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 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 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.