Historically Low Vacancy Rates, Demand Outpacing Supply Keeps Cap Rates Strong in Chicago

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Robust leasing activity, low vacancy rates and a healthy balance of supply and demand has led to resilient capitalization rates in Chicago-area industrial product over the first half of 2016—according to the latest research from global property advisor CBRE Group, Inc. 

Despite a slowdown in investment activity, cap rates for U.S. commercial real estate were stable across most asset types during H1 2016. Industrial properties, along with multifamily, held its pricing during this period as cap rates widened, albeit slightly, in other sectors. Continue reading

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Chicago a Top U.S. Target for Middle East Investment

Middle East investment in commercial real estate has experienced a substantial uptick in the U.S., with Chicago now a top 15 global target for major investors from that region, according to a recent report from CBRE.

In H1 2016, Middle East global investment reached nearly $10 billion. Since being at the bottom of the market in 2009, investment from the Middle East has grown much faster than the market as a whole and faster than any other cross-regional investment. The sharp increase in investment was driven by Sovereign Wealth Funds (SWFs)–in particular those from Qatar and the UAE. Continue reading

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Take your Daughters and Sons to Work Day

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CBRE Charity Bash at Wrigley Field a Home Run for Local Charities

CBRE and the Chicago Cubs hosted the 9th Annual CBRE Cares Charity Bash on Monday, August 15th at historic Wrigley Field. The gala raised more than $375,000, with 100 percent of net proceeds benefiting numerous local charities.

More than 1,300 CBRE team members, their families, clients and friends — as well as Cubs players and management — were on hand to participate in this first-of-its-kind event at Wrigley Field. Cubs manager Joe Maddon, pitcher Jon Lester, first baseman Anthony Rizzo, President of Baseball Operations Theo Epstein; President of Business Operations Crane Kenney, CBRE CEO Bob Sulentic and CBRE Midwest Division President Chris Connelly were all present for the event.

GENERAL EVENT PHOTOS

CLICK HERE TO VIEW RIZZO/EPSTEIN PHOTO GALLERY

CLICK HERE TO VIEW MADDON/LESTER PHOTO GALLERY

The proceeds will benefit CBRE Cares as well: Continue reading

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Why Companies Need Strategic Data Center Solutions

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Get your Charity Bash tickets today!

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Our 9th annual CBRE Cares Charity Bash is just under two weeks away and tickets are still available. The event will be held on Monday, August 15th from 5:30-8:30pm at Wrigley Field. An attendance of 1,000 area professionals, as well as Cubs players and management, will be on hand to participate in this first-of-its-kind event at Wrigley Field.

CBRE employees can purchase tickets for clients, friends, additional family members, etc. Prices are as follows: $150 for adults and $100 for kids-6-20 years old (kids five and under are free).

Click here to purchase

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Chicago Named Nation’s Largest Inland Port in CBRE Report

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Chicago’s prominence as a global logistics hub was recently highlighted in CBRE’s Annual “North American Inland Ports Logistics Report,” which listed the Midwestern city as the largest and second busiest (behind California’s Inland Empire) inland port in North America.

According to the report, which tracks the 12 primary U.S. inland ports, the rapid growth of e-commerce has fueled development of warehouses and distribution centers in these markets at nearly twice the national rate.

Even with a recent surge in construction, demand for industrial buildings in these markets is so robust that nine of the 12 have seen their availability rates decline from their post-recession peaks faster than the national rate.

Chicago has the lowest availability rate among the inland ports tracked in the study at approximately 6.6 percent. Demand is so high right now that it cannot keep up with supply. CBRE Research reports that there are 10 tenants looking for space of 500,000 square feet or more in the Chicago region with a total need of nearly 8 million square feet, more than twice the available supply of 3.2 million square feet in this size range.

Some of the reports findings:

  • Between 2000 and 2013, intermodal container shipments grew by 26% in the Chicago region.
  • By 2040, inbound truck and rail shipments are projected to grow by 58% and 55%, respectively.
  • By 2040, outbound truck and rail are expected to increase by 38% and 147%, respectively.

Read the entire report here.

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