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 April 8.
- Chicago-based commercial real estate services firm The Boulder Group released a survey showing that cap rates remained at historic lows during the first quarter of 2013. Cap rates – the rate of return on a real estate investment property – for industrial and office properties went down, while those for retail were unchanged from the last quarter.
- Chicago-based Ameritus Corporate Real Estate Service LLC is under contract to pay approximately $25 million for 205 W. Wacker Drive, after the owners’ previous deals to sell the 23-story office tower fell through. The Class B office tower is 33 percent vacant, far above the overall downtown vacancy of 14.9 percent in the first quarter of 2013.
- The Illinois Institute of Technology announced plans to build a $30 million, five-story 100,000 square foot innovation center at its campus on Chicago’s South Side. The center, which will be the first new building in a decade on IIT’s main campus, is part of a $250 million capital campaign to boost the private school’s shrinking endowment.
- New plans are in the works for the site of the historic Old Chicago Main Post Office, which is located at 433 W Van Buren alongside the Chicago River and has been vacant since 1996. Proposed new plans for the Chicago Main Post Office include a 1,000-foot-tall (and 5.2 million square feet) skyscraper, a casino, retail spaces and housing complexes, among others.
- And finally, BOMA/Chicago is pleased to share its 2012 BOMA/Chicago Economic Impact Study. The report was developed to analyze the state of the Chicago commercial real estate industry and better understand our members’ economic value to the City of Chicago. We encourage you to review the report and share your feedback!
What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.