OUTLOOK REGIONAL
MIDWEST
Chicago's Big Deal Here's a classic value-add deal in the Windy
City: Berkley Properties LLC purchased the 1929 Civic Opera Building for $125.8 million from Tishman Speyer, which bought it for $185 million in 2007. The 44-story West Loop landmark that sits on the Chicago River gets about $27 psf in gross rents, according to ChicagoRealEstateDaily.com, about half the lease rate of its Wacker Drive neighbors. While the building façade and lobby are protected by landmark status and the performance space is owned by the Chicago Lyric Opera, the rest of the building is ripe for change. New owners plan to add retail and amenities and probably redesign fl oorplates to allow for a mix of larger tenants.
E A ST
One's Hot, One's Not Is Boston's Financial District losing a battle for the city's premier downtown offi ce address to the Back Bay? Or is it just a question of not enough good views? T e Financial District has 46 fl oors of available space below the 19th fl oor; Back Bay
has two options. Source: Newmark Knight Frank
SOU T H Ä 2011 Transactions
Ala., Ark., Fla., Ga., La., Miss., Okla., Tenn., Texas OFFICE INDUSTRIAL RETAIL MULTIFAMILY HOSPITALITY
Volume (in billions)
Average psf/unit (weighted)
Source: RERC 42
$11.3 $197
$4.8 $72
$12.7 $185
$11.8 $90,765 $3.3 $184,000 Rent psf Vacancy 4Q11
Financial District Back Bay
Boston market 0 10 20 $39.46 17.5% $47.81
$37.66 30
14.5% 40 50 8.7%
May | June | 2012
Commercial Investment Real Estate
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