The F-Word

November 9, 2010 | 7:00 am ET Staff Reporter

The key to getting deals done in Chicago's industrial markets today is flexibility (yes we're still a PG publication), said panelists this morning at the Bisnow Chicago Industrial Real Estate Summit. International investment may also be key in getting the supply chain moving again in the post-recession age.

Ridge Property Trust's Jim Martell, who owns properties throughout the US and Mexico, said that the land constraints on the Inland Empire, along with the expansion of the Panama Canal, will help increase development in Houston and south of the border. JLL's Keith Stauber says Class A buildings along I-55 and I-80 are starting to fill, and he should know: His company has signed leases with Navistar, Jacobson, and Clover Hill Bakery along those corridors in the last 60 days. Liberty Property Trust's Don Schoenheider, coiner of "the F-Word," says tenants are looking for the flexibility to change or drop their lease with just 30 days notice.

Duke Realty's Susan Bergdoll thinks the Chicago market rents have hit rock bottom, since rents are now going down just 3 cents per quarter on average, versus 9 cents each quarter last year. She also points to the decreasing vacancy of big boxes along I-80—there were six last year, now just two. Colliers International's Lynn Reich says the industrial brokers are optimistic and have short-term memories, forgetting we have the lowest absorption rates in 10 years. She thinks Chicago's good intermodal base will keep the city viable, especially with the increase in gas prices contributing to rail traffic. First Industrial's David Harker thinks SCA loans will increase the number of owner-users looking at industrial buildings.

Thanks to the 200 of you who made the Rosewood a standing-room only venue. We're looking forward to seeing you for Bisnow'sdowntown Capital Markets event next month.

Champion Realty's Michael Bader, First Industrial's Chad Parrish, SomerCor504's Mac Dobson, and Venture One's Matt Goode grabbed some coffee with us. Mac is working on financing a 100k SF industrial building in Streamwood. Matt recently closed on a 20k SF Kenosha and an 87k SF building in Alsip. Chad is leasing a rail-served park in Indiana.

We also snapped Business Office Systems' William Reid, Osman Construction's Jordana Parker, CEMCON's Kevin Serafin, and KW Commercial's Matthew Rasche. Jordana's company is building the new Roundy's at Lakeshore East and two Buy Buy Baby stores for Inland in Crystal Lake and Orland Park.

First Industrial's Jen Jiminez, David Harker, and Art Harmon were happy that their stock is going up and that restrictions have been lifted on their selling of buildings, making it easier for them to continue delevering.

Wanna know why today's Bisnow is so late? Maybe because Maureen Wilkey and Michael Farber blew out a tire on The Kennedy on the way back to the city. Thanks to the guys at the Lawrence Kennedy BP for the help.

The F-Word

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