Tuesday, June 28, 2011

MB Real Estate Adds Three New Associates; Promotes David Kimball to Assistant Vice President


MB Real Estate has added three associates to its Corporate Services & Tenant Advisory group. Dave Fortosis, Jordan Mellovitz and Doug Noble will focus on new business development, as well as financial analysis and market research.

“These young and energetic professionals truly complement the level of service that MB Real Estate provides all its clients,” said Andrew Davidson, Executive Vice President and Managing Director of MB Real Estate’s Corporate Services & Tenant Advisory group.

Fortosis (25), a graduate of Calvin College in Grand Rapids, Mich., came from Kimberly-Clark where he was a financial analyst. Mellovitz (22), a graduate of University of Illinois at Urbana-Champaign, was a commercial real estate banking analyst for JP Morgan Chase prior to joining MB Real Estate. Noble (26), a graduate of University of Michigan-Dearborn, most recently helped lead new business development efforts for Mid-West Manufacturing Companies.

The group also promoted David Kimball from Associate to Assistant Vice President. Kimball, who joined MB Real Estate in 2005, has recently represented such notable clients as HDI-Gerling America, University of Chicago, and Davis & Hosfield.

MB Real Estate’s Corporate Services & Tenant Advisory group continues to build on its success from the last few years with recent transactions completed on behalf of Greer Burns and Crain, HDI-Gerling America, and True Partners Consulting. This year also saw long-time client General Board of Pension & Health Benefits of the United Methodist Church move into its new 110,000 square foot headquarters in Glenview, Ill. In addition, clients Astellas and Coyote Logistics broke ground on their new headquarters this year, 440,000 square feet in Glenview and 105,000 square feet in Chicago, respectively.

Thursday, June 16, 2011

June Market Beat - Direct Vacancy Rate for CBD's 30 Newest Building Falls to 9.9%.

The MBRE Index, which is compiled of the 30 newest office buildings built in Chicago's CBD, continues to show positive demand for Class A buildings. The direct vacancy rate of these buildings has fallen to 9.9%. However, the direct vacancy rate for the entire CBD increased to 16.1% in the 1st Quarter. Click the image below to learn what this means for the Chicago office market.

 

Thursday, June 2, 2011

West Loop 1Q 2011 Submarket Snapshot: The CBD's Largest Submarket Outperforms The Rest Of The Market


The West Loop, driven by several large leases in Class A buildings, was once again the top-performing submarket in the CBD. Each building class experienced positive absorption during the first quarter suggesting that the submarket is in recovery mode.

Large lease transactions resulting in increased demand include PNC Bank’s renewal and expansion at 1 North Franklin. The bank will increase its occupancy from 80,000 to 116,000 square feet over the next two years as the building will be renamed PNC Centre. University HealthSystem Consortium signed a 12-year lease at 155 North Wacker and will occupy 77,000 square feet next quarter as it vacates its former building in suburban Oak Brook. Humana Health Insurance of Chicago leased 28,000 square feet and expanded onto an additional floor at 550 West Adams. Tressler LLP renewed and expanded its requirement by 10 percent to 83,000 square feet at Willis Tower.

After an active 2010, investment activity quieted down as no buildings were purchased or placed under contract. However, 200 South Wacker and 200 West Jackson are now actively being marketed for sale. It is expected that more owners will test the market throughout the year.

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).

For our complete outlook on the Chicago Office market, please reference the MB Real Estate 1st Quarter 2011 Chicago Market Overview and Submarket Snapshots.