Coldwell Banker Commercial Real Estate Capabilities

Coldwell Banker Commercial has the largest commercial real estate footprint with over 3,500 professionals nationally, over 16,000 listings, nearly double that of the nearest competitor, averaging 13,000 transactions annually valued at over $4 Billion.

Providing comprehensive Commercial Real Estate Services to the Greater Chicago Area and Nationally through our vast network of over 3,500 professionals and Global Client Services Group.

Accelerating the Success of your Business!

Success in the commercial real estate business is all about leveraging local market knowledge into opportunities. This means commercial real estate professionals need to be nimble and move at the speed of the market and at the speed of the client. Through the Coldwell Banker Commercial® (CBC) entrepreneurial platform you can do just that!

CBC is one of the leading franchisors of commercial real estate services with:

  • Over 250 companies
  • More than 4,000 professionals
  • In over 17 countries worldwide

Each office around the globe is empowered to provide clients with critical market knowledge and support. Additionally, CBC offices collaborate and leverage their global presence through industry-leading technologies, enabling CBC professionals to effectively serve their clients. CBC combines an institutional process with an entrepreneurial approach to deliver sound real estate solutions.

CBC represents a tremendous concentration of professional talent. Our nimble, united force consistently responds to client needs with speed and precision to ensure our client’s success.

Service Lines

  • Acquisition & Disposition Services
  • Brokerage & Transaction Mgmt
  • Corporate Services
  • Investment Analysis
  • Markt Research & Analysis
  • Project Management
  • Property Development
  • Property & Facilities Mgmt
  • Relocation Services
  • Tenant Representation

Cutting Edge Technology

  • Central Data Exchange – listings are entered into one location and is distributed to over 30 publications & websites
  • Award winning website – over 2.6 million property searches annually
  • Web based project management – offers immediate access to project status and documents
  • Coldwell Banker Commercial LeadRouter– a revolutionary and proprietary software program that helps CBC professionals ensure that every client receives an immediate, professional response by sending Internet inquiries and e-mails to their cell phone.

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Commercial Real Estate Market Summary – Chicago, IL

Commercial Real Estate Market Summary - Chicago, IL

Market Snapshots

Coldwell Banker Commercial (CBC) understands that each client's requirements are unique in every marketplace.CBC market perspectives provide an overview into the current economic and commercial conditions in leading U.S. markets. 

Retail

Retail

For the 102-million-square-foot Chicago community-neighborhood shopping center market REIS reports a third quarter 2013 vacancy rate of 11.2%, unchanged from the prior quarter, but still down 40 basis points from a year earlier. As of the third quarter, the average asking rent was up 0.6% compared with a year earlier at $19.19 psf, with an average effective rent up 0.8% to $16.85 psf. For the quarter alone, rents increased 0.3% by both measures

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Office

The 244-million-square-foot metro area Chicago general purpose, multi-tenant office market has a third quarter 2013 vacancy rate of 18.7% for the Chicago market, up 20 basis points both from the prior quarter and from the start of the year. The asking average for the quarter was $27.98 psf and the effective average was $21.51 psf. The year-over-year gains are still at 2.23% by both measures, but only due to a strong increase in the fourth quarter 2012.

Apartment Building

Multifamily

The 450,100-unit investment -grade Chicago apartment market in in the early phases of the biggest supply boom since the 1980's, but the vacancy rate has remained tight so far and rents are rising. REIS reports a vacancy rate of 3.7% for the third quarter of 2013, up 10 basis points during the quarter, but down 30 from a year earlier. Rents continue to rise moderately. During the third quarter both the average asking rent and the average effective rent increases 1.1% to $1,,38 and $1,070 per month. The year-over-year gains are 2.5% asking and 2.6% effective.

Modern Warehouse

Industrial

The recovery of Chicago's 518 million-square-foot warehouse/distribution space market slowed in the third quarter, while its 49.2 million square-foot Flex/R&D market remains in recession. REIS reports a vacancy rate of 14.4% for Chicago's warehouse/distribution space in the third quarter of 2013, down just 10 basis points during the quarter, but down 110 from a year earlier. Chicago's warehouse/distribution market rents continued to rise moderately in the third quarter according to REIS. Both the average asking rent and the average effective rent were up 0.5% over the quarter, to $4.45 psf and $3.90 psf. The year-over-year gains are 1.6% asking and 2.4% effective. For Flex/R&D space, Chicago's third quarter vacancy rate is 17.7% up 20 basis points during the third quarter and up 50 from a year earlier. The vacancy rate fo rtype of space had been falling in 2012 before turning upward again. Chicago's Flex/R&D rents remained weak during the third quarter. The average asking rent fell 0.1% to $7.56 psf and the average effective rent decreased to 0.2% to $6.42 psf.

 

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Coldwell Banker Commercial has the largest commercial real estate footprint with over 3,500 professionals nationally, over 16,000 listings, nearly double that of the nearest competitor, averaging 13,000 transactions annually valued at over $4 Billion.

Providing comprehensive Commercial Real Estate Sales, Leasing, Investment and Asset Management Services for the Greater Chicago Area and Nationally through our vast network of over 3,500 professionals and Global Client Services Group.

Chicago Regional Office
2215 Sanders Rd, Suite #300
Northbrook, IL 60062

West Suburban Office
967 West 75th St
Naperville, IL 60565

Phone:  (630) 344-9355
Email:   [email protected]

Contact Us:

naperville-il

CNN Ranks Naperville in Top 100 Best Places to Live

WINNER

Top 100 rank: 54
Population: 152,600

In its list of America's best small cities, CNN Money ranks Naperville at No. 54

Community is king in Naperville, which adds a local 1% tax on food and beverages to fund events and heritage celebrations. Come summer, residents converge on Centennial Beach, a huge quarry purchased by the city during its 1931 centennial celebration, or stroll along the 1.75 miles of brick paths on the DuPage Riverwalk in the heart of town. Top schools and lots of jobs at firms like OfficeMax and Alcatel-Lucent round out this picture of near perfection -- marred only by some congestion on nearby highways and a lengthy commute for those who work in downtown Chicago.

Source: CNN Money

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Independent Grocers Negotiating to Buy 10 Dominick's

Independent grocery chains affiliated with the Centrella cooperative are in negotiations to buy as many as 10 Dominick's stores, sources familiar with the talks said.

Grocers affiliated with Centrella, the brand name used by Joliet-based Central Grocers Inc., are looking to purchase stores as a group in both the city and suburbs, sources said. It's unclear which Dominick's locations Centrella would buy on behalf of its member firms.

The group has hired food industry investment banker David Schoeder to negotiate the package deal with Dominick's parent, Pleasanton, Calif.-based Safeway Inc., which announced it would leave the Chicago market.

Mr. Schoeder, a principal with Food Partners LLC in Washington, declined to comment. A Centrella executive could not immediately be reached this evening.

Centrella grocers looking to open stores in soon-to-close Dominick's around the region include Tony's Finer Foods, Treasure Island and Strack & Van Til, among others, according to the sources. The co-op has more than 150 members.

Tony Ingraffia, president of South Barrington-based Tony's Finer Foods Inc., did not return calls. Christ Kamberos, vice president of development at Treasure Island Foods Inc., declined to comment. An executive with Highland, Ind.-based Strack & Van Til did not return a call.

Jewel-Osco, meanwhile, is suspending plans to snap up additional Dominick's on the market here. The firm, owned by private-equity firm Cerberus Capital Management LP, is no longer looking to buy additional Dominick's stores that are currently open, said an Itasca-based spokeswoman for Jewel.

When Safeway announced in October that it would leave the Chicago market, the firm operated 72 stores across the region. No more than 55 remain.

Earlier this month, Milwaukee-based Roundy's Inc. announced a $36 million deal for 11 Dominick's. Jewel-Osco has purchased four. And Dominick's leases are expiring at properties in Matteson and Morton Grove and the landlords there are pursuing other options.

A Safeway spokeswoman did not return a call.

Jewel announced its Dominick's acquisitions in October, stores at 1340 S. Canal St. and 2550 N. Clybourn Ave. in Chicago, and in Homer Glen and Glenview. It's currently operating those outlets as Dominick's, with plans to convert them into Jewel stores by mid-January, according to Jewel spokeswoman Allison Sperling.

The grocer won't buy any more operating Dominick's stores, Ms. Sperling said. Instead, Jewel will wait to see what's left after Safeway shutters its chain Dec. 28th.

“In the near future, we will consider any opportunities that arise” to take over closed Dominick's, said Ms. Sperling, who declined to elaborate further.

Chicago Tribune first reported on Jewel-Osco's decision not to pursue Dominick's that are currently open.

In other Dominick's developments, Safeway did not renew its lease for its store at 4233 W. Lincoln Hwy. in south suburban Matteson. A spokesman for Indianapolis-based Simon Property Group, which owns the retail property that Dominick's is leaving, said in a recent email that Simon is trying to find a new tenant for the space.

In Morton Grove, Dominick's lease is expiring in April, a source said, and the landlord plans to pursue a retail-focused redevelopment project there.

Source: Crains Chicago Business Micah Maidenberg December 18, 2013

Main

Office conversions playing interesting role in this cycles office market recovery

Office demolitions and conversions are playing an interesting role in this cycle’s office recovery. They decrease competition for tenants, especially between Class B and C landlords, and as empty space is removed from the market, vacancies decline.

The effect of space removals has been unusually visible in recent years due to the dearth of new office buildings. In 2012, the office stock shrunk in a third of the 54 top U.S. markets, and overall demolitions and conversions reduced the net inventory change by about 21.6 million square feet, or 0.3% of inventory, effectively resulting in about a 0.2 percentage point decline in office vacancy.

Over the next four quarters, a fifth of the top 54 U.S. metros and almost half of the 1,400 submarkets in thos metros will have a net loss of inventory.

Conversion to residential usage is the most prominent reason that an office building is removed from inventory. (See Exhibit 1.)

oldoffices

Condo and apartment conversions comprise 34% of the lost office space in CoStar’s database, and another 13% of office space has been demolished to make way for new residential construction.(1)

Inasmuch as offices are replaced by homes for new residents who likely will want to work nearby, multifamily repositionings benefit both the supply and demand sides of the office fundamentals equation.

Multifamily developers often market transit accessibility as a part of a project’s amenities, and of all the possible conversion/demolition combinations, residential conversions had the closest proximity to mass transit-averaging only a 3.8-minute walk to the closest transit stop. San Francisco, Chicago, New York and Philadelphia have the largest concentrations of transit-accessible office structures that fit the typical multifamily conversion profile (built circa 1930 with 22,000-square-foot floor plates), and office fundamentals in those metros stand to benefit from additional conversions.

Source: Mark Heschmeyer October 21, 2013

Vulture Real Estate Investors Finding Less to Feed on

The quest for distress is getting a lot tougher. The real estate crash created opportunities galore for investors to buy commercial properties on the cheap as lenders unloaded bad loans or foreclosed buildings. But there's less carrion for the vultures to feed on nowadays, as rising rents, occupancies and property values have allowed many landlords to avert trouble. And lenders have sold off much of their delinquent real estate loans or repossessed properties, reducing the supply of distressed assets to buy. “They are really running low on inventory,” says Mr. Hassan, vice president of Edwards Realty Co. The rebounding real estate market is good for most landlords “but bad for opportunistic investors like us.” Of the $18 billion in distressed commercial real estate debt that has piled up in the Chicago area since 2007, $11.2 billion, or 62 percent, has been worked out or resolved, according to Real Capital Analytics Inc., a New York-based research firm. The pile of bad loans is getting smaller as fewer landlords default on mortgages and debt restructuring activity picks up. In the past year, some of the biggest casualties of the crash have gotten back on their feet. In June, a New York investor group invested $100 million in the struggling Prudential Plaza office complex overlooking Millennium Park as part of an agreement to restructure about $410 million in debt. A couple of blocks away, the owner of the Hard Rock Hotel late last year paid off an overdue $68.5 million loan in a recapitalization.

Distressed investors that got in early have made out well, thanks largely to rising property values. A venture including Northbrook-based Arthur Goldner & Associates Inc., for instance, recently agreed to sell the Crossings, a 304,000-square-foot office complex in Oak Brook, for $35.5 million, about three years after buying it for about $20 million through a consensual foreclosure. But with financing plentiful and investors chasing a dwindling number of distressed properties, few bargains are left. “It's a challenge to find interesting opportunities with returns that you can feel good about,” says David Helfand, co-president of Equity Group Investments LLC, the Chicago-based investment firm headed by billionaire Sam Zell. LENDERS OPTIMISTIC Still, many lenders are feeling better about the overall health of the real estate market. The delinquency rate on Chicago-area commercial property loans held by banks fell to 4.9 percent in the second quarter, down from a peak of 7.7 percent in 2011 and its lowest level in nearly five years, according to Trepp LLC, a New York-based research firm. One big reason for the drop: Banks have sold off a lot of bad loans. For investors, the simplest way to get control of a distressed property is to buy one that has already gone through foreclosure. A riskier route is to buy a delinquent loan from a lender at a discount and either work out a debt restructuring with the borrower or seize the property through foreclosure. Another option is to buy a property through a short sale, agreeing to pay less than the amount owed but enough to satisfy its lender. An Equity Group venture, for instance, recently paid $72 million for a River North parking garage, far less than the $13.7 million that the property's lender demanded when it filed to foreclose in November 2011.

Other distressed investors will recapitalize a property with fresh equity but allow the original owner to retain a stake. In 2011, a group including Mr. Zell's firm acquired a majority stake in the 40-story office tower at 200 S. Wacker Drive, allowing the building's owner to pay off an overdue $96 million mortgage. The property recently went on the market and is expected to fetch $226 million, or $300 a square foot. During the bust, investors that didn't need to borrow capital had a big edge, but that edge has narrowed as lenders have returned to the market, says David Ruttenberg, principal of Marc Realty Residential LLC, a Chicago-based firm that has specialized in buying failed condominium projects and renting their units out. So Marc is shifting its strategy. It's still chasing distressed properties but focusing on ones that need to be redeveloped. It recently acquired a former printing facility in Printers Row in a short sale and plans to convert it into 80 to 100 apartments. “The opportunity is no longer on the buy,” Mr. Ruttenberg says. “The opportunity is in the value creation.” Mr. Hassan, meanwhile, is still pursuing distressed properties. In May, Edwards paid $10 million for a lender-owned shopping center in Orland Park that was hit with a $16.9 million foreclosure suit in 2010. But Mr. Hassan has lowered his expectations. “It's been extremely difficult and extremely competitive,” he says. “We're chasing probably three or four distressed deals, and I honestly can't tell you that we'll get one of them.” Equity Group hasn't stopped looking either. Mr. Zell isn't called the “Grave Dancer” for nothing. “There are still deals to be done,” Mr. Helfand says. “It just takes a little more effort, patience and aggressiveness.”

Source: Crains Chicago Business, Alby Gallun September 16th, 2013

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Coldwell Banker Commercial Largest Number of CCIM Designees and Candidates

Investing in commercial brokers’ education is key.

“Investing in your mind is one of the most important activities you can engage in as a business professional,” says Fred Schmidt, president and chief operating officer of Coldwell Banker Commercial Affiliates. With an emphasis on investing in the educational opportunities of its professionals, Coldwell Banker Commercial has made CCIM educational offerings an integral part of the company’s professional development strategy by delivering CCIM courses at its conferences, awarding CCIM scholarships to brokers, and providing discounts on CCIM membership and courses to affiliates.

CCIM Partner Connection asked Fred Schmidt and David Birnbaum, vice-president, learning, to share insights on how the CCIM program adds value for Coldwell Banker Commercial professionals.

CCIM: Which CCIM courses and concepts are most useful and valuable to Coldwell Banker Commercial brokers?

Schmidt: As part of our Emerging Broker Training program, we give an annual Top Student scholarship, which consists of paid tuition to attend the CI 101 course to help get the professional started on their path to designation. We encourage all of our graduates to continue on and take the entire core curriculum, but CI 101 is an essential building block for anyone in commercial real estate.

Birnbaum: Although all the CCIM courses are rigorous and valuable, we focus on the core courses (101-104), as well as their webinars, workshops, and online courses. The core courses provide an essential foundation in the commercial real estate business, while the CCIM webinars and conference seminars cover emerging topics and trends in commercial real estate, which teach CBC professionals how to excel in a fast-changing industry.

CCIM: How do Coldwell Banker Commercial brokers/agents apply the skills they acquire through CCIM courses?

Schmidt: We’ve found that a successful formula for success in the business is requiring new professionals to take CBC’s Emerging Broker Training and to complete their CCIM designation within three to four years of starting in the business. For example, this is the model that is followed by one of our owner/brokers, Rick Canup. Every recruit Rick brings in completes our four-month EBT program, and then goes on to complete their CCIM designation. These two course curriculums together provide a robust knowledgebase that in the end is beneficial for the client. In fact, several of the professionals from Rick’s office are part of our Top Two -- those producers who are in the top two percentile of CBC across the United States.

CCIM: What value does CCIM education and your affiliation with the CCIM Institute add for Coldwell Banker Commercial professionals?

Birnbaum: Having the CCIM designation provides a higher level of business acumen and professionalism with instant credibility in the market. It is a badge of honor that the CBC organization espouses; achieving the designation is highly encouraged.

CCIM: Please describe the return on investment that Coldwell Banker Commercial experiences as a result of its affiliation with the CCIM Institute.

Schmidt: Individual results vary by market size, specialization, and a candidate’s number of years in the business, but anecdotally we perceive that when you compare the average income of those who have achieved the CCIM designation, typically their average income is higher than those who have not.

Birnbaum: Coldwell Banker Commercial proudly supports those CCIM initiatives that promote diversity within commercial real estate. CBC also has numerous professionals who teach CCIM classes, and during our annual global conference, the CCIM offerings are among the highest rated by our attendees.

Second Quarter 2013 Market Overview Coldwell Banker Commercial

Second Quarter 2013 Market Overview
Randolph Taylor MBA, CCIM, Broker
Coldwell Banker Commercial

Second Quarter 2013 Market Overview.

Following the trend over the past two years, the commercial real estate market continues to see a gradual decrease in vacancy with a leveling off in certain sectors. New construction remains constrained with the exception of Multi-Family.

OFFICE
Vacancy: Remained at 17.00% and is down from 17.3% on a YOY (year over year) basis.

Demand: Office mirrors job creation in the overall economy, the primary demand drivers have been in the Medical, Education, Technology and Energy sectors.

INDUSTRIAL
Vacancy: The warehouse /distribution market continues to fall with vacancy at 11.8% down 10 points in Q1 and from 12.7% YOY.

Demand: According to REIS e-Commerce & Internet fulfillment have been driving demand while import/export activity is tapering off due to economic activity outside the U.S.

RETAIL
Vacancy: Overall vacancy for retail is gradually declining and stands at 10.5% down 10 basis points for Q1 and 30 basis points YOY. This is slightly lower then the all time high of 11.1% in Q3 2011.

Demand: Grocery Anchored shopping centers are doing well with a trend toward specialty anchors such as Whole Foods, Trader Joes and Sprouts. High end and low end (discounters) are doing better, the middle is not the place to be, see Sears and JC Penny.

MULTI FAMILY
Vacancy: For Q2 the vancancy rate remained unchanged at 4.3% bringing a run of 13 consecutive declines to an end.

Supply: The level off of vacancy has been a function of increased supply growth. REIS has indicated that new units coming on line are 85% pre-leased indicating that demand remains strong.

By Fred Schmidt, President and COO of Coldwell Banker Commercial Affiliates
Second Quarter 2013 Market Overview