Don't see images? Click Here SUBSCRIBE FOR FREE MANAGE EMAIL PREFERENCES
Bisnow - (Almost) Never Boring
May 12, 2020

This Week's Chicago Deal Sheet

[Webinar] What Are The Critical Components Of Getting Your Deal Approved And In Front Of Online Investors Right Now? Find Out At Our Deals Raising Capital Now: How To Determine If Your Deal Is Right For Online Syndication In Today's Tough Environment Webinar May 14

Analysts expect new leasing in the downtown office market will largely freeze in the second quarter due to the pandemic, even as developers ready millions of square feet in new buildings. 

Altogether, about 3.7M SF of new downtown inventory in large developments will deliver in 2020, according to MBRE’s first-quarter market overview, including Sterling Bay’s 553K SF 333 North Green St. in Fulton Market, which it completed in the first quarter. Another 500K SF will come from smaller developments, primarily in Fulton Market.

This Week's Chicago Deal Sheet

Activity in the first three months of 2020 was robust, even with the shutdowns beginning in mid-March. There was 625K SF of positive absorption in the central business district in the first quarter, MBRE found. The overall direct vacancy rate decreased by 11 basis points to 12.69%.Tenants signed 27 deals…

Read the full story here.

  Share:  
 
Perforation

Top Stories on Bisnow.com

Industrial May Dodge Worst Of Coronavirus, But Smaller Owners Face Risks Industrial May Dodge Worst Of Coronavirus, But Smaller Owners Face Risks
David Marriott To Replace Bill Marriott As Chairman Of Global Hotel Giant David Marriott To Replace Bill Marriott As Chairman Of Global Hotel Giant
CBRE Slashes Growth Plans For In-House Coworking Platform CBRE Slashes Growth Plans For In-House Coworking Platform
‘This Is The Moment’: Tenant Advocates Look To Use Economic Pain To Make Gains ‘This Is The Moment’: Tenant Advocates Look To Use Economic Pain To Make Gains
Perforation

Rent Collection For Mid-Market Multifamily Looks Solid For Spring, But Summer Could Be Another Story

The unprecedented number of job losses this spring unsettled the multifamily industry, and stakeholders are hungry for data on rent payment. A survey of more than 11.5 million units conducted by National Multifamily Housing Council found 84% of renters made full or partial rent payment by mid-April, and now a local survey has brought some additional good news.

According to Essex Realty Group, 64% of Chicagoland multifamily property owners and managers reported collecting more than 90% of the rent owed for April, while another 32% collected between 70% and 90%. The company surveyed regional property owners and managers who together are responsible for more than 35,000 units, most in Class-B and Class-C buildings scattered across Chicago and its suburbs.  

Rent Collection For Mid-Market Multifamily Looks Solid For Spring, But Summer Could Be Another Story

“When businesses started to shut down in mid-March, I think most people thought at best 50% to 60% of the rent would be paid,” Essex principal Steven Livaditis said.In the first few days of April, that’s roughly where things stood, but after that first weekend,…

Read the full story here.

  Share:  
 
Perforation

Why The Big Global Brokerages Could Be Long-Term Coronavirus Beneficiaries

The coronavirus pandemic is wreaking economic havoc on the fundamentals of the commercial real estate brokerage business. As lease and sales activity dries up, so do brokerages’ revenues.

But this sudden and dramatic recession may actually benefit CBRE, JLL and Cushman & Wakefield, the three biggest commercial real estate brokerage firms in the world.

Read the full story here.

 
Perforation

In Case You Missed It...

New Great Recession Threatens Loss Of Another Generation Of Minority Architects New Great Recession Threatens Loss Of Another Generation Of Minority Architects
Alderman Drops Opposition To New Fulton Market Residential Development Alderman Drops Opposition To New Fulton Market Residential Development
With Confusing State Ruling, Nobody Knows Anymore Where Cannabis Dispensaries Can Go With Confusing State Ruling, Nobody Knows Anymore Where Cannabis Dispensaries Can Go
Responding To The Pandemic Will Mean More Costs For Multifamily Landlords, Even After It Subsides Responding To The Pandemic Will Mean More Costs For Multifamily Landlords, Even After It Subsides
Before Offices Reopen, Companies Should Consider Renovating These 5 Areas Before Offices Reopen, Companies Should Consider Renovating These 5 Areas
 
Perforation

What The Sentiment Of 2008 Can Teach Us About The 2020 Crisis

For a long time, commercial real estate didn’t believe it had a problem.

In autumn 2007, well after the phrase "credit crunch" had become common parlance, Tishman Speyer agreed to pay £22B for apartment REIT Archstone-Smith. On 15 September 2008, the day Lehman Brothers went bust, UK and Irish investors Glenn Maud and Derek Quinlan paid €2.1B for Santander’s HQ in Madrid. Even more amazingly, a consortium of blue-chip banks lent them enough money to do the deal with just €25M of equity. 

But Lehman changed everything. Pretty quickly, denial and optimism turned to despair.

Read the full story here.

 
Perforation

Silver Linings Playbook: Here's How Recessions Make Real Estate Better

 

Bisnow asked some of the real estate industry's most senior and seasoned figures to draw on their experience of recessions, slumps and bumps in the road since the 1970s. Their testimony reveals reasons for hope about how things might change following this recession. And reasons to be very careful indeed. 

Read the full story here.

Perforation

Beyond The Bio: 16 Questions With Adam Leitman Bailey

 

This series profiles men and women in commercial real estate who have profoundly transformed our neighborhoods and reshaped our cities, businesses and lifestyles.

Adam Leitman Bailey is one of New York City’s best-known real estate attorneys, and a controversial character within the city’s development scene.

Born in Queens, he formed his eponymous firm two decades ago, and has both represented some of the city's biggest developers and landlords, and gone after them. After the Great Recession, he made a name for himself representing a slew of city condominium buyers rushing to get out of their contracts at troubled buildings. 

Last year, however, he was sanctioned by the State of New York after he allegedly told a tenant in 2017 that he should commit suicide, and was accused of undignified conduct at an arbitration hearing the year before. As a result, he was suspended from practice for four months.

After those headline-grabbing episodes, Leitman Bailey was back at work as of September last year, and reportedly said he was apologetic for his actions. Here, he talks about the case that still gives him nightmares, running 20 miles a week and what he considers his biggest failure.

Read the full story here.

 
 
       
 
You are receiving this email because you are either a member of the Bisnow community, have attended a Bisnow event, because you have a legitimate interest in real estate news and events because of your profession, or because of your business associations, memberships or partnerships.
 
This email was sent to: newsletter.archives@bisnow.com
 
   
 
123 William St, Suite 1505, New York NY 10038
Newsletter Approval Code: 38559