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 January 7.
- St. Louis-based construction firm Clayco announced it will move its headquarters to Chicago due to ease of air travel, proximity to clients, accessibility for young professional staff members and the potential to land City business. Clayco will relocate 1,000 employees to the Jewelers Building at 35 E. Wacker Dr., and it expects to double its Chicago workforce during the next couple of years by growing its architectural and infrastructure businesses.
- The YMCA of Metropolitan Chicago paid $8.5 million for 1030 W. Van Buren St., a 59,000-square-foot building with space for 132 vehicles. The organization will move from its current headquarters at the Lawson House Y to the property on the Near West Side. Experts are seeing many organizations like the YMCA that opt to own their offices face increased competition from developers hoping to capitalize on the rising rents in the Near West Side.
- According to local experts, Chicago’s business community will soon see an upturn in the local economy, specifically a much-improved second half of 2013 and a fairly strong rebound in 2014. BOMA/Chicago’s executive vice president, Michael Cornicelli, shared his insight with Crain’s Chicago Business and stressed the importance of business leaders being decisive over the next 12 months.
- According to CBRE, the downtown Chicago office vacancy rate ticked up to 14.9 percent in Q4 2012 from 14.8 percent in the previous two quarters. This is the first quarterly increase in downtown office vacancies since mid-2010 when the market hit its post-crash peak of 17.3 percent. However, downtown Chicago’s rate is still lower than the national vacancy rate of 17.1 percent, as noted in the Wall Street Journal.
- A Hotel Indigo and restaurant are planned for 168 N. Michigan Ave., the 12-story tower formally known as the Atlantic Bank Building. Celebrity chef David Burke selected the hotel to be the location of his second Chicago restaurant, which will have two stories. The property owner of 168 N. Michigan Ave. plans to gut the 101-year-old tower, add four additional floors and create a rooftop bar by early 2014.
What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.