Commercial Property News - October 2008 - (Page 17)

CHICAGO MARKET PROFILE MARKET INTELLIGENCE Shelbourne Development began marketing the 1,200 planned units in its Chicago Spire this year at $1,500 per square foot. The 150-story tower will rise higher than the Sears Tower upon its 2012 completion. Apartment Realty partner Debbie Corson stated that the tower’s pre-sales will prove a key indicator of the market’s health.Residents also started to move into the Trump International Hotel & Tower Chicago’s 486 condos this year. In the meantime, Ron Shipka Sr., principal for residential developer The Enterprise Cos., labeled the market “stable but slow,” adding that the stricter lending terms that have become more pronounced since January have made development much tougher. Lenders were requiring developers to put in 15 percent equity and to pre-sell 30 to 35 percent of each project’s units.Now,50 percent pre-sale requirements are typical and equity requirements have ballooned to 30 to 40 percent, plus a personal guarantee.“I’m very concerned,” Shipka said.“This essentially means that the bank is taking zero risk.” Many condo buyers are also canceling at closing when they realize that their lenders require additional equity, he noted. Lissner pointed out the silver lining: The financing environment should translate to fewer deliveries from 2010 to 2012, yielding a healthier supply-demand balance. Other real estate sectors have also started to feel the heat,especially from corporate consolidation and downsizing. According to Grubb & Ellis Co., occupied office space decreased more than 600,000 square feet during the first half of the year, yielding a second-quarter vacancy rate of 16.9 percent. Absorption hit negative numbers for the first time in 11 quarters,landing at a negative 11,545 square feet. The industrial market also shows signs of weakening. The vacancy rate climbed 60 basis points to 9.4 percent during the second quarter, according to Grubb & Ellis. Inventory increased 4.4 million square feet, but net absorption came in significantly lower, at 1.2 million square feet. —Reach Eugene Gilligan, Midwest editor, at eugene.gilligan@nielsen.com. For more regional coverage, visit www.cpnonline.com/regions. A Record of Accomplishment. A Future of Opportunity. CIBC WORLD MARKETS, ONE OF THE $80,000,000 Interim Retail FASHION OUTLETS OF NIAGARA FALLS Niagara Falls, NY $77,500,000 Construction Hotel THE SURREY HOTEL New York, NY $55,000,000 Interim Mixed Use THE BELLEVUE GALLERIA Bellevue, WA $51,500,000 Permanent Hotel CROWNE PLAZA METRO CHICAGO Chicago, IL $72,000,000 Permanent & Mezzanine Office GREEN HILLS CORPORATE CENTER Reading, PA $57,750,000 WORLD’S MOST INNOVATIVE FINANCIAL INSTITUTIONS, IS A LEADER IN THE COMMERCIAL REAL ESTATE FINANCE MARKET. Construction Retail EWELL STATION SHOPPING CENTER Williamsburg, VA $57,000,000 Interim Student Housing 55 JOHN STREET New York, NY $89,700,000 CIBC WORLD MARKETS OFFERS Construction Mixed Use WEST BROAD VILLAGE Richmond, VA ONE-STOP SHOPPING FOR CONSTRUCTION, INTERIM, PERMANENT, AND MEZZANINE $134,000,000 Construction Hotel SEAGATE HOTEL RESIDENCES & BEACH CLUB Delray Beach, FL $50,000,000 LOANS AS WELL AS OTHER CAPITAL SOLUTIONS. Mezzanine Mixed Use RENAISSANCE SQUARE White Plains, NY TO TAKE ADVANTAGE OF $15,750,000 Interim Multifamily VILLAGE AT STONE MOUNTAIN Stone Mountain, GA OUR EXPERTISE AND FINANCIAL RESOURCES, PLEASE CONTACT ONE OF OUR REGIONAL OFFICES LISTED BELOW. $39,000,000 Permanent Office PILLSBURY WINTHROP Palo Alto, CA $63,000,000 Interim Office FORT LEE EXECUTIVE PARK Fort Lee, NJ $47,075,000 Construction Retail; Office THE DELLAGIO Orlando, FL www.cibcwm.com 1-888-411-CIBC 1-212-667-6999 New York Atlanta Chicago Los Angeles Salt Lake City Despite the Downtown Chicago condominium market’s shaky short-term future, The Enterprise Cos.’ Museum Park Place 1 is 100 percent occupied. CIBC World Markets, the investment and merchant banking operation of CIBC, offers a full range of integrated credit and capital markets products and services to corporate, government and institutional clients. ©2008 CIBC World Markets. www.cpnonline.com • October 2008 • Commercial Property News 17 http://www.cpnonline.com/regions http://www.cibcwm.com www.cibcwm.com http://www.cpnonline.com

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CPN - October 2008 Contents Starting Line Industrial Data/Analysis Conferences Chicago Market Profile Finance International Title Insurance Brokerage Corporate Report

Commercial Property News - October 2008

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