Commercial Investment Real Estate

SEP-OCT 2017

Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.

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September | October 2017 41 { M I D W E S T } { N O R T H E A S T } Transforming Chicago's Southwest Loop teresachicago/Getty Images CCIM.COM * Forecast Source: Marcus & Millichap Source: MB Real Estate Boston Is Beacon for Retail • Blackstone has started a $500 million renovation of the 3.9-msf Willis Tower (built as Sears Tower in 1970), which is the most the company has ever invested in a single building. Renovations encompass replacing the existing plaza with a glass wrap-around structure at the base of the tower; expanding the Skydeck for tourists; and adding amenities for office tenants. • Union Station also is getting a makeover in three phases. The first phase includes renovation of Union Station's historic rail house, a new 110,000-sf food hall, 100,000 sf of offices and hotel rooms, and two 12-story residential structures. Phases two and three will add more office and residential buildings. • Vacant since 1997, Chicago's Old Main Post Office will undergo a massive interior and exterior renovation by 601W Companies, a New York-based developer. The historic art deco building will be turned into an office develop- ment with a large public riverfront plaza with a boat launch and outdoor seating for restaurants and other amenities for office tenants. Square Feet Completed (millions) Completions and Absorption Completions Absorption 0 1 2 3 4 2017* 2016 2015 2014 2013 2017* 2016 2015 2014 2013 Vacancy Rate Trends Metro United States Vacancy Rate 2.0% 3.5% 5.0% 6.5% 8.0% 2017* 2016 2015 2014 2013 Asking Rent Trends Metro United States Year-Over-Year Change –6% –3% 0% 3% 6% Construction: 700,000 sf completed YOY Vacancy: 50-basis-point decrease in vacancy YOY Retail Rents: 4 percent increase in the asking rent for retail YOY

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