Attaining Triple Aim: How healthcare can leverage real estate

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triple aim

In today’s capital-constrained environment with shrinking reimbursements from insurance companies, health systems are rethinking their business models by rethinking their real estate footprint.

“Bold, sweeping changes are a mandate for today’s health systems,” said JLL Senior Managing Director Greg Gerber. “Especially in competitive markets with numerous high quality systems vying for market share and operating at a high complexity level.”

Created by the Institute for Healthcare Improvement in 2008 as a roadmap toward value-based care, the “Triple Aim” has three mandates: improving patient experience, improving health of populations and reducing per capita cost of care. We explored the challenges, opportunities and surprising role real estate plays in each area with our Healthcare Practice Group.

Improving patient experience

In an outcomes-driven, performance-based reimbursement model, patient experience is critical and convenience is key. Locating facilities “closer to home” for patients is a surefire way hospitals can expand patient access and optimize their real estate footprint, reinvesting the savings in their core services.

“On the hospital campus, you’re talking about high-cost acute care. By taking healthcare into the community, you are reducing costs and making it easier for patients to stay proactive and healthy,” said Senior Vice President Sarah Cogswell.… Read More

Solar eclipse markets outperform national averages

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Chicago may not fall in the path of totality on Monday, but we’re still excited to witness this historic solar eclipse. In anticipation, we reviewed office vacancy rates and rent growth in “eclipse markets” and were impressed to see most markets outshining national averages.

solar eclipse

Dig into our latest Chicago market office stats here.… Read More

Why move your headquarters? Top CEOs speak out

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While corporate real estate strategies are definitely one-size-fits-one, headquarters relocations seem spurred by surprisingly similar reasons. We wouldn’t call this kind of groupthink a bad thing, rather a natural reaction to a global demographic shift. You can’t ignore more than one million people moving into cities every week.

We analyzed the corporate press releas es associated with Chicago’s 32 headquarters relocations since 2008, paying close attention to quotes from each CEO. These leaders have waxed philosophic, strategic, straight up practical and everything in between in their commentary, offering a glimpse into larger pushes for organizational change and innovation.

Our word cloud above sizes words based on how frequently they’ve been used by CEOs. Roll your mouse over each word to see a sample quote and we’ll dig into the top reasons for moving below.… Read More

Budget backlash for Illinois industrial? Nope…

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budget

Welcome to Episode 6 of JLL Chicago Industrial – Real Time, our Industrial Research podcast. In this episode:

  • Sure, taxes are up, but there are more positives than we think
  • Illinois isn’t the only state grappling with significant long-term obligations
  • Investors can’t ignore Chicago’s universal truths as the nation’s transportation hub, second-largest industrial market by square footage and largest inland port

Hosted by: Industrial market research experts George Cutro and Chad Buch

Featuring: Research and economics pro Christian Beaudoin

Listen to this 10-minute podcast with the player above or click here.

Know someone who’d like to listen? Post to LinkedIn.

Interested in hearing more industrial real estate insights? Listen to all podcast episodes here.… Read More

The MTV Generation grows up: Generation X as CEO

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“A person should not believe in an -ism, he should believe in himself.” –Ferris Bueller

Generation X grew up unsupervised, independent and decidedly anti-establishment. This small, often overlooked cohort entered the corporate world with little fanfare but a wildly different attitude, shirking preconceived notions of work and traditional business dogmas.

Bringing an entrepreneurial mindset to Corporate America has been a major Gen X contribution, bolstered by fluency in technology, prioritization of work/life balance and a fierce pursuit of individuality. Now entering the leadership roles of the C-suite, this generation is the innovative force behind today’s workplace trends—especially their companies’ defining headquarters moves.… Read More

Cracking the code: Find your tech talent in Chicago

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Looking to snag a computer programmer on sale? Chicago should be your startup’s tried and true market of choice, given its status as the rare, affordable, large urban market.

“Competition for tech talent, as well as good plug-and-play tech spaces, is fierce,” said Jesse Van Dyke, Managing Director and co-lead of JLL Chicago’s Technology Practice Group.

tech talent

Concentration of employees working in the computer field

The market’s tech ecosystem can be the best indicator of potential job growth and industry stability. Consider planting your tech flag in Chicago, a great location at a great price:… Read More

Top 10: Stop hating Mondays, your happiness at work matters

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Human Experience

Yesterday our Suburban Tenant Representation team hosted a webinar exploring the Future of Work and how Human Experience plays a critical role in shaping a productive culture. In other words, it pays for your company to invest in your satisfaction.

“Understanding real estate’s financial and operational performance is now table stakes,” said JLL Managing Director Ed Nolan. “How people feel about work plays a key role in promoting engagement, empowerment and fulfillment at the office.”

In the midst of tenants’ intense focus on reducing gross rent and utilities costs there lies a missed opportunity to harness human capital.

“Even minor improvements in employee productivity and retention can spur double-digit savings in costs per square foot and strategically drive real estate decisions,” said JLL Managing Director Ben Erskine.

Our top 10 webinar takeaways, based on 18 months of JLL research:… Read More

The Illinois Budget Challenge: Your questions, answered

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Yesterday in Springfield, the Illinois House of Representatives voted to override a veto by Governor Bruce Rauner and to pass a budget that includes spending reductions and state income tax increases. This measure gives the State of Illinois its first formal budget in three years.

The good news

Passage of this budget provides some level of certainty for the companies and individuals that have been delaying decisions based on the state’s spending and taxation proposals. It also provides rating agencies with a better understanding of the state’s plan for meeting its financial obligations.

The tax news

Effective July 1, 2017, individual income taxes will rise from 3.75 percent to 4.95 percent. Corporate income tax rates will increase from 5.25 percent to 7 percent. These increases represent a 33 percent jump in personal and corporate income taxes for Illinois residents and companies.

What will happen to the commercial real estate market in this new environment?

Read More

What does e-commerce want? Power, labor, world domination?

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e-commerce

Welcome to Episode 5 of JLL Chicago Industrial – Real Time, our Industrial Research podcast. In this episode:

  • What retailers want out of their e-commerce distribution network
  • The landlord perspective: The prevalence of build-to-suits to accommodate these facilities’ highly specialized technology and workforce amenity requirements
  • A deep dive into surrounding demographics to enhance retailers’ site selection process

Hosted by: Industrial market research experts George Cutro and Chad Buch

Featuring:

Listen to this 14-minute podcast with the player above or CLICK HERE.

Know someone who’d like to listen? Post to LinkedIn.… Read More

Chicago Property Tax Update: What you need to know

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On June 13, 2017 the 2016 property tax rates, calculated by the Cook County Clerk’s office, were released. This is the final step in the tax process before bills are mailed. The average City of Chicago residential taxpayer should expect to see a roughly 10 percent increase in their property tax bill and commercial property owners (or their tenants) should expect an increase of approximately 9.3 percent in their property taxes.

property tax

1. Average composite tax rates are shown. Actual tax rates may vary. 2. Tax bills based on an average commercial property with a market value of $270,000. Actual tax bills will vary. Source: Cook County Clerk David Orr. Memo dated June 13, 2017.

Tenant implications

While this tax increase was not unexpected, commercial property owners and tenants should be prepared for the implications on their expenses this billing cycle.… Read More

Evolution of the Legal Workplace

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DLA Piper’s David Mendelsohn, Managing Partner, has a message for all the law firms out there looking to revamp their space: “Do not hold back. Be as creative and bold as your firm’s culture allows you to be.”

legal workplace

DLA Piper’s David Mendelsohn said if you want employees to be productive, it’s about starting with clear objectives, knowing what you want to accomplish and then staying committed to those objectives every step of the way.

While the traditional office sector has been at it for years, law firms are beginning to see the value in modernizing their space to stay competitive and attract top talent. With the help of JLL’s Law Firm Practice Group, DLA Piper did just that.

Earlier this year, DLA left its home of nearly 30 years, 203 N. LaSalle, and made its way to River Point, the gleaming 52-story office tower perched at 444 W. Lake overlooking the Chicago River. The move symbolized the global law firm’s commitment to focusing on its people and creating a productive work environment.

So how can other firms like DLA use their real estate to engage and retain employees and remain competitive?

JLL dove into this discussion recently inside DLA’s brand new office and in front of an audience of nearly 100 of Chicago’s law firm leaders.… Read More

CTA’s L turns 125: Where to eat local and celebrate

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This week marks 125 years of service for the L, Chicago’s iconic elevated railway that began running in 1892. To mark the occasion, we chatted with Lauren Smith, Senior Analyst on JLL’s Public Institutions team, about her team’s retail leasing work with the Chicago Transit Authority and the best places to pick up a snack along the transit system.

JLL’s Public Institutions team has worked with the CTA since 2008, providing a wide range of real estate services, including managing the CTA’s retail leasing program. Recently, the CTA has seen a welcome uptick in interest from hyperlocal retailers that are making significant investments into their CTA spaces and adding variety to the retail program.

“The retail environment of the CTA is nothing like traditional neighborhood retail. Much of the customer base consist of commuters quickly passing through,” Smith says. “A lot of people are looking to grab a quick cup of coffee or a bite to eat on the way, though we are seeing more sit-down restaurants and cafés come into the program.”

Since the transit retail environment is so unique, with spaces ranging from smaller subway kiosks to larger street-level storefronts and some stations see more than 3 million annual riders (7 million at the Lake Red Line station), rents for CTA retail spaces have a wide range and typically diverge from the surrounding retail market.

Some of the latest delicious additions to CTA’s retail spaces:… Read More

Chicago’s pledge to honor the Paris Agreement and fight climate change

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Today Chicago’s Mayor Rahm Emanuel signed an executive order committing the city to the Paris Agreement sustainability guidelines. This builds upon Chicago’s bold pledge to transition to 100 percent renewable energy in city buildings by 2025, marking a major leap forward from the largest city to set such an ambitious goal.

Paris Agreement

“It’s a significant statement for a city like Chicago to commit to power all city properties with renewable energy,” says Christian Beaudoin, JLL’s Director of Research in the U.S. “Municipalities are moving in this direction and, at some point in the not-too-distant future, this will be standard for cities across the country.”

How will we pull it off? … Read More

Chicago’s top 5 shopping districts

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Chicago's top 5 shopping districts

“Whoever said money can’t buy happiness simply didn’t know where to go shopping.” –Bo Derek

Whoever said that simply didn’t know about prime urban corridors. These nationally recognized shopping districts, both existing and emerging, are propelling brick and mortar retail into the 21st century, featuring high-tech homages to the brands we love and those we’re just getting to know.

Chicago’s top 5 retail corridors cater to a broad audience of tourists and locals, some placing a premium on luxury while others prioritize value and convenience. Just in time for ICSC RECon, we chatted with top JLL Chicago Retail brokers about each corridor’s inner workings.… Read More

Prevent hacker disaster at your property

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hacking data breach

In the wake of this month’s global cyberattack, perpetrated by ransomeware called WannaCry, companies around the world are strengthening their efforts to secure their data and avert costly breaches.

A growing wave of malicious attacks have cost major retailers, banks, insurance companies and more billions of dollars in lost business, stock value, legal settlements, data recovery and security costs. Hackers continue to find new and unexpected virtual “back doors” to enter, and one of the latest concerns is commercial real estate.

“Hackers have and will infiltrate building systems, from the lighting to the HVAC to modems and routers,” said JLL Managing Director Steve Pollard, leader of the Multi-site Project and Development Services team. “Fortifying these systems needs to be a top priority for commercial real estate executives and IT professionals.”… Read More

Retail therapy draws tenants to suburban Class A product

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Shopping on your lunch hour never gets old. Especially in the suburbs, where the live/work/play perks of urban density are in short supply. Suburban malls offer the opportunity to run errands during lunch, while also conveniently supporting a wide array of business amenities such as restaurants and event space for everyday meetings and larger corporate gatherings.

Across suburban Chicago, Class A office properties within a mile of a major mall are outperforming their competition in three out of four major suburban submarkets. While the area around Woodfield Mall appears to be flagging, JLL Research attributes that to Zurich’s relocation and expects occupancy to soon mirror the strength of its peers.

suburban ChicagoRead More

Industrial Podcast: Chicago’s changing industrial real estate landscape

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industrial podcast

Welcome to Episode 4 of JLL Chicago Industrial – Real Time, our Industrial Research podcast hosted by George Cutro and Chad Buch. In this “live” episode, the team is on the scene at JLL Chicago Industrial‘s client event, “The Changing Landscape of Chicago Industrial Real Estate.” They sat down with JLL’s Trevor Ragsdale, Kris Bjorson, John Picchiotti, Ben Bischmann and Debra Bonebrake for candid conversations on top trends, market outlooks and the latest JLL Industrial news.


Listen to the podcast with the player above or CLICK HERE.

industrial podcast

Our expert industrial panel: Keith Stauber, Matt Powers, George Cutro, John Picchiotti, John Huguenard and Trevor Ragsdale

The theme of this “Pardon the Interruption”-style panel, inspired by the famous show, was the future. On the heels of 23 consecutive quarters of positive net absorption, the Chicago industrial market is thriving and evolving. Some top takeaways:… Read More

Industrial Podcast: When did construction season become year-round?

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industrial podcast

Welcome to Episode 3 of JLL Chicago Industrial – Real Time, our Industrial Research podcast hosted by George Cutro and Chad Buch. In this episode, the team interviews Rick Steger, JLL Managing Director and national Industrial Project Management lead, about his construction outlook. Spoiler alert, the pipeline is strong and manufacturing is making a comeback. Listen to the end to hear our hosts’ hard-hitting “speed round” and a preview of this week’s client event.

Listen to the podcast with the player above or CLICK HERE.… Read More

Spotlight on Schaumburg: Strong and steady wins the race

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Schaumburg

JLL’s Northwest Market leasing and research teams: Adam Pines, Christian Beaudoin, Mark Kolar and Jack Trager

Suburban Chicago office may be the tortoise, not the hare, from the old fable, but the market is steadily trending up with healthy fundamentals and tenant demand. More than 50 suburban business leaders joined JLL, the Schaumburg Business Association and the Federal Reserve Bank of Chicago, along with additional sponsors Andigo, the Village of Schaumburg, CP Apparel and Guaranteed Rate, last week to discuss the local commercial real estate climate and the impact of economic conditions on the Northwest suburbs.… Read More

Chicago office market thriving despite budget impasse

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Authors: David Barnett, Research Analyst, and Hailey Harrington, Research Manager

budget impasseThe downtown Chicago office market recorded record-high rents and vacancies at or near all-time lows in 2016. The city is a robust tech hub, bolstered by an extensive transportation network and proximity to one of the busiest airports in the world—connecting Chicago with other U.S. and foreign markets. Unemployment continues to diminish as graduates from nearby top-tier universities enter the local workforce in a diversified economy. Despite this economic growth, the City of Chicago and the State of Illinois continue to grapple with the budget crisis.… Read More