This video highlights our Asset Services team and its number one differentiator in the market – our amazing people.
We are proud to announce that CBRE has been named a finalist 11 times for the 30th annual Chicago Commercial Real Estate Awards Dinner. The awards ceremony will be on March 15 at the Hilton Chicago. As always, the event will benefit the Greater Chicago Food Depository.
Congratulations to all of our finalists!
Deal of the Year
1. Bank of America/GGP
Drew Nieman, Christy Domin, Sara Spicklemire, Mike Kazmierczak, Ellen Zalatoris
2. Northern Trust
Todd Lippman, James Whalen, Scott Brandwein, Maura Mahone
Industrial Broker of the Year
John Suerth & Jason Lev
Investment Broker of the Year – Industrial
Michael Caprile, Ryan Bain & Zachary Graham
Investment Broker of the Year – Office
Paul Lunstedt, Blake Johnson, Dan Deuter, Tom Sitz & Cody Hundertmark
Office Broker of the Year
1. Brad Serot, Paul Reaumond, Chad Freese, David Saad, Paul Diederich & Aaron Kulick
2. Kyle Kamin
Project Manager of the Year
CBRE – Abe Gamboa
Property Management Company of the Year
CBRE – Neil Pendleton
Retail Broker of the Year
Joseph C. Parrott & Jim Sakanich
Special Achievement of the Year
Museum of Contemporary Art (CBRE – Michael Tobin)
Chicago is one of the nation’s leaders for employment in the life sciences industry, but startups and research and development firms in this sector may have a difficult time finding lab space as the city boasts the lowest vacancy of any primary market, according to a recent report from CBRE.
While many U.S. industries are navigating fundamental disruption, the life-sciences industry – which includes pharmaceuticals, biotechnology and medical-device manufacturing – is on a long-term expansion track.
Chicago is primed to benefit from this industry’s growth, as the market has seen strong gains in employment and National Institutes of Health (NIH) funding in recent years.
However, as employment and funding have increased, available lab space is difficult to find. Currently, the market boasts a less than two percent vacancy, the lowest of any primary market that CBRE tracks.
“Chicago is well-positioned for future growth in life sciences thanks to its large cluster of pharmaceutical and biotech companies and world-renowned research institutions such as Northwestern University, the University of Chicago, Rosalind Franklin University and the University of Illinois at Chicago, Fermi and Argonne Labs” said Scott Brandwein, executive vice president with CBRE in Chicago. “With existing vacancy extremely low for lab space, there is demand for more product in this market. This now has the government and private sector focused on this need and is beginning to facilitate the expansion with some new projects in the development pipeline.”
CBRE recently took home multiple awards at BOMA/Chicago’s annual TOBY/Gold Circle Award Gala, which recognizes the best and brightest in Chicago’s property management industry.
This year, CBRE won in four categories and was named a finalist in several others.
- 100 N. Riverside – 500,000 – 1 Million Square Feet.
CBRE team: Cory Roberts, Associate Director; Justin Garrison, Real Estate Manager; Meganne Miller, Real Estate Services Administrator; Tom Looney, Chief Engineer; Paul Libbey, Asst Chief Engineer; Kevin Hurley, Engineer; Paul Naylor, Engineer; Ryan Steger, Engineer; Tom Murphy, Engineer; John Carriglio, Apprentice Engineer.
- 737 North Michigan/Olympia Center – Mixed-Use Building
CBRE team: Laura Bossert, Associate Director; Elizabeth Kilroy, Real Estate Manager; Celia Egleston, Assistant Real Estate Manager; Lexie Polk, Real Estate Services Administrator; Mark Tomczyk, Senior Property Accountant; John McClain, Construction Manager; Larry DeMatteo, Chief Engineer; John Zei, Assistant Chief Engineer; Biff Aiken, Building Engineer; Tom Jurectic, Building Engineer; Freddy Robinson, Jr., Building Engineer; Maurice Hankison, Building Engineer; Victor Melgoza Godinez, Building Engineer; Mitchell Wood, Apprentice Engineer
Gold Circle Awards
Heather Holderman – Property Manager of the Year – 353 North Clark
Zaena Rihani – Full Designation Scholarship Recipient
We would also like to recognize our finalists:
- 2018 TOBY Award in the 1 million square foot and above category – 353 North Clark.
- BOMA/Chicago’s Gold Circle Award for Emerging Leader of the Year –Victoria Larionova
- BOMA/Chicago’s Gold Circle Award for Building Engineer of the Year – Mike Moriarty
Congratulations to all on these significant honors!
You can see a complete list of winners here.
The state of the Chicago office market remains strong and 2018 should be another solid year, according to CBRE’s Drew Nieman, who recently spoke at the Illinois Real Estate Journal’s 16th Annual Real Estate Forecast
Through 2015, the Chicago market had been experiencing robust positive absorption, according to research from CBRE. Yet vacancy began to tick up from a low of 10% in Q1 2016 to 12.2% at the end of 2017 as new product came on line, and, firms continued to contract their space.
“We have seen vacancy tick up, but there is still a lot of good activity out there and suburban firms continue to move to the CBD,” said Nieman. “When you are tracking 140 million square feet, I feel like 12 percent is the new 10 percent.”
Nieman did also point out that while vacancy has gone up, lease rates have as well, ending 2017 at an average of $38.95 gross.
“It’s a very interesting market when we see vacancy increase and rental rates increase,” said Nieman. “This is because of the new product coming on line. Rental rates in the newest buildings are about $55 per square foot gross. The newest buildings that will come to market later this year and next year will be pushing $60. Tenants are willing to pay this.”
The panel discussed “disruptors” in the market, or, new trends that are changing traditional business practices. Nieman cited the growth of shared-office providers.
The e-commerce-fueled surge in development of warehouses and distribution centers has generated double-digit, year-over-year percentage increases in prices for industrial land in major markets, with Chicago recording a 16 percent price increase, according to a new report from CBRE.
CBRE found that the average price for large industrial parcels of 50 to 100 acres – usually earmarked for construction of large, regional warehouses – increased to more than $100,000 per acre from roughly $50,000 a year ago.
Similarly, industrial plots of five to 10 acres – often suited for construction of smaller, infill distribution centers in urban or suburban settings – increased to more than $250,000 per acre this year from roughly $200,000 a year ago.
In Chicago, the average price per acre of land for prime warehouse development is now up to $250,000, a 16 percent increase year-over-year.
“Overall demand for industrial land remains strong and it is especially high in infill markets,” said Matt Ishikawa, senior vice president in CBRE’s Land Services Group. “Developers have been very active in the Chicago area with both built-to-suit and speculative industrial projects and this activity is not slowing down heading into 2018. Demand is so strong for industrial sites that buyers are looking beyond just green fields and are also seeking tear-down and redevelopment opportunities.”