O’Hare submarket cleared for takeoff

0 CommentsBy

Author: Ryan Emerick
O'Hare submarket

While much of the local spotlight has focused on the migration of large firms from the suburbs to the urban core, downtown is not the only thriving submarket. Strong tenant demand has also sparked a dwindling supply of office space in the O’Hare submarket. Vacancy rates near O’Hare have dropped from a high of 26.9 percent to 16.4 percent and are now at their lowest levels since 2000.… Read More

Chicago 2025: Dynamic Expansion

0 CommentsBy
Chicago 2025

JLL’s Bruce Miller; GLP’s Paul Loosmann; Magellan’s David Carlins; JLL’s Dan Ryan, Ryan Severino and Meredith O’Connor; Oxford Capital Group’s John Rutledge; and The John Buck Company’s Dirk Degenaars at Chicago 2025: Dynamic Expansion.

Hundreds of industry leaders joined JLL Chicago last week to discuss Chicago 2025 and the city’s dynamic expansion. With 4,300 new hotel rooms planned, the lowest office vacancy in 16 years (10 percent), 4 million square feet of speculative industrial construction in the pipeline and 3 million square feet of office space headed to market, the next decade is going to be one for the books.

JLL Chief Economist Ryan Severino kicked things off with a broad-based market outlook, factoring in challenges of the past year from Brexit to an unexpected election result. Despite entering a 2017 filled with elevated policy uncertainty, the Chicago market’s universal truths are bolstering its investment appeal. Chicago’s still the third-largest metro economy in the U.S., with above average annual gross metro product growth and a diverse economy where no single industry comprises more than 20 percent of total employment. Going forward, our unusually high percentage of adults with undergraduate or graduate degrees will be of paramount importance in building on this economic momentum.

gallery_chicago2025_jll

JLL’s Chicago 2025 gallery wall, featuring the market’s hottest projects.

We’re definitely living in interesting times, agreed JLL International Director and panel moderator Bruce Miller. … Read More

Illinois is betting on proposed budget package

0 CommentsBy

Author: David Barnett, Research Analyst

Illinois casino

The Illinois General Assembly is back in session today to discuss Senate Bill 7, which would expand gambling in the state by permitting casinos to be built in Chicago, Danville, Rockford, Lake County, Cook County and Williamson County.

What’s the scope?

Read More

Chicago 2025 market insights from JLL experts

1 CommentBy

This week JLL Chicago will convene commercial real estate investors, clients and leading experts from throughout the city for Chicago 2025, our annual forecast. We sat down with JLL pros across asset classes ahead of the event for a preview of their sector-specific outlooks. Videos will be added regularly all week – check back in!

Read More

10 Top Ten Lists – 2016

0 CommentsBy

With David Letterman off the air, JLL Chicago Research is here to fill your Top Ten void. Consider this your crash course for 2016, a year-in-review of Chicago’s best moments, focused on commercial real estate, workplace, market trends and pop culture.

Read More

Downtown Chicago Building Matrix: Your guide to cost versus class

0 CommentsBy

Chicago’s office market has traditionally been dominated by trophy towers and high-rise construction. While there is plenty of demand for trophy space fueling the current development activity (4.3 million square feet), those buildings are not meant for every tenant. Some companies are more attracted to loft spaces, creative offices or repositioned assets. To help in the tenant analysis, JLL Research has created the Downtown Chicago Building Matrix – Cost v Class with examples in each quadrant:downtown Chicago buildingRead More

Retail Series Part 3: Getting to know Jim Harris

0 CommentsBy

Jim Harris has the opportunity to help shape a cultural icon. Senior General Manager, Retail at Navy Pier, he is part of a team that’s completely reimagining the 100-year-old historic landmark. “We don’t want to create a boardwalk atmosphere, we want to be a place where people come and interact with the landscape of the City of Chicago,” Jim says.

JLL won Navy Pier’s accounting contract in 2012, retail management in April 2015 and just won specialty leasing and brand activations. Jim came on for the first day of the management assignment and didn’t want to leave. What other property could make him the primary contact for seven boats and in close touch with Chicago’s top restauranteurs? It’s a different world than managing a mall.

Jim Harris

This holiday season: Navy Pier retailers do 75 percent of their sales between April and September, which means this time of year provides an opportunity for creative thinking. With highly attended events like upcoming “The Voice” auditions in January and the Chicago Flower & Garden Show in March, we’re giving the off-season a traffic boost ahead of a major retail transformation.… Read More

Retail Series Part 2: Touring Chicago’s flagships

1 CommentBy

Author: Ryan Emerick

Chicago retail flagshipsIf you were to walk Michigan Avenue—Chicago’s Magnificent Mile—you would notice the unique stores that line the busy street. In comparison to most retail spaces, the stores on Michigan Avenue seem to be bigger, brighter and fancier, with lavish window displays, iconic architecture, cutting-edge technology and specialty restaurants.

“The flagship store is an entirely different experience compared to a mall or store in the suburbs,” says James Cook, JLL Americas Director of Research, Retail. The term “flagship” refers to the lead ship in a fleet. Often set in a prime urban location like the Magnificent Mile, a flagship store is considered to be the leader in its fleet of stores—a showcase of the very best the brand has to offer.

JLL Retail Research recently analyzed the features of 145 flagship stores across four U.S. markets: New York, Los Angeles, Chicago and San Francisco. They identified specific characteristics that set flagship stores apart from fleet stores and differences between flagship stores across retail categories: luxury and luxury lite, high to middle priced, low priced and discount and other.

I toured six Chicago flagship stores—Restoration Hardware, Uniqlo, Ralph Lauren, AT&T, Burberry and Under Armour—to determine if there were marked differences in flagship stores of different cities. More specifically, to find out: what sets the Chicago flagship stores apart from those in New York, Los Angeles and San Francisco?

Restoration Hardware – 1300 N. Dearborn Pkwy

Chicago retail flagships

As I climbed out of the taxi I thought the driver took me to the wrong address. Stately mansions lined the quiet, leafy street populated by schoolchildren and elderly couples with dogs. Compared to its neighbors the only conspicuous feature of the Restoration Hardware flagship store was the two valet attendants out front. Otherwise, the store could pass for a home.… Read More

Retail Series Part 1: Holiday shopping forecast

2 CommentsBy

Hold on to your wallets, this holiday shopping season is shaping up to be one for the books. JLL Research predicts consumers will spend more on their holiday gifts than ever before—a solid four percent hike in 2016 compared with 2015.

Black Friday boost

Holiday shopping

Strolling carolers at Rosedale Center

For a boots-on-the-ground perspective on Black Friday, the season’s first official shopping frenzy, we checked in with JLL’s Scott Michaelis, general manager of Rosedale Center in the Twin Cities. More than 80 retailers opted to open at 6pm on Thanksgiving, he tells us, and Thursday traffic was up 30-plus percent. Sales from key retailers surveyed were slightly up compared with 2015 with self-gifting, small gifts and sale apparel leading the way.

“We see local factors ripe for successful sales with expected gains of three to four percent over 2015. The local economy is good and unemployment rates are low, both indicators of a strong season,” Scott says.… Read More

More than 55,000 new multifamily units since 2000?!

1 CommentBy

We did a double take too. Since 2000, the Chicago market has delivered or renovated 55,324 units. We’re talking all classes and properties with 20 units or more, excluding student housing and affordable housing.This number speaks to a Chicago market nearing the peak of the multifamily cycle. Rents have risen sharply since the turn of the century, mirroring a national trend. With roughly 7,000 units flooding the market in the next 24 months, though, we’ll likely hit our local capacity and see new supply start to taper.

untitled-jll

Read More

Getting to know Keara Fanning

0 CommentsBy

Keara Fanning‘s passion for the environment has evolved since she started chasing butterflies and dreaming of swimming with beluga whales. JLL’s Midwest Sustainability Practice Lead found her way into the world of wellness in the workplace, where sustainability can go a long way toward boosting employee satisfaction.

“Environmental sustainability and energy efficiency are now the expectation for our clients, with trends moving toward health and well-being,” Keara says. “We’re making sure the spaces we design and occupy not only make healthier and happier employees but also allow them to be more productive.” Enter the Well Building Standard, a type of “nutritional label” for a space that Keara and team are pursuing for a large corporate client. Let’s dive in.

Keara Fanning

In Hawaii with my fiancé Rick

Typical day: I handle all sustainability projects for the Midwest, including LEED certification, WELL Building Standard, energy retrofits and carbon reporting. We work on both new construction and existing buildings and frequently partner with other JLL business lines from project management to property management to our portfolio energy managers on corporate accounts.

Well, what’s a WELL Building anyways? WELL has overlaps with LEED, including indoor air quality and lighting, but lighting for WELL measures “melanopic lux,” which accounts for different colors in light. For example, if you sit in blue light all day, it throws off your circadian rhythm. WELL also accounts for an office’s fitness opportunities and the nutritional content, particularly sugar, of its available food and drinks (meaning no larger than an 8 oz. Pepsi). WELL sends an assessor once the project is occupied to test light, air and water quality.… Read More

Project Profile: Zurich North America

1 CommentBy

Today’s headquarters decisions are more important than ever, driving companies’ recruitment, retention and brand strategies. When available space in the market doesn’t fit with the corporate vision, some companies are choosing to build new to create a truly personalized workplace of the future.

Build-to-suit projects are inherently complicated and risky. That’s why we have a dedicated team that takes an entirely different approach, offering our clients greater transparency and control.

Take a look at JLL client Zurich North America’s story below, where our Build-To-Suit Practice Group partnered with JLL’s Project and Development Services team to deliver a state-of-the-art headquarters campus in Schaumburg:… Read More

Chicago Tech Series Part 5: Space as a recruitment tool

0 CommentsBy

A center of industry innovation with a high concentration of companies, ideas and talent, Chicago is a tech hub that will maintain its resilience and employment growth through the next cycle and beyond.

That’s because it’s not just startups after the 25-year-old whiz software developer. Big enterprise users from the Fortune 500 on down are challenging tech, both name-brand and early-stage, to attract millennial brainpower. Take IMC, a fast-growing trading firm JLL Managing Director Matt Carolan and Senior Vice President Phil Geiger expanded to 78,000 square feet in Willis Tower earlier this year.

tech employment

Phil Geiger and his kids showing off some JLL spirit

“IMC is battling it out with the Googles, Facebooks and LinkedIns of the world for top tech talent,” Phil said. “Like companies across the spectrum, they secured market-leading space as a big component of their recruitment strategy.”… Read More

4 reasons Chicago is a top life sciences cluster

0 CommentsBy

Chicago Life Sciences Economic Scorecard
Recently ranked a Top 10 U.S. Biopharma Cluster by Genetic Engineering and Biotechnology News, Chicago hosts six world-renowned medical schools, the largest concentration of physicians and two major federal research labs. Let’s take a look at why the life sciences industry continues to thrive:… Read More

Chicago Tech Series Part 4: Getting to know Sam Kennedy

0 CommentsBy

Just call Sam Kennedy the startup whisperer. He spent four years in a dual role at the venture firm Guild Capital and running a national tech conference, Techweek. Working with early-stage tech companies from around the world in both gigs helped him recognize patterns and apply them to help run their businesses more efficiently.

After connecting with JLL brokers at tech events around the city, Sam joined the team as Vice President and Tech Practice Group Lead to elevate the way JLL interfaces with startups in the Chicago market and beyond. “At a time when I was thinking about how I might harness my network to try something new, JLL gave me the best of both worlds. The support of a Fortune 500 real estate company with the opportunity to start an entrepreneurial project,” Sam says. Let’s learn more.

Sam Kennedy enjoying the outdoors

Grays Peak in Colorado along the Continental Divide., this past summer

Typical day: I’m always on my feet, getting to know landlords and leasing agents around the city and catching up with entrepreneurs and tech startups. It’s my job to inform JLL’s service lines on which companies are growing. It’s about changing our internal framework and modernizing the way JLL pursues the new generation of companies out there. While that might mean less cold calling, the business is still very relationship-based with authentic connections being made online and in-person. Data is also more widely available than ever, which makes us differentiate by thinking through the personality of a company and how they can interpret existing data to make strategic decisions.… Read More

In the community: JLL Chicago gives back in 2016

1 CommentBy

Making a meaningful difference in our community is one of JLL Chicago’s top priorities. In 2016, we came together as a team and chose to focus our charitable engagement around three incredibly important organizations: American Heart Association, Leukemia & Lymphoma Society and Misericordia.

Let’s look back at some of this year’s efforts, which resulted in nearly $50,000 in contributions to these invaluable groups.

American Heart Association

JLL community engagement - American Heart Association Heart Walk

JLL Chicago’s Heart Walk team

Through Managing Director Jesse Van Dyke, JLL Chicago has had a strong relationship with the American Heart Association for more than 15 years. In addition to representing the organization’s Midwest real estate needs, Jesse’s connection is extremely personal.… Read More

Chicago Tech Series Part 3: Consider coworking

2 CommentsBy

One of the Chicago tech scene’s biggest challenges has been competing with the coastal cities for venture capital funding. Local Investors place a stronger emphasis on business fundamentals and startups have to stretch their resources to thrive.

The increasing office rents in tech-favorable submarkets driven by the industry’s appetite for creative office space mean tech firms in Chicago must be more efficient with the investment capital. Here’s why coworking could be the answer.

Welcome to the sharing economy

Consider coworking

The notion of sharing is catching on globally. From sharing major life snapshots on Instagram to daily updates on Twitter, sharing was bound to infiltrate the workplace. Across several sectors, the sharing economy is transforming how people view the ownership and leasing of spaces and services.… Read More

American Cancer Society’s Taste of Hope 2016: First Bite

0 CommentsBy

Hungry Chicagoans will flock to Venue One in the West Loop tomorrow evening for the third annual Taste of Hope, the American Cancer Society’s premier foodie event in Chicago that has raised more than $500,000 over the past three years. We caught up with JLL Senior Managing Director Jeff Liljeberg, event co-chair, and some restaurant participants for a taste of tomorrow’s menu.

Event Co-Chair – JLL’s Jeff Liljeberg

Taste of Hope 2016

Mike Yazbec, Jeff Liljeberg, Carrie Ward and Mark Johnson at last year’s Taste of Hope. Photo credit: Matt Kosterman Photography

How did Taste of Hope get started and what does it mean to you?

I have been on the Chicago board of the American Cancer Society for close to 20 years and the fight against cancer is very important to me. Family and friends have been impacted. This event was conceived four years ago and intended to be our board’s own signature event. We’ve taken ownership of the process and are so proud to see how it has grown.… Read More

Chicago Tech Series Part 2: Building a technology enabled workplace

4 CommentsBy

A new workplace paradigm emerged over the past 10 years, shifting focus to design elements such as open plan layouts, space density and construction. Subsequently another workplace component, technology, has evolved from a behind-the-scenes role to a crucial element of the business, its operations and its office space.

For companies to maximize the productivity of their employees and their space, they need to understand the required components of a fully integrated technology enabled workplace. We’ve outlined the five key components in the presentation below:

Read More