New E-Waste Law Brings New Challenges

By Kelly Aaron, President, EverLights

Last year more than 3.3 million tons of electronic waste, better known as e-waste, was produced in the United States alone. With e-waste numbers on the rise each year, the state of Illinois decided to join 24 other states with e-waste laws to help decrease the amount that ends up in landfills.

Since January 1, 2012, businesses in Illinois are now prohibited from sending old electronic equipment to landfills. While there is currently a law in effect that requires some of that electronic material to be recycled, the new regulation adds more equipment to the list, and it creates larger penalties for businesses that do not comply.

How big are these penalties? Fines have increased to $7,000 per violation from $1,000. It seems foolish to accept a penalty when it is so simple to safely and lawfully dispose of your material.

The hardest part of the e-waste recycling process is finding a recycling company that is both trustworthy and affordable.

Seek Out A Qualified E-Waste Recycling Company

What you should be looking for is a company that handles e-waste according to state and federal regulations. This includes keeping the materials in the U.S., sending them to licensed recycling facilities, wiping all personal information from hard drives and tracking the materials from start to finish. If requested, the company you select also should be able to provide documented information about how your e-waste was recycled.

As a heads up, you will probably be tempted  to consider working with a recycling company that will pay you for your e-waste during this process. While that may seem like a good idea, it is almost guaranteed that your e-waste will end up in the wrong place, and will not be tracked according to established guidelines. It would be in your best interests, as a business, to stay away from that practice.

Once you’ve picked a recycling company, the rest practically does itself. The recycling company should offer a few options on how to recycle e-waste. The most common services offered are dedicated pickups and on-site drop-offs. For a pickup, all you have to do is call the recycling company and schedule a time that works for both parties. If you choose to drop materials off, simply show up to the recycling location with your e-waste and the recycling company will handle the rest. Both options make the recycling process quick and painless.

An electronic waste recycling facility

All of this brings us right back to where we started. Is it worth paying a $7,000 fine that could have prevented for a couple hundred dollars? Do yourself, and your business, a favor and find an affordable recycling company that plays by the rules. It will save you from dealing with future problems that could easily be avoided.

If you have further insight on recycling e-waste, please feel free to share that information by replying to this post.

CRE News: What We’re Reading the Week of February 13

Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Here’s what caught our attention the week of February 13:

The Civic Opera Building at 20 N. Wacker Drive

• The 915,000-square-foot Civic Opera Building at 20 N. Wacker Drive was sold to a joint venture for $125.8 million. The building is 81 percent leased and has a history of short-term tenants. J. F. McKinney & Associates plans to make improvements to the building in an effort to attract large long-term tenants.

• The office real estate market is showing signs of recovery, as national vacancies fell by 30 basis points in 2011. However, the risk that office properties will post income declines as leases roll over is high this year.

• The owners of the Empire State Building in New York are planning an initial public offering to raise money for the building. It will be listed on the New York Stock Exchange under the stock ticker symbol ESB.

• Chicago developer Sterling Bay Cos. paid $10 million for 400 S. Jefferson Street, which will become the new home of Sara Lee’s meat business. Sara Lee will lease 221,000 square feet of the building, and Sterling Bay will move its offices to a 20,000-square-foot annex in the back of the building.

A rendering of the planned redevelopment of 400 S. Jefferson Street

• A report by Real Estate Research Corp., Deloitte and the National Association of Realtors found that commercial real estate is the best investment option in 2012. The report stated that the office, industrial, retail and hospitality markets should inch upward this year in both occupancy and lending.

What headlines caught your attention this week? Leave us a comment and let us know.

The Ongoing Transformation of Navy Pier: Part II

Last week, we profiled Navy Pier’s rich history and transforming identity throughout the last 96 years. This week, we will discuss the future of Navy Pier and how its redesign will contribute to its ongoing transformation.

In September 2011, Navy Pier Inc. (NPI), the nonprofit group that manages Navy Pier, developed a $155 million plan to maintain the Pier’s family appeal while attracting more adults and year-round visitors with upscale dining and entertainment options surrounded by more aesthetically-appealing public spaces. The public spaces to be redesigned include Gateway Park, The Crystal Gardens, Pier Park, East End Park, the South Dock and smaller public spaces that dot the length of the Pier. NPI launched an international contest to find well-rounded teams that include architects, landscape architects, urban designers, graphic designers, lighting designers, art curators and engineers to “reimagine the public spaces at Navy Pier.” Fifty-two different teams submitted proposals, all with unique ideas to redesign Navy Pier. Today, only five design teams remain as finalists. The five design finalists are:

A rendering of the proposed "Pierscape" redesign

• AECOM/Bjarke Ingels Group (BIG): The team’s plans include an aquaponic vertical urban farm in the Crystal Gardens, which would provide food for Navy Pier’s restaurants, as well as extending the Chicago Shakespeare Theater to include a manmade hill with a giant slide.

• Davis Brody Bond/Aedas Architects/Martha Schwartz Partners: Their plan includes installing a wave fountain and floating gardens in Gateway Park as a teaching tool in conjunction with the Chicago Children’s Museum. In addition, the team’s proposal includes adding an elevated gondola (the “PierPod”) to transport visitors from downtown Chicago to the Pier and a series of floating boardwalks to relive the pier’s congestion.

• James Corner Field Operations: The team envisioned a floating swimming pool that would transform into a skating rink or hot tub in winter. They also suggested adding surreal hanging gardens in shiny Bean-like planters to the the Crystal Gardens.

• 

  A rendering of the proposed new landmark, "The Glacier"

  !melk/HOK/UrbanLab: They planned an Olympic-size swimming pool as well as a glassed-in platform extending 10 feet below lake level so visitors can observe fish in their natural habitat. Most notably, a 200-foot-high steel structure in Lake Michigan known as “The Glacier” would become a new landmark on the pier.

• Team X (Xavier Vendrell Studio/Grimshaw Architects): Team X’s plan includes a ”Horizon Walk,” a 200-foot-long platform that cantilevers from the East End over Lake Michigan with views of the lake and the city.

The public was invited to presentations by each team where they were asked how their plans would compensate for the high volume of visitors during the summer. In addition, the five finalists presented their complete visions in an exhibition at the Chicago Architecture Foundation (CAF) on February 2.  By the end of February, a design team will be chosen to redesign Navy Pier. The team that is chosen will surly enhance the Midwest’s most-visited landmark and further contribute to Navy Pier’s ongoing transformation and legacy on Chicago’s lakefront.

What are your thoughts on redesigning Navy Pier’s public spaces? Please share your ideas.

CRE News: What We’re Reading the Week of February 6

Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Here’s what caught our attention the week of February 6:

The Chicago Board of Trade at 141 W. Jackson Blvd.

• A joint venture led by Chicago developer GlenStar Properties LLC is in the process of buying two Chicago Board of Trade towers from CME Group. The purchase would include the north and south towers, which total nearly 1.4 million square feet, for $150-$180 million.

• The plights of Chicago’s two largest office buildings (the Willis Tower and the John Hancock Center) profile the difficulties of commercial real estate outside of U.S. core markets.

• Another positive sign for Chicago’s economy surfaced: the average occupancy rate for downtown Chicago hotels rose in 2011. Although occupancy rates rose 71.7 percent last year, rates are still short of pre-recession levels.

• 

  935 W. Randolph St.

  Sperry Van Ness recently sold two West Loop properties on Randolph Street. 1328 W. Randolph St., the former Weinstein Meatpacking Building, sold for $1.2 million and 935 W. Randolph St. sold for $725,000.

• Chicago office buildings are seeing a growing demand for flexible office space. The new businesses coming to Chicago and expanding companies particularly increase the demand for flexible local office space.

What headlines caught your attention this week? Leave us a comment and let us know.

The Ongoing Transformation of Navy Pier: Part I

Navy Pier is one of Chicago’s most dynamic and vibrant landmarks. Throughout its history, the Pier has been a center of commerce, a military base, a school, an events venue and a world-renowned destination. In fact, Navy Pier has not stopped transforming its identity since its inception 96 years ago. Perhaps one of the reasons why Navy Pier is Chicago’s (and the Midwest’s) number one attraction is its refusal to be complacent by constantly undergoing changes in purpose, offerings and culture.

Like most Chicago landmarks, Navy Pier originated from Daniel Burnham’s “Master Plan of Chicago.” Although his plan originally envisioned five piers, only one 1.5-mile recreational pier with freight and passenger ship docking facilities was built near the mouth of the Chicago River. Formally known as Municipal Pier when it opened in 1916, it was the only pier to combine the business of shipping with public entertainment options.

When the United States entered World War I, the Pier housed several regiments of soldiers, Red Cross and Home Defense units as well as barracks for recruits. In 1927, Municipal Pier was officially renamed Navy Pier as a tribute to Navy personnel who served during World War I.

In World War II, The Navy operated several training programs at the Pier. By the time training ceased in 1946, some 60,000 servicemen – including sailors from Great Britain, Canada, Brazil and Peru and future president George H.W. Bush – were trained at Navy Pier.

A photo of Navy Pier when the University of Illinois held classes at the Pier

It wasn’t long after The Navy discontinued use of the Pier that the University of Illinois began using Navy Pier to hold classes. The University of Illinois – Chicago used the facility as a two-year undergraduate branch campus for almost 20 years. Ironically, many WWII veterans attended University of Illinois classes at Navy Pier after the war. The Navy’s main mess hall became an enormous library considered “the largest reading room” in Illinois.

Following its use as a University of Illinois branch campus, Navy Pier became one of Chicago’s primary events venue. The original Taste of Chicago, “ChicagoFest” was held at Navy Pier. For two weeks during the summers of 1978-1982, “ChicagoFest” drew millions of visitors with music, food and entertainment. The event featured 16 different stages with about 600 performances each year. The festival’s success led to the creation of the Taste of Chicago, Loop Alive’s restoration of the Chicago Theatre and other events at Navy Pier such as the Art Expo Chicago.

Throughout the years, Navy Pier underwent various renovations. The spectacular Grand Ballroom was renovated for the city’s observance of the country’s Bicentennial Celebration in 1976. In 1995, improvements were made to nearly every aspect of the Pier as part of a $150 million Navy Pier redevelopment project, which included opening the 1,500-seat outdoor Skyline Stage.

In light of these changes, future visitors may enjoy an entirely different venue as Navy Pier is currently in the process of another resdesign.

Next week, in Part II of this post, we’ll address some dramatic plans recently unveiled to further transform Navy Pier. Do you have memories of Navy Pier before it became the destination we know today? Please share your stories.

CRE News: What We’re Reading the Week of January 30

Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Here’s what caught our attention the week of January 30:

200 N. LaSalle

• Canadian-based Omni Group agreed to pay more than $95 million for 200 N. LaSalle. The 30-story building is currently 66 percent leased.

• Chicago’s iconic Wrigley Building is on the verge of achieving official City landmark status.

• A survey of Midwest commercial real estate professionals found that the majority of brokers and lenders expect deal volumes to be higher in 2012 than 2011.  Developers cited single-tenant retail, industrial and grocery/drug-anchored shopping centers as the main property types poised for development this year.

• A Goldman Sachs Group Inc. real-estate fund is changing its usual strategy and challenging creditors of the iconic John Hancock Center. The building is 81 percent leased and has about $400 million in debt.

The iconic John Hancock Center at 875 N. Michigan

• Corporate profits are soaring, an indicator for strong commercial real estate growth in 2012. Companies are using their profits to hire, expand office space and increase demand for CRE space.

What headlines caught your attention this week? Leave us a comment and let us know.

“Pedaling” Around the Issue: Making Chicago Office Buildings More Bicycle Friendly

By Larry Cohn, Senior Broker, @ Properties

Bicycling has been termed the perfect form of transportation.  Bikes don’t leave a carbon footprint or cause traffic jams, it’s an affordable way of getting around town, and people who ride bikes get exercise and an opportunity to enjoy the outdoors.

So, it makes perfect sense for the City of Chicago to encourage its citizens to get on the two-wheeler and ride. A lot has been done already.

Critical Mass on Michigan Ave.

Former Mayor Richard M. Daley kick started a bicycle sharing program called the Chicago B Cycle, patterned after one he experienced during a 2007 trip to Paris. And, Mayor Rahm Emanuel is keeping pace by expanding the bike sharing program and pledging to make Chicago a “world-class city for bicycling.”

The Department of Transportation has a web site devoted to biking, and there’s even a long-range initiative called the 2015 Bike Plan, billed as the city’s “vision to make bicycling an integral part of daily life in Chicago.”

One big factor in any future plans has to include Chicago’s office building community. After all, BOMA/Chicago building members command more than 75 percent of Class A and Class B office space in the city.  It’s estimated that more than 270,000 downtown workers start and end their day in member buildings.

Bike to Work Chicago

That raises the question: If more downtown office workers decided to commute to work via bicycle, where are they going to park for the next eight or so hours?

Chapter 3 of the 2015 Bike Plan addresses this issue.  It calls for properties like universities and hospitals to offer some kind of onsite outdoor bike parking, and recommends building owners and managers to make room for bike parking “inside office buildings.”

Two big concerns arise from this strategy:

• Most office buildings don’t have the space to allow establishment of indoor bike parking spaces. And, most managers simply will not allow tenants to bring bicycles into their offices. The reasons are many: Liability, safety to other tenants, disruption of pedestrian access, extra maintenance to clean up tracked in mud and others.
• This issue leads to another one: Given the lack of secured indoor bike parking spaces, most office workers would scoff at using an unsecured outdoor space and not bike to work. This is especially true for riders who own a titanium or carbon fiber machine that costs well upwards of four figures.

Chicago Bikes Logo

Three years ago, I led an initiative with the support of BOMA/Chicago on bicycle parking in office buildings.  Efforts included meeting with officials at the Chicago Department of Transportation, the Bike Advisory Council of the Mayor’s Office and the Active Transportation Alliance, who were excited about the prospect of co-marketing with BOMA/Chicago building managers.  And, we drafted a survey on the subject that was sent to property managers; more than 50 replied.

The survey results provided some great insight.  Key findings revealed these roadblocks: Some buildings have a policy against indoor bike parking; tenants did not express interest in bike parking; concerns were raised about maintenance and cleanliness of common areas; and, there simply isn’t room in some buildings to construct a safe bike parking facility.

So what’s next?  Certainly, more study needs to be done among building managers and the public and private organizations that have a stake in increased biking in and around Chicago.  Greater awareness needs to be developed on the benefits of onsite bike storage in office properties (earning LEED credits, for example) and the bike riding community needs to learn about established bike routes and how to bike safely (wear helmets, follow the rules of the road).

With spring on the horizon, more and more Chicagoans will be using their bikes for pleasure and as a way to get to and from work. The big question in the immediate and long-term future is what role will office buildings play in increasing safe bicycling in Chicago.

What are your thoughts on bicycling in Chicago?