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 July 14.
CBRE Acquires US Equities
CBRE Group, Inc., the world’s largest commercial real estate firm, announced on Wednesday that it acquired US Equities Realty, LLC and that the two companies will combine their Chicago area operations. Under the terms of the agreement, CBRE has acquired US Equities’ national operations along with about 400 of the firm’s Chicagoland professionals who will continue to service their clients under CBRE. The acquisition is expected to boost CBRE’s leasing and management portfolio, as U.S. Equities has maintained desirable leasing and management agreements with prominent Chicago properties, including Willis Tower.
No Mayoral Run for President Preckwinkle
Cook County Board President Toni Preckwinkle confirmed on Tuesday that she will not run for mayor. Preckwinkle’s decision has left many of Mayor Rahm Emanuel’s detractors eager to find a credible candidate to defeat his planned second term in office. According to Preckwinkle, she will not run for Mayor because she does not believe that she has completed all of the responsibilities of her current position. In regards to other challengers to Mayor Emanuel, the bets are high – the latest campaign finance report filed this week shows him with $8.3 million in the bank.
Long-Term Tenant Resigns Long-Term Lease
Metropolitan Chicago Healthcare Council renewed its long-term lease of nearly 30,000-square-feet at 222 S. Riverside Plaza, where it has resided for several decades. The Council sought other office space in the surrounding area before re-signing, but faced difficulties in finding buildings with large-enough floor plates.
Sterling Bay and J.P. Morgan Partnership
Sterling Bay Companies and J.P. Morgan have formed a strategic partnership to develop the Fulton Market district. The joint venture will involve Sterling Bay making contributions to the Fulton Market assets it has acquired over the past year while J.P. Morgan will co-invest and co-develop the properties with Sterling Bay.
Vacancy Rates on the Decline
In a recent Q2 report, Cushman & Wakefield reported that office vacancies across the country have dropped to their lowest point in five years. This report also states that office vacancies are expected to decrease even more in the coming months. The increase in office demand has caused rents to increase by 3.1% from Q2 of 2013.
What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.