Tag Archives: concessions

Q1 2018 Office Insight: A tale of two markets

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office insight

Q1 2018 stats for the Downtown Chicago office market

Two roads are diverging in Chicago, as evidenced by first quarter’s mind-boggling 35.2 percent spread between Class A and Class B asking rents downtown. While the triennial property tax assessment pushed landlords of choice properties to raise rents to record highs, they’re controlling the sticker shock with substantial concession packages.

Tenant improvement allowances are up by an average of 33 percent in the CBD over the past five years, something “that’s really moving the needle for tenant decision,” JLL Managing Director of Research Christian Beaudoin recently told Crain’s Chicago Business.

Construction costs rose 3 percent last year, there’s more than 7 million square feet of product under construction and landlords are competing aggressively to land tenants. These factors are fueling tenant demand for TI dollars, which will be applied toward building out creative, highly amenitized spaces in configurations ranging from traditional to progressive (like GGP at River North Point).

While financial services and law firms are shedding excess second generation Class A space, those vacancies continue to be offset by suburban relocations (including McGraw-Hill and AdTalem Education), particularly to the West Loop. Leasing activity has already reached more than 45 percent of last year’s total volume, a roaring start to the year bolstered by the urban migration trend.… Read More

A day in the life: JLL’s Chicago Markets summer interns tour AMC Theatres

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Author: Jeanette Bucio-Merlos, Summer Intern with Midwest Marketing

Earlier this week JLL’s Chicago Markets summer interns got a behind the screens look at one of JLL’s Multi-site programs, the AMC movie theater at 600 N. Michigan, led by our Project and Development Services (PDS) team.

AMC_1

Emily Brown and JLL’s Chicago Markets summer interns testing out the new movie theater seats.

Emily Brown, PDS Project Manager at JLL, started off the tour by briefly explaining the three parts of PDS: multi-site (like the AMC movie theater project), tenant improvement (hotels, for example) and development. A typical workweek for her includes traveling to visit sites, fielding conference calls and navigating pay-apps and change orders.… Read More