MREN_June 2025

The good news in Omaha keeps coming: Commercial leasing and development activity remain strong here

By Dan Rafter, Editor

Developers are still targeting the Omaha market for new multifamily, retail and industrial projects. And investors still view commercial real estate throughout the Omaha market as a safe home for their dollars.

This is nothing new. As anyone familiar with this Nebraska city knows, Omaha has long been considered home to one of the country’s most resilient commercial real estate markets in the country. That hasn’t changed even as the country deals with the economic uncertainty brought on by the threat of tariffs.

Omaha remains a vibrant, busy hub for commercial investment and development. And the best news? The commercial real estate professionals working in this market don’t see this changing anytime soon.

But what’s behind Omaha’s resilient nature? Brokers and developers say that Omaha benefits from a strong local economy, skilled workforce and local governments that have long been pro-business.

Lawrenson, partner

law firm

Holm, said that while some of Omaha’s commercial sectors have not been immune to the challenges of an uncertain economy and worries over possible tariffs, the city’s real estate market still boasts sectors that remain exceptionally strong.

“While several of Omaha’s markets have seen dips, the resilience of Omaha’s market remains unparalleled,” Lawrenson said. “We continue to see strong demand and development activity in the multifamily and industrial sectors. Those markets that have seen dips have not seen the same drastic dives as other areas of the nation.”

John Dickerson, executive vice president with Omaha’s OMNE Partners, said that Omaha’s commercial real estate market continues to be a resilient one, despite the economic challenges that it faces.

As Dickerson says, the city’s population continues to grow, with more than 1 million people now living in the

OMAHA (continued on page 18)

DETROIT

The power of being nimble and tech-savvy: It’s how Detroit’s Method Development is competing with the biggest players in the market

By Dan Rafter, Editor

Detroit’s Method Development isn’t the biggest developer working in this Midwest city. But that doesn’t mean it can’t compete with the likes of Bedrock and Olympia Development of Michigan, giants in the Detroit-area commercial real estate development community.

DETROIT (continued on page 22)

Amy

with Omaha

Baird

The Capitol District in downtown Omaha. (Photo courtesy of The Lerner Company.)

Solutions from all sides.

No two problems are alike. Neither are their answers. Each requires a point of view. A new angle. Together, we’ll look for an integrated solution, guided by data and insights. We’ll gain a deep understanding of your business, and consider every part of your commercial real estate strategy, so you can realize anything.

The good news in Omaha keeps coming: Commercial leasing and development activity remain strong here: Developers are still targeting the Omaha market for new multifamily, retail and industrial projects. And investors still view commercial real estate throughout the Omaha market as a safe home for their dollars.

Competing with the power players in Detroit: Detroit’s Method Development isn’t the biggest developer working in this Midwest city. But that doesn’t mean it can’t compete with the likes of Bedrock and Olympia Development of Michigan, giants in the Detroit-area commercial real estate development community.

An all-time high? Demand for multifamily space keeps rising in the Milwaukee and Madison markets: Certain Midwest commercial real estate markets are known for being resilient. Two of them? Milwaukee and Madison.

Expect retailers to quickly gobble up space left by Party City, Big Lots and other big-name closures: It sounds alarming: For the first time in 16 quarters, U.S. retailers in the first quarter of this year vacated more space than they leased.

Bringing new life to neighborhoods through the power of experiential real estate: Albert Friedman is a big believer in change. His willingness to evolve has served him well during his long career in commercial real estate, and has led to his company, Friedman Properties, becoming one of the busier property management companies in Chicago

Paving the way for the future generation of leaders: Murnane stepping down as head of Minneapolis’ Opus: It’s time to let the next generation of leadership step up. That’s why Tim Murnane, the long-time president and chief executive officer of Minnetonka, Minnesota-based Opus, announced his retirement late last month.

42 Commercial Services 1 1 6 12 29 14 26 28 10

NFL draft placed the spotlight on Green Bay’s Titletown: The sports-centered Titletown development captured the country’s attention from April 24 through 26 this year. That’s when the NFL held its 2025 draft at the Green Bay, Wisconsin, development that sits outside historic Lambeau Field.

Chicago remains one of the most expensive cities in which to rent an apartment: The Chicago multifamily market remains a strong one, with the average monthly rent here standing at $1,939 a month as of May, according to the latest Chicago Rental Market Trends report released by Apartments.com.

Suburban multifamily sales soar in both number and volume in Chicago market: The number of multifamily sales and the total dollar volume of these transactions soared in the Chicago suburbs during the first quarter of this year, according to the latest research from Interra Realty.

COLUMNS/DEPARTMENTS

5 Editor’s Letter

30 Multifamily finance in a volatile market

32 Senior living sector continues to adapt to meet residents’ needs

34 Sustainability investments reap multiple benefits for owner-operators

36 How tariffs are reshaping the industrial investment landscape

38 When schools vanish overnight

40 The rising tide of legal challenges in multifamily

The Midwest’s commercial real estate publication, providing useful, unbiased and accurate coverage of the industry and its professionals since 1985.

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The big challenge for tenants? Finding large blocks of office space in CBDs

By Dan Rafter, Editor

It’s no secret that the flight-to-quality in the office sector is a real trend. A growing number of companies seeking new office space are looking for high-quality buildings that feature modern amenities. The problem? In many markets, this type of office space is becoming difficult to find.

Just look at the Chicago central business district. Avison Young reported earlier in May that across the 451 office properties that make up the Chicago CBD, availability remains near record highs at 30%.

But when you look for quality properties with large blocks of space? Availability drops.

“According to Avison Young, trophy office buildings make up just 9% of the office properties with large blocks of available space in the Chicago CBD. ”

According to Avison Young, trophy office buildings make up just 9% of the office properties with large blocks of available space in the Chicago CBD. Avison Young also reports that there is an inverse relationship between office space requirements and the number of properties that can accommodate them. According to the firm’s research, 22% of Chicago CBD office buildings can support a 50,000-square-foot

lease. But only 16% of buildings meet that threshold when you limit the search to just trophy or Class-A office space.

Tenants seeking 200,000 square feet of contiguous office space have an

even more difficult task, with just 3% of office buildings in the Chicago CBD able to accommodate such users. That figure drops to just 2.4% when you factor in both size and quality constraints.

Notable trophy office properties without 100,000 square feet of contiguous available space include 110 N. Wacker Drive, 150 N. Riverside Drive, 353 N. Clark St. and 444 W. Lake St.

There have been some large block office leases closed in trophy properties in the Chicago CBD office market, though. Avison Young pointed to Mesirow Financial renewing for 110,000 square feet at 353 N. Clark St. in the first quarter of 2024 and Ayden signing a lease for 97,000 square feet at 333 N. Green in the fourth quarter of last year. White & Case also signed a new office lease for 60,000 square feet at 300 N. LaSalle in the first quarter of 2024.

Image courtesy of Avison Young.

Hanging tough: Development, leasing still remain steady in Milwaukee and Madison markets

By Dan Rafter, Editor

Certain Midwest commercial real estate markets are known for being resilient. Two of them? Milwaukee and Madison.

And when it comes to sectors that are performing well in these two Wisconsin markets, none compare to multifamily. The demand from both investors and tenants for multifamily space continues to soar throughout the Madison and Milwaukee markets.

Why? We spoke with Ralph DePasquale,

managing director of investment sales with Berkadia, and Tomás Clasen, attorney with Reinhart Boerner van Deuren, about the strength of the apartment sector in these two markets. Here is what they had to say.

We often write about how resilient the Milwaukee and Madison commercial real estate markets have been. Are you still seeing this resilience? Are you still seeing steady development throughout the region?

Ralph DePasquale: Yes, although I think

many would interchange the word “resilience” with “dependable” and/or “steadiness.” We are seeing steady development activity but, as is usually the case, we generally do not develop too far beyond demand. This usually alleviates the tremendous ups and downs experienced by other areas of the country.

Tomás Clasen: The Milwaukee area market continues to show relative resilience. While national trends have trickled down into the Milwaukee marketplace, there is still substantial value to be tapped in the region.

What is behind this traditional resilience in the local CRE market?

DePasquale: I think that some of it is what I mentioned above, in terms of not overextending ourselves. But it also has to do with our core values; our great, smart and dependable workforce; and our quality of life.

In addition, it doesn’t hurt to have one of the best freshwater resources in the world at our fingertips. These are the things that are driving a number of companies to move to or expand here.

Photo courtesy of Pixabay.

Clasen: Milwaukee remains a very livable market with room for continued growth both downtown and in the suburbs. Of course, Milwaukee is not immune from national trends and policies, so development in some sectors has slowed. That said, there remain projects to be completed that can, and hopefully will, continue to foster economic growth in the area.

How high is demand from tenants and investors for multifamily properties in the Milwaukee and Madison areas?

DePasquale: The demand is very high, maybe at an all-time high since I have been working in the Milwaukee and Madison markets. It is high really through the state. When we have the privilege of marketing an asset in either of these markets of Milwaukee or Madison, we know that we will have a very strong response from prospective buyers. Renters have also found that great combination of jobs, growth and quality of life has

created such a strong rental market.

Clasen: Multifamily and mixed-use developments continue to be proposed throughout the Milwaukee area. Some municipalities have taken a proactive approach to engaging and fostering these developments and are seeing these efforts pay off. I am excited to see these new projects come online over the next year or so.

What makes these two markets such attractive ones both for investors looking to purchase CRE assets and developers looking to build here?

DePasquale: That really goes hand in hand with all the things I mentioned above. In addition, in many cases, inves-

tors can buy, and developers can build, for a little less than in some other parts of the country, creating more opportunity for a little better return on investment or return on costs for developers.

Clasen: Milwaukee is a fantastic city that remains relatively affordable in juxtaposition to other larger cities throughout the Midwest. As such, both local and national companies are looking to expand their presence throughout the area. Additionally, there remains ample room for growth both in Milwaukee’s downtown and in the suburbs.

Are there any development projects taking place in the region that you think will have a positive impact on the market?

DePasquale: One of the hottest development corridors in the country is I-94 between the Illinois state line and Milwaukee. Significant developments by Lilly, Microsoft, Amazon and Uline con-

Tomás Clasen (Photo courtesy of Reinhart Boerner van Deuren.)

Ralph DePasquale (Photo courtesy of Berkadia.)

Photo courtesy of Pixabay.

tinue to drive new quality job opportunities, creating more and more demand for housing. In addition, the growth of these major companies will spur development of other companies and ancillary services. This is also happening to the west between Milwaukee and Madsion along that corridor.

“Things

Clasen: Any development that is activating vacant or underutilized space will not just have a positive impact on the market, but the larger community that such developments are located within by adding additional tax base. As such, the proposed developments in the Deer Dis For more than 100 years, Barton Malow has been committed to building People, Projects, and Communities. The Barton Malow Enterprise is comprised of five entities and two partner firms. With team members strategically positioned across North America, we are on a mission to transform the construction industry through innovation and increased efficiencies in the building process.

NFL draft placed the spotlight on Green Bay’s Titletown. And the sports-centered development didn’t disappoint

By Dan Rafter, Editor

The sports-centered Titletown development captured the country’s attention from April 24 through 26 this year. That’s when the NFL held its 2025 draft at the Green Bay, Wisconsin, development that sits outside historic Lambeau Field.

And what did NFL fans see? A vibrant community development that features everything from a sprawling public park, tubing hill and winter skating rink to a four-diamond hotel, sports medicine clinic, restaurant, bank and venture capital firm. Titletown also

includes luxury apartments, townhomes and the seven-story U.S. Venture Center office tower.

Yes, Titletown offers a wide variety of experiences. And it’s a thriving community, even on days in which the Green Bay Packers aren’t playing.

Titletown isn’t alone, though. Cities across the Midwest, including Milwaukee, Detroit and Minneapolis, have invested in sports-focused mixed-use developments, developments that bring everything from multifamily housing, bars and restaurants to office

buildings and hotels to the neighborhoods surrounding already busy sports stadiums.

Developers and architects say that they expect more sports-centered developments to pop up across the United States. These projects have been too successful at attracting visitors, residents and businesses for developers and cities to ignore.

Midwest Real Estate News recently spoke with Ben Donsky, principal with real estate and urban development company Agora Partners, which has

offices in Los Angeles and New York City. Agora Partners focused on activating and programming the public space of Titletown, making sure that the development offers activities and attractions designed to attract visitors even when football games aren’t happening.

Agora Partners also worked on managing the business model and customer experience for some of Titletown’s key amenities, including the tubing hill and ice rink and the development’s food and beverage facilities.

The public spaces are an important part of the Titletown development. (Photo courtesy of Agora Partners.)

We asked Donsky about the reasons behind Titletown’s success and why sports-centered developments have become so popular. Here is some of what he had to say.

Sports-centered developments like Titletown seem to be thriving today. How have these types of developments evolved over the years?

Ben Donsky: There has been an evolution from the first generation of sports-adjacent developments. That first generation of developments, which you can trace back to Camden Yards in Baltimore and the adjacent Power Plant district, focused on restaurants and bars and on enhancing the gameday experience. The second generation of these projects like Titletown are trying to create real neighborhoods that integrate places to live and work in addition to the restaurants and bars for game days.

A place like Titletown really does seem like a live/work/play development.

Donsky: A place like Titletown combines the emotional connection that fans have to their teams with community-oriented programs and events to make these districts into daily destinations.

The gameday events and programs will draw people to the development regardless. One of the keys to success at these developments, though, is the ability to flex between gamedays and non-gamedays and accommodate both kinds of crowds and different volumes of people.

Titletown doesn’t feel like it’s vacant when it’s not a gameday because there are people living and working there and people visiting the public spaces and retail offerings. Titletown includes apartments and townhouses. They really introduced a new top tier of quality into both of those product types for this market. In addition, the development features creative office space that has some incredible amenities, not to mention spectacular views of Lambeau Field.

What makes these sports-centered developments so popular to visitors?

Donsky: This fundamental emotional attachment that people have with their teams is a real draw. Prior to developments such as Titletown, a lot of

these teams had already developed engaging hall-of-fames, museums and other exhibits to extend the stays of their fans and improve the visitor experience to their stadiums. These sports-centered developments are a logical expansion of that.

Teams can leverage those emotional connections into new revenue streams. But they can also create these fantastic experiences that will help strengthen their relationships with existing fans. They can turn casual fans into diehard fans and bring in a new generation of

GREEN BAY

fans who might not have otherwise engaged with the teams at all.

Look at what the Milwaukee Bucks of the NBA are doing with the Deer District development in Milwaukee. That is one of the most ambitious if not the most ambitious sports-centered developments you’ll see.

Do you think we’ll continue to see sports-focused developments pop up across the country?

Donsky: It’s a trend that will continue. Every city wants one of these. There are plans being considered in cities like New York City, Los Angeles and Chicago. It’s the same in markets like Denver, Kansas City and Nashville. The real question is what will each market support?

New York City, Los Angeles and Chicago can support a lot of new development. Nashville has seen a lot of growth over the last decade. There are questions, though, with the current capital markets environment if all of these projects can move forward.

What features should these developments have to increase their chances of success?

Donsky: When you look at the most successful developments, they are all organized around an actively programmed public space. The more that public space is oriented toward attracting the general public, the more successful a development has been.

Those public spaces are important components. You need seasonal variation, too, so that you are drawing in people all year. In Titletown, you have the tubing hill and ice rink. In the summer, you have a weekly night market. Those public spaces can establish new traditions and leverage those connections that teams already have with their fans.

Increasingly, we see a more diverse mix of uses in these projects. I think most if not all of them will include residential projects going forward. Just look at the Chicago Cubs. They have done some work in Arizona at their spring training facility aimed at Chicagoans who are retiring there. That type of residential component is something we’ll see more of in these developments.

Photo courtesy of Agora Partners.

Photo courtesy of Agora Partners.

JLL’s Naveen Jaggi: Expect retailers to quickly gobble up space left by Party City, Big Lots and other big-name closures

By Dan Rafter, Editor

It sounds alarming: For the first time in 16 quarters, U.S. retailers in the first quarter of this year vacated more space than they leased.

That is one of the key findings of JLL’s recently released Q1 Retail Research Outlook, which looks at the state of the U.S. retail sector during the first quarter of 2025.

Other findings seem troubling, too: Net absorption in the U.S. retail sector sunk to negative 2.7 million square feet in the first quarter, JLL reported. And announced retail closures from 2024 through early 2025 totaled more than 9,900 locations, driven by store closings from strug -

But the retail news isn’t all bad. It’s not even mostly bad. As JLL reported, these retail closures put millions of high-demand retail square footage back into the market for the second quarter of this year and beyond. Naveen Jaggi, president of retail advisory services with JLL, said that this bodes well for the future of the retail market: He expects leasing activity to rise as more companies seek out high-quality retail space that is now hitting the market.

We spoke with Jaggi about JLL’s report and the state of the retail market. Here is what he said.

Why is so much retail space being vacated today? Is it surprising that retailers vacated more space than they leased in the first quarter?

Naveen Jaggi: This was the result of two to three years of build-up from retailers that have been on the watch list of bankruptcies. We have been anticipating these closures for some time. They were nothing that took us by surprise. No one was surprised that Joann closed. Everyone was expecting it. It just seems more shocking when all these expected closures happen at the same time.

Most of the space being left by these retailers will be in high demand. The space will be taken up quickly. The headlines, though, are all about a lot of

retail space coming to the market by bankruptcy.

Despite these high-profile bankruptcies, the retail sector is resilient today, right?

Jaggi: Retail has been resilient in part because we have a historic low of new construction activity in this sector. We have had multiple years of lower-than-average retail construction. There is a demand for quality space and markets. You must create supply one way or another. Sometimes it means that you work tenants out of spaces that are old and dying. We are in that environment now. When dying companies put space back on the market, it

gling retailers such as Party City and Big Lots.

Image by Pexels from Pixabay

helps fill the demand by retailers that are growing.

What kind of retailers are performing well today?

Jaggi: Value-oriented daily needs retailers are the biggest players today. Places like Dollar General, Burlington, Dollar Tree are aggressive players. Ross Dress for Less is doing well. Retailers that play in that value daily needs space are taking quality space. We are seeing the U.S. consumer looking for ways to stretch their dollars. More players are in that space to meet that demand from consumers.

There is an entire sector of consumers who look for quality products at stores like T.J. Maxx or DSW at a value price. That is a financial demographic that wasn’t nearly as strong 10 or 15 years ago.

How about experiential retail? Is that still in demand?

Jaggi: Every retailer has realized that providing an experience is important. You must give the consumer a better experience, whether you are talking

about a grocery store like Sprouts or a store like T.J. Maxx. Retailers have to give consumers a reason to come into their stores.

We are seeing more retail that combines food with entertainment, such as Punch Bowl Social in Chicago, which combines food with bocce ball, bowling and other entertainment. There are also places like The Color Factory, which provide an immersive art experience.

The U.S. consumer is attracted to those concepts. But for some of these, the verdict is still out on whether they will have long-term success. What we haven’t seen yet is whether these concepts have 10-year legs. We haven’t seen whether these concepts will reach 10 years or not. The true tale will be in 2030 when we see if these retailers will sign extensions. Are they only good concepts for a short period?

Was there anything in JLL’s first quarter retail report that surprised you?

Jaggi: Nothing took us by surprise. The broader comment I’d make, though, is that we can’t take the U.S. consumer for granted. The U.S. consumers can only

take so many negative headlines, so many shocks before they start to retreat a bit. We are in an environment now in which U.S. consumers need some stable news. If consumers feel uneasiness in the marketplace, they will pull back on their spending. The one thing we don’t know is how resilient consumers will be over time in an environment in which you have bad news atop of bad news.

Employment is strong. The labor market feels strong. Wages feel strong. The equities market is back to a healthy level. Yet there is continual talk of whether they’ll be a war or whether we’ll have high tariffs or low tariffs. These things make it hard for consumers to want to shop. Many will look for places where they can find items and not face sticker shock.

Is the threat of tariffs having any impact on retailers?

Jaggi: Tariffs are not slowing retailers yet. But it’s important that we don’t let the headlines distract us from the fact that retail is a long-term outlook business. In the long term, things are good. There is no sense that tariffs will be in place forever. Retailers are saying that

it’s important not to overreact to tariffs.

Retailers learned important lessons during the pandemic. They have diversified their supply chains. They can go from Peru to Bangladesh to Vietnam or China to see where pricing is least exposed to tariffs. That is where retailers are focusing their energy.

When you go shopping, look at the products on the shelves. Look at where they are made. Five, six years ago so much of it would have been made in China. If you look today, it is very diversified. Athletic shoes are still predominantly made in China. Other than that, there is a greater diversification of where products are made. I was in Houston a week ago and I saw Izod polo shirts that were made in Peru.

We were at the ICSC Las Vegas recently. I was pleasantly surprised when talking to people to learn that most retailers are not overreacting to tariff talk. Retailers are not changing their behavior now based on a short-term conversation on tariffs. That was a pleasant outcome, not seeing any overreaction.

Albert Friedman: Bringing new life to Chicago neighborhoods through the power of experiential real estate

By Dan Rafter, Editor

Albert Friedman is a big believer in change. His willingness to evolve has served him well during his long career in commercial real estate, and has led to his company, Friedman Properties, becoming one of the busier property management companies in Chicago, with Friedman owning, managing and leasing more than 50 office, retail, residential and hospitality buildings.

And today? Friedman has embraced experiences. Experiential real estate, he says, brings crowds to neighborhoods, crowds that then shop at nearby retailers and dine at area restaurants. Experiences also create

buzz about a neighborhood, turning it into a destination.

An example? Friedman and his company made headlines earlier this year by bringing Theater of the Mind to River North’s Reid Murdoch Building, one of the properties owned and managed by Friedman Properties.

Theater of the Mind is the immersive theatrical experience co-created by former Talking Heads frontman and famed musician David Byrne and writer Mala Gaonkar.

Friedman says that this theatrical experience is just the latest destination attraction that will bring visitors to

Chicago’s River North neighborhood.

“Cultural activities are so important to a city,” said Friedman, chief executive officer and chairman of Friedman Properties. “People come to the theater and then they stay in the neighborhood. They shop at local retailers and eat at nearby restaurants. Having sports teams and sporting events in a city is important, of course. But the cultural activities are equally as important.”

What is Theater of the Mind?

It’s not easy to describe Theater of the Mind. In a press release, Friedman Properties says that the experience

combines neuroscience with storytelling, presenting the story of Byrne’s life combined with historical and current lab research regarding the brain.

According to Friedman Properties, attendees will participate in sensory experiments as they travel through eight rooms.

Theater of the Mind will be a busy attraction, too. It will feature 140 performances a week and is expected to draw an estimated 100,000 visitors in its first year. Friedman Properties also predicts that it will generate an economic impact of $11.4 million.

Chicago will become only the second

The Reid Murdoch Building. (Photo courtesy of Friedman Properties.)

city to host Theater of the Mind when it opens this fall. The experience debuted in Denver in 2022, where it ran for more than 20 weeks.

Theater of the Mind is scheduled for a far longer run at the Reid Murdoch Building. Friedman plans to make Theater of the Mind a permanent cultural attraction in Chicago. The production is co-produced by Goodman Theater and will fill a 19,000-square-foot space at 333 N. LaSalle St.

Friedman said that experiential retail is an important tool to attract office tenants, retailers and restaurants to a neighborhood.

“Sometimes we want to reflect only on the past,” Friedman said. “We want to try to relive the past over and over again. That doesn’t work. We must think outside the box. That’s how you bring energy to an area.”

Experience with experiences

Bringing in Theater of the Mind isn’t the first time Friedman Properties has filled a space in one of its buildings with what could be considered an unusual tenant. Just look at the iconic Medinah Temple on Chicago’s Near North Side. Today, it houses Bally’s Chicago casino.

This is a temporary location for Bally’s while construction crews are building its permanent casino in Chicago’s River West neighborhood, a casino that is expected to open in 2026. But even with the temporary nature, the casino has provided a jolt of activity to the temple building and has been a strong replacement for the Bloomingdale’s Home Store, which closed its Medinah Temple location in 2020.

“We were wondering what we could do in the Medinah Temple building that would be different,” Friedman said. “Along came the mayor and the city of Chicago asking us about housing Bally’s temporary location. It’s worked out very well. There were a lot of concerns before Bally’s came in. But it has added energy to the neighborhood. It has made the area feel safer. It has brought more people into that part of town. It’s made a positive difference.”

Then there’s the World of Whirlpool Experience Center also in the Reid Murdoch Building. This is a hands-on experience that lets guests explore

and learn how different Whirlpool products work. The space offers workshops and cooking demonstrations and has helped bring additional foot traffic to the building.

“Whirlpool is one of our larger tenants in the Reid Murdoch Building. The chairman of Whirlpool told me that people love to come and work in that building,” Friedman said. “There’s a feeling and energy level there. That is what we are trying to develop. It’s not just about renting an apartment. It’s not just about going out to eat once. It’s about the overall experience when you are in a neighborhood. You want to feel like you are living in a vibrant, pleasurable environment.”

Friedman said that cultural activities and retail experiences are key factors in boosting the vibrancy of a city.

He points to the staggering number of restaurants in Chicago. Why are there so many? People still like to shut off their smartphones and gather with others to eat and swap stories.

It works the same for experiential retail: These attractions provide people with an experience they can’t get online. They also foster community as people gather for a shared experience.

A good example? The Magic Parlour, a magic show in the downstairs area of Petterino’s restaurant at 50 W. Randolph St., another building owned and managed by Friedman Properties. The show has earned strong reviews and steady crowds since opening in the restaurant’s lower level.

And those crowds have benefitted other tenants in the surrounding neighborhood, with the Magic Parlour guests visiting local bars, restaurants and retailers after the show ends.

“Activities like going to the theater are critical to the health of a neighborhood,” Friedman said. “After we did the magic show, the Goodman Theater talked about doing something else. We saw how many people Theater of the Mind was attracting in Denver. We thought that would be the perfect next experience to bring to the neighborhood.”

Experiential retail like Theater of the Mind and the Magic Parlour can be useful tools as companies continue to entice their workers to come back into the office, at least on a part-time basis, Friedman said.

It’s true that modern offices with amenities such as private conference spaces, onsite fitness centers and healthy dining options are attracting more tenants in the Chicago market. It’s true, too, that companies can make a stronger case for persuading their employees to return to the office if their office space offers these amenities.

But companies that operate from an office in the center of a busy neighborhood filled with dining, drinking and entertainment options can also entice their workers back by promoting these walkable amenities.

That combination of in-office and neighborhood amenities can be a powerful tool for companies hoping to bring more workers back to the office.

“Companies have to ask themselves what type of experience they are giving to their employees,” Friedman said. “Are you offering them a feeling of safety and pleasure? Young people want to work somewhere where they can go out to lunch or go out to happy hour after work. This is what we can do. It’s about creating an environment in which young people when they come to work are happy to be there.”

This is important, Friedman says. Companies are missing out when their workers spend too many days working from home.

“Employees get to know one another by coming into the office,” he said. “That’s how you develop that camaraderie. You can’t do that when everyone is working from home and spending their free time staring into their phones.”

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Albert Friedman (Photo courtesy of Friedman Properties.)

OMAHA

Omaha metropolitan area and more than 500,000 in the city of Omaha itself. National studies have ranked Omaha as the top city to relocate to in the United States.

“Omaha is strong,” Dickerson said.

And because Omaha remains strong, so does development activity here. Dickerson said that there is still significant new development activity taking place throughout the Omaha market, though it varies by sector.

Mike Homa, president of the Nebraska division for R&R Realty Group, said that several factors account for the resilience of the Omaha commercial real estate market, including the more conservative nature of developers and lenders here, the steady jobs growth in the Omaha region and the rising population i the area.

But back to that conservative mindset. Just because developers here don’t take huge risks, doesn’t mean that they’re not willing to take some chances, Homa said.

“I don’t want to say that we are completely risk-adverse in Omaha,” Homa said. “We are willing to take some risks. But they are calculated risks.”

An example? R&R built a 180,000-square-foot Class-A office

building fully on spec at 188th and Dodge streets in Omaha, starting construction in 2019. Steel was rising from the ground on this project when COVID shut the city down. And, yes, that did make R&R officials nervous.

But today? That office building is 91% occupied, Homa said, thanks to its location, the quality of its construction and its suite of high-end amenities.

“We leased this space to companies that knew that they were going to bring their workforces back in the office,” Homa said. “We didn’t stop construction once the pandemic hit. We kept plugging away. Four years later, we are essentially fully leasedup. We have an amenities package at this building that sets it apart.”

A booming multifamily sector

The busiest sector for new development today? Dickerson points to multifamily, with some of the new apartment units coming to the city are the result of conversions, most notably more than 600 new units that will come from the conversion of two large downtown Omaha office buildings.

Other new apartment developments are springing up along the route of the new Omaha streetcar system -- that new transit system is slated to open in 2028 -- stretching from the east side of downtown out to 42nd Street to the University of Nebraska Medical Center.

Another multifamily development is taking place on 144th Street between West Dodge Road and Pacific Street in the Heartwood Preserve Development.

Jon Blumenthal, attorney with Omaha’s McGrath North law firm, said that Omaha still boasts steady development activity in its downtown core, suburbs and neighboring cities such as Gretna, Papillion, Bellevue and LaVista. The nearby community of Council Bluffs, Iowa, is also home to plenty of new development, Blumenthal said.

“While multifamily development growth and office leasing have slowed from previous levels, both areas remain steady,” Blumenthal said. “Particularly with respect to multifamily, developers are still completing projects in all areas of Omaha and its surrounding municipalities.”

Mandi Backhaus, associate with Omaha’s The Lerner Company, agreed that the commercial real estate market here remains a strong one.

“As we approach the halfway mark of 2025, we continue to see the Omaha CRE market demonstrate resiliency,” Backhaus said. “There have been multiple developments in the metro area that have gone from a concept, to plans to steel coming out of the ground. Despite the elevated construction costs and interest rates, developers have continued to get creative to push projects forward.”

Kevin Stratman, principal and broker with Omaha’s Investors Realty, agreed that Omaha’s CRE market continues to weather any economic uncertainty facing the country. He pointed to the area’s strong industrial sector, which is seeing sales activity that is tracking closely with 2024 numbers.

And while speculative construction has slowed -- as it has across the country -- Omaha has also seen some major commercial vacancies backfilled. That could lead to an increase in new development soon, Stratman said.

“If that trend continues, I wouldn’t be surprised to see the next wave of new projects kick off by late 2025,” Stratman said.

Investors still eyeing Omaha

There has even been some investment sales activity in the local multifamily market, with Dickerson saying that 16 multifamily properties had sold in the Omaha market this year through April. Most of these sales involved apartment buildings of 20 units or less, though one sold property boasted 186 units and another 258.

Dickerson also cited the Omaha-area industrial market as being strong, both when it comes to demand for space and new construction activity.

“Flex industrial is a tight market,” Dickerson said. “There is a shortage of spaces for small users looking for up to

OMAHA (continued from page 1)

Office properties remain the most challenging spaces in the Omaha market to rent. (Photo courtesy of OMNE Partners.)

2,000 square feet.”

Developers are building smaller flex spaces to help meet this demand. But that doesn’t mean that larger users don’t need space, too. Dickerson said that the Omaha industrial market is attracting a greater number of larger users today, particularly uses in the IT space.

Dickerson said that 23 industrial properties had sold in 2025 through April. But 14 of those sales were to owner/ user buyers.

Homa said that while industrial activity has slowed, demand for high-quality, well-located warehouse space remains solid.

“During the pandemic, people got swept up in the ‘build it and they will lease it while still under construction’ mindset,” Homa said. “That is not the case now. It is taking longer to get these spaces leased up. The overall amount of industrial activity has normalized, which means that the demand in this sector is still good.”

Homa said that if you build a spec warehouse today, it might take 12 to 14 months after construction to lease it. This, he said, is more of a normal leasing pace for the industrial sector here.

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The only major office developments are the new Mutual of Omaha corporate building in downtown Omaha and the Applied Underwriters new headquarters at 144th Street and Pa-

Not surprisingly, office development remains slow in the Omaha market. Large office spaces are still available to lease here, Dickerson said.

Settlers Creek in Papillion, Nebraska. (Photo courtesy of The Lerner Company.)

cific Street in the southwest portion of Omaha.

Like others, Backhaus cited Omaha’s industrial market as being particularly strong today. The Sarpy County submarket has been especially solid, she said.

“Over the last few years, we have seen a great amount of new inventory come out of the ground,” she said. “Often, these buildings are fully leased even before the footings are in.”

Backhaus agreed that multifamily remains strong in the Omaha market, too. Developers have added more multifamily properties than single-family homes in Omaha during the last decade, she said. There is a strong demand, too, in nearby Council Bluffs, Iowa, for new affordable housing.

Retail, too, is thriving here, with Backhaus saying that Class-A retail product boasts low vacancies.

“Retailers continue to think outside the box and be creative just to plant their brick-and-mortar flag in the market,” she said. “We have also seen new retail development, notably in Gretna along Highway 370 and in northwest Omaha along West Maple Road.”

Stratman joined his colleagues in pointing to industrial, retail and multifamily as being the top-performing commercial sectors in Omaha today.

Stratman said that nearly 16 million square feet of industrial space has been added to the Omaha market since 2020, a big increase for a market that totals about 110 million square feet of industrial space overall.

Multifamily continues to expand, too, both downtown and in the suburbs, Stratman said. The urban core is home to a mix of office conversions and new multifamily development along the 3-mile streetcar route between downtown Omaha and the city’s Blackstone District.

“From my industrial lens specifically, the most notable shift since 2020 has been the sharp rise in pricing for existing 10,000-square-foot to 25,000-square-foot buildings,” Stratman said. “We usually see 35 to 40 of those deals a year. In 2020, the average price per square foot was $68.74. Last year? $121.09. That’s a huge jump, driven by a tight supply of industrial land, rising construction costs and steady demand from a growing economy.”

A market that investors and developers love

What makes Omaha such an attractive market for both investors and developers?

Blumenthal said that Omaha remains an attractive market for developers and companies, retailers and other entrepreneurs for several factors, including its reasonable cost of living, multiple Fortune 500 companies, supportive city government and active philanthropic community.

Blumenthal also points to the city’s many world-class attractions, such as the Henry Doorly Zoo and Aquarium, which ranks as the top zoo in the country, for making Omaha a place in which people want to live and work.

And Omaha only continues to grow. The Omaha Airport Authority is overseeing a large upgrade to Omaha’s Eppley Airfield.

“Omaha has wonderful suburbs in all directions and continues to invest in a vibrant core and downtown,” Blumenthal said. “Omaha’s people are honest and hardworking, which attracts investment for both residential and commercial properties.”

Homa points to Omaha’s population growth as another reason for the strength of its CRE market. Now that the population in the Omaha metropolitan area is greater than 1 million, the market is even more attractive to companies that want to open new offices or build warehouses.

“There is a little more visibility to the metro area once you hit that magic million mark in population,” Homa said. “We also have good jobs and diverse industry here. It’s not just agriculture dependent. We have a lot of companies here that focus on technology. Our housing stock is growing. We could use more affordable housing like most major metro areas. But we have a strong multifamily development community that has done a great job keeping up with our population growth.”

Lawrenson from Baird Holm said that a major factor pushing the steady development activity of Omaha is the way in which developers and public officials work together.

Omaha has earned a reputation as a market that is friendly to new development. And that’s partly because public officials here are interested in seeing the city and its surrounding communities continue to grow.

Photo credit: f1monaco31

“Omaha’s attractiveness goes back to its resiliency and Omaha’s strong economy, positive job market and low cost of living and doing business,” Lawrenson said. “In addition, the availability of development through public-private partnerships and Sanitary Improvement Districts is greatly advantageous.”

Dickerson pointed to an economic reason for Omaha’s attraction to companies seeking to expand or set up an initial outpost in this Nebraska city: It’s more affordable to live and raise a family here, especially when compared to the major markets on the coasts.

Omaha is also known as a safe place. There is crime here, of course, but the crime rate is lower than in many other major cities.

“In my opinion, it is our low cost of living compared to other major cities, our strong employment, our central U.S. location, low crime and our healthy and friendly social environment,” Dickerson said.

“It

Backhaus pointed to Omaha’s steady fundamentals, strategic development and strong local backing. These positives give the local market a strength that larger, more speculative markets often lack, Backhaus said.

“With a lower cost of living and doing business, Omaha continues to attract a steady population growth rather than

the boom-and-bust cycles that other metros have experienced,” Backhaus said. “There is a more conservative approach to development that has traditionally allowed vacancy rates to be lower. It has also allowed the local market to avoid overbuilding.”

Stratman said that Omaha also benefits from a diverse economy. The market is home to eight Fortune 1000

companies that span a range of industries. This roster of major corporations includes Union Pacific, Werner, Mutual of Omaha, Valmont, Green Plains, Kiewit and First National Bank.

The University of Nebraska Medical Center and Offutt Air Force Base are also positives for the region, Stratman said, acting as public sector anchors for the Omaha market.

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OMAHA

“The other piece is Omaha’s generally conservative approach to business,” Stratman said. “We tend to avoid the boom-and-bust cycles that hit other markets harder.”

And Dickerson believes that this isn’t going to change. He sees the future as being a bright one in Omaha’s commercial real estate market.

One big reason? The streetcar project, which has spurred a significant amount of development along its route. Another? The Heartland Preserve development south of 144th and West Dodge Road includes plenty of new development including office, retail, restaurants, seniors housing, apartments and single-family residences.

“I hear this all the time from national groups: Omaha’s municipal governments are easy to work with and very business-friendly,” Stratman said. “Combine that with a track record of steady, long-term growth and you’ve got a market that feels stable and predictable. That’s appealing to both investors and developers.”

Development keeps happening

With its many positives, it’s not surprising that several new developments are bringing even more energy to the Omaha region.

This includes the 44-story headquarters building being built in downtown Omaha for Mutual of Omaha. This development will rank as the tallest building between Chicago and Denver.

Koelbel & Company, GreenSlate Development and University of Ne-

braska Medical Center recently collaborated on the development of the 170,000-square-foot Catalyst building, which offers office, meeting and community space in the renovated Omaha Steel Castings plant. The space is designed to encourage researchers and entrepreneurs to explore new healthcare and science discoveries.

“I am excited to see what will come from the new Catalyst development in midtown Omaha,” Lawrenson said. “This area of Omaha was in significant need for new development and a general ‘clean-up’ of aged and dilapidated buildings.”

Omaha North High School and the YMCA of Greater Omaha are partnering on a project to develop a new football stadium for the high school and a new YMCA facility to serve North Omaha.

“Omaha is booming in many respects and in all parts of the city,” Blumenthal said.

Another positive project? Backhaus pointed to the redevelopment of the Gene Leahy Mall in downtown Omaha’s The RiverFront public park. That project has already drawn a larger number of tourists and residents to Omaha’s urban core.

Backhaus is also watching The Crossroads, a mixed-use development that is replacing Omaha’s old indoor Crossroads Mall. The developers behind that project recently announced their first major tenant, Gamescape by Cinemark, a high-end entertainment center.

“Once this project comes together, it will reinforce Omaha’s central submarket and Main-and-Main retail corridor,” Backhaus said.

Stratman cites the Gretna Logistics Park as a standout industrial development.

This project sits off Interstate-80 between Omaha and Lincoln and ranks as the most modern and ambitious industrial park development in the area, Stratman said.

The first building—a 405,600-squarefoot cross-dock facility—was delivered last year and is the largest spec industrial project ever built in the Omaha market. Another 120 acres are ready for future development here.

“As e-commerce continues to expand, this corridor will only become more attractive for companies serving Omaha, Lincoln, central Nebraska, South Dakota and western Iowa,” Stratman said.

Challenges remain

This doesn’t mean that the Omaha CRE market doesn’t face challenges. Dickerson said that interest rates remain high, something that is slowing investment sales even in this strong market. Asking prices for many commercial properties remain too high, too, he said.

“Asking prices are too high for the current economic conditions,” Dickerson said. “Prior to the pandemic, capitalization rates fell to a low level, causing sales prices to rise to the benefit of sellers. Those who purchased investment properties during that period cannot sell their properties for the higher prices they paid due to interest rates going back to normal and cap rates going back up to historical levels.”

Dickerson says that the Federal Reserve Board held its benchmark rate too low for too long. Now that rates are higher, buyers and sellers are still struggling to agree on what prices properties should fetch.

“That period of low rates is over,” Dickerson said. “We are now back to more normal lending rates, which necessi-

Mandi Backhouse (Photo courtesy of The Lerner Company.)

Jon Blumenthal (Photo courtesy of McGrath North.)

John Dickerson (Photo courtesy of OMNE Partners.)

tates the raising of cap rates to create an acceptable and doable return on investment.”

Blumenthal added that Omaha officials and developers need to address the aging retail centers that dot parts of the city. These properties need attention, renovation and thoughtful rehab and redevelopment, he said.

Blumenthal said that the tax burden at the state level also remains too high.

“The state still needs to create more

tax and development incentives to welcome and spur growth,” he said.

Stratman said that infrastructure remains Omaha’s biggest challenge.

“For a long time, it was newer capacity, especially in suburban Sarpy County,” Stratman said. “That issue is finally being addressed with a new mainline extension that will unlock tens of thousands of acres in the southern part of the county. But there is still a few years of work ahead.”

In addition, Omaha, like many markets,

faces challenges in getting enough power to new sites, Stratman said.

“Which makes it harder to deliver projects that meet today’s industrial demands,” he said.

Backhaus said that Omaha also faces a shortage of commercial real estate inventory.

“Top-class assets or strong positioned properties in the Omaha area are in high demand and don’t hit the market very often,” Backhaus said. “Developers are having to be very strategic with the

pieces of real estate they choose to pursue. Deals are still getting done, but the timeline can be quite a bit slower than it was five years ago.”

And some of the challenges that Omaha faces? They are little different than the hurdles other major U.S. cities have to overcome.

“The challenges faced in Omaha are the same as those faced across the country,” Lawrenson said. “High interest rates, availability of skilled laborers, inflated construction costs and inflated purchase prices.”

But overall? The brokers and developers working in this market say that Omaha remains a top destination for businesses looking to expand.

“Omaha remains a friendly environment in which to do business,” Homa said. “The Chamber of Commerce and the business community in general embrace new businesses and do everything they can to help them land on their feet successfully. Omaha is an affordable market for employees, too. It’s a good way of life here.”

Amy Lawrenson. (Photo courtesy of Baird Holm.)

Mike Homa (Photo courtesy of R&R Realty Group.

Kevin Stratman (Photo courtesy of Investors Realty.)

DETROIT

do this? Amelia Patt-Zamir, who along with Rakesh “Rocky” Lala co-founded the company, said that Method Development relies on technology that keeps it nimble and focuses on identifying the right adaptive-reuse projects, ones that Method knows will not only attract a steady stream of tenants but will also bring new energy into often-struggling Detroit neighborhoods.

And for the last decade? This approach has worked. Method Development has carved its own niche while helping to fuel Detroit’s commercial revitalization.

“Our bread and butter have always been adaptive reuse projects,” said Patt-Zamir, co-founder and principal of Method Development. “I’ve always thought that the greenest buildings are the ones that already exist. I do

think that Detroit is positioning itself as a city of the future. Sustainability is key when you are looking to the future.”

But how to make a mark in this space when you are competing with far larger developers? That’s where technology comes in.

The tech advantage

Method Development relies heavily on the real estate development management software developed by Brooklyn-based tech company Northspyre.

With this software, Method can optimize its pipeline, scale its operations and compete with Detroit’s bigger developers.

“There is only a handful of Gilberts and Fords,” Patt-Zamir said. “How do emerging developers play at the same scale when they don’t have access to

the same technology that those bigger companies have?”

The emergence of proptech, and companies such as Northspyre, have provided a boost to companies such as Method, Patt-Zamir said. Method employees use Northspyre’s management software to track budgets, set schedules and streamline project timelines.

“As an emerging developer, your software options are basically Excel and Google Sheets,” Patt-Zamir said. “Having access to a cloud-based program that streamlines all our invoicing and budgeting is a big benefit. It’s a budgeting software program that you can update live, rather than a static Excel sheet.”

As Patt-Zamir says, Excel doesn’t have a scheduling tool or a built-in inbox. Northspyre’s software does.

“Our controller can go in, approve an invoice and put it into a draw schedule,” Patt-Zamir said. “Our software acts as a command center for us. It has allowed us to streamline the backof-the-house to help create a nimble company that can compete against bigger companies even if we don’t have a huge accounting department.”

Big projects

Armed with tech and skilled employ-

DETROIT (continued from page 1)

Amelia Patt-Zamir (Photo courtesy of Raj Mehta Photography.)

The interior of one of the residences in the Detroit Design District Lofts. (Photo courtesy of Method Development.)

DETROIT

ees, Method Development since its founding a decade ago has not hesitated to make an impact in Detroit, taking on several big projects during its relatively short history.

One of the most important? The Detroit Design District Lofts at 2857 E. Grand Blvd. in the heart of the Detroit Design District, a neighborhood made up of some of the city’s most creative businesses.

The loft building was once home to the Maurice Fox Ford Sales and Service Station. The new development consists of a single-story 5,700-squarefoot building and a three-story 24,700-square-foot property.

Floors two and three of this second building are home to the Detroit Design District Lofts, 18 industrial-style residential lofts. The lofts are a mix of studio, one- and two-bedroom apartments. The property also boasts ground-floor retail.

Method Development is also converting the Kaul Glove Building at 1441 Brooklyn St. in Detroit’s Corktown neighborhood. The 20,000-squarefoot four-story building once served as the home of the Kaul Glove company, which manufactured gloves that were distributed to automotive companies.

Method is partnering with Civic Companies to redevelop the building into a boutique office space.

In 2023, Method Development began the reactivation, too, of The Merchants Building at 206 E. Grand River Ave. in downtown Detroit. Method plans to convert the 1922 building, which has been vacant for decades, into a boutique hotel featuring a rooftop bar.

Patt-Zamir said that she and her fellow Method Development staffers are equally passionate about all of their projects. Patt-Zamir, though, points to the Detroit Design District Lofts in the city’s Milwaukee Junction neighborhood as one that has already made a positive impact on its surrounding neighborhood.

“When you talk about Detroit being the arsenal of democracy, the industrial heartland of the nation, that is the Milwaukee Junction neighborhood you are talking about,” she said. “That history is what drew me and my

partner to this neighborhood when we moved back to Detroit.”

Patt-Zamir said that artists are now living in the industrial buildings in this district. Trendy restaurants have moved into the area. Retailers have followed.

“We have been at the forefront of reestablishing a neighborhood,” Patt-Zamir said. “Our role wasn’t only about completing an adaptive reuse. It was also about working with the community. We worked closely with the Vanguard Community Develop-

“You have to make sure that you are bringing the community along,” Patt-Zamir said. “You do not want to replace the community. That’s what’s been so rewarding about the Detroit Design District Lofts. It has made a positive impact on this area.”

The Merchants Building is the largest project that Method Development has taken on to date. This conversion will also serve a need in Detroit. The city’s urban core needs more hotel rooms. Once this project is complete, it will add 120 more to the city’s stock.

Method hopes, too, to make the first floor of The Merchants Building accessible to the public, offering a lobby that includes retail and other uses that will bring more energy to the neighborhood.

“Our vision for the hotel is to create a lively ground floor so that people feel there is a reason to go there for a work lunch or a break in their day even if they are not staying in the hotel,” Patt-Zamir said.

Patt-Zamir says that she is excited to see the revitalization taking place now across Detroit.

She grew up in the metropolitan Detroit area before moving to New York City, where she began her career at JLL in its Capital Markets Group. During her time here, Patt-Zamir’s team originated nearly $1 billion commercial real estate debt and equity financing.

Patt-Zamir later joined the acquisitions team at Clarion Partners, where she managed the underwriting and due diligence for the closing and financing of nearly $500 million across 2 million square feet of residential, retail and office developments.

ment organization here to make sure that everything we were doing was in tune with what the neighborhood wanted.”

The key to a successful adaptive reuse? It’s what happened in the Milwaukee Junction neighborhood, PattZamir said.

Developers can’t just transform a building according to their own vision. They must first make sure that the conversion is also something that the community supports and wants, too.

But Detroit kept pulling at her. And she made the decision to return to the Detroit area with business partner Lala to form a company that could help fuel Detroit’s rebirth.

“We were talking about returning to Detroit when we realized that the revitalization of the area was already taking place. If we didn’t act quickly, we would miss out,” Patt-Zamir said.

“It is so exciting to see what is happening in Detroit now. And it’s exciting to be part of it.”

The fourth floor of the under-renovation Kaul Glove building in Detroit. (Photo courtesy of Method Development.)

The Merchants Building in downtown Detroit. (Photo courtesy of Kramer Design Group.)

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Paving the way for the future generation of leaders: Murnane stepping down as head of Minneapolis’ Opus

By Dan Rafter, Editor

It’s time to let the next generation of leadership step up. That’s why Tim Murnane, the long-time president and chief executive officer of Minnetonka, Minnesota-based Opus, announced his retirement late last month.

Murnane, who will have served 15 years in his leadership role as of the date of his retirement, said that Opus, one of the busiest development, design and construction companies in the Minneapolis area, boasts a talented roster of talent. It was time to tap these professionals to lead the firm, he said.

“At Opus, we’ve always focused on succession planning and making sure we have great leaders identified early on. We’ve always provided these leaders with the tools and resources that they need,” Murnane said. “There’s nothing magical about having a 15year term. But that is a long time for a CEO. It’s the right time for me to retire personally and the right time to let the next generation of leaders come up.”

One of those leaders? Matt Rauenhorst, who currently serves as president and chief executive officer of Opus Development Company. The members of Opus’ board of directors selected Rauenhorst to fill Murnane’s role as president and chief executive officer of Opus once Murnane leaves the post.

That won’t be coming too soon. Murnane will work in his current role through the end of 2026. This means that when this industry veteran retires, he will have spent 38 years at Opus and 46 years in the commercial real estate industry.

Phil Cattanach, formerly of Opus, will return to the company to take over the role of president and chief executive officer of Opus Development Company upon Rauenhorst’s move to his new role.

Murnane said that Rauenhorst is the right person to take over his role. Murnane said that Opus began considering people to fill the role of chief executive officer and president five-and-a-half years ago. This included hiring an outside consultant to evaluate the options.

The consensus? Rauenhorst was the best person for the job.

“I have worked with Matt for more than 20 years. I’ve gotten to see him grow as a leader,” Murnane said. “Matt was the successor who made the most sense. Matt is ready for this position.”

Rauenhorst said that he appreciates the opportunity to work with Murnane during the next 18 months to learn the intricacies of the job he’ll be taking over.

“I appreciate the thoughtfulness that went into this decision,” Rauenhorst said. “What an incredible opportunity and gift to have that overlap with Tim of 18 months. That is a great benefit for me and for Opus. This is a longer transition than you’d normally see. But it will benefit the overall organization.”

Rauenhorst is happy, too, to see Cattanach return to Opus. Rauenhorst said that Cattanach, too, is a talented leader and developer, and his return will provide another boost to Opus.

Continuity

The succession plan continues Opus’ long history of retaining its talented workers for many years. Murnane might log 38 years with the company by the time he retires. But that won’t even make him the longest tenured employee at the company. There are some employees who have worked for the company for more than four decades.

Timothy Murnane (Photo courtesy of Opus.)

Matt Rauenhorst (Photo courtesy of Opus.)

Opus has unveiled plans for a new headquarters building that will rise in Edina, Minnesota. (Photo courtesy of Opus.)

Murnane said that Opus has always given talented people the chance to build a great career.

“That’s one of the things that’s so special about the culture here,” Murnane said. “The leaders at Opus have always believed in giving smart people the chance to succeed or fail. That is empowering to an associate, especially someone who is, say, 25 or 26. They are given a tremendous amount of authority and responsibility to run a project. That is empowering, and it inspires people to stay with us.

“It’s not just a job here,” Murnane said. “People appreciate the culture and core values that our founder embedded here.”

As Rauenhorst says, commercial real estate is a cyclical business. This means that Opus’ business strategies must evolve over time to meet the challenges of working in this field.

But what doesn’t change? Opus’ core values.

“Who we are, our culture and core values have been consistent for 70plus years,” Rauenhorst said. “Tim has been powerful in helping to lead that. Innovation, safety and leadership are key components of our culture. Our associates want to be here for a long time. They feel good about the organization in which they are working.”

Long-term success

Gerald Rauenhorst founded Opus, originally named Rauenhorst Construction Company, in 1953. That means that Opus has been a fixture in the Twin Cities area for more than 70 years.

Opus has gone through a lot of up and down commercial real estate cycles. How has the company managed to thrive for so long?

Murnane said that Opus’ leaders have long spotted opportunities early in new cycles. This was evident during the recession of 2008 and 2009, a time in which every commercial real estate firm was hit hard.

Opus’ leaders rebuilt the company following this recession, focusing on providing the top customer service and building the highest-quality properties. The company also expanded into new geographic markets.

Opus has also been nimble enough to focus on commercial sectors that are thriving. In the 1990s and 2000s, Opus became one of the biggest developers of office properties. The company also built plenty of retail when that sector was growing.

During the last 15 years? Opus has focused on the industrial and multifamily markets, both sectors that have been booming during this time.

Opus restructured in 2010. The company kept its high-performing Midwest offices but added locations in higher-growth markets such as Phoenix, Denver and Austin, Texas.

“The strategy has been to stay focused on the primary products that we are most experienced in – industrial and multifamily – and focus on geographic markets that are providing the biggest opportunities for growth,” Murnane said. “It’s about building in a slow, methodical way.”

Rauenhorst said that another reason for Opus’ success has been the quality of the company’s work.

“The big institutional owners of real estate, whenever they buy buildings from us, they say that Opus has a brand that stands for high quality,” Rauenhorst said. “Whether it’s multifamily, industrial, office or retail, our team has consistently delivered high-quality buildings. That’s a differentiator for our band and part of our long-term success.”

Opus also not only survived COVID but thrived during the pandemic. Part of that was because of the boom in demand for industrial space. Opus was well-positioned to deliver that space for its clients.

Murnane also credited the long-term planning of Opus’ leaders. These leaders had developed a strategic growth plan before COVID. Following the tenants of that plan helped the company navigate the challenges of the pandemic.

“We couldn’t have predicted COVID, but we were fortunate that we had done some planning,” Murnane said. “We were ready to make cuts to expenses. We didn’t hire as many people

as we might otherwise have added. We had a road map that helped us anticipate changes in business. Nothing ever goes completely according to plan in commercial development. You need to be responsive, nimble and smart.”

Opus is now planning a new headquarters office in the Twin Cities suburb of Edina. Opus will fill a portion of this new five-story, 112,000-square-foot office building. The building will be a high-quality one with modern finishes and amenities.

“We are fired up about this at Opus,” Rauenhorst said. “It is an incredible site, and we can deliver an A-plus building in a market that needs it. It will be Opus’ future home, but this is a market-driven development. The demand side for Class-A, well-located suburban office is strong. Our site responds well to that demand. We think it will be a well-received building that sets a new bar for what in a postCOVID world a Class-A office building should look like.”

Opus is building an engineering and product development facility for BAE Systems in Maple Grove, Minnesota. (Photo courtesy of Opus.)

Apartments.com: Chicago remains one of the most expensive cities to rent an apartment

By Dan Rafter, Editor

The Chicago multifamily market remains a strong one, with the average monthly rent here standing at $1,939 a month as of May, according to the latest Chicago Rental Market Trends report released by Apartments.com.

How strong is the local apartment market? Apartments.com reported that Chicago’s average monthly rent as of May is 19% higher than the average U.S. national monthly rent of $1,624 a month. To put that in perspective, the average apartment renter in Chicago pays $3,780 extra in rent payments over a year when compared to the national average.

And there is no sign of rents falling here anytime soon. Apartments.com

reported that the average monthly apartment rent in Chicago jumped 3.7% in May when compared to the same month a year ago. That increase means that the average Chicago tenant is paying $73 more each month in rent.

This high average rent puts a financial strain on many Chicago tenants. According to Apartments.com, Chicago residents must make about $6,463 a month or $77,556 a year to afford the average apartment rent in the city.

That’s a problem when you consider that the median annual income in Chicago in 2023 -- the last year this data is available for -- stood at $75,134. This means that for many Chicagoans, it’s a financial challenge to afford the city’s average apartment rent.

How much renters pay in Chicago does vary by the type of unit they are renting.

According to Apartments.com, the average studio apartment in Chicago rented for $1,565 a month as of May and included 440 square feet of living space. That amount jumped to an average of $1,952 for a one-bedroom unit averaging 660 square feet and $2,468 a month for a two-bedroom unit averaging 918 square feet.

Chicago renters paid an average of $2,924 a month in May for a three-bedroom apartment unit averaging 1,172 square feet.

Certain neighborhoods are more affordable than others, of course. Apartments.com reported that the

average apartment rent in the city’s Lower West Side stood at $1,239 a month in May, making it the most affordable rental neighborhood in the city.

On the opposite end of the scale is the Fulton River District, where average apartment rents hit $3,954 a month in May, making this the most expensive neighborhood in Chicago in which to rent.

Other expensive rental neighborhoods in the city include the Near East Side, where renters can expect to pay an average of $3,942 a month; Greektown, an average of $3,813 a month; and Lake Shore East, an average of $3,783 a month.

Image by Denise Husted from Pixabay.

Interra Realty report: Suburban multifamily sales soar in both number and volume in Chicago market

By Dan Rafter, Editor

The number of multifamily sales and the total dollar volume of these transactions soared in the Chicago suburbs during the first quarter of this year, according to the latest research from Interra Realty.

Interra Realty, a Chicago-based commercial real estate investment services firm, recently released its first quarter 2025 Suburban Chicago Multifamily Sales report. Among other findings, the firm reported a 69% year-over-year increase in the total dollar volume of multifamily transactions in the suburban Chicago market during the first three months of the year. Interra also reported a 65% year-over-year increase in the number of deals closed.

Data was collected by Interra’s suburban multifamily investment team of Managing Partner Patrick Kennelly, Managing Partner Paul Waterloo, Associate Nathan Zito and Associate Andrew Stassi. Covering the 12-month period ending in March 2025, the report tracked all multifamily sales in Chicago’s suburbs between $1 million and $50 million.

Interra recorded 53 apartment building sales over the course of the year, compared with 32 deals one year prior, a 65% increase. Total sales volume also increased 69% during that time, with $228.26 million from March 2024 through March 2025 versus $134.55 million a year earlier.

Cook County represented the majority of sales with 31; there were eight transactions in DuPage County and fewer than five deals each in Kane, Kendall, Lake, McHenry and Will counties.

Across all sales tracked by Interra, the average price per unit grew by 18% year over year, rising to $142,935 from $120,349. Investors were drawn to a spectrum of property types, includ-

“There is very little new product coming online in the suburbs, which helps push rents and increase competition among buyers.”

ing well-maintained and stabilized buildings, value-add assets and, when available, newly built developments.

“These numbers reflect mounting investor demand for apartment buildings in Chicago’s suburbs, where strong rent growth and lower entry costs compared to the city are boosting returns,” said Waterloo. “In many cases, they are able to secure more

attractive cap rates than what is available at urban core properties.”

The Chicago suburbs saw renewed interest from out-of-state capital. There were 10 transactions involving a non-local buyer in the most recent 12 months, compared to only three the prior year.

Interra’s data also showed momen-

tum for large-scale deals. There were seven transactions in the $10 million to $50 million range during the first quarter of 2025 alone, compared to just 13 such deals in all of 2024.

“There is very little new product coming online in the suburbs, which helps push rents and increase competition among buyers,” said Waterloo. “Investors also like the stability of suburban assets, viewing them as more resistant to market fluctuations.”

Interra closed a number of suburban transactions in the past 12 months. These include the $8.4 million sale of Liberty Square Flats, an 18-unit community in Wheaton; the $7.77 million sale of Sunset Village, an 84unit multifamily property in Waukegan; the $6.95 million sale of Lorraine Court Apartments, a 44-unit property in Wheaton; and the $4.29 million sale of a five-building, 30-unit multifamily portfolio in Mount Prospect.

Liberty Square Flats in Wheaton, Illinois. (Photo courtesy of Interra Realty.)

Multifamily finance in a volatile market

By Mark Reichter, Principal, Gantry

In an era of extended volatility and disrupted economic norms, multifamily continues to hold its position as the top asset class for commercial real estate investment.

Strong fundamentals are expected to continue to drive robust performance even in these uncertain times, especially as economic conditions slow the flow of the single-family home sector. Rental housing demand continues to outpace supply, and vacancies remain healthy in most if not all national markets. Even where rents have softened, they are holding at or dipping from recent highs. Expect rental housing to maintain these strengths for the foreseeable future.

Fundamentals remain strong, but

regardless of how encouraging the fundamentals are, finance and rates are now having an outsized impact on multifamily investments. The initial shock of a higher rate climate put many trades on hold and have challenged refinancing at even performing assets. This is changing as the market has adjusted to the new higher cost of capital, and valuations are aligning to this new rate climate. Still, cap rates remain tight making loan optimization critical to any successful transaction.

With financing being the key to unlocking new investments or retiring pending maturities, looking at the relevant debt providers is a necessary exercise for me with clients every day. Debt liquidity is substantial. Anyone transacting

in today’s market should be looking to survey the full competitive marketplace to identify the best source amongst a myriad of providers and programs. Here is an overview of these options.

Permanent Loans

The top sources for permanent multifamily loans in the current cycle continue to be life companies and the agencies. Banks may be a little better on rate, but most continue to require recourse, performance covenants, and depositor relationships that make their loans far less appealing. Life co’s and agencies almost exclusively offer non-recourse programs tied to asset value with little to no performance terms beyond timely payment.

In this volatile rate climate, life company willingness to lock rate at application and hold for up to 180 days in some cases is invaluable for strategic planning on complicated investments or refinances riding out prepayment penalties for approaching maturities. If a rate works now, lock it, move forward, and take volatility out of the equation. They also feature a streamlined underwriting process once they have a loan under contract for certainty of close. Spreads have widened against corporate bonds, but they remain competitive on rates commensurate with their competitors. These lenders tend to be more conservative than other sources which can limit proceeds, and DSCR will play the greatest role in defining an ultimate LTV. Still their stability, consis-

Image by Pexels from Pixabay.

tency and attentive servicing through maturity make them a gold standard in the lending space.

Agencies, especially with repeat borrowers, can rate lock early in the process albeit for a shorter time frame than life co’s, but still have a lag from the initial application period. They are by far the most active in pursuing new originations and highly competitive on rate with lower spreads and clearly defined terms. You most likely will not have a rate locked until at least receiving an approved appraisal. However, with loans being more constrained in this market by DSCR, agencies are also able to provide greater reach on this front. Their underwriting process is pretty straight forward and their spreads have tightened significantly since the start of the year. Servicing is far less flexible if challenges emerge, but straight forward in expectations.

For projects seeking to maximize leverage, CMBS is also a strong consideration but remains most challenged by current rate volatility. Since CMBS loans do not lock rate until the day of closing, pricing and proceeds can remain a moving target throughout the process. However, full-term interest only and their ability to climb higher into the capital stack by stretching DSCR targets can make them a compelling option for projects struggling to retire a pending low-rate maturity in a higher for longer rate climate. CMBS also offers the least flexible servicing structure.

Bridge Options

For value-add acquisitions or projects still in transition, there is an active bridge loan marketplace that includes life companies, banks and debt funds. These sources are all seeking yield. Debt funds are mostly non-recourse, tend to offer greater flexibility, but ultimately will charge higher rates accordingly. Banks are competitive on rate but are almost always a recourse-driven option. Life companies will be more conservative on leverage and terms, but extremely competitive on rate and are mostly a non-recourse execution. Bridge to bridge refinancing is available from all these sources.

Banks and life companies will be as focused on sponsor experience and business plan alongside underlying asset value, where debt funds will be more focused on business plan and exit strategy during their underwriting. Which source is best for a project will

be dictated by sponsor equity capacity, debt service bandwidth, and hold or sell exit plans.

Core Plus

A unique offering that has emerged as life companies began seeking higher yields in the era of low interest rates that preceded the current cycle is the pre-stabilized permanent loan. These structures are best suited for retiring maturing construction loans on recently completed projects where leasing has yet to hit stabilization targets but is trending in that direction. These longterm loans are underwritten to future performance expectations, often underwritten with structure as well as an upfront interest only period to maximize early cash flows. Expect a spread premium of 15bps-50bps, depending on the overall deal, with fixed and floating rate options available. These loans can be placed when occupancy is between 6080% as long as leasing momentum and market fundamentals point to ultimate stabilization at the asset.

Construction Loans

Banks remain active in their traditional role as a highly competitive source for construction financing. Debt funds are also a ready vehicle for construction financing and will probably remain the most flexible source in customizing their programs to exceptions and not just rules. Life companies are well known for their construction-to-permanent loan programs, which are still a viable consideration mainly for large scale, class A projects. However, the real challenge for any project sponsor and any lender underwriting in today’s volatile market is accurately assessing and aligning project loan to cost. In a chaotic policy and economic environment affecting every aspect of new construction, from labor availability to materials

“Banks remain active in their traditional role as a highly competitive source for construction financing.”

costs, arriving at stabilized performance projections and realistic proformas has become a challenge. Expect that while liquidity is abundant, underwriting will be stringent with any lender.

The Consistent Constant

Every asset will tell a different story and require a different lender for a program tailored to provide maximum return on investment. The one constant that has remained consistent throughout this period of volatility is the abundance of liquidity that remains in the capital mar-

kets for commercial real estate lending. This means that in an era where most investors have lost their go-to banking relationship to the challenges of the economic cycle, identifying alternative lenders will be a paramount consideration to optimize debt structures. The best plan in the current cycle is to start early, deploy an expert with a wide market awareness to leave no stone unturned, and know your limits.

Mark Reichter is principal at the Kansas City, Missouri, office of commercial banker Gantry.

Our experts have orchestrated over $57 billion in sales since 2021, serving as trusted partners dedicated to your long-term success.

Mark Reichter (Photo courtesy of Gantry.)

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Constantly evolving: Senior living sector continues to adapt to meet residents’ needs

By Johnny Dagher, Baker Barrios

The month of May marks the annual observance of Older Americans Month, highlighting, among other things, the changing trends in aging. The senior living sector of CRE is one of the industries most impacted by these trends, which has been heavily influenced by not only changing attitudes toward aging and long-term care, but also by the significant demand brought about by the growing 75+ population.

For these reasons, developers and investors alike have increased interest in senior living, and the sector is well-positioned for success given demand will outpace supply for the foreseeable future. That said, there is a clear difference in the performance of older facilities that haven’t been developed to today’s standards and the modern properties designed for this generation of older Americans who have their own idea of what it means to age. The following design and development trends are five ex-

amples of the types of facilities and features that are in demand today.

Hospitality Influence

Senior living communities have been significantly influenced by the hospitality industry, as Boomers seek properties that focus on lifestyle. Gone are the institutional spaces of the past, replaced with designs more reflective of a high-end hotel or multifamily property. Hospital-grade materials are replaced with equally hygienic but

more attractive options like granite and antimicrobial upholstery, while oversized windows and wider hallways offer a more residential feeling. Even the amenities can impart a hotel-like experience with swimming pools, a salon or spa, and club-style dining options.

Wellness

Across the real estate industry, wellness is a prolific trend, and senior living is no exception. Features and

Image by freepik.

amenities that promote mental and physical wellbeing and overall quality of life are in high demand. Biophilic design elements that harness the positive effects of nature and daylight to improve mood and cognitive function, as well as outdoor walking paths and sitting areas for even greater connection to the outdoors, are very popular, as are health clubstyle amenities that focus on physical wellness. Amenities that foster a sense of connection which is shown to have a beneficial impact on one’s quality of life are also very popular. These include lounges and libraries, “pub” rooms and even maker spaces, which not only appeal to senior living residents but also to their visiting children and grandchildren.

Adaptive Reuse

Because of the cost and availability of land, adaptive reuse of existing buildings into senior living facilities is a trend that will continue to grow. This approach offers numerous benefits ranging from reduced construction costs to securing more desirable infill locations. Numerous building types lend themselves to adaptive

reuse for senior living, such as hotels, schools, offices and certain historic properties, which are especially popular due to the unique architectural details often found in such buildings. Partnering with a knowledgeable senior living architect from the start is key to a successful adaptive reuse, though, because of the specialized nature of the building codes and requirement for such facilities. Not every property will have the ‘bones” to make it a good fit.

Hybrid Design

One of the challenges in designing and developing senior housing is meeting the ever-evolving needs of the market. One solution Baker Barrios has presented to our clients is the concept of hybrid design. This means creating a community targeting the current demand for independent living, but built with a future-focused perspective to more easily update the facility for assisted living as the market shifts. This means incorporating the building standards and codes that would be required of an assisted living facility from the start, rather than attempting to retrofit or modify later. The architectural plans can also include a ready-made path for a future addition to expand a community from independent living to a CCRC.

Integrated Technology

Not only is the current generation of older Americans the most tech-savvy 65+ demographic in history, tech advances are also changing the way they receive care. As a result, today’s senior living communities have a level of integrated technology not seen in older properties.

Technology provides security for the facility and its residents, allows for more efficient communication among care providers, can save money on utilities with Smart lighting and thermostats, and even anticipate resident needs through predictive behavior analysis through AI. Buildings must be designed to support this state-of-the-art technology with the appropriate built-in elements and high-speed Wifi.

The U.S. population age 80 and above is projected to grow by 35.5 percent over the next decade, according to Census data — from 14 million to 19 million. This emphasizes the longterm demand for senior housing. And as the sector continues to flourish, more developers are entering the space and more investors consider the assets a smart addition to portfolios, so staying abreast of the ever-changing trends in the industry is more important than ever.

Johnny Dagher is principal and director of senior living for architecture firm Baker Barrios

Johnny Dagher (Photo courtesy of Baker Barrios.)

Sustainability investments reap multiple benefits for owner-operators

By Joi Harrell, General Manager of Urban Innovations

It’s possible for older buildings to become as energy efficient as new buildings that were built with that goal in mind. Retrofitting older commercial properties takes effort, but it can pay off in improved longevity and sustainability of the building, improved wellness for tenants, and energy savings for the property owner. Urban Innovations recently earned ENERGY STAR® certification for HUB640, a historic downtown Milwaukee property, and shared some best practices for owner-operators looking to enhance sustainability in their commercial buildings.

ENERGY STAR certification is awarded by the U.S. Environmental Protection Agency (EPA) for exceptional energy performance. ENERGY STAR-certified buildings rank among the top 25%

in the nation for energy efficiency, based on key performance factors like occupancy, operating hours, and overall energy use. Unlike other green certifications, ENERGY STAR is the only energy efficiency certification in the United States that is based on actual, verified energy performance.

Here are some key areas for property managers to prioritize investments.

Energy Efficiency Upgrades

• Transition from older fluorescent fixtures to LED fixtures and motion sensors to reduce energy costs and extend bulb lifespan.

• Optimize HVAC systems to improve air quality, lower energy consumption, and reduce maintenance costs.

• Implement smart building automation systems that use sensors (and AI on some models) to adjust lighting, heating, and cooling based on occupancy – so energy is not used when it’s not needed.

Water Conservation Strategies

• Install low-flow fixtures and touchless faucets and dispensers to minimize water/energy usage.

• Install common area water bottle fillers to encourage refillable bottle use and reduce plastic waste.

Sustainable Materials

• Use eco-friendly and recycled construction materials during renovations.

• Update all exterior enclosures to keep cold or hot air out as people enter and exit the building.

• Retrofit systems as they become outdated.

• Install reflective roofing materials to help cool buildings and reduce energy usage during hotter months.

Additional upgrades can be focused on the health and wellness of building occupants, by improving environmental and maintenance practices and offering special amenities.

Air Quality Enhancements

Urban Innovations has implemented needlepoint bipolar ionization (NPBI), a state-of-the-art air filtration sys-

Image by jeswin on Freepik.

tem to improve indoor air quality by releasing charged ions that attach to airborne particles like viruses, bacteria. and allergens making them easier to filter out. NPBI also neutralizes mold, VOCs, and pathogens, leading to better occupant health and productivity. The system also reduces HVAC demand by minimizing the need for excessive outdoor air intake, easing system strain and extends its useful life.

Cleaning and Waste Management

Property managers can provide tenant recycling programs, composting, and battery recycling, as well as year-round e-waste disposal services to tenants. Maintenance staff can be required to use greener or low-fume cleaning products.

Sustainable Transportation & Mobility Solutions

Owners can encourage and support environmentally conscious choices by building tenants. These efforts can include installing EV charging stations, offering bike storage to promote alternative transit options, and provid-

ing commuter incentives to promote ridesharing.

Nature-based Solutions

At its Chicago building 325 West Huron, Urban Innovations started a bee program and host regular educational workshops to support urban biodiversity and engage the community with nature. The building proudly hosts a hive with thousands of hard-working honeybees that pollinate the neighborhood.

Other natural amenities can include rooftop gardens that help reduce the urban heat island affect and support stormwater management, and install interior “living walls” or other plant installations that benefit air quality.

Why It Matters to Owner-Operators

While sustainable renovations require upfront investment, over time they can lower operational expenses and improve net operating income. Additionally, they can help tenant companies meet their ESG or net zero commitments. In some locations, they drive compliance with local and regional benchmarking standards. For example, the city of Chicago enforces strict energy and carbon reduction mandates, including the Chicago Energy Benchmarking Ordinance which requires commercial buildings over 50,000 sq. ft. to track whole-building energy use, report annually, and verify data accuracy through a third party every three years.

How to Fund Sustainability Improvements

Retrofitting older buildings to be

environmentally sound and energy efficient can be a costly undertaking. Starting renovations requires capital planning and budgeting. Owner-operators should explore all applicable utility rebates and tax incentives, as well as green financing options. Another funding avenue is tenant cost-sharing – either through operating expenses or requiring green initiative participation through tenant leases. Once initial efficiency projects are producing cost savings, plan to reinvest in additional measures.

Overall, committing to sustainability and achieving standards such as ENERGY STAR certification increases asset value while its improves the experience of building tenants – a win-win. Owners reap the benefits of higher occupancy rates, stronger resale values, and greater appeal to investors.

Joi Harrell is general manager of Chicago’s Urban Innovations.

Joi Harrell (Photo courtesy of Urban Innovations.)

How tariffs are reshaping the industrial investment landscape and where opportunity lies for institutional capital

By MaCauley Studdard, Managing Director at ElmTree Funds

Tariffs, trade policy, and geopolitical negotiations remain top of mind for investors as we approach the midpoint of the year. Given that negotiations are rapidly evolving and ongoing, predicting the potential impact on the macroeconomy and individual sectors, such as industrial real estate, with complete certainty is challenging at this time.

With that said, looking at previous periods of trade disruption can serve as a helpful guide. At the onset of the COVID-19 pandemic, industrial real estate initially faced headwinds as tenants and investors worked through the dynamic changes to the economy and the supply chain environment. However, over time, the trade disruptions in that period proved to be a tailwind for the sector as companies invested in their domestic supply chains to prevent similar supply chain shocks moving forward.

Today, even as tariffs are creating uncertainty, the industrial sector is undergoing a structural transformation driven by secular growth trends including growing e-commerce sales, the adoption of automation and robotics, and the onshoring of supply chains to the U.S. These trends have remained steadfast amidst the uncertainty in the market, particularly onshoring with many companies continuing to announce U.S. supply chain investments after the tariffs were put in place.

For institutional investors, we believe there are opportunities to capitalize on these long-term growth trends while investing in durable, defensive assets that can withstand the short-term volatility. Further, rather than seeing tariffs solely as a risk, investors should also consider the potential catalysts, such as driving new demand for domestic infrastructure and modern industrial facilities.

Tariffs Are Accelerating a Shift That Already Existed

“In particular, demand for build-to-suit cold storage and data center facilities remains high. ”

While it might not have been as evident as in recent months, the new round of tariff policies being introduced or proposed in 2025 are reinforcing some of the trends that were already underway. Ongoing geopolitical tensions, pandemic-era supply chain disruptions, as well as a growing push for domestic manufacturing have changed how companies are thinking about their manufacturing and distribution strategies.

As corporations have looked to minimize risk and improve their operational stability, the demand for domestic industrial space has increased, particularly for newly constructed facilities that provide long-term efficiencies and allow for the use of automation and robotics. Tariffs have only reinforced

this supply chain strategy serving as a further catalyst for investments in physical infrastructure, supply chain autonomy, and long-term operational resiliency.

Additionally, certain industries with underlying growth drivers serve as relevant examples for why demand for build-to-suit development has remained in place. Industries including pharmaceuticals, food and beverage, and digital infrastructure suppliers are continuing to expand their logistics networks despite these global pressures. Tenants in these industries have a need for new facilities to capitalize on changes occurring in their respective sectors.

In particular, demand for build-to-suit cold storage and data center facilities remains high. For cold storage, the demand is being driven by growth in the pharmaceutical industry along with food and beverage companies looking to capitalize on a consumer push towards fresh food and the increased adoption of food delivery. For data centers, the growth is being driven by hyperscale tenants’ need for new facilities to capitalize on the growth in AI and cloud computing.

These trends show that build-to-suit demand growth is often structural rather than cyclical. As a result, tariffs should indicate to institutional inves-

tors that, despite macroeconomic uncertainty, demand for high-quality, future-proof industrial assets remains structurally sound.

The Acceleration of Build-to-Suit

Despite tariffs, build-to-suit development has remained robust while speculative industrial developments have continued to decline. Corporate decision making has slowed a bit following the recent tariff announcements, but given build-to-suit industrial facilities are driven by specific tenant needs and are customized for long-term functionality, many buildto-suit projects have continued to move forward.

In terms of investment characteristics, build-to-suit facilities are typically leased for terms of 10 to 20 years or more, which mitigates against the re-leasing risk typically associated with real estate investments. Additionally, due to the customized nature of construction, build-to-suits tend to be strategically important to tenants’ overall operations, which increases the probability of renewal at lease expiration.

The newly constructed nature of buildto-suit assets also leads to owning assets that can maintain value over time due to their modern designs, Class A specifications and strategic locations. Infrastructure considerations, such as proximity to highways, airports, ports, and access to energy, as well as labor availability, have become critical underwriting components for many institutional investors. These factors not only determine the strategic value of a property to a tenant but also support the long-term viability and re-lease potential of the property. Site selection for a build-to-suit property is often the result of several years of planning by the corporation, which typically results in choosing optimal locations relative to infrastructure access and labor availability.

MaCauley Studdard (Photo courtesy of Elm Tree Funds.)

“Industrial

asset investment

is no longer about

targeting

short-term growth potential, but rather it’s centralized around strategy, adaptability, and alignment with future economic priorities.”

This combination of long-term leases, high renewal probabilities, and strategically located, Class A real estate offers a highly predictable income stream over a long-term investment horizon. During periods of elevated uncertainty and volatility, these defensive attributes often make build-to-suit assets highly sought after.

Institutional capital is gravitating toward this end of the industrial market, recognizing that build-to-suits assets offer a unique mix of security and scalability. The tenants occupying these properties, often Fortune 50, investment-grade-rated companies, are less likely to be deterred by short-term trade disruptions given their strategic planning and growth orientation is long-term in nature. They are also well capitalized companies with a proven track record of operating throughout various economic cycles, which minimizes tenant default risk in a potentially softening economic environment.

Domestic Demand Drivers

Outside of tariff dynamics, domestic fundamentals driving industrial real estate are strong. E-commerce growth continues to strengthen demand for logistics and last-mile facilities. According to the most recent U.S. Census report, online sales continue to gain market share, contributing 16.4% of total quarterly retail sales at the end of 2024 versus 14.9% at the beginning of 2023.

Another fundamental that is driving local growth is onshoring and reshoring efforts, which are prompting major investments in U.S. manufacturing and distribution hubs. The strength of the this trend has been highlighted by various companies announcing large-scale supply chain expansion plans after the onset of tariffs including Roche’s plan to

invest $50 billion in U.S. manufacturing and R&D, Amazon’s $15 billion warehouse expansion plan, Nvidia’s plan to invest $500 billion in U.S. AI infrastructure, Abbott Laboratories plan to invest $500 million in manufacturing and R&D in the U.S., Novartis’ plan to invest $23 billion in U.S. manufacturing and R&D facilities, and Kimberly-Clark’s plan to invest $2 billion in U.S. manufacturing sites.

These large-scale manufacturing announcements will create significant follow-on demand within the build-to-suit sector. Suppliers will need to build new distribution, production and assembly facilities located near the manufacturing sites. Third-party logistics companies will need to expand their distribution footprints, which along with the manufacturing companies building out their own distribution capabilities, will drive significant demand for modern distribution facilities.

This reconfiguration of supply chains is also creating a sustained demand for industrial facilities that can support automation, robotics, and high-throughput operations. Many of the older industrial facilities across the U.S. lack the specifications needed to accommodate these capabilities so there is an ongoing flight to quality among tenants looking to future-proof their operations.

The shift in user demand is also being mirrored by investor behavior. Capital is continuing to flow toward new, Class A industrial assets that meet modern functionality requirements and are aligned with long-term trends in automation and domestic logistics. Tariffs, in this context, act less as a constraint and more as a confirmation that the demand for modern, domestic infrastructure is likely to persist.

Flight to Quality in Full Effect

In times of capital market dislocation, institutional investors tend to seek predictability over speculation. As a result, investors are spending more time analyzing market dynamics and tenant resilience, which leads to increased selectivity and a heightened focus on defensive strategies. Many investors are also prioritizing durable, income-generating assets that offer downside protection.

This flight to quality is particularly noticeable in the industrial sector today. Assets that have high quality tenants, long lease durations, and Class A specifications are commanding a significant premium over higher risk properties with a more speculative investment thesis. This bifurcation within the industrial sector is expected to persist over the foreseeable future as the uncertainty in the wider economy will continue to push investors towards defensive investments.

Flexibility Through Relationships and Structuring

While the flight to quality favors certain types of industrial assets, it also rewards investment managers with deep relationships and a proven track record, which can be a major advantage during a time of uncertainty. From the tenant perspective, build-to-suit developments are critical pieces of their growth strategies, and they place a high level of scrutiny on the capital and development partners involved in the process to ensure the projects are completed in a timely and efficient manner.

In rapidly evolving environments like the one today, tenants have an even stronger preference to work with counterparts that have experience in the

build-to-suit sector. This experience provides tenants with confidence that their partners in the transaction can manage through the volatility in the market and ensure the property is completely on time and on budget.

Industrial’s New Age of Opportunity

Looking forward, investors should continue to monitor the tariff policy in the U.S. and its potential ramifications on the macroeconomy and capital markets. However, amidst the macro uncertainty, there are investment opportunities that have defensive characteristics that can protect against short-term volatility while still offering access to long-term growth trends.

Given it is difficult to predict whether current protectionist trade measures are temporary or long-term, we believe the best-positioned investment strategies are those that can perform well under either condition, which favors properties with long-term leases to investment-grade tenants that can offer predictable income streams over various economic and real estate cycles.

Industrial asset investment is no longer about targeting short-term growth potential, but rather it’s centralized around strategy, adaptability, and alignment with future economic priorities. For institutional investors, this means embracing a nuanced view of the sector and seeking opportunities to build critical domestic infrastructure, deploy capital into defensive investments, and partner with high quality tenants looking to continue to grow and build competitive advantages during a period of uncertainty.

MaCauley Studdard is managing director at St. Louis-based ElmTree Funds.

When schools vanish overnight: The urgent need for adaptive learning spaces

By Tristin Kranenburg, Tangram Interiors

As natural disasters continue to strike communities across the globe, schools are often the first institutions affected, with the impact rippling throughout the community.

Consider the aftermath of Hurricane Katrina in 2005, when New Orleans schools were forced to shut down for months, or the 2018 wildfires in California, which led to the temporary closure of many schools, including those in Paradise.

More recently, over half a million students were out of school in Los Angeles during the week of the fires in January of 2025. Students endured significant hardship during an already stressful and traumatic event, missing classes and meals alongside vital emotional connections.

These disruptions don’t just impact infrastructure, they can halt the educational progress of countless students. The damage to buildings and the displacement of students has lasting consequences on both academic

achievement and mental well-being.

Given this, schools must adapt to the changing landscape by adopting flexible, adaptive learning spaces that enable education to continue during and after a disaster.

The question is, what does that look like? Let’s talk about it.

The lasting impact of disaster on education

When disaster strikes, the effects on schools can be immediate and devastating. Physical damage to buildings can lead to extended closures, leaving students behind in their studies.

A report from the National Bureau of Economic Research found that prolonged school closures can lead to

substantial learning loss, particularly in math and reading. This can have significant impacts on students’ long-term academic and career trajectories.

Beyond the immediate disruption, recovery efforts often focus on rebuilding structures, but what about the infrastructure that supports long-term educational stability? The process needs to go beyond simple repairs and focus on creating environments that can withstand future crises.

It’s clear that schools need more than just a quick fix. Extensive, careful emergency response plans must be put in place that facilitate both the physical recovery of a school and the preservation of its ability to educate.

This includes planning for flexible, resilient learning environments that

Tangram Interiors donated more than 100 pieces of modular furniture after wildfires ravaged Aveson Charter School in Los Angeles. (Photo courtesy of Tangram Interiors.)

Tristin Kranenburg (Photo courtesy of Tangram Interiors.)

allow for continuity in education, no matter what comes next.

The power of flexible design

Modular furniture

In the wake of a crisis, schools may face the challenge of moving students into temporary or damaged spaces.

Modular furniture offers a practical solution. With pieces that can be easily moved or rearranged, schools can quickly set up learning areas to accommodate different group sizes or specific needs.

Reconfigurable layouts

Flexible layouts allow schools to adapt classrooms and other spaces on the fly. Whether it’s to house more students in the aftermath of a disaster or to facilitate specialized learning setups, these adaptable layouts give schools the ability to swiftly make the best use of available space.

Creative spatial planning

Effective spatial planning is key to maximizing the utility of any space. By considering the needs of different learning styles, schools can design spaces that allow for a variety of educational functions—whether it’s quiet study areas, collaborative group workspaces, or temporary classrooms.

Building resilience in schools

In short, adopting flexible and adaptive designs is a crucial investment in the future of education. Schools can (and must) take proactive steps to protect their spaces against the unexpected, creating environments that are resilient and ready to evolve as needs change.

In most cases, this means choosing durable, easy-to-repair materials and creating layouts that can quickly shift to serve new purposes—whether for a temporary learning space or a community gathering area.

To build environments that truly withstand the test of time, schools must embed resilience in their design from the start. Flexibility, durability, and adaptability should be embedded into every corner, helping the mission education of students continue no matter the challenges that come their way.

“The need for adaptive, flexible learning spaces in schools cannot be ignored. As natural disasters and other crises continue to affect communities, it’s vital that educational institutions prioritize resilient, adaptable design solutions.”

stepped in to provide support.

This real-world example demonstrates how creative, adaptable design solutions can help schools stay operational and maintain educational continuity even in the face of disaster.

In summary

The need for adaptive, flexible learning spaces in schools cannot be ignored. As natural disasters and other crises continue to affect communities, it’s vital that educational institutions prioritize resilient, adaptable design solutions.

Thinking ahead and investing in adaptive spaces prepares schools to withstand any storm—both literal and figurative—while continuing to deliver essential educational opportunities.

With the right design, schools can do more than survive disasters: they can overcome them and turn challenges into opportunities for growth and progress.

When wildfires ravaged Aveson Charter School in Los Angeles, the community was left grappling with the immediate effects of displacement. With classrooms damaged and the future uncertain, the school urgently needed adaptive learning spaces to accommodate its students.

The company donated over 100 pieces of modular furniture to help the school set up temporary learning environments. With the help of flexible design solutions, Aveson was able to continue educating over 200 students in a stable environment, despite the crisis.

As Sales Director for Education in Southern California, Tristin Kranenburg leads Tangram’s Education team, driving strategic growth and fostering new relationships in the sector. Her expertise, dedication, and client-centric approach continue to strengthen Tangram’s presence in the education market. With nearly eight years at Tangram, Tristin brings a wealth of experience in sales, account management, and strategic leadership.

Aveson Charter School: A real-world example

Tangram Interiors

Tangram Interiors donated more than 100 pieces of modular furniture after wildfires ravaged Aveson Charter School in Los Angeles. (Photo courtesy of Tangram Interiors.)

The rising tide of legal challenges in multifamily: Implications for insurance

By Marshall Ballard and Stephen McCord, Marsh McLennan Agency

In recent months, the real estate sector has been swept up in a surge of legal challenges, particularly surrounding pricing practices and allegations of anti-competitive behavior. Three significant cases have emerged, shedding light on the potential risks and costs associated with these lawsuits for landlords and property management companies.

As a multifamily owner and operator, it is imperative to grasp the implications of these legal battles, especially concerning insurance coverage and the financial burdens they may impose.

Price-fixing

On December 5, 2024, a U.S. judge ruled that Yardi Systems, a leading software provider for property man-

agement, must confront a price-fixing lawsuit. The case alleges that Yardi conspired with landlords to manipulate rental prices through its widely used software. This lawsuit not only raises questions about the practices of software providers but also subjects the landlords who utilize these systems to intense scrutiny

The implications of such a lawsuit are

profound. Even if the claims are ultimately deemed frivolous or unfounded, the legal fees associated with defending against such allegations can be exorbitant. For many real estate companies, these costs can escalate rapidly, straining financial resources and diverting attention from core business operations. The potential reputational damage can also deter prospective tenants, further complicating recovery efforts.

Image by wirestock on Freepik.

Antitrust

In a parallel development, the U.S. Department of Justice (DOJ) recently filed a lawsuit against six large apartment owners/managers, accusing them of engaging in an algorithmic pricing scheme that allegedly harmed millions of renters. The DOJ claims that these landlords used sophisticated algorithms to coordinate pricing strategies, effectively stifling competition and inflating rental prices.

This case underscores the increasing scrutiny of pricing practices in the multifamily sector, particularly as technology becomes more integrated into property management. The potential for hefty fines and legal repercussions looms large, and the financial burden of defending against such claims can be crippling for landlords. The stakes are high, and the need for robust legal and insurance strategies has never been more critical.

Hidden fees

Adding to the legal landscape, the Federal Trade Commission (FTC) has accused one of the largest property

management companies in the U.S., of imposing hidden fees on tenants. The FTC’s lawsuit alleges that these fees are not transparently disclosed, leading to consumer deception and unfair business practices.

The financial implications here could be significant. The costs associated with legal defense, potential settlements, and reputational damage can have lasting effects on a company’s bottom line. As public awareness of these practices grows, the pressure on property management companies to maintain transparency and ethical standards intensifies.

The insurance coverage gap

For many real estate companies embroiled in these lawsuits, the financial ramifications extend beyond immediate legal fees. A critical concern is the lack of adequate insurance coverage to address these specific legal challenges. Most casualty insurance policies contain exclusions for antitrust claims, meaning that carriers may deny coverage for legal fees or defense costs associated with these lawsuits.

This exclusion poses a significant risk for landlords, apartment owners, and property management companies. As legal challenges become more prevalent, the potential for financial loss increases, and many companies may find themselves unprotected against the very lawsuits that threaten their operations. Understanding the nuances of insurance policies is essential to safeguarding against these emerging risks.

The recent legal challenges facing landlords and property management companies highlight the complex interplay between technology, pricing practices, and regulatory scrutiny in the real estate sector. As these lawsuits unfold, the financial implications for the companies involved can be severe, particularly in light of the potential for high legal fees and the lack of insurance coverage for antitrust claims.

As commercial risk advisors, it is essential to educate clients about these risks and the importance of understanding their insurance policies. In this evolving landscape, proactive risk management strategies will be crucial in navigating the challenges posed by legal disputes

and ensuring financial stability in an increasingly litigious environment.

If you are a multifamily owner or operator, now is the time to assess your insurance coverage and ensure you are adequately protected against these emerging legal challenges. Reach out to a specialist in commercial real estate insurance today to discuss your options and develop a risk management strategy tailored to your needs. Don’t wait until it’s too late—protect your investment and secure your future in this dynamic market.

The opinions and thoughts expressed here are those of the individual authors and should not be taken as legal advice. They are providing them based on their professional and personal experience. They do not represent the views or opinions of Marsh & McLennan Agency, its parent companies or any of its affiliated companies

Marshall Ballard is advisor, real estate, and Stephen McCord is executive vice president, real estate, with the Marsh McLennan Agency, a provider of business insurance with locations across the United States.

Image by KamranAydinov on Freepik.

COMMERCIAL SERVICES

ATTORNEYS

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.

SARNOFF PROPERTY TAX

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 singlefamily home portfolios.

BROKERAGE FIRMS

AREA REAL ESTATE ADVISORS

4800 Main Street, Suite 400 Kansas City, MO 64112

P: 816.895.4800

Website: openarea.com

Key Contacts: Tim SchafferFounder & President (tschaffer@openarea.com)

Matt Vaupell- Managing Partner (mvaupell@openarea.com)

Services Provided: Office, Retail & Industrial Landlord and Tenant Representation; Property Management; Project Management; Investment; Research Analytics and Consulting Company Profile: AREA Real Estate Advisors is a full-suite commercial real estate firm in Kansas City. AREA is the hometown team that plays in the big leagues. Our size and scope allow us to be nimble and apply a team-driven approach while providing best-in-class service. At AREA, we deal in real estate, but our business is relationships. We are committed to meaningful partnerships with our clients to ensure that their goals are achieved. Our goal is to exceed our clients’ expectations.

Notable Clients: Nordstrom Rack, 151 Coffee, Emler Swim School, Arvest Bank, Five Below, Drybar, KU Endowment, Take 5 Oil Change, SomeraRoad, Price Brothers Management, Equity Bank, Love to Smile, Auto Now, American Academy of Family Physicians, ChowNow.

GOODMAN REAL ESTATE SERVICES GROUP LLC

25333 Cedar Road, Suite 305 Cleveland, OH 44124

P: 216.381.8200 | F: 216.381.8211

Website: goodmanrealestate.com

Key Contacts: Randy Goodman, President, Randy@goodmanrealestate.com; Richard Edelman, Senior Vice President/Principal, Richard@goodmanrealestate.com

Services Provided: National investment sales, tenant and buyer site selection, property marketing, leasing, sales, and disposition.

WORSEK & VIHON, LLP

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 taxpayers 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.

Company Profile: Goodman Real Estate Services Group LLC is a leading commercial brokerage firm based in Ohio that currently markets 13.6 million square feet of property for sale, lease, or development throughout Ohio, and 14 other states with partner brokers, nationwide for investment sales, and tenant and buyer site selection with over 100 companies represented. We combine experience, technology, a large support team and hard work to provide exceptional service to our clients. Goodman Real Estate have offices in Cleveland and Columbus. ASSET/PROPERTY MANAGEMENT FIRMS

CONSTRUCTION COMPANIES/GENERAL CONTRACTORS

BRINKMANN

CONSTRUCTORS

16650 Chesterfield Grove Road, Suite 100 Chesterfield, MO 63005

P: 636.537.9700

Website: BrinkmannConstructors.com

Key Contacts: Brian Satterthwaite, CEO, bsatterthwaite@brinkmannconstructors.com; Tom Oberle, President, toberle@brinkmannconstructors.com; Rebecca Randolph, Executive Director of Business Development & Marketing, RRandolph@brinkmannconstructors.com

Services Provided: General contracting services including design/build, design/assist, and construction management

Company Profile: Brinkmann Constructors is a national general contractor that has completed over $10 billion of construction projects across multiple market sectors, including senior living, multifamily, student housing, warehouse, cold storage, manufacturing, automotive, retail, hospitality, and more. With regional offices in St. Louis, Denver, Kansas City, Phoenix, and Richmond and a project footprint that spans 41 states, our mission is to deliver the best construction experience for the people we serve, with a foundation built on lasting relationships and expertise driven by insight—beyond measure.

Notable/Recent Projects:

•Coastal Cold Storage - Foristell, Missouri - 125,000 SF cold storage industrial warehouse

•Axial Rockville 64 - Rockville, Virginia - Two speculative warehouses totaling 330,550 SF

•I-10 International - Tucson, Arizona - Two warehouses totaling 374,000 SF

•74 Broadway – Kansas City, Missouri - 440,000 SF mixed-use development with 280 units

•Aspendale Littleton - Littleton, Colorado - 231,000 SF active adult community with 190 units

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, IN125 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

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 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.

ECONOMIC DEVELOPMENT CORPORATIONS

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 MixedUse Multi-Family Development with 235 boutique hotel rooms & 174 Luxury Condos; Burn ‘Em Brewing: $3 Million Expansion project with 30 new jobs.

ENVIRONMENTAL/ENGINEERING FIRMS

DEIGAN & ASSOCIATES, PLLC

28835 N. Herky Drive

Lake Bluff, IL 60044

P: 847.682.7381

Website: 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.

TRITERRA

1375 S. Washington Ave., Ste. 100 Lansing, MI 48910-1674

P: 517.853.2150

Website: https://www.triterra.us/

Key Contact: Don McNabb, CEO & Visionary, don.mcnabb@triterra.us; Shawn Shadley, Director of Environmental Due Diligence,shawn.shadley@triterra.us

Services Provided: Triterra is a full-service environmental consulting firm that serves Michigan and the Midwestern United States. With offices in Lansing, Grand Rapids, Brighton, & Alma, Michigan, Triterra’s services focus on environmental due diligence; brownfield development and incentive acquisition, contaminant investigation and remediation; industrial hygiene; and natural resources management.

Notable Clients: Triterra has assisted numerous clients on various types of projects where environmental due diligence services and/or development-related incentives were necessary to keep these projects moving forward in a timely manner.