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MB Real Estate's Chicago Market OVerview Submarket Snapshots breakdown CBD and Suburban office market conditions by submarket. Our Research team offers highlights and analysis of each submarket for comprehensive coverage of the Chicago office market.
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C O M P I L E D B Y M B R E A L E S T A T E
S E C O N DQ U A R T E R
F I R S TQ U A R T E R
2011 CHICAGOSUBMARKET SNAPSHOTS
CHICAGO
SECOND QUARTER
2011SUBMARKET SNAPSHOTS
TABLE OF CONTENTS
SECTION THREE
ABOUT MB REAL ESTATE
SECTION ONE
CHICAGO CENTRAL BUSINESS DISTRICT
13 Company Overview
The Chicago Market Overv iew SubmarketSnapshots are publ ished quar ter ly by
MB Real Estate.
To obta in addi t iona l copies or for fur ther in format ion, p lease contact :
KRYSTA BAVLSIKManager of Research and Analy t ics
or JACK GAVINResearch Coord inator
181 West Madison Street , Su i te 4700 Chicago, I l l ino is 60602
(312) 726-1700
w w w . m b r e s . c o m
SECTION TWO
SUBURBAN CHICAGO
SUBURBAN SUBMARKET SNAPSHOTS
08 Suburban Map09 East-West10 North11 Northwest12 O’Hare
CBD SUBMARKET SNAPSHOTS
01 Central Business District Map02 Central Loop03 East Loop04 North Michigan Avenue05 River North06 South Loop07 West Loop
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CENTRAL BUSINESS DISTRICT MAP
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CENTRAL LOOPOccupancy falls across all asset classes
CENTRAL LOOP SUBMARKET HISTORICAL DIRECT VACANCY
The Central Loop saw occupancy fall across each building class as thedirect vacancy rate climbed 0.9 percent since the end of 2010. However,the occupancy rate in these properties still remains among the highestin the CBD.
Two large lease transactions will result in positive demand over the nextfew quarters. The Legal Assistance Foundation signed a 10-year lease tooccupy 56,000 square feet at 120 South LaSalle, which is roughly35,000 square feet larger than its current space at 111 West Jackson.The Private Bank will also occupy two additional floors at 120 SouthLaSalle.
The disparity in demand between Class A and Class B buildings continuesto mount. Despite each class having roughly 14 million square feet ofinventory, Class B buildings have 2.5 million square feet vacant, while
LARGEST BLOCKSBuilding Address Size (sf) Building Class
11 S LaSalle St 155,822 C
21 S Clark St * 151,000 A
161 N Clark St 116,964 A
111 W Jackson Blvd 102,943 C
1 N Dearborn St 97,261 B
231 S LaSalle St 91,962 B
111 W Jackson Blvd 83,612 C
79 W Monroe St 82,921 C
200 N LaSalle St 71,728 B
120 S LaSalle St 69,519 B
Numbers in parentheses are negative
CENTRAL LOOP SUMMARY A B C Total
Inventory (square feet) 13,553,757 14,000,312 8,619,499 36,173,568
Year to Date Absorption (square feet) 68,421 (91,587) (213,183) (236,349)
Direct Vacancy Rate 9.8% 17.9% 16.4% 14.5%
Total Vacancy Rate (Direct + Sublease) 12.1% 21.3% 18.1% 17.1%
Class A buildings have only 1.3 million square feet of vacancy. Also, there are 10 contiguous blocks of space greater than 50,000square feet available in Class B buildings, compared to only 5 blocks in Class A. This demonstrates soft market conditions, as well astenants’ desire for space in newer buildings.
The Central Loop, which is largely occupied by financial organizations and law firms, will continue to see a gradual decline in officeoccupancy in the near-term. However, constrained supply and its desirable location will keep the Central Loop’s vacancy rate belowmost of the CBD’s submarkets.
The Central Loop’s boundaries are the Chicago River (North), Wells Street (West), State Street (East), and Van Buren Street (South).
* Indicates future available spaceItalicized addresses indicate new blocks this quarter
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EAST LOOPActivity ramps up as vacancy retreats from record high levels
EAST LOOP SUBMARKET HISTORICAL DIRECT VACANCY
After several quarters of tepid demand, the East Loop saw leasing activityrise and vacancy rate fall by 1.0 percent. Nearly 200,000 square feetwas absorbed, making the East Loop one of the best performingsubmarkets in the CBD this quarter.
Adding to the East Loop’s momentum was two of the largest new leasetransactions in the entire CBD. Banker’s Life and Casualty Companysigned an 11.5 year lease for 135,000 square feet at 111 East Wacker.The firm will relocate from 600 West Chicago in River North during thefirst quarter of 2012 and will backfill former Blue Cross Blue Shield space.McKinsey & Company will occupy 100,000 square feet at the recentlycompleted vertical addition at 300 East Randolph and vacate 162,000square feet at 21 South Clark at the end of the year.
Despite a strong quarter, the East Loop still faces an uphill battle in
EAST LOOP SUMMARY A B C Total
Inventory (square feet) 4,001,516 10,193,867 8,484,560 22,679,942
Year to Date Absorption (square feet) (71,578) 212,175 (52,983) 87,614
Direct Vacancy Rate 27.2% 21.9% 13.8% 19.8%
Total Vacancy Rate (Direct + Sublease) 31.9% 24.4% 14.2% 21.9%
LARGEST BLOCKSBuilding Address Size (sf) Building Class
200 E Randolph St * 243,803 A
303 E Wacker Dr * 241,206 B
130 E Randolph St * 185,042 B
55 E Monroe St 175,263 B
333 S Wabash Ave * 163,800 B
303 E Wacker Dr * 143,960 B
205 | 225 N Michigan Ave 120,446 B
33 S State St 117,207 C
401 S State St 110,898 C
360 N Michigan Ave * 76,855 C
gaining occupancy levels that match its competitive submarkets. The East Loop has nine blocks of contiguous, direct space greaterthan 100,000 square feet available. Of these nine blocks, five represent space that will be vacated in 2012, totaling nearly 1 millionsquare feet. Also, short-term leases for Groupon (150,000 square feet scattered about 303 East Wacker) and Obama for America(50,000 square feet at 130 East Randolph) are set to expire next year. Considering large block availability across the CBD andspeculation regarding a new office development, it remains likely that the East Loop will continue to have the highest vacancy rate ofthe CBD’s submarkets.
The East Loop is bordered by the Chicago River (North), State Street (West), Lake Shore Drive (East), and Van Buren Street (South). Itis inhabited mostly by advertising and media firms and corporate tenants.
Numbers in parentheses are negative
* Indicates future available space
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NORTH MICHIGAN AVENUELeasing activity slows as another building hits the market
NORTH MICHIGAN AVENUE SUBMARKET HISTORICAL DIRECT VACANCY
All building classes in the submarket experienced negative absorptionduring the second quarter. At 19.2 percent, the North Michigan Avenuedirect vacancy rate has reached its highest level in MB Real Estate’stracked history for the second consecutive quarter.
The direct vacancy rate for Class B buildings reached 24.0 percent as theentire submarket has struggled to sustain positive demand. No leasetransactions greater than 20,000 square feet were signed this quarterbesides Interpublic Group’s GolinHarris and Weber Shandwick, which wasannounced last quarter.
NORTH MICHIGAN AVENUE SUMMARY A B C Total
Inventory (square feet) 3,952,669 4,622,071 4,448,708 13,023,448
Year to Date Absorption (square feet) (49,933) (43,610) (32,882) (126,424)
Direct Vacancy Rate 20.1% 24.0% 13.2% 19.2%
Total Vacancy Rate (Direct + Sublease) 23.5% 27.1% 14.3% 21.6%
LARGEST BLOCKSBuilding Address Size (sf) Building Class
330 N Wabash Ave 371,945 B
330 N Wabash Ave 97,932 B
455 N Cityfront Plaza Dr 90,207 A
740 N Rush St 73,294 C
980 N Michigan Ave 62 384 A980 N Michigan Ave 62,384 A
401 N Michigan Ave 51,870 B
In response to the recent trend of investors seeking well-leased assets, Golub & Company is marketing the 541,000 square foot, 98percent leased 541 North Fairbanks. The building joins the 80 percent leased 444 North Michigan as the only buildings for sale inthe North Michigan Avenue Submarket.
Despite being the second-smallest in the CBD, the North Michigan Avenue submarket contains six blocks of direct, contiguous spacegreater than 50,000 square feet including the 37th through 47th floors at 330 North Wabash, which total 372,000 square feet.Additionally, there are two blocks of sublease space greater than 50,000 square feet, adding to the glut of vacancies.
Without significant job growth, demand will continue to falter. Vacancy rates are expected to remain high.
The North Michigan Avenue submarket is home to retailers, hotels, restaurants, entertainment venues, advertising and marketingagencies, and the large Northwestern Memorial Hospital campus. Its borders include Division Street (North), State Street (West), LakeMichigan (East), and the Chicago River (South).
Numbers in parentheses are negative
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RIVER NORTHOccupancy continues to rise; Groupon grows
RIVER NORTH SUBMARKET HISTORICAL DIRECT VACANCY
Demand for space in River North increased again as the direct vacancyrate fell to 12.4 percent. The submarket has been the fastest to recoverfrom the recession and currently boasts the lowest vacancy rate in theCBD due to its inventory of new, desirable buildings.
Groupon signed the second-largest lease in the entire CBD during thesecond quarter, though it will not result in new demand for the River Northsubmarket. The daily deal site will sublease 220,000 square feet in itsheadquarters at 600 West Chicago, backfilling Bankers Life and Casualtyspace as it relocates to the East Loop.
600 West Chicago remains under contract to CommonWealth REIT for$390 million ($249 per square foot). The sellers, a joint venture of DavidWerner, Jacob Gerstein and Victor Gerstein, paid $290 million for thebuilding at the height of the real estate bubble in 2007 when the building
RIVER NORTH SUMMARY A B C Total
Inventory (square feet) 4,011,664 3,545,977 5,772,321 13,329,962
Year to Date Absorption (square feet) (9,633) 142,067 13,260 145,694
Direct Vacancy Rate 15.7% 7.5% 13.0% 12.3%
Total Vacancy Rate (Direct + Sublease) 18.4% 17.1% 17.6% 17.7%
LARGEST BLOCKSBuilding Address Size (sf) Building Class
111 W Illinois St 141,503 A
350 W Mart Ctr 126,535 C
353 N Clark St 62,390 A
321 N Clark St 61,431 A
353 N Clark St 55 370 A353 N Clark St 55,370 A
222 Merchandise Mart Plz 50,000 B
was 78 percent leased. Today, the building is more than 98 percent leased and has benefitted by attracting rapidly growing technologyfirms such as Groupon.
While direct vacancy has continued its decline, a large amount of sublease space may push direct vacancy up in the next few quarters.5.4 percent of inventory is available for sublease, compared to 2.3 percent for the entire CBD. Once the underlying leases expire, thespaces will convert to direct vacancy.
The borders of the River North submarket are defined as Division Street (North), Racine Avenue (West), State Street (East), and FultonStreet and the Chicago River (South). It has historically been home to small, older buildings catering to art galleries, furniture studios,and small businesses, but has seen new development which has brought law firms and financial institutions to the submarket.
Numbers in parentheses are negative
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SOUTH LOOPVacancy rate stabilizes, but demand continues to be weak
SOUTH LOOP SUBMARKET HISTORICAL DIRECT VACANCY
After several consecutive quarters of negative absorption, the CBD’ssmallest submarket saw flat demand in the second quarter. Vacancy ratesare just shy of the record levels reached at the end of 2003 and aresignificantly elevated since the end of 2009.
One Financial Place comprises nearly half of the total amount of officespace in the South Loop and is the submarket’s only Class A building.Given such a small submarket, changes in occupancy within this buildinghave the potential to drastically affect the performance of the submarket.The submarket’s vacancy rate is expected to continue its climb until thebuilding secures new tenants or induces existing tenants to expand inthe building.
Goldman Sachs has begun to give back space at One Financial Place aspart of its consolidation. Midwest Generation also vacated a full floor,
SOUTH LOOP SUMMARY A C Total
Inventory (square feet) 1,019,325 1,291,743 2,311,068
Year to Date Absorption (square feet) (45,466) (19,461) (64,927)
Direct Vacancy Rate 13.9% 24.9% 20.1%
Total Vacancy Rate (Direct + Sublease) 15.1% 25.1% 20.7%
LARGEST BLOCKSBuilding Address Size (sf) Building Class
619 S LaSalle St 78,000 C
adding to the vacancy of the building and submarket. As Goldman continues to reduce its space in the building from eight floors tofour, it is possible that a record high vacancy rate could be reached in 2011.
The boundaries of the South Loop include Van Buren Street (North), I-90/I-94 (West), Lakeshore Drive (East), and 16th Street (South).The South Loop is populated primarily with education, small businesses, and converted residential properties.
Numbers in parentheses are negative
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WEST LOOPTenants continue their “flight to quality”; Willis Tower hits the block
WEST LOOP SUBMARKET HISTORICAL DIRECT VACANCY
The West Loop continues to recover as the CBD’s largest submarket saw213,000 square feet of positive absorption, dropping its direct vacancyrate to 14.8 percent. Leading the recovery are Class A buildings, whichcontinue to be the most active and highest demanded assets in the CBD.
During the second quarter, Wells Fargo signed the largest lease year-to-date: a 17-year, 293,000 square foot lease at the Chicago MercantileExchange Center at 10 and 30 South Wacker. The firm will consolidatefive offices in the West Loop and expand upon its current requirement by43,000 square feet. Marsh will relocate its offices at 500 West Monroeand cut its space requirement by 56,000 square feet as it will occupy120,000 square feet at 540 West Madison in November.
The investment sales market continues to be robust. Billionaire investor
LARGEST BLOCKSBuilding Address Size (sf) Building Class
500 W Monroe St 369,207 A
233 S Wacker Dr 299,514 A
200 S Wacker Dr 112,929 A
101 N Wacker Dr 106,732 B
500 W Monroe St * 106,475 A
500 W Madison St 92,924 A
233 S Wacker Dr 91,216 A
333 W Wacker Dr * 87,954 A
1 S Wacker Dr 86,658 A
30 S Wacker Dr 81,478 A
Numbers in parentheses are negative
* Indicates future available space
WEST LOOP SUMMARY A B C Total
Inventory (square feet) 26,843,953 9,720,250 6,501,558 43,065,761
Year to Date Absorption (square feet) 314,155 86,757 49,431 450,343
Direct Vacancy Rate 14.9% 12.8% 17.3% 14.8%
Total Vacancy Rate (Direct + Sublease) 17.7% 15.0% 18.0% 17.1%
Sam Zell made his first office purchase since 2007 as he partnered with Transwestern to acquire a 90 percent stake in 200 SouthWacker for an estimated $156 per square foot. Three Wacker Drive skyscrapers hit the market during the second quarter. Mostnotably, the 3.8 million square foot Willis Tower (233 South Wacker) is being marketed for sale. Neighbor 311 South Wacker is alsoon the market. In addition, Hines is seeking a buyer to purchase up to a 50 percent stake in 1 North Wacker.
Due to the amount of leasing activity the submarket has experienced, MB Real Estate expects further positive absorption in the WestLoop next quarter. Also, the investment sales market will continue to heat up as institutional investors and high-net-worth individualsbid for the some of the largest and most iconic buildings in the CBD.
The West Loop’s borders are defined as the Chicago River (North), I-94/I-90 (West), Wells Street (East), and Van Buren Street (South).
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SUBURBAN MAP
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EAST-WESTDemand remains flat in the suburbs’ largest submarket
The East-West Corridor experienced modest absorptionas its direct vacancy rate currently sits at 22.2 percent.Occupancy levels are rebounding slightly but are still nearthe record lows reached in 2003.
Sickich signed the largest new lease in the suburbanmarket during the second quarter. The accounting firmwill occupy 80,000 square feet at 1415 West Diehl Roadin Naperville and will vacate approximately 40,000square feet at 998 Corporate Boulevard in Aurora. SHCDirect is also relocating and expanding its space at 1815South Meyers Road in Oakbrook Terrace. The HealthcareFinancial Management Association renewed its lease of23,000 square feet at 2 Westbrook Corporate Center inWestchester.
EAST-WEST SUBMARKET HISTORICAL DIRECT VACANCY
LARGEST BLOCKSBuilding Address City Size (sf) Building Class
700 Oakmont Ln Westmont 256,767 A
1200 Warrenville Rd ** Naperville 245,514 B
3075 Highland Pky * Downers Grove 228,764 A
28100 Torch Pky Warrenville 203,842 B
2400 Cabot Dr * Lisle 194 052 B2400 Cabot Dr * Lisle 194,052 B
1415 W Diehl Rd Naperville 168,000 A
1333 Butterfield Rd Downers Grove 102,096 A
1011 Warrenville Rd Lisle 101,172 A
3333 Warrenville Rd Lisle 89,334 A
800 Jorie Blvd Oak Brook 88,886 B
Investment sales activity was highlighted by RR Donnelly and Sons purchase of 4101 Winfield Road in Warrenville. The publishing andcommunications company purchased the 167,000 square foot building from M&J Wilkow for $14.7 million. The owners of 1333 BurrRidge Parkway are marketing the Class A, 151,000 square foot building for sale. The property is 87 percent leased and is expectedto attract bids upward of $200 per square foot.
MB Real Estate expects vacancy to increase slightly over the next few quarters. Job growth has not reached the levels necessary tosustain significant absorption as companies reevaluate their space requirements and consider alternative locations.
The East-West submarket encompasses Cook, DuPage, Kane, Kendall, and Will Counties, with major cities including Downers Grove,Lisle, Naperville, and Oak Brook.
Numbers in parentheses are negative
* Indicates future available space** indicates space available during the upcoming quarter
EAST-WEST SUMMARY A B C Total
Inventory (square feet) 20,620,544 14,533,702 4,914,973 40,069,218
Year to Date Absorption (square feet) 19,118 (104,885) 36,156 (49,611)
Direct Vacancy Rate 20.8% 23.8% 23.0% 22.2%
Total Vacancy Rate (Direct + Sublease) 24.8% 27.5% 23.9% 25.6%
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NORTHVacancy reaches record high, but submarket retains key tenant
NORTH SUBMARKET HISTORICAL DIRECT VACANCY
While the North submarket continues to be the best-performing and most-desired submarket in SuburbanChicago, the direct vacancy rate has climbed above 20percent for the first time in MB Real Estate’s trackedhistory. The submarket experienced 111,000 square feetof negative absorption as all building classes sawdecreased occupancy.
Leasing activity continues to be modest, but a fewnoteworthy deals will help aid the submarket. CVSCaremark renewed its lease of 266,000 square feet at2211-2215 Sanders Road in Northbrook. The transactionwas the largest in the suburbs on a per square foot basisand prevents another large block and vacant buildingfrom hitting the market. The other large lease transaction
LARGEST BLOCKSBuilding Address City Size (sf) Building Class
1200 Lakeside Dr ** Bannockburn 257,190 A
1 Corporate Dr Long Grove 201,509 A
1 Overlook Pt Lincolnshire 148,686 A
544 Lakeview Pky Vernon Hills 144,999 B
4 Corporate Dr Long Grove 141 079 B4 Corporate Dr Long Grove 141,079 B
2355 Waukegan Rd Bannockburn 106,495 A
25 Tri State International * Lincolnshire 103,742 A
850-860 Technology Way Libertyville 78,000 A
2-4-6 Genesee St Waukegan 75,996 C
333 Knightsbridge Pky Lincolnshire 74,728 A
occurred when Toshiba expanded by 21,000 square feet at 704-708 Deerpath Drive in Vernon Hills.
American Real Estate Capital has listed 909 Davis Street in Evanston for sale. The 195,000 square foot, nearly fully leased buildinghas an estimated value of $205 per square foot.
The submarket’s outlook for the rest of 2011 appears bleak. A 257,000 square foot block at 1200 Lakeside Drive in Bannockburnwill be vacated next quarter. Sustained job growth and the retention of large tenants are necessary for occupancy to grow towardslevels seen just a couple of years ago.
The North submarket is located within portions of Cook and Lake Counties, with major cities including Bannockburn, Deerfield,Evanston, Glenview, Highland Park, Lake Forest, Northbrook, and Vernon Hills.
Numbers in parentheses are negative
* Indicates future available space** indicates space available during the upcoming quarter
NORTH SUMMARY A B C Total
Inventory (square feet) 16,865,410 7,504,352 2,573,647 26,943,409
Year to Date Absorption (square feet) (48,100) (49,173) (44,852) (142,126)
Direct Vacancy Rate 19.2% 22.1% 21.7% 20.2%
Total Vacancy Rate (Direct + Sublease) 24.9% 22.2% 20.6% 23.7%
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NORTHWESTDemand remains weak; AT&T marketing campus for sublease
NORTHWEST SUBMARKET HISTORICAL DIRECT VACANCY
For the second consecutive quarter, the Northwest wasthe worst-performing submarket in Suburban Chicagoas the direct vacancy has reached 26.0 percent. Onceagain, vacancy has reached its highest level in MB RealEstate’s tracked history.
The submarket continues to lack the demand necessaryto sustain a recovery. On a positive note, several tenantsrenewed their leases during the quarter. CVS Caremarkrenewed 117,000 square feet at 800 Biermann Court inMount Prospect, Bank of America renewed its lease of93,000 square feet at 1600 Corporate Center in RollingMeadows, and STMicroelectronics renewed 27,000square feet at 1375 East Woodfield Road inSchaumburg.
LARGEST BLOCKSBuilding Address City Size (sf) Building Class
21440 Lake Cook Rd Deer Park 351,425 A
1600 McConnor Pky ** Schaumburg 300,686 A
1701 Golf Rd Rolling Meadows 234,287 A
3501 Algonquin Rd Rolling Meadows 206,770 C
1299 Algonquin Rd Schaumburg 195 393 C1299 Algonquin Rd Schaumburg 195,393 C
150 NW Point Blvd Elk Grove Village 176,844 A
3800 Golf Rd ** Rolling Meadows 156,574 B
425 N Martingale Rd Schaumburg 155,559 A
1 Salem Lake Dr Long Grove 140,252 B
3333 Beverly Rd Hoffman Estates 129,000 A
Several buildings traded hands throughout the quarter. The largest sale occurred when Nokia Siemens Networks US purchased the693,000 square foot property at 1421-1501 West Shure Drive in Arlington Heights from Motorola Solutions for $45.5 million.
Adding to the submarket’s weakness is the glut of large blocks. The Northwest has 16 contiguous blocks of at least 100,000 squarefeet available for direct lease, more than any other submarket in Suburban Chicago. In addition, AT&T is marketing its 1.2 million squarefoot campus in Hoffman Estates for sublease. With numerous options available, large tenants evaluating the Northwest submarket willcontinue to have the upper hand in lease negotiations for quite some time.
The Northwest submarket is located within the portions of Cook, Kane, Lake, and McHenry Counties, with major cities includingArlington Heights, Itasca, Rolling Meadows, and Schaumburg.
Numbers in parentheses are negative
** indicates space available during the upcoming quarter
NORTHWEST SUMMARY A B C Total
Inventory (square feet) 18,526,637 9,765,897 2,305,378 30,597,911
Year to Date Absorption (square feet) (191,610) (295,889) (26,413) (513,911)
Direct Vacancy Rate 21.0% 34.4% 30.0% 26.0%
Total Vacancy Rate (Direct + Sublease) 23.7% 34.9% 31.4% 27.9%
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O’HAREOccupancy continues to decline in the Suburban market’s most vacant submarket
O’HARE SUBMARKET HISTORICAL DIRECT VACANCY
O'HARE SUMMARY A B C Total
Inventory (square feet) 7,824,658 4,348,908 2,546,296 14,719,862
Year to Date Absorption (square feet) 8,322 (69,871) (11,128) (72,676)
Direct Vacancy Rate 20.4% 32.4% 36.4% 26.7%
Total Vacancy Rate (Direct + Sublease) 22.4% 36.8% 36.3% 29.0%
The O’Hare submarket witnessed slightly negativedemand in the second quarter and it continues to havethe highest vacancy rate in Suburban Chicago. The directvacancy rates for Class B and C properties are well over30 percent.
Leasing activity was highlighted by American Board ofRadiology, who signed a 10-year lease for 50,000 squarefeet at 5440 North Cumberland Avenue in Chicago. TheU.S. Military Entrance Processing Command signed a20-year lease for 32,000 square feet at 8700 West BrynMawr in Chicago. The GSA division is shrinking from50,000 square feet at 1700 South Wolf Road in DesPlaines and will occupy their new space in May 2012.
LARGEST BLOCKSBuilding Address City Size (sf) Building Class
2350-2360 E Devon Ave Des Plaines 142,596 B
9525 W Bryn Mawr Ave Rosemont 113,868 A
9700 W Higgins Rd Rosemont 107,617 A
8700 W Bryn Mawr Ave Chicago 97,801 A
4242 N Harlem Ave Norridge 93 155 B4242 N Harlem Ave Norridge 93,155 B
8700 W Bryn Mawr Ave * Chicago 88,409 A
9500 W Bryn Mawr Ave Rosemont 72,149 A
9801 W Higgins Rd Rosemont 57,994 B
9500 W Bryn Mawr Ave * Rosemont 56,554 A
9500 W Bryn Mawr Ave * Rosemont 56,471 A
As foreclosures and non-traditional sales have dominated the investment market, one major traditional sale occurred in the secondquarter. Wintrust Financial Corporation acquired 9700 West Higgins Road in Rosemont for $22.5 million or $81 dollars per squarefoot. The Class A building is only 49 percent leased, however, showing that investors are scouring the market for value-add plays.
Tenants with large space requirements have considerable options with 13 direct blocks and one sublease block of space greater than50,000 square feet available. Given the amount of options, tenants will continue to have the upper hand in lease negotiations.
The O’Hare submarket is located in northwestern Cook County, with major cities including northwestern Chicago, Elk Grove Village,and Rosemont.
Numbers in parentheses are negative
* Indicates future available space
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13S E C O N D Q U A R T E R 2 0 1 1 | C H I C A G O S U B M A R K E T S N A P S H O T S
ABOUT MB REAL ESTATEOur mission is to provide clients and investors with extraordinary real estate value and unlimited support
MB REAL ESTATE HEADQUARTERS181 West Madison, Suite 4700Chicago, Illinois 60602phone: 312.726.1700fax: 312.807.3853
EAST COAST REGIONAL HEADQUARTERS335 Madison Avenue, 14th FloorNew York, New York 10017phone: 212.350.2300fax: 212.350.2301
COMPANY LEADERSHIPPETER E. RICKERChairman & CEO
JOHN T. MURPHYPresident
DEPARTMENT LEADERSHIP
MARK A. BUTH Senior Vice President & Managing Director of Leasing Services
ANDREW J. DAVIDSON Executive Vice President & Managing Director of Corporate Services & Tenant Advisory
GARY A. DENENBERG Executive Vice President & Managing Director of Leasing Services
DAVID R. GRAFF Senior Vice President of Project Services
MAUREEN G. GROVE Vice President & Managing Director of Accounting Services
DANIEL J. NIKITAS Executive Vice President of Corporate Services & Tenant Advisory Services
KEV IN M. PURCELL Executive Vice President & Managing Director of Asset Management
EVE WEST Chief Administrative Officer & Managing Director, Support Services
At MB Real Estate, our corporate mission is to maximize the value of our clients’real estate by creating timely and innovative solutions that meet their unique needsand objectives.
We offer the highest level of real estate support with our team of committed, results-driven experts in asset and facilities management, leasing, tenant representation,development, project management, and investment services.
Supported by dedicated accounting, marketing, human resources, and informationtechnology teams, our unique full-service firm is an industry leader in local and national corporate real estate.