Don't see images? Click Here SUBSCRIBE FOR FREE MANAGE EMAIL PREFERENCES
Bisnow - (Almost) Never Boring
December 23, 2020

The Office Market Isn't Dead. It's Just Resting

[Digital summit] Secure Your Spot At Chicago Hospitality: From Survival To Recovery Feb. 11

Next year is going to be a confusing one for anyone in the office market. The coronavirus pandemic emptied out most offices throughout much of the past year, and everyone from entry-level workers to CEOs found Zoom calls and other technologies made it possible to work from home. But the possibility of vaccinations and increased safety won’t end uncertainty and leaves both landlords and tenants with a dilemma: How do you negotiate leases when it’s impossible to know how many employees will return to the office, how many will stay home and how much space will be needed?

New leases for significant amounts of space were rare throughout summer and fall as most tenants took a wait-and-see attitude. Q3 activity in Chicago was mostly confined to sublease deals and renewals, according to a Colliers International report. Year-to-date absorption was negative 146K SF, and about 2M SF became available for sublease. The average rental rate was essentially unchanged in the past year, standing at $42.13 per SF in Q3, just 2 cents below where it was in Q3 2019.

But behind the scenes, some negotiations are taking place, and big changes could be afoot.

The Office Market Isn't Dead. It's Just Resting

“Truth be told, rental rates are dropping. It’s just not been published,” Savills Vice Chairman Lisa Davidson said.After years of record-breaking new construction and leasing activity, especially in a burgeoning downtown market where rental rates kept increasing, landlords are…

Read the full story here.

  Share:  
 
Perforation

Top Stories on Bisnow.com

Construction Workers Near Front Of The Line To Get COVID-19 Vaccination Construction Workers Near Front Of The Line To Get COVID-19 Vaccination
Anonymous LLCs To Be Outlawed As Part Of Defense Spending Bill Anonymous LLCs To Be Outlawed As Part Of Defense Spending Bill
Independent Spirit: More Workers In COVID Economy Work For Themselves Independent Spirit: More Workers In COVID Economy Work For Themselves
The 5 Biggest CRE Flops In 2020 The 5 Biggest CRE Flops In 2020
Perforation

The Weird Psychology Of Why You Do So Many Deals In December

Every December, professionals across various sectors of real estate race around, stressed, trying to get those last few contracts signed before the calendar turns over. The fourth quarter, and especially December, almost always sees a surge of deals closed. But why?

The reason behind it lies in the warped logic where economics and psychology meet. And it may be causing you to make bad investments.

Read the full story here.

 
Perforation

Origin Stories: Vero Co-Founder Joe Ben-Zvi On How Getting Unlucky Changed His Career

 

This series delves into the myriad ways people enter the commercial real estate industry and what contributes to their success.

Vero Leasing co-founder and Chief Operating Officer Joe Ben-Zvi had a couple of stepping stones on his route to the CRE career that fits just right. After getting a bachelor's degree in arts and science from New York University, he started working for a small investor flipping homes on Long Island. But it seemed like the real estate agents who showed those homes were making more money, so he got his real estate license and became a broker.

He started in CRE in 2000, showing multifamily units for lease in Manhattan. It didn't work out for him right away — he didn't close many deals that first year. But he stuck with it and three years later began running a brokerage of his own. Then, the recession hit, everything fell apart and he had to make an even bigger change. 

Read the full story here.

Perforation

In Case You Missed It...

2021 Will See Workers Return, But Striking A Balance Between Safety And Efficiency Won't Be Easy 2021 Will See Workers Return, But Striking A Balance Between Safety And Efficiency Won't Be Easy
This Week's Chicago Deal Sheet This Week's Chicago Deal Sheet
Open Office Sublease Space Surpasses Great Recession Open Office Sublease Space Surpasses Great Recession
These Projects Breaking Ground Next Year Show Developers Still Have High Hopes, At Least Outside The Loop These Projects Breaking Ground Next Year Show Developers Still Have High Hopes, At Least Outside The Loop
The Pandemic Has Changed Apartment Touring For The Better And For Good The Pandemic Has Changed Apartment Touring For The Better And For Good
 
Perforation

Bisnow's 20 Most-Read Stories Of 2020

The year is mercifully coming to a close, and even in 2020, this time of year is filled with hope for the future and a mad scramble to close deals. But before we change out the calendar — or whatever the digital equivalent of that is — we want to look back one last time at what moved our readers the most this year.

Our coverage drew millions of readers who gravitated to news about hotel closures and construction shutdowns, tax policy and crisis maneuvering. These are the stories that had Bisnow readers clicking the most.

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: 43370