizing uniontrained electrical professionals—a key consideration for developers in this competitive market.
Real estate implications: The investment value of quality construction
Understanding the value proposition of quality electrical infrastructure is essential for commercial real estate investors and developers. Data centers with properly engineered electrical systems command premium leasing rates—typically 15-20% higher than facilities with basic configurations. This premium directly translates to stronger ROI and higher property valuations.
Furthermore, the expandability engineered into modern data center electrical systems allows for phased development that can follow market demand. This flexibility enables property developers to maximize their investment potential while minimizing upfront capital expenditures.
Building a future-ready infrastructure
Constructing robust data centers involves meticulous planning, quality construction, and skilled labor to ensure that facilities meet current operational needs while accommodating future technological advancements. This process relies on coordinated design, engineering, and electrical construction efforts to provide reliable and resilient IT infrastructure.
As Chicago’s data center market continues its projected 22% growth through 2026, investments in quality construction practices, experienced workforces, and effective project management contribute to a dependable foundation for these digital real estate assets. This approach is critical for municipalities, facility managers, business leaders, and property developers who rely on uninterrupted digital operations.
To learn more about these practices and the evolving landscape of IT infrastructure, watch episode 9 of Powering Chicago’s YouTube series, “The Power of Better.”
Elbert Walters III is executive director of Powering Chicago, a Chicago-based electrical industry labor-managementpartnership.
March was Women’s History Month, a time to honor the achievements, resilience and contributions of women throughout history. In recognition of this, REjournals spotlighted six female leaders making an impact in the commercial real estate industry. These trailblazers symbolize the continued efforts of redefining a field that has long been predominantly male-dominated.
Despite the relatively few cranes dotting the Chicago skyline in 2024, GI Stone President Sandya Dandamudi had a banner year, sourcing/ fabricating stone for the Obama Presidential Center; launching the firm’s luxury residential practice, catering to homeowners; completing its first multifamily project in Nashville, where Dandamudi is planning to expand GI Stone operations; and co-founding SAIRE (South Asians in Real Estate), a networking organization for real estate professionals of South Asian descent. In addition, Dandamudi continues her work as vice chair of The DuSable Museum of Black History and Educational Center’s board – one of many philanthropic pursuits.
“When my mother founded GI Stone 30 years ago this year, there was very little diversity on job sites,” Dandamudi said. “Honoring her legacy by providing more opportunities for young women and minorities to work in commercial real estate has changed the face of the industry and given GI Stone a leg up on less diverse firms. It’s been immensely gratifying and good for business.”
Kelly Strusinski, Director of Industrial Design, Baker Barrios Architects
(Photo courtesy of Baker Barrios Architects.)
Kelly Strusinski knew she wanted to be an architect since she was in high school and has been very pleased to see how many more women are involved in the field than in previous generations. She noted her graduation class from NewSchool of Architecture & Design in San Diego was essentially half women.
“There is an opportunity to change the perception of industrial spaces and what it means to work in the industry, and I think women are leading this conversation,” said Strusinski. “I’m a big advocate of human-centric design and creating warehouses that promote a healthier environment where employees can thrive.”
Despite the strides made for women in CRE, Strusinski said it is still a challenge for women to receive equal treatment and recognition for their contributions, especially in the male-dominated industrial sector. She noted the mentorship opportunities she has both given and received – through various industry groups such as NAIOP as well as at Baker Barrios Archi-
tects – have provided wonderful opportunities to grow as well as help other women succeed.
Jennifer Murphy, President, Management Services, Bradford Allen
A longtime property management leader in Chicago, Murphy excels at guiding property operations, leasing and construction management as well as building strong, effective teams capable of navigating even the most uncertain times. Having helmed such office assets as 333 W. Wacker Drive, 101 N. Wacker Drive and Salesforce Tower in Chicago, as well as suburban properties like Takeda Pharmaceuticals’ North American headquarters in Deerfield, Ill., she brought extensive experience with large, complex buildings to Bradford Allen (BA) when she joined the firm in 2023. She now oversees BA’s growing portfolio of office properties in Chicago and nationally as it acquires, improves and leases up assets in high-growth markets. Her leadership is critical to helping BA meet demand for modern, experiential work environments.
“Property managers are being challenged like never before to make the workplace a destination where people feel a part of a community,” said Murphy.
“Women in CRE are making great strides, and it’s exciting to see the field continue to grow,” she added. “There is a strong community of women supporting each other as we shape the future of the industry.”
Christine Barry, Senior Vice President, Commercial Finance Group, Draper and Kramer, Incorporated
When Christine Barry joined Draper and Kramer, Incorporated, 27 years ago as a recent University of Illinois graduate, she thought it would be the first step in her professional path –but she ultimately ended up building her entire career at the firm. From her start as an analyst, she is today a senior vice president and top producer for Draper and Kramer’s Commercial Finance Group, originating debt and equity for all property types across the country and
helping clients find the best capital sources for their needs.
“This is a career where you can really control your destiny,” said Barry. “If you work hard, there is no limit to what you can achieve.”
Now as an industry veteran, Christine is passionate about helping other women get their start in CRE. Since 1999 she has been a member of Real Estate Finance Forum (REFF), an organization focused on the advancement of women in real estate finance, holding various board positions including president and currently sitting on the REFF Advisory Board. Additionally, Christine is a member of CREW Chicago, and since 2017 has been a mentor for One Million Degrees, a group helping community college students earn degrees.
Kathy Kwak, Chief Operating Officer, Proper Title
Kathy Kwak, COO of Chicago-based Proper Title, a full-service title insurance agency primarily serving the Midwest, recently launched
“Women in CRE are making great strides, and it’s exciting to see
the field continue to grow. There is a strong community of women supporting each other as we shape the future of the industry.”
the firm’s national commercial services division. She has also implemented wire fraud protection procedures for closings and construction escrow services. In recent years, she has recruited top talent and established several new closing locations to serve clients throughout Chicagoland.
“Build a team you can trust,” said Kwak. “Many women in executive leadership have a problem with delegating. I feel the more I delegate, the more space I have to be creative and innovative.
Surround yourself with the support you need to get ahead because you can’t do it alone. Women also shouldn’t be afraid to speak up or shine a light on their success; let people see what women in charge can do. Once you get to a position of leadership, don’t forget how you got there. Remember who supported you and who will stay with you to make you a better leader.”
Kathleen Arnold, Project Manager, McHugh Construction
As a partner in the Real Estate Practice Group, SUZANNE KARBARZ ROVNER focuses on all aspects of construction law, including advising clients on effective strategies for project execution, drafting and negotiating contracts, and enforcing contractual rights and obligations.
Kathleen Arnold took a gamble on entering the field of construction, and it paid off. Her eyes were opened to the field while working as an admin on the construction of a new casino boat in Indiana. “I sat in on all the construction meetings and took notes,” Arnold said. “After a year or so of that, I thought, ‘I could do this.’ So, I went to school while I worked full time and eventually got my engineering degree.” Chicago-based McHugh Construction saw Arnold’s experience in hospitality construction and hired
her in 2013 shortly after she graduated. Her 12 years at McHugh have been in the company’s hospitality and small projects division.
“I really love the variety in construction,” she said. “My office is always changing. It’s been in corners of a parking garage, on top-floor mechanical spaces, and even in building basements and hotel guest rooms.”
By Dan Rafter
Abig crowd featuring even bigger names packed the Ivy Room in Chicago April 16 for Illinois Real Estate Journal’s sixth annual Chicagoland Women in Real Estate Summit.
The event featured the Chicago area’s top women in real estate sharing strategies on how to succeed in an industry that has historically been dominated by men. These real estate pros also shared their insights on the state of the commercial real estate market in Chicago and its suburbs.
And before the event’s panels? The summit allowed for plenty of time for networking and catching up.
A highlight of the summit was the fireside chat between Ciere Boatright, Commissioner with the Chicago Department of Planning and Development, and Collete English Dixon,
“The event featured the Chicago area’s top women in real estate sharing strategies on how to succeed in an industry that has historically been dominated by men. These real estate pros also shared their insights on the state of Chicago and its suburbs.”
Executive Director of the Marshall Bennett Institute of Real Estate at Chicago’s Roosevelt University. The fireside chat, which focused on the challenges facing and the achievements made by women in the commercial real estate industry, kicked off the summit on a high note.
The summit’s first panel, Women Paving the Way in Commercial Construction, featured the stories of women who are thriving in the construction business. Sharing their success stories were Kristin Hannemann, Project Executive, Pepper Construction; Alicia Ponce, Founder and Principal, APMonarch; Jessica Sherwood, Senior Vice President, Leopardo Construction; Shalimar Aiken, Senior Estimator, W.E. O’Neil Construction; Shaylyn Cullen, Founder and President, Cullen Construction Management; Candace Small, Senior Design Phase Manager, Mortenson; and Suzanne Karbarz Rovner, Partner, Levenfeld Pearlstein, LLC.
Panelists expressed plenty of optimism regarding the Chicago-area commercial ral estate market during the State of the Market Update: Industrial, Office, Retail, Multifamily, Finance, Investments, & Property Management panel. Speaking on this panel were Paulina San Millan, Senior Vice President of Business Development, Intersect Illinois; Amy Galvin, CEO and Co-Founder, Luxury Living; Natalie Cico, SVP, Property Management, Newmark; Karen Kulczycki, Senior Vice President, SVN|Chicago Commercial; Deena Zimmerman, Principal/ Broker, Baum Realty Group; Molly Phelan, Attorney, Siegel Jennings, Co LPA; and Eteri Zaslavsky, Managing Director, Next Realty, LLC.
As the name suggests, the Notable Women in Commercial Real Estate panel featured the stories from some of the biggest names in the Chicago-area commercial real estate industry. Participating in this panel were local legends Molly McShane, CEO, The McShane Companies; Carrie Szarzynski, Senior Managing Director and Head of Management Services, Hiffman National; Vicki Noonan, Executive Regional Director, Cushman & Wakefield; Mary Ludgin, Senior Advisor and Global Investment Committee Member, Heitman; Regina Stilp, Founding Principal, Farpoint Development; Tracy Treger, Principal, Syndicated Equities; and LaVon M. Johns, Partner, Riley Safer Holmes & Cancila LLP.
Women in Construction Week began March 2 of this year. The goal? To honor those women who are making an impact in the commercial and residential construction industries.
In honor of the contributions that women have made in the world of construction, here are short profiles of three who are making a difference at Chicago-based construction firm Leopardo.
Ali Borrelli, Senior VDC Manager
What is a VDC Manager?
As a VDC manager I coordinate with designers, owners, facility managers, engineers, subcontractors and our internal field and office teams to build a building virtually first. This creates a more efficient, safe and productive project reducing the rework and waste that can occur without sufficient planning.
Using Revit, Trimble, Leica, Navis and many more tools and software programs helps us model future elements and review against existing to have the most accurate preparation to start building in the field.
“The earlier we can get involved in projects and review the potential issues prior to the final set of drawings hitting the field, the greater opportunity we have to come up with better resolutions.”
How do you contribute to the overall success of the project?
Lots of collaboration. The more people we have coordinating issues or roadblocks that we face within the day-to-day construction challenges is the best way to ensure success. My piece of that puzzle is trying to bring all the solutions to the table from multiple entities involved and
coming up with the best path moving forward for the project.
The earlier we can get involved in projects and review the potential issues prior to the final set of drawings hitting the field, the greater opportunity we have to come up with better resolutions.
What is a project you were proud to be a part of?
I’d have to say Ravenswood Senior Living. I am involved in nearly all of our adaptive reuse projects but this one was especially unique due to its scale. It was a 10-story (about 225,000 square feet) renovation of an old healthcare facility into an affordable housing community for seniors. I
LaVon
scoped and coordinated close to $14 million of building systems.
A lot of the coordination effort was timed to succeed demolition and laser scanning activities. This allowed the team to take advantage of the limited amount of space.
What advice would you offer to someone interested in a career in construction?
Get into the field as much as possible. There is a wealth of knowledge out there and incredible insight on how to build and problem solve. Working in the field and in a team that wants the project to succeed helps your career in construction grow exponentially.
Antoinette Adams, Project Engineer
What advice would you offer to someone interested in a career in construction?
Do not be shy about asking questions. It is how you learn. As a project engineer, I often work with our subcontractors who are more advanced in their careers. Take advantage of these encounters to learn from highly skilled tradespeople. They are a wealth of knowledge and by showing you value their expertise, you can build a stronger relationship and they will respect you for it.
What is something that surprised you about construction?
Every building has a story. We work a lot in older buildings renovating them for new uses and tenants. One of the manufacturing projects
“As a project engineer, I often work with our subcontractors who are more advanced in their careers. Take advantage of these encounters to learn from highly skilled tradespeople. They are a wealth of knowledge.”
I was a part of was originally developed as a build-to-suit for Sony Corporation. It is now a flagship facility for a global manufacturer of packaging and warehouse automation solutions. It’s fun to see how a building evolves over the years but also still remains.
What is a recent project you were proud to be a part of?
I recently was a part of the project team that completed Downers Grove Civic Center, an 80,900-square-foot new two-story combined village hall and police station. It was so reward-
ing to see it from start to finish. I was there when we were excavating the site to accommodate the basement level firing range all the way through to opening day when the mayor and other village dignitaries cut the ribbon. I will feel pride each time I take the Metra and see it from the window!
How are you paying it forward?
I intend to build up others’ voices as I progress in my career. I like to give back as well – applying the skills I’ve learned on the jobsite. This will be my third year participating in Habitat
for Humanity Women Build. It’s such a great event that brings together inspiring women for a day of volunteer work.
Camille Trausch, Senior Project Manager
How does a project manager contribute to the team’s success?
We manage all the details from start to finish, with all parties involved, making sure everyone comes together - coordinating with clients, the design team, subcontractors and other stake-
“Practice active listening. You don’t have to be the loudest voice in the room. Listening is just as powerful a skill as speaking.”
holders. We also work with the superintendent on the schedule and oversee the budget
What is a recent project you were proud to be a part of?
I oversaw Leopardo’s renovation of Bartlett Fire Protection District Station No. 1. I’m really proud of the work we did, which earned a Firehouse Magazine Station Design Gold Award. 845 Design Group - a WBE - was our architect partner and together we were able to successfully transform the fire station into a modern facility with a state-of-the-art admin center.
Why was this project so challenging?
We were combining three generations of buildings, so that involves tying in a lot of different materials, construction styles and systems. The façade update was the most logistically chal-
lenging component. It had a lot of important details we needed to get right.
We also needed to take extra care not to damage existing equipment – like the district’s emergency response infrastructure - during renovation. Firehouses are second homes to the firefighters. We wanted to make sure they are happy with the finished product for years to come.
What advice would you offer to someone interested in a career in construction?
Practice active listening. You don’t have to be the loudest voice in the room. Listening is just as powerful a skill as speaking. By listening with intention, you can better understand where everyone is coming from and find a solution that’s a win-win for all parties. Project management is just as much about people management as it is about construction.
By Dan Rafter
Building a successful small business is no easy task. And one that lasts a century? That’s especially impressive. And it’s what Chicago’s W.E. O’Neil Construction has done.
William Edward O’Neil founded W.E. O’Neil in 1925. To honor the construction firm’s 100 years in business, Brandon Johnson, mayor of the City of Chicago, presented John Russell, regional president for Chicago and Texas, and other W.E. O’Neil employee-owners with a proclamation declaring 2025 as the 100-year Anniversary of the local firm.
Russell said that he was proud to accept the proclamation on behalf of W.E. O’Neil.
“It was very profound being there in the chambers and witnessing the proclamation,” Russell said. “It was quite an honor.”
It’s no surprise that Chicago issued this proclamation. W.E. O’Neil has played a significant role in shaping the city, working on such key landmarks as The Museum of Contemporary Art, Lane Tech High School, Crown Fountain
at Millennium Park and the restoration of The Chicago Theatre.
And what was W.E. O’Neil’s first project? It, too, was an important one, the primate house at Chicago’s Lincoln Park Zoo.
Today, W.E. O’Neil continues to tackle some of the most important projects in Chicago and its suburbs.
The construction firm has worked on projects such as Lincoln Common, Block 37, the University of Chicago’s William Eckhardt Research Center and LondonHouse Hotel.
W.E. O’Neil hasn’t made an impact only with its construction work. The firm and its employees have also supported the community. W.E. O’Neil has been a long-term supporter of organizations such as Habitat for Humanity, the Greater Chicago Food Depository and Mercy Home for Boys and Girls.
Russell said that W.E. O’Neil has followed a simple formula to reach its success.
“It comes down to our values,” Russell said. “Our retired chairman, Bill O’Neil, always said that his responsibility was to pass down the values that his grandfather, the original William O’Neil, established. Our clients are our greatest allies. Our goal as employees of W.E. O’Neil is to build strong relationships with all our clients. That’s the number one value of this firm.”
Another key factor in the firm’s success? Russell said that the employees at W.E. O’Neil are all committed to learning and evolving as the construction industry changes.
“We are all lifetime learners,” Russell said. “You don’t just have a job here. You have a career. Our job is to develop our employees.”
W.E. O’Neil leadership takes this seriously. The company employes a national vice president who is devoted to training and development for the firm’s employees across the country.
Then there is the focus on quality. Russell said that another goal of W.E. O’Neil leadership and employees is to provide both quality service to clients and to build quality developments.
“Our clients are number one. They are always right,” Russell said. “We deliver whatever their needs require. We also have a commitment to quality construction. If we don’t leave behind a quality product, our work won’t stand the test of time. Our people are committed to quality workmanship.”
Russell has worked with W.E. O’Neil for three decades. During these years, he’s worked on several key projects. One of his favorites was the Crown Fountain in Millennium Park, a project on which W.E. O’Neil served as general contractor.
Most visitors know this project as the fountain with the squirting faces, two large pillars on which videos of the faces of Chicago residents rotate. When these faces are on the pillars, it looks as if they are spitting water into the pool below.
The fountains are a favorite of residents and visitors to Chicago alike.
“It’s nice to have worked on what has become a true landmark project,” Russell said.
Russell also worked on the Block 37 project, which covers a full city block in the heart of downtown Chicago. This block, bordered by Randolph, State, Washington and Dearborn streets, now includes more than 1.2 million square feet of mixed-use facilities, including a 400,000-square-foot four-story retail podium atop a 340,000-square-foot four-level below-grade transportation center and parking structure.
“At the time, that was the largest undeveloped project site in the downtown area,” Russell said. “It was a great honor for W.E. O’Neil to serve as the contractor on that project.”
It’s impossible to be in business for 100 years and not face challenges. And the commercial real estate industry is notoriously cyclical, with both booming and sluggish markets. How has W.E. O’Neil worked through the slow cycles?
Russell said that the firm benefits from working in a wide variety of sectors. If construction activity in one sector is lagging, W.E. O’Neil can lean into another segment that is performing better.
“Today in Chicago, for example, some of the investor-led development work is waning,” Russell said. “To make up for that, we are leaning into higher-education work and work
at the airport. That flexibility helps us when the economy is down.”
The long-term relationships that W.E. O’Neil has built with its clients helps, too.
“Those repeat clients who automatically come back to us have been an important part of our success,” Russell said. “They are not looking for the lowest-dollar contractor. They go with someone they know and trust.”
Another unique feature of W.E. O’Neil, and one that helps the company attract and retain the best talent? The company is 100% employee owned. Everyone who works at the firm receives stock ownership in the business.
“That is another driver for people to stay committed and with us for a long period,” Russell said.
And what does the future hold for W.E. O’Neil? Russell says that it’s a bright one.
“We have made the milestone of lasting 100 years,” he said. “I see no reason why we can’t continue to operate for another 100 years. We are very focused on developing leaders at our firm. We are always focused on succession planning. We have a pipeline of leaders. The future is bright.”
By Dan Rafter
Tenant demand for industrial space in the Chicago market jumped significantly in the first quarter of the year. That’s the good news from JLL’s first quarter Chicago Industrial Insights report.
According to JLL’s report, industrial leasing activity rose to 8.1 million square feet in the Chicago-area market in the first quarter of 2025. That’s up from 5.5 million square feet of industrial leases in this market in the fourth quarter of last year. It’s also up solidly from the industrial lease volume of 7.2 million square feet in the Chicago market a year earlier.
Boosting industrial leasing activity in the first quarter of the year was RJW Logistics Group’s 977,000-square-foot lease from CenterPoint Properties in the Interestate-80 corridor. Uline also closed a big industrial deal in the first quarter, leasing two spaces in the Southeast Wisconsin market and growing its occupancy
3PL occupiers accounted for the highest leasing volume in the first quarter of this year,
“According
to JLL’s report, industrial leasing activity rose to 8.1 million square feet in the Chicago-area market in the first quarter of 2025.That’s up from 5.5 million square feet of industrial leases in this market in the fourth quarter of last year.”
Rent growth was mostly flat, with the average industrial rent in the Chicago-area market standing at $7.55 a square foot. That is nearly unchanged from the average rent of $7.54 a square foot in the fourth quarter of 2024. Average industrial rents here a year ago were $7.06
The Chicago North, Northwest Cook County O’Hare and West Cook County submarkets all commanded average asking rents north of $10 a square foot in the first quarter, while the Interstate-39 corridor and Rockford submarkets reported average asking rents below $5 a square
By John Barkidjija, Head of Commercial Real Estate, Byline Bank
In June 2024, I authored an article titled “Reset Ready: Navigating the Great Reset in commercial real estate.” At the time, I argued that years of persistently low interest rates and corresponding cap rates had resulted in many commercial real estate properties being over-levered. Additionally, increasing operating costs—such as insurance, real estate taxes, personnel expenses, and maintenance—were outpacing rent growth in many cases, further diminishing property values. This new math of CRE valuations and leverage, combined with the end of “extend and pretend” loan modifications and wave of loan maturities, signaled an inevitable market correction –termed the Great Reset.
Since then, there has been more interest rate volatility than the markets were predicting. In late summer 2024, long-term rates decreased, causing a bump in transaction activity as owners locked in rates or sold properties while the 10-year Treasury fell from the mid 4% range to the high 3% range. Because CRE transactions normally take 45 to 90 days to close, these deals materialized in the last quarter of 2024. The increase in transaction activity and refinancings was an early indication of the Great Reset’s beginning.
Then a strange thing happened in the bond markets. The Federal Reserve decreased shortterm rates, yet long-term rates climbed sharply. Market expectations of a new administration in Washington that would be generally more business friendly, the possibility of future inflationary pressures from tariffs, and a stricter immigration policy contributed to this volatility.
Following the election, there was optimism in the markets as investors anticipated the tailwinds to the economy of lower regulations and lower or at least stable income taxes. The stock market rallied, credit spreads on all asset types (including all forms of commercial real estate loans) decreased by 25-50 bp as liquidity returned to the market. Banks, life companies, debt funds and other forms of private credit and CMBS lenders all increased allocations for 2025. Since it takes 45-90 days from inception to close a loan, these new spreads and underwriting factors appeared in early 2025 closings. For example, according to Trepp, CMBS issuance is now outpacing last year’s levels, with debt yields on approximately $6 billion in office-backed loans averaging 10% (compared to 13.4% on the approximately $8 billion issued in all of 2024). Although these bullish statistics may be skewed by large trophy-office financings, the trend reinforced momentum in CRE transactions and sustained the Great Reset.
Yet, the initial optimism surrounding the new administration has tempered and even reversed. The repeated announcement, postponement, and modification of tariffs on key trading partners and allies have caused uncertainty
“The Great Uncertainty, combined with increased supply in certain markets—notably multifamily in the South and industrial in low-barrier-to-entry markets—could create buying opportunities for the many distress funds that have been raised to take advantage of the Great Reset.”
John Barkidjija (Photo courtesy of Byline Bank.)
and trepidation for consumers and businesses alike. Companies thrive on predictability, and the constant change in announced policies has influenced business’s ability to plan, causing a delay in investment decision making. At the same time, consumers have come to realize that tariffs are consumer taxes that will raise prices. The latest University of Michigan Consumer Sentiment Index took a nosedive by 11% in mid-March from the previous month to 57.9, reflecting growing concerns. Meanwhile, the new administration has followed through on their immigration crack-down, causing businesses that rely on immigrant labor to be concerned about their workforce, and a decrease in demand. Finally, the rapid, blunt attempts to make the government more efficient also causes uncertainty about the ability of the government to function and administer government programs. Publicly traded companies are low-
ering their forecasts for earnings as the year progresses due to this uncertainty and the effect on consumers’ ability and desire to continue to spend. All of this creates a Great Uncertainty.
The stock markets reacted swiftly to this uncertainty, with S&P 500 falling roughly 10% from its recent highs. The 10-year Treasury yield fell more than 50 basis points on recession fears before stabilizing around 4.3%. Future markets now predict that the rate will be stable for the remainder of 2025, as recession risks and higher prices caused by tariff-driven inflationary pressures counterbalance each other.
What does this mean for CRE and the Great Reset? On one hand, uncertainty typically drives up risk premiums for CRE assets, including an increase in credit spreads. If economic growth slows and unemployment increases, landlords may struggle to raise rents, and vacancy rates could climb across all asset classes. There may also be an increase in operating costs, especially for major operating costs like real estate taxes, insurance and repairs and maintenance. If longterm yields stabilize at 4.3%, and cap rates increase due to increased risk premiums, property values will decline, slowing transaction activity as lenders and owners seek clarity before making decisions, thereby slowing the pace of the Great Reset.
On the other hand, the Great Uncertainty, combined with increased supply in certain markets—notably multifamily in the South and industrial in low-barrier-to-entry markets— could create buying opportunities for the many distress funds that have been raised to take advantage of the Great Reset. This will only occur, however, if lenders force owners that are
over-levered to finally market the properties for sale and accept the destruction in equity caused by the Great Reset. These new buyers, and the lenders that support them, will be acquiring properties at a lower reset basis positioning themselves for future gains.
In addition, there may be less supply in the future. Construction costs have already increased dramatically over the past few years, and tariffs and deportations of construction workers, which will only exacerbate the already existing construction labor shortage, add to these inflated construction costs, making development harder to pencil. These challenges, along with the Great Uncertainty, will ensure that there is very little new supply in 2026 and 2027.
The investors that have the fortitude to buy properties at a lower basis at this time (and the lenders that support them) will survive the Great Uncertainty and ultimately thrive. In the post-Great Uncertainty world, the excess supply will be absorbed (and little new supply will be added), rents will increase, and credit markets will be stable, benefitting those who capitalized on the Great Reset.
Recommend adding: The above material has been provided for informational purposes only, and should not be relied on for tax, legal, or accounting advice. You should consult with your own tax, legal, and accounting advisors in addressing any of the above information.
John Barkidjija, is Head of Commercial Real Estate in the Chicago office of Byline Bank.
One Parkview Plaza, 9th Floor
Oakbrook Terrace, Illinois 60181
Key Contacts:
Jean Zoerner-Illinois, JMZoerner@midamericagrp.com; Brad Lefkowitz-Michigan, blefkowitz@midamericagrp.com; Brandon O’ Connell-Minnesota, boconnell@midamericagrp.com; Jim Vaillancourt-Wisconsin, jvaillancourt@midamericagrp.com;
Services Provided: Mid-America provides strategic consulting services that maximize net operating income, net cash flow, and accelerate property appreciation. We provide property and construction management, leasing, due diligence, and market analysis. Additionally, we offer MA Building Services, a self-performing porter and maintenance company offering our clients cost savings and improved accountability for related services.
Company Profile: Mid-America Real Estate is #1 in retail real estate services in the Midwest, with full service offices in Illinois, Michigan, Minnesota, and Wisconsin. Our exclusive focus on retail property, combined with cutting-edge technology and unsurpassed service, distinguishes Mid-America within the industry and provides clients with a competitive edge. For more information, visit www.midamericagrp.com.
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.
MERIDIAN DESIGN BUILD
9550 W. Higgins Road, Suite 400 Rosemont, IL 60018
P: 847.374.9200 • F: 847.374.9222
Website: meridiandb.com
Key Contact: 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 Description: 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: Venture Park 47, Huntley, IL - 729,800 sf speculative industrial facility for Venture One Real Estate. Lion Electric, Joliet, IL - 928,500 sf electric bus / medium duty truck assembly plant for Clarius Partners. Greenwood Truck Terminal, Greenwood, IN - 125 door truck terminal on 43 acres for Scannell Properties
PRINCIPLE CONSTRUCTION CORP.
9450 West Bryn Mawr Ave., Suite 120 Rosemont, IL 60018
P: 847.615.1515 | F: 847.615.1598
Website: pccdb.com
Key Contacts: Mark L Augustyn, COO, maugustyn@pccdb.com, James A. Brucato, President, jbrucato@pccdb.com
Services Provided: Since 1999, Principle Construction Corp. has been a leading design-build general contractor serving the industrial markets of Chicago Metro, Southern Wisconsin, and Northwest Indiana. We specialize in designing and constructing exacting solutions for our clients, including:
• Built-to-Suit Facilities • Speculative Facilities • Warehouse and Distribution Centers
• Logistics and Cross-Dock Facilities • Industrial Outdoor Storage • Industrial and Manufacturing Plant • Tenant Improvements • Expansions and Additions • Food Processing Facilities • Specialty Projects
Recently Completed Projects include:
• 8,205 SF animal shelter for Heartland Animal Shelter, at 586 Palwaukee Dr., in Wheeling, IL.
• 12,560 SF showroom and outdoor pool park for Doheny Enterprises, at 5307 Green Bay Rd., in Kenosha, WI
• Phase 1 renovation project for SMW Autoblok, at 285 Egidi Dr., Wheeling, IL
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 third generation 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.
VILLAGE OF HOMER GLEN ECONOMIC DEVELOPMENT
14240 W. 151st Street Homer Glen, IL 60491
P: 708.301.0632
Website: HomerGlenIL.org
Key Contact: Janie Patch, Economic Development Director, jpatch@homerglenil.org
Services: Resource center for brokers, developers, site selectors and businesses providing space and property inventory, trade area demographics, site selection assistance, custom tours, coordination through entitlement process, business opening process guidance and retention services.
Demographic Info: Strategic Will County location 25 miles southwest of Chicago with two I-355 interchanges between I-55 and I-80. Average household income of $154,800. Trade area population of 83,000. Prime commercial corridors include Bell Road, 143rd Street and 159th Street (State Route 7). 159th Street is improved with 4 lanes and access to Lake Michigan water and sanitary sewer.
Recent CRE Activity: The Villas of Old Oak (46 ranch duplexes) completing full build out. New food specialty and restaurant openings include South Viet, OneZo Boba Tea, Sultan Sweets and Cervantino’s. Restaurant with drive-thru position available at Homer Glen Bell Plaza with Pet Supplies Plus, Dollar Tree and Taco Bell, SWC 143rd/Bell.
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.
DEIGAN & ASSOCIATES, PLLC
28835 N. Herky Drive Lake Bluff, IL 60044
P: 847.682.7381
Website: http://www.deiganassociates.com
Key Contact: Michele Brady, Director Business Development & Real Estate Services, mbrady@deiganassociates.com
Services Provided: The Deigan Group provides client responsive, results oriented environmental consulting and remediation services, with a focus in land-based work, including Brownfield Redevelopment, Power Plant Decommissioning/Redevelopment, Strategic Environmental Planning, Property Assessments and Site Remediation, Compliance/Permitting, Employee Exposure Testing/Safety Monitoring Asbestos Surveys/Mold/Indoor Air Quality, Waste Minimization/ Recycling/ Sustainability Plans, Successful Grant Writing. Company Profile: A full-service environmental consulting organization specializing in defining environmental business risk and removing environmental uncertainties for property development sites. Our wide range of experience within the environmental industry helps us provide realistic cost-saving strategies for our clients with the goal of reducing their overall environmental liability and obstacles to redevelopment.
MARQUETTE BANK
1628 W. Irving Park Road, Unit 1D Chicago, IL 60613
P: 708.873.8639
Website: emarquettebank.com
Key Contact: 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, loan office and $2 billion in assets. Independently owned/operated since 1945. Offering clients full-service, banking, financing, insurance, trust and wealth management services.
REINHART BOERNER VAN DEUREN S.C.
1000 N Water Street, Suite 1700 Milwaukee, WI 53202
P: 414.298.1000
Website: reinhartlaw.com
Key Contact: Joseph Shumow, Shareholder, jshumow@reinhartlaw.com
Services Provided: Reinhart is a full-service, business-oriented law firm that delivers innovative, value-added solutions for today’s most important real estate needs, including land use and zoning; tax-incremental financing; tax credits; leasing; construction; and condemnation and eminent domain issues.
Company Profile: With the largest real estate practice in Wisconsin and offices throughout the Midwest and across the country, Reinhart’s attorneys offer clients customized real estate insight rooted in broad knowledge and deep experience to help you capitalize on opportunities no matter where you do business.
100 N. LaSalle St., 10th Floor Chicago, IL 60602
P: 312.782.8310
Website: sarnoffpropertytax.com
Key Contact: James Sarnoff, jsarnoff@sarnoffpropertytax.com P: 312.448.5337
Services Provided: Since 1986, Sarnoff Property Tax has been a leading and recognized law firm concentrating solely in the field of property taxation. We help client’s secure favorable taxes in Illinois through property tax appeals, incentives and consulting.
Company Profile: Sarnoff Property Tax’s clients include Owners, Developers, Managers, REIT’s, Fortune 500 Companies, Private Equity Firms, etc., in connection with commercial property, high-rise and low-rise apartment buildings, condominium associations and single-family home portfolios.
180 North LaSalle Street, Suite 3010 Chicago, IL 60601
P: 312.917.2307 P: 312.917.2312 | F: 312.596.6412
Website: wvproptax.com
Key Contacts: Francis W. O’Malley, Managing Partner fomalley@wvproptax.com; Jessica L. MacLean, Partner jmaclean@wvproptax.com
Services Provided: Worsek & Vihon, LLP represents tax payers in Illinois by limiting their property tax liabilities through ad valorem appeals. We have over 40 years of experience and can handle basic to the most complex assessment issues while offering the dependable, personalized attention our clients deserve. We have experience representing owners of all property types. In addition to filing thousands of appeals with the Cook County Assessor, we have been involved in numerous proceedings before various Boards of Review, the Illinois Property Tax Appeal Board, and the Circuit Court of Illinois, and have appeared before the Illinois Appellate and Supreme Courts. Company Profile: Worsek & Vihon LLP, is a team of experienced attorneys singularly focused on real estate tax law. The firm is dedicated to minimizing property tax liabilities through strategic tax portfolio management, well-researched, creative appeal preparation and aggressive advocacy.
