CRE News: What We’re Reading the Week of February 11

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 February 11.

Mark Falanga

Mark Falanga will depart as president of Merchandise Mart Properties.

The Ritz-Carlton Chicago at 160 E Pearson St.

The Ritz-Carlton Chicago at 160 E. Pearson St.

  • The Ritz-Carlton Chicago is for sale. The 435-room hotel just off Michigan Ave. could sell for about $180 million, or $414,000 per room, which would rank among the most expensive hotel transactions in Chicago. Revenue per available room, a metric that accounts for both occupancy and room rate, rose to $209.48 at downtown Chicago’s luxury hotels last year, an 11.6 percent increase over 2011.
  • Two data centers are in the works on Chicago’s South Side, developments that would cost at least $550 million to build. Data storage provider Equinix is in advance talks to invest about $350 million in a new data center at 111 E. Cermak Rd., and Sterling Bay Cos. will build a facility at 717-727 S. Des Plaines St. at a price tag of at least $200 million. Demand for data centers is fueled by increasing internet usage, online business transactions and electronic record-keeping, which requires more off-site storage facilities equipped with servers, chillers and backup power sources. Demand for local data centers has increased because Chicago has the third-largest fiber optic capacity of any metro area in the country.

What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.

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About BOMA/Chicago

The voice of Chicago's office building industry since 1902.
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