One Thing For Sure Chicago Real Estate is changing, and we are not just talking about changing the name of a famous landmark from The Sears Tower to The Willis Tower. Yes mayor Richard Daley, during a public renaming ceremony hosted by Willis Group Holdings recently introduced to Chicago the Willis Tower. But that is not the only change to big Real Estate in The Windy City
Some big changes are happening in the way real estate changes hands. Paul Rodgers, senior vice president of Oak Brook, Illinois-based Inland Real Estate Auctions, Inc. said his firm is seeing a 30 to 40 percent increase in commercial auctions that includes almost every major type of commercial space. More and more sellers are using auctions to sell commercial properties.
Chicago’s office market continues to soften due to ongoing job losses and reduced demand, and this weakness will be compounded this year by accelerated completions and an increasing amount of sublease space. This according to a second-quarter Office Research Report by Marcus & Millichap.
Here are some of the interesting points of the most recent Chicago Office Research Report:
Employers are projected to cut 135,000 positions in the Chicago metro area this year for a 3 percent reduction, following a 2.4 percent decline in 2008. Office-using job losses are expected to amount to 46,000 positions, a contraction of 4.1 percent.
Office deliveries are anticipated to accelerate in 2009, due almost entirely to increased activity in the city. Developers are forecast to complete nearly 4.1 million square feet. After 3.4 million square feet came online last year.
Continued job losses in office-using employment sectors and ramped up construction are expected to push metro-wide vacancy to 19.7 percent by year end, 360 basis points higher than in 2008, when vacancy rose 70 basis points.
Lease renegotiation will likely become more prevalent in the coming months, suppressing rents. Asking rents are projected to finish the year at $26.26 per square foot, while effective rents will drop to $21.09 per square foot, annual declines of 3.9 percent and 6.0 percent, respectively.
Local and county governments throughout the state are scrambling to find ways to generate enough money to stay afloat during these tough times without sacrificing public safety, road construction or basic services that range from inspecting structurally unsound buildings to picking up stray dogs from neighborhood streets. “It’s far worse than anything I’ve seen,” said Larry Frang, executive director of the Illinois Municipal League. He’s been with the league since 1974.
So here is where the changes are, more Commercial Real Estate Auctions, softening office market, employers cutting positions, more unneeded office inventory, continued job losses and stray dogs running in neighborhood streets.
And you though changing the name of the Sears Tower was bad.
Richard Bonn is the owner of Awesome Web Marketing. For more information on Richard please visit http://www.Chicago-Homes-RealEstate.com
[tags]Chicago Homes, Chicago Il Homes,[/tags]
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