Illinois Real Estate Journal August 2016 : Page 1

VOL.16 NO.22 ©2016 LAW BULLETIN PUBLISHING CO. AUGUST 2016 DIRECTORIES (pg.16): Multi-Family Finance, Real Estate Investment Firms, Property Management Firms Lots of movement in Chicago’s CBD: Offi ce tenants actively seeking area for their new space By Stephanie Anguilar Construction loan activity hot as ever in Detroit, St. Louis, Chicago and other Midwest markets By Dan Rafter ore developers across the Midwest are seeking con-struction loans today. And when they hunt for these loans? More oft en they are turning to al-ternative lenders. CONSTRUCTION (continued on page 6) D M owntown Chicago has recently seen plenty of activity in all market sectors, reminding us that it’s going to be another robust year. And while the area has seen its big share of multifamily, re-tail and hospitality projects and deals, the offi ce sector has sustained a remarkably active period in new leases, renew-als, redevelopments and ground-breakings. Offi ce especially saw an impressive second quarter in the Central Business District (CBD), where vacancy decreased from 11.97 percent to 11.65 percent—the lowest it’s been since 2008, according to MB Real Estate’s Q2 Chicago CBD research report. A diff erent second quarter 2016 report by Colliers Interna-tional says this is the fi ft h consecutive quarter that the CBD has experienced signifi cant positive net absorption, which generated the decrease in the overall vacancy rate. Class-C assets are currently seeing a vacancy rate at a his-toric low of 11.16 percent. MBRE said renovations of those types of buildings are taking place to become Class-B prop-erties or Class-C properties being converted for non-offi ce use. Positive absorption in the second quarter was seen across all submarkets, totaling 570,485 square feet and raising the 2016 year-to-date total to 916,854 square feet. MBRE said this is largely due to two new offi ce towers that recently broke ground. One of which, includes, John Buck Company’s 807,130-square-foot development at 151 N. Franklin that will be branded as the CNA Building once it’s completed in 2018. In addition, a 443,645-square-foot offi ce building at 625 W. Adams is currently under construction by White Oak Realty Partners and CA Ventures. CHICAGO (continued on page 5)

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