Illinois Real Estate Journal February 2015 : Page 1

VOL.16 NO.13 ©2015 LAW BULLETIN PUBLISHING CO. FEBRUARY 2015 The East-West Corridor: Cautiously Optimistic That 2015 Will Be A Good Year By Bianca N. Herron, Editor DIRECTORIES (pg.18): Advanced Degrees/Real Estate Schools, Auction Companies, Real Estate Law Firms 2015 To Continue Positive Trends for Multifamily Market By Bianca N. Herron, Editor A ccording to Todd Stofflet, managing partner at Kiser Institutional Group, in 2014 the multifamily market had one of the best years he’s seen since the recession. St-offlet attributed the successful year to plenty of rent growth, signifi-cant transaction vol-ume increases, as well as cap rates compress-ing from 13 percent. “2015 will still be a very strong year for multifamily,” Stofflet said. “We seem to have a really good handle Todd Stofflet on absorption for the he East-West corridor’s Class A availability rate fell by a full percentage point (pp) to 22.7 percent in the fourth quarter, according to Savills Studley’s Chicago Suburbs office sec-tor Q4 2014 report. Kevin McLennan, senior managing director at Savills Studley, says that is pretty consistent for the corridor. “The East-West corridor is never going to outshine the region, or any one of the submarkets, from a positive or negative perspective,” McLennan said. “Historically you’ll find that it remains steady. I think one of the rea-sons historically you’ll see that is because it’s a really big submarket.” “It’s the biggest from a rentable area perspective,” Mc-Lennan added. “It’s the biggest submarket of all the sub-T CA Technologies, 3333 Warrenville Road MULTIFAMILY FEATURE (continued on page 6) urbs. So it has the most square footage to lease, the most Class A, and Class B type buildings.” Due to the corridor’s huge size, McLennon noted that typically the corridor will see a lot of activity, but there will be vacancies that offset the positive absorption. “It doesn’t really move the needle much when you see the market statistics,” he said. “The corridor has 40 million square feet, so a percentage point in the corridor is a big deal. The takeaway is that the market was really active in the last quarter. More space was taken off the market than was added.” During 2014 in the corridor, tenants leased 1.6 million square feet, which was 25.2 percent less than the 2.2 mil-lion square feet in deals signed during 2013, according to Savills’ report. EAST-WEST CORRIDOR FEATURE (continued on page 5) PRSRT STD U.S. Postage TWIN CITIES, MN PERMIT NO. 31515 PAID

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