Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Below are articles that caught our attention the week of June 11.
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- Mayor Rahm Emanuel selected five Chicago influencers to serve on the board for the new Chicago Infrastructure Trust. Retired Boeing executive James Bell, former Sara Lee executive Diana Ferguson, attorney David Hoffman, Alderman John Pope and Chicago Federation of Labor President Jorge Ramirez were selected by the mayor to oversee the Trust’s plans to replace rail stations and water pipes and increase energy-efficient building projects.
- Many Chicago-based companies are planning on moving their headquarters from the suburbs to downtown Chicago as younger professionals express interest in living and working in the city. Companies are enticing younger demographics with the perks of working downtown, with mobile technology professionals in particular receiving multiple offers.
- Chicago is not the only city to see developers put faith in the commercial real estate recovery by investing in “speculative” office towers. Other speculative office towers are being built in large cities such as New York City and San Francisco, indicating the CRE recovery is gaining momentum.
- Similarly, low vacancy rates for the newest large Class A office towers in downtown Chicago indicate there is a high demand for office space in new buildings. A recent report by MB Real Estate found that the 10 newest office buildings average a vacancy of only 4.1 percent, compared to the total downtown office vacancy of 15.8 percent.
- Lenders are continuing to loan commercial mortgage-backed securities (CMBS) to Chicago property owners, but at a slower rate than last year. CMBS lenders sold $336.5 million in Chicago-area loans in the first five months of 2012, compared to $1.12 billion for all of 2011.
What headlines caught your attention this week? Leave us a comment and let us know.