Posts Tagged ‘office space’

One11 West Illinois Street Is Development Magazine’s Latest Cover

Wednesday, May 6th, 2009

One11 West Illinois Street is on the cover of  the Spring issue of Development magazine, published by the National Association of Industrial & Office Properties.111w_illinois_1

The Development article highlights the building’s unique positioning as Class-A-to-own office space that lets businesses own their space in a building with the quality of a premium-priced skyscraper – but at 40 percent of the cost of leasing.  The versatile building accommodates multiple uses — hotel, retail, restaurant, and office space.

Aimed at entrepreneurial business, One11 comes at a time when credit is being extended to small- to medium-sized business through the Small Business Administration and other agencies.  (To hear Key Bank executive Charles Krawitz discuss capital available to entrepreneurial firms, visit our TAG podcasts here.

Prominent architect Martin Wolf, FAIA, senior principal with Solomon Cordwell Buenz & Associates, faced several design challenges, specifically two adjoining buildings that occupy part of the site.  Wolf resolved this challenge by designing One11 around the buildings and creating a dramatic prow-like edge that resembles the bow of a ship.  The design achieves a contemporary, geometric presence that has won high praise from Blair Kamin, the Chicago Tribune’s Pulitzer Prize-winning architecture critic.

One11 West Illinois Street’s lead user – the Erikson Institute – had taken 75,000 SF on three floors prior to the ground-breaking so the graduate school for child-development professionals could have an upscale vertical campus.  A key factor in Erikson’s decision to purchase was the tax-exempt financing and the real estate tax exemption.  This economic incentive gave Erikson the ability to purchase almost double the space they had previously occupied.

To read the entire article, please visit NAIOP

Cornerstone Gets the Green Light

Thursday, April 2nd, 2009

Cornerstone’s launch fulfills William A. Alter’s 30-year vision that began when the legendary real estate titan acquired the first of what now comprises 650 acres in central Lake County.

As a mixed-use development pioneer, Bill Alter understood that differing residential products could- and would — flourish, complete with nearby stores.  Cornerstone is taking Bill’s vision a step farther by creating an environment where industrial, research-and-development and office and retail jobs will coexist within walking distance of housing, entertainment opportunities and shopping.  rtkl_cornerstone_eyelevl2sign1

Costing  an estimated $750 million,  Cornerstone is a significant project which will take early 12 years to complete.  It is expected to create hundreds of construction jobs.  At completion, we expect that Cornerstone will add more than 9,000 jobs within the project, as well as almost 7,000 supporting jobs throughout Lake County.  Currently, our development plans call for 3 million SF to 3.5 million SF of light industrial/office space, 500,000 SF to 600,000 SF of shops and restaurants and 800 homes, mostly townhouses, apartments and condominiums.  Located west of Illinois Highway 83, Cornerstone is expected to be annexed into the village of Grayslake.

The Grayslake community is embracing the concept of Cornerstone.  At public hearings and planning commission meetings with Village officials, we’ve received consistently positive feedback, with comments such as “Well-balanced land use plan.”, “This is what Grayslake needs – NOW.” and “We need more amenities locally.”

We still face some challenges as we move forward, but I have every confidence that Cornerstone will become the most sought-after destination in central Lake County.

Office Rental Rates Falling as Demand Slides: Part 1

Wednesday, January 14th, 2009

It should be no surprise that rental rates for office space have weakened as demand declines.  Nationally, rents for office space fell 1.2 percent during the fourth quarter of 2007, even though owners offered concessions such as free rent for a limited time frame to lure users.  According to Reis, Inc., a New York-based real estate research firm, rents declined in 65 out of the 79 national markets it tracks.

jump_off_cliffDuring 2008, office tenants walked away from 42,000,000 SF of space, which brought the U.S. vacancy rate up to 14.4 percent, compared with the 12.6 percent reported just one year ago.  Vacancy rates are expected to continue to rise through 2010, which will put even more downward pressure on rental rates.  Given the overall volatility of the real estate market, just how low rental rates will go is anyone’s guess.

The one bright spot is the deflationary economy, which has lowered energy prices and other commodities.  This may provide relief to owners faced with lower rental income at a time when covering their debt obligations may be a struggle.