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Thrown for a Loop

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In case there was any remaining doubt, my youth has officially ended. That was my first thought after learning this week that The Loop, one of Chicago’s most iconic radio brands ever, announced that it was selling to a Christian broadcasting company and changing formats after a remarkable 41-year run. The Loop was not just a radio station, it was an institution. It epitomized the fabric of Chicago: edgy, in-your-face, hardworking, rocking-with-attitude, and having a ton of fun along the way.

I have always been somewhat of a radio junkie and during my formative years, The Loop played a huge part in shaping my life. The same is probably true for many people who grew up in Chicago from the late 1970s through the 1990s. Almost everyone in my neighborhood used to walk around wearing those legendary black and white Loop T-shirts and raid the Flip Side record store for free Loop bumper stickers—the same stickers that were plastered all over my bedroom, much to the chagrin of my parents.

The legendary black and white Loop t-shirt

The legendary black and white Loop t-shirt

Every male’s first crush was on Lorelai, the Loop rock girl, and we all acquired a healthy hatred of disco, courtesy of Disco Demolition. Not only did The Loop launch my love of rock & roll music, but it was also my link to the older, cooler kids. Our affection for the station was a common bond that helped me gain acceptance into their crowd.

I felt like I was part of an exclusive club, listening to things I clearly had no business knowing about at a young age. Since there were no podcasts or on-demand services back then, I would rush home from school every day to listen to Steve & Garry, as I did not want to miss a single word. To this day, I am convinced that I learned more from listening to this station than from my classes.

While legendary disc jockeys such as Bobby Skafish, Sky Daniels, Patty Haze and Bob Stroud were spinning tunes, the true game changer for me was when I first heard Jonathon Brandmeier in the morning. I would think, “Wait, can you really say and do these things on the radio?” Jonny B’s show was simulcast on the new Loop, AM-1000, which was a personality-driven talk and entertainment station unlike anything ever on the airwaves. Who knew talk radio could be funny? Talents like Steve Dahl, Garry Meier, Kevin Matthews with his alter ego Jim Shorts, Buzz Killman, Bruce Wolf, and Chet Coppock comprised arguably the greatest radio station ever.

Even after a series of events caused the AM Loop to break up, the FM Loop kept going strong. As the commercial said, you can’t stop rock & roll (shout out to Joey Bag of Donuts)

While these days I prefer to Hit ‘em with the Hein on Sirius XM due to the sad state of Chicago radio (a blog for another time), I would still listen to the Loop whenever I needed a classic rock music fix and it was always reassuring to know the station was there.

In its own special way, the Loop was as much of the fabric of Chicago as the Bears, Michael Jordan, Wrigley Field, The Mag Mile, Lake Michigan, and so many of our amazing skyscrapers along the beautiful skyline. Just as 233 South Wacker Drive will always be the Sears Tower, 875 North Michigan will always be the John Hancock Center and Macy’s will forever be known as Marshall Fields, FM-98 will always be the Loop to me no matter what is broadcast over its airwaves. Long live rock, Chicago and the Loop.

Random Thoughts for February

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Since I started doing a monthly blog for our company website and the Intelligent Office Blog in 2015, I generally have been successful in coming up with topics fairly easily. This month? Not so much.

I have piles of random thoughts rolling around my mind–some commercial real estate related, some not–but none detailed enough to pull off a 500+ word article. Therefore, out of desperation if nothing else, I hereby present to you a series of arbitrary ideas, points, and opinions. Let’s call this “Random Thoughts For February.” Away we go.

• Anyone else get thoroughly confused/annoyed when someone calls, emails, and texts you the exact same message within a 30-second span? And then why do I always seem to pick the wrong means to respond?

• When given a choice, I will always select a small, local business over a national chain to do a job. Us mom-and-pops need to stick together.

• A personal message to several individuals who own real estate in the downtown Chicago market: Why is it so hard for you to keep your word? If you sign a commission agreement committing to pay someone by a certain date if a series of events transpire, follow through on your promise. I did my job, now you do yours. When one of your tenants is late with rent, you put a 5-day notice in front of them on day 6, yet when I inquire about a tardy commission payment, I need to be more patient and show more compassion. Of course I do.

• For those owners who do keep your word, I appreciate you more than you will ever know.

• I used to like cold weather and snow. As I get older, I dread it more and more each year. I now understand the snowbird concept.

• Charleston, South Carolina is the most underrated city in America and has the best food on the planet (with the exception of pizza). My next career move will be to retire there and open a Lou Malnatti’s franchise.

• If I get something for free, I really have no right to complain about the service, do I?
• For my money, there is no nicer building in Chicago, from the outside (and in the lobby), than 77 West Wacker. It is a true masterpiece and I never get tired of staring at it.

• I no longer feel guilty when I bump into someone who has his or her head buried in their phone, not paying attention to where they are going. Just watch where you are walking! It is not too much to ask.

• Along the same lines, to the person at Ogilvie Transportation Center this morning who thought it would be fine to stop inches in front of a revolving door to send a text with at least 40 people trailing close behind, get a clue.

• Anyone know a broker looking to make a change? Willard Jones Real Estate is looking for a few good people to join our gregarious team.

• While I love everything about Amazon, can you please make a second headquarters decision already.

• No, Mr. Tenant, I did not secretly insert language into the lease that you signed 3 years before I even started representing your building without your knowledge.

• It takes very little effort to be nice to others. Just treat people the way you want to be treated and you can never go wrong.

• Am I a fool for starting to get excited about the possibility of the Loyola Ramblers making the NCAA basketball tournament, or am I just setting myself up for another disappointment? My motto of “no expectations = no disappointments” has always served me well with LU basketball (not to mention the Bears, Bulls, Hawks and Sox).

• I really need to find a way to get more sleep.

Finally, my most important thought of all. The real estate world lost another superstar recently when Cindy Freese of the Cloverleaf Group passed away in December after a heroic battle with cancer. Cindy, along with her business partners Michael and Jonathan Basofin, will forever be towards the top of my favorite client list. Cindy was one of the nicest people you will ever meet and was always more concerned about others than herself, even after her diagnosis. Before talking business, she never failed to ask for a status report on me and my family. Cindy was a deal maker at heart, always trying to find any and every creative way to shoehorn a potential deal into the 174 North Michigan building, which to be honest, was not an easy task. Even though my dealings with Cindy ended when Cloverleaf sold the building in 2015, we continued to stay in touch and I am heartbroken to learn of her passing. I will always fondly remember how wonderful Cindy was.

2018 Predictions

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Happy New Year! As we dig into 2018, it is time once again to pull out the crystal ball and predict what events lie ahead. Before we start, let’s look back and see how I did in 2017:

1) With the increased supply caused by new construction and resulting shadow and sublease space, the total vacancy will rise by approximately 1.5%. Close. It actually went up 2.3%.

2) Average rents will increase slightly in the first half of 2017, then begin to plateau for the second part of the year. Average tenant improvement allowances, rent abatement, and other incentives will remain about the same as last year. Generally true.

3) The Old Post Office will land a significant anchor tenant who will occupy over a quarter of the building. Other smaller tenants will commit as well over the course of 2017, as this notable redevelopment becomes a quick success. Not yet. Could Amazon be the first and only?

4) The bloom will be off the Fulton Market rose just a bit, as several of the new office buildings either planned or under construction will struggle to fill space.This will lead to a slowdown of new development projects for a while. Wrong. Not only is the space briskly being filled, even more buildings are planned.

5) The sales market will remain quiet for most of 2017. In the fourth quarter, however, things will begin to loosen up just a bit and price expectations will be dialed back a notch. This will allow for some of the investors who had been sitting on the sidelines for the past few years to start getting back in the game. The market did remain relatively quiet for much of the year, but there has been no loosening up yet.

6) Just when we thought Loop office development would be on hiatus for a few years, the market will be shocked by one more announcement: a new tower located on the General Growth site at 110 North Wacker Drive to be anchored by a well-known, Fortune 500 tenant who will take occupancy in early 2021. Yes! Thanks, Bank of America for making me look good.

7) In spite of the planned redevelopment of the Tribune Tower, CIM Group will decide to keep floors 3 – 7 for office use and sign WGN Radio to a long-term lease. As part of the new deal, they will be forced to abandon their ground floor studio, which will be leased to a national retailer for $300 per square foot. Wrong. WGN is off to 303 East Wacker and development plans for the Tribune Tower have yet to be announced.

8) Leasing activity will remain slow in Goose Island. However, the city will announce a series of notable infrastructure improvements that will make this sector much more accessible to prospective users long term. Success will come, just not as fast as most hoped. Activity did remain slow, but the infrastructure improvements are still in the discussion stages.

9) As part of the City of Chicago’s astonishing decision to legalizing sports gambling, plans will be announced to construct a land-based casino on the site of the former Michael Reese hospital, kicking off a billion-dollar development which will include hotels, retail and housing. Wrong, but still a good idea.

10) Let’s try this one once more: A grocery store will sign a lease in the East Loop this year to cater to the rapidly growing residential population in the central business district. Still, no. I am giving up on this one, which means it is certain to happen in 2018.

Overall, not too bad. Can I top my performance in 2018? Here are my best guesses:

1) The market will keep marching forward at a slow and steady pace. Average rents will remain consistent with 2017 levels. However, modest vacancy increases will help put tenants on a more level playing field as and might even lead to an advantage in certain circumstances. For the most part, though, we will be at equilibrium.

2) Sales activity will start to slightly pick up towards the end of 2018 due to lowered seller expectations and prices creeping downward. Those who have been sitting on the sidelines will start to get back in the game.

3) The Tribune Tower redevelopment plans will be announced and feature luxury apartments on the upper floors and a hotel on the lower half. The first two floors will be leased to a significant (and surprising) national retailer which will continue to accelerate the shift in retail activity towards the Chicago River and Millennium Park.

4) As part of the ongoing Willis Tower renovation, Willis will give up its naming rights. Will the Sears name be restored? Nope, instead, the building will be rechristened after its largest tenant. Welcome, United Tower.

5) No new office developments will be announced, as there is more than enough going on now to satisfy every tenant currently in the market for the next few years.

6) After being declared a finalist, Amazon will ultimately not select Chicago for its HQ2. Atlanta will be declared the big winner.

7) As a strong consolation prize, Chicago will attract a significant corporate headquarter that will relocate here from another Midwest city. This tenant will become the anchor of the Old Post Office.

8) With Amazon out of the picture, Goose Island, the River District, and believe it or not, Fulton Market will struggle to find tenants. Of course, Lincoln Yards will not, because Sterling Bay.

9) Plans will be announced to shut down and demolish the Thompson Center by the end of 2019. No firm redevelopment plans will be announced and the site will end up sitting vacant for an extended period of time. However, the State of Illinois’ search for new office space will provide a nice little boost to the market towards the end of the year.

10) Take two on this prediction. Spurred on by the legalization of sports betting, plans will be announced for the former Michael Reese Hospital site to be redeveloped into a casino and entertainment complex…… which will include a grocery store.

Best wishes for a happy and prosperous 2018!

The 2017 Top Ten Events in Downtown Chicago Commercial Real Estate

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2017 has certainly been a year for the ages. In spite of all the controversies and uncertainty, the downtown Chicago commercial real estate market kept chugging along at a solid pace. While not quite as active as the past few years, vacancy remained relatively low and rental rates and sales prices continued to push upward. Let’s look back on the top 10 events that made this past year interesting.

10. Macy’s Shedding Space – After years of speculation, Macy’s finally announced plans to downsize their iconic State Street department store. Brookfield Asset Management is redeveloping floors 8 – 14 and while their plans have not officially been announced, it is expected that they will convert these 700,000 square feet into loft office space that would be accessed by a newly created office lobby.

9. The Old Post Office Returns to Relevance – As one drives down Congress Parkway, it is a wonderous sight to watch this hulking edifice gradually come back to life after nearly two decades of dormancy. The renovation is now in full swing and the building is actively courting tenants with their plans for a high-end amenity package, creative atmosphere, and all new finishes.

8. Changing Face of Retail – E-commerce is forcing retailers to offer their customers an enhanced shopping experience as an attempt to get them offline and into stores. Those who cannot adapt will not survive and this metamorphosis is being illustrated on the Mag Mile, which has unprecedented availability as several notable retailers have already–or are looking to–vacate. Crate & Barrel is one example, as it will soon be replaced by a gigantic Starbucks Roastery which is expected to be just as much of a museum as it is a store.

7. The Ever-Growing Boundaries of Downtown Chicago – Move over Goose Island and Fulton Market, it’s time for some new hot spots. Riverside Investment & Development and Tribune Media are teaming up to create the River District, a 37-acre site at 700-777 West Chicago Avenue–right where River North, River West and Goose Island all come together. This site will feature as many as 18 mixed-use buildings totaling 9 million square feet, as well as a river walk. Not to be outdone, Sterling Bay’s Lincoln Yards development will create a 70-acre mixed-use site along the North Branch of the Chicago River where Lincoln Park and Bucktown meet. In addition to office, retail and residential buildings, a soccer stadium/concert venue is planned.

6. Still No Slowdown in Fulton Market – Just when it seemed like there was nothing left to develop, Fulton Market kept churning out new deals and development plans. Notable leases in 2017 include WPP committing to over 250,000 square feet in a planned 24-story Sterling Bay Development at the former Coyne College site and Leopardo Construction leasing a full floor at the soon-to-be-completed 210 N Carpenter building. Among the plethora of development plans announced include IBT Group’s proposed 1.2 million square feet of office, hotel and retail tower at 1200 West Fulton, as well as Shapack Development’s 17-story office development at Lake and Halsted.

5. Media on the Move – With the Tribune Tower redevelopment project approaching, two of the most legendary media empires, the Chicago Tribune and WGN Radio are being forced to relocate. Tribune Media is off to the Prudential Building, while WGN is heading to 303 East Wacker. Not to be outdone, the recently-acquired Chicago Sun Times vacated their riverfront location at 350 North Orleans and headed west to Fulton Market, setting down roots at 30 North Racine.

4. Welcome to the Skyline – After a lengthy break from new development, 444 West Lake and 150 North Riverside opened and welcomed an all-star cast of tenants, creating a chain reaction of new vacancy in some highly desirable properties. Adding 151 North Franklin and 625 West Adams to the mix in 2018 may very well push the pendulum slightly to favor the tenant when it all shakes out.

3. The Biggest Gets Better – A $500 million dollar-rehabilitation of the Willis Tower is now underway and will feature a new, three-story glass retail structure on the lower floors, three additional underground floors, restaurants, a fitness center, tenant lounges, 30,000 square feet of outdoor space, and upgrades to the common areas and Skydeck.

2. Even More Development – Just when it appeared as if this current development cycle had concluded, Riverside Investment & Development and the Howard Hughes Company jointly announced plans to erect a 1.35 million square foot office tower at 110 North Wacker Drive–the current site of the low rise General Growth Properties building. Bank of America has been confirmed as the anchor tenant and will be occupying approximately 500,000 square feet when the building opens in 2020.

1. HQ2 Fever – The possibility of Amazon choosing Chicago as the home for their second headquarters has rightfully dominated the news for the last quarter. The fantasy of gaining up to 50,000 new jobs, along with ancillary development, economic growth, and the national attention it would bring to Chicago could go down as the most meaningful event to ever transpire in our city. Between the speculation over where the site would be located (Old Post Office? Fulton Market? Lincoln Yards? River District?), to trying to figure out what incentives the city and state have offered, it has been fun to wonder.

There you have it. What is in store for 2018? In my next blog, I’ll let you know what I predict to appear in this annual recap one year from now. Happy Holidays everyone!

Office 2020

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Think back to the last time you shopped around for an apartment. Likely, the process was straight-forward and to the point: figure out your budget, pick a neighborhood, set aside a couple of days to tour, select a place you like, fill out the application, then sign a lease for a year or two. Apartment units are generally well-maintained and move-in ready, so there was probably no talk of demolishing or constructing walls, re-painting with wild colors or replacing carpet. The goal was to get in there fast and make it work.

Now, let’s contrast this with searching for office space. Traditionally, it is a much more cumbersome process which can easily drag on for many months. Since office leases are usually a longer term and greater in value, more time is spent searching for just the right space, negotiating every deal term, and constructing the space to the tenant’s exact specifications; that’s the way it has been done for years. Recently, however, it appears that we are on the cusp of a fundamental shift in the way businesses office.

Millennial attitudes and expectations now place greater emphasis on flexibility, move-in readiness, and amenities. What does that mean for the next generation of office space? For example, let’s look at a tech firm. While the company is starting up, co-working space will serve their needs well. The firm can walk into a building with pre-built, move-in ready suites, standardized layouts, and the option of furniture in place. It is only logical that at some point, though, that business will want to take the next step up from co-working space and graduate to a private, autonomous atmosphere.

Rapid growth in co-working space for smaller-sized tenants combined with larger office buildings adding common amenities at a robust pace is putting pressure on office buildings to become a hybrid of office space, apartments, and hotels.

Attentive landlords have caught onto this trend and have already started creating small and mid-sized prebuilt offices positioned as both an alternative to shared office space as well as an option for young companies who have outgrown the co-working model.

To facilitate this new approach, expect to start seeing even more buildings demise larger-sized suites into smaller units ranging from around 1,000 to 10,000 square feet, and molding them into a move-in ready state. These smaller suites will be designed for shorter terms, likely 3 years or less, which will fit right into the desired strategy of the new era business model. By breaking up larger sized suites into smaller units, buildings will not be as devastated if one is vacated, as compared to a situation where a large tenant moves out and leaves a building half empty. Landlords will benefit because these types of spaces often lease quickly and at higher rents, as tenants have demonstrated a willingness to pay more in exchange for flexibility.

If the system is functioning, turnover costs are less, as tenant improvements will not be required each time a space changes hands and only some elementary redecorating will be needed every few years. If a tenant moves out, another should come along and fill it shortly thereafter, just like an apartment.

The hotel component comes in with the amenities, many of which are offered by the co-working providers. These features include things like shared conference facilities, w-fi lounges with big screen televisions and gaming, food service onsite, fitness centers, rooftop decks or equivalent outdoor space, bike storage, ability to bring dogs into the building, and concierge service. Having a plentiful supply of shared elements makes tenants even more willing to go along with the standardized layout approach for their office as they are buying into the entire package offered by the building, not just the space.

While news and statistical analysis of the office market mostly made up of large tenants who work in Class A properties, small and mid-sized users have always been the lifeblood and will be the ones to lead the thrust into the next generation. While there are now and will continue to be certain types of tenants—law firms and medical tenants, for example—who will have no interest in this type of arrangement, technology, media, creative-oriented firms and nonprofits will continue to propel this fundamental transformation.

Tenants no longer want to wait 6 to 12 months to find a space, take time to execute a lease, and build it out. In a world of Amazon prime and same-day grocery delivery, the demand for getting things now has increased in all areas and office space is no exclusion. Change is the one constant in real estate and perceptive landlords who are willing to adjust to the market demand and stay ahead of the curve are the ones who stand to benefit the most as we move into the next decade.

Blink of an Eye

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If these last few months have taught us anything, it is how truly fragile life can be. Collectively, we have witnessed way too many horrific tragedies and natural disasters as of late. The Las Vegas shooting, along with Hurricanes Harvey, Irma and Maria, have caused permanent destruction – both physically and mentally – that have altered many innocent lives forever. While human life supersedes everything else, there is also a palpable element of buildings and businesses being crippled and in some cases, ruined beyond repair. Everything is seemingly fine one moment, then in the blink of an eye, everything can change.

The latest example, albeit on a smaller scale, happened a few days ago when a local storefront theater in my neighborhood burned down due to a freak electrical fire. I had tickets to attend a children’s show there with my daughter this past weekend. If the show would have been scheduled one week earlier, the fire would have occurred right as the show was beginning. Though it was incredibly lucky that no one was hurt, the theater now needs to be re-built from scratch. The founder worked so hard to create this business from the ground up, putting in incredible amounts of time and capital. It took a few years, but recently the theater seemed to hit its stride and fill an important niche in the community; just like that, it is all gone.

The sad reality is that tragedy can strike any one of us at a moment’s notice. It is borderline terrifying to ponder, but as a business owner or manager, it’s necessary for an action plan to be in place. There are many important points to consider and questions to ask to ensure that you are prepared should something happen.

Here are a few key questions to keep in mind so that you are equipped to handle any emergencies :

• Is there a contingency plan in place? Do you have the necessary updated insurance lined up if the unthinkable happens, including business interruption insurance? As the business grows, insurance should be adjusted accordingly to adequately reflect new circumstances.
• If your business suffers a catastrophe due to a fire or natural disaster, will you be completely shut down until repairs are made or can you work remotely? If not, can a temporary office space be obtained to help get through the reconstruction period? Does your landlord have other buildings in the area which can be offered as interim space? After the hurricane in Houston, many firms moved their office to co-working facilities while their buildings were being repaired.
• Modern technology has made it easier to work from home or at a local coffee shop for a few days. In case of a fire or natural disaster, is all of your data backed up sufficiently, whether it be in the cloud or on backup drives? Without this, working remotely may not be an option.
• If the catastrophe strikes during the business day, does everyone in the office know the proper evacuation route? Other than calling 9-1-1, are there any contacts within your building who could be of assistance?
• Is your building or facility properly equipped with smoke detection systems and sprinklers in case of a fire?
• Does your place of work have a proper security system in place, whether it is a guard on the premises or an alarm or buzzer to keep out unwanted guests?
• If crisis counselors are ever needed to assist fellow staff members in coping with a particular occurrence, do you know who to contact?
• In the case of a small business run by a sole proprietor, is there a contingency plan in place if something abruptly happens to the owner? Will employees continue to get paid? Can the business continue to function?

Ultimately, while tragedies and trying conditions are never going away, the more you prepare when times are calm, the better the chance you will be able to successfully cope.

Amazon Fever

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Outside of debating who the Bears’ starting quarterback should be, the number one topic of discussion in Chicago these days involves Amazon’s headquarters announcement. Do we really have a chance to land HQ2? Are they seriously considering other cities? How many people would they hire?

I have never seen a story take on a life of its own so quickly but it’s fascinating to ponder the possibilities. On the surface, it appears as if Chicago really does have a legitimate opportunity to make this happen. Sure, other venues such as Atlanta, Boston, Denver, New York, Philadelphia and Washington DC are formidable contenders indeed, but in my semi-biased opinion, Chicago really does check all of the boxes.

1. We have the population. There over one million people in the metropolitan area. We have access to first class universities both in the city and in the immediate Midwest region. We have the necessary public transportation and an international airport with numerous direct flights to and from Seattle (where Amazon’s current headquarters is located). Not to mention the culture, a vibrant tech scene and of course, plenty of solid real estate options.

2. We have the Amazon presence. The company just expanded into 70,000 square feet at the Franklin Center and added 8 warehouses and a sorting center.

3. We have a vast history of housing corporate headquarters. We all remember when Boeing decided to fly its headquarters from Seattle into town back in 2001. National department stores, like Sears and Montgomery Wards, once called Chicago home and one can argue that Amazon’s platform is the next logical progression from these catalog houses that ruled the way Americans shopped for so many years.

So when news of the story broke, my immediate thought for this month’s blog was to analyze all of the potential city locations for the corporate headquarters. After reading 20 different articles already doing this, however, I decided to back off and take a different angle.

While landing Amazon would be quite the coup for Chicago, suppose that they do eventually bring in 50,000 new jobs. How would this impact the city? The positives are substantial: they would make a reported $5 billion dollar investment in the area, add increased tax revenue (eventually), amplify prestige–which could very well attract more corporate headquarters in the future, create an almost certain tightening of the real estate market (both residential and commercial), generate more development in all sectors, and a produce a strengthened job market.

While the benefits are appropriately touted, there is another side being neglected in the analysis…

•Can downtown really support 50,000 more people?
•Given the anticipated vast number of relocations to Chicago, where will these people live?
•How will they get to work?
•Can the CTA and Metra handle the additional demand?
•Whether it be more frequent trains and additional cars on each route, are the funds available to run additional service?
•Can our already-packed expressways handle more volume, or will suburbanites working downtown need to leave at 6:00 AM in order to arrive to work at 8:30?
•How will our aged infrastructure hold up with increased demand?
•Can the schools handle more students if people are moving to the city?
•Can emergency services handle the additional demands?
•Will the increased demand for real estate end up driving people out?
•Will Chicago become too high priced, a la Manhattan?
•Will downtrodden neighborhoods gentrify to the point that there will be no more affordable housing?
•Will the city and state be able to get their act together to put together an incentive package great enough to lure Amazon?
•Will the amount needed to lure them be so great that it will be counter productive?

These are just a few of the questions that need answers. At the end of the day, though, Amazon HQ2 in Chicago would truly be a transformational experience for our city; it would impact all Chicagoans and certainly take some getting used to. Can we handle it? I would love the opportunity to see us figure it out.

The Real Estate Wisdom of Billy Joel

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I recently listed to a town hall style interview/concert with the legendary musician Billy Joel. I have always been a fan but never realized until now how truly meaningful the titles and lyrics are in many of his songs.

I also noticed that some of his sage advice applies remarkably well to the real estate industry. Since he will be bringing his brilliant act to Wrigley Field on August 11, this is a timely opportunity to take a closer look.

I. Applicable Song Titles

• Movin Out
The deal is done and notice is given to all parties involved. We are blowing this pop stand and heading on to greener pastures.

• The Longest Time
For those lease deals that should take a month–two, tops–to complete, but actually take a year to close.

• Honesty

The one courtesy to always extend to all participants in a transaction.

• Pressure

This one is self explanatory. Need evidence? Check out my rapidly thinning hairline.

• A Matter of Trust
The key to a successful relationship between either a broker and client, or tenant and landlord.

• New York State of Mind
For all of our respective New York clients who insist on always telling us how things are done in the Big Apple. With all due respect, this is Chicago. We don’t care!

II. Relevant Lyrics

• Why Should I Worry
Once you hit on that first deal, you feel like the city is your oyster.

The rhythm of the city
But once you get it down
Then you can own this town
You can wear the crown
Why should I worry? Tell me.
Why should I care?
I Said, I may not have a dime. Oh!
But I got street savoir faire.

• Scenes From An Italian Restaurant
Obviously, the key to a happy life is having a good office, right?

Things are okay with me these days
Got a good job, got a good office

• Summer, Highland Falls
In honor of the many ups and downs we endure.

Now we are forced to recognize our inhumanity
A reason coexists with our insanity
Though we choose between reality and madness
Its either sadness or euphoria

• You May Be Right
For those times when you offer advice to those know-it-all clients, only to have them look at you as if you need professional help.

You may be right
I may be crazy
But it just may be a lunatic you’re looking for
Turn out the light
Don’t try to save me
You may be wrong for all I know
But you may be right

• The River of Dreams
When clients insist on searching and searching for that perfect space that doesn’t exist:

I know I’m searching for something
Something so undefined
That it can only be seen
By the eyes of the blind

• It’s Still Rock and Roll To Me
In the world of office leasing, tenant preferences and demands constantly change. While you need to keep up with the times, the fundamental lessons of real estate still remain the same.

Oh, what’s the matter with the crowd I’m seeing?
“Don’t you know that they’re out of touch?”
Well, should I try to be a straight-A student?
“If you are then you think too much
Don’t you know about the new fashion, honey?
All you need are looks and a whole lotta money”
It’s the next phase, new wave, dance craze, anyways
It’s still rock and roll to me

• Big Shot

When you open your know-it-all mouth one too many times…

Because you had to be a big shot, didn’t you
You had to open up your mouth
You had to be a big shot, didn’t you
All your friends were so knocked out
You had to have the last word, last night
You know what everything’s about
You and to have a white hot spotlight
You had to be a big shot last night

• The Stranger
We all screw up from time-to-time. No one is perfect. Pick yourself up, try again and be supportive when others make mistakes.

Don’t be afraid to try again
Everyone goes south every now and then
You’ve done it
Why can’t someone else
You should know by now
You’ve been there yourself

• The Downeaster Alexa Working on commission can be rough. At the end of the day, we have families to support and the pressure mounts when deals are not getting made.

I got bills to pay and children who need clothes
I know there’s fish out there but where God only knows
They say these waters aren’t what they used to be
But I got people back on land who count on me

• This is the Time
We may gripe and moan about our jobs a lot, but admit it, we would miss it if it was gone.

This is the time to remember
Cause it will not last forever
These are the days
To hold on to
Cause we won’t
Although we’ll want to
This is the time
But time is gonna change

•I Go To Extremes
When a deal is about to go south and we are just about at the breaking point.

Sometimes I’m tired, sometimes I’m shot
Sometimes I don’t know how much more I’ve got
Maybe I’m headed over the hill
Maybe I’ve set myself up for the kill
Tell me how much do you think you can take
Until the heart in you is starting to break?
Sometimes it feels like it will

• Keeping The Faith
Don’t worry, it WILL get better…

You can get just so much
From a good thing
You can linger too long
In your dreams
Say goodbye to the
Oldies but goodies
Cause the good ole days weren’t
Always good
And tomorrow ain’t as bad as it seems

• Vienna
Billy Joel sums it all up perfectly in this song. It is a good reminder to work hard, but not let the profession consume your life. There are so many salient points in this masterpiece; I have decided to close this blog by presenting all of the lyrics in their entirety. See you at the concert!

Slow down, you crazy child
You’re so ambitious for a juvenile
But then if you’re so smart, then tell me
Why are you still so afraid?

Where’s the fire, what’s the hurry about?
You’d better cool it off before you burn it out
You’ve got so much to do
And only so many hours in a day

But you know that when the truth is told
That you can get what you want or you get old
You’re gonna kick off before you even
Get halfway through
When will you realize, Vienna waits for you

Slow down, you’re doing fine
You can’t be everything you want to be
Before your time
Although it’s so romantic on the borderline tonight
Tonight,
Too bad but it’s the life you lead
You’re so ahead of yourself that you forgot what you need
Though you can see when you’re wrong, you know
You can’t always see when you’re right. you’re right

You’ve got your passion, you’ve got your pride
But don’t you know that only fools are satisfied?
Dream on, but don’t imagine they’ll all come true
When will you realize, Vienna waits for you?

Slow down, you crazy child
And take the phone off the hook and disappear for awhile
It’s all right, you can afford to lose a day or two
When will you realize, Vienna waits for you?
And you know that when the truth is told
That you can get what you want or you can just get old
You’re gonna kick off before you even get half through
Why don’t you realize, Vienna waits for you

My Friend Matt

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Life isn’t fair!

Why do bad things happen to good people?

Why me?

What have I done to deserve this?

Why must I suffer like this?

In life, tragic events that simply defy logic and explanation occur on a regular basis. It is common for so many people to continuously utter the aforementioned expressions and possess such self pitying thoughts. Matt Gould was never one of these individuals. Heaven knows he had every right to be, but that is just not the way this remarkable and inspirational individual was wired.

Matt passed away this week at the way-too-young age of 44. If you work in the real estate industry, there is a good chance you had the privilege of meeting Matt at some point over the past two decades when he worked either as an office broker at Real Estate Consultants, Rubloff, or for the last 11 years as a retail broker at Mid-America.

Matt’s spirit was unparalleled. He was the most positive, energetic and kind-hearted person in the business; no one ever had a bad word to say about him. He worked hard, always kept things light-hearted, played by the rules and cared deeply about his clients. They, in turn, reciprocated.

Matt and I met early on in our respective careers when he brought a client by to see a space I was marketing. We hit it off instantly and, from that point forward, went out of our way to try and do business together. After attending an industry event with Matt one night–having had just a bit too much to drink–we determined that we had to find a way to work together. The next day, I called the owners of Rubloff and told them that we needed to add this guy to our team. We quickly set up a meeting and fortunately, they saw the same traits in Matt that I did. Our 5 years together at Rubloff were filled with many ups and few downs. I often told him that as co-workers, we were better as friends. Still, I honestly enjoyed every minute.

While I struggle to make sense of what happened, I take comfort in our many joyous memories. It is difficult to mention them all, but here are a few of those clean enough for sharing in a public forum.

Matt and I complemented each other well and shared a similar mindset, as well a few silly superstitions. For example, prior to doing a showing for a good sized vacancy we had been marketing in the South Loop, we stopped in a greasy spoon for lunch. For some reason, we both ordered a plate of turkey and broccoli smothered with cheese sauce; it was utterly disgusting. However, we ultimately ended up making the deal and there was no doubt in our minds that it was due to this very meal. From then on, whenever we had a big meeting, we would first stop at this restaurant and “enjoy” the same dish.

Then there was the frustrating and futile attempt at leasing the dysfunctional Pittsfield Building. Initially, we were excited to get the listing, but really had no idea what we were getting ourselves into. The building was falling apart, the owner would not spend money and invoices were never paid on time. On our first day, it took us 7 hours to get through all of the many vacancies. I had my fill early on, but like he did with everything in life, Matt powered through and refused to give up. As always, he made the best of the situation. He befriended a group of very difficult tenants and even won over the owner, who I am convinced never liked a broker in his entire life until he met Matt.

I think back to our endless sports debates that usually led to disagreements (with the exception of our mutual love for the White Sox). We always overanalyzed everything related to fantasy football but our favorite topic was the NBA. The biggest Lakers fan in Chicago? Matt Gould. I would be a billionaire now if I had a penny for every time I heard the names Kobe Bryant or Shaquille O’Neal.
Without a doubt, however, my favorite Matt Gould memory has to do with his saint of a wife, Janel. I am proud to report that I can take at least partial credit for making the introduction. Janel had been working in the Office of the Building at 100 West Monroe, where our office also happened to be located. It was obvious that sparks were flying the moment they laid eyes on one another. After a few days, she commented that they “connect on an entirely different level”. Matt thought they were keeping their dating a secret, but everyone was on to them and could not be happier that they found one another. After some time of their indiscreet office dating, they decided to take it to the altar. Their wedding was one of the best I ever attended and I was honored to be part of that special day.

Some time later, Matt informed me that he had accepted a job with Mid-America; it was tough for me to swallow. On one hand, I knew it was a great opportunity that he could not pass up but I was saddened to see him go and knew that the office would never be the same. He made the right move, though, as he instantly found his niche in the industry and enjoyed significant and deserved success while touching many people along the way.

He was so altruistic and was always willing to put someone else’s needs before his own. I think back to the time I had a health issue which kept me out of the office for an extended period of time and Matt seamlessly picked up the slack and never once complained. A few years ago, when Janel courageously endured a health challenge of her own, Matt never lost his positive outlook on life. I knew he was torn up inside and terrified at what might happen, but he never let on. He simply supported her unconditionally and held the family together. Not only was he an amazing husband, but also a remarkable father to his adorable twin girls, Ava and Olivia.

Just a few months after Janel returned to good health, we learned of Matt’s cancer diagnosis. Everyone was completely floored; I still cannot wrap my mind around it. In true Matt form, however, his approach to life never changed. Throughout the endless number of chemotherapy sessions, he continued enjoying life to the fullest, never stopped joking around, and refused to give up. This darn guy even ran a marathon–and finished!–to raise money for cancer research while undergoing treatment.

Even in his hardest times, he was consistently one of the most positive and inspirational people I knew. It is rare when one is fortunate enough to meet a person who truly changes your life.

My Sunday mornings will never be the same without his endless number of text messages asking who he should start in this week’s fantasy football game. I will miss our mutual pep talks about our respective struggles in real estate and his smartass, juvenile, yet hilarious sense of humor that would always brighten my day. As painful as it is to lose him, I am heartened by that fact that Matt truly got every ounce out of his life.

Matt, thank you for all that you shared. Thank you for being my friend. I will never forget you.

Matt Gould

Matt’s family requests that donations in his honor be made to the American Cancer Society (www.cancer.org).

More Stories!

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Back by popular demand, I hereby present: More of the Most Outrageous Stories that I Have Encountered During My Career. While I would not necessarily place these in the Murphy’s Law category, looking back, they are quite amusing. Here we go.

1) In a building I formerly leased, a corner retail space became available on a prominent Loop corner and we had substantial interest. Perhaps the most persistent prospect was a well known fast food establishment. The use was not exactly what we had in mind, but their national real estate director was able to persuade the owner into a face-to-face meeting. He entered into the owner’s office dressed in a nice suit with a presentation in hand that he clearly spent a great deal of time on. His introductory words were barely out of his mouth when the owner cut him off with a question I will never forget: “I just have one single question for you: How the hell are you going to prevent my building from smelling like your f***ing hamburgers all day long?” Yada yada yada, a bank is now located at this site.

2) For that same retail space, we ended up having two financial institutions actually get into a bidding war, so the owner decided to meet with the respective bank presidents before making a decision. One was a national player who had a clear advantage going into the meeting; the other was a growing local bank and on the day of the meeting, the president and his attorney came in with a long, drawn out presentation. Frankly, this was not the right approach to win over this particular owner. Right in the middle of the meeting, the owner excused himself, walked into the adjacent room (still in clear sight of everyone) and opened up a wooden closet which contained a sink. He unzipped his fly and took care of business, essentially right in front of the bank president. Clearly flustered after that, the presentation came to a quick end. Afterwards, the owner said that he needed to get that guy out of his office and that was the best way he could think of to make that happen. We also learned that his coffee mug that he was incessantly sipping on throughout the meeting was filled with beer.

3) While working at Rubloff, one of the owners asked me to accompany 4 developers in town from Seoul, South Korea on a tour of several Class A Loop properties so they could get ideas for a new office tower they were planning to develop. Three of the four individuals did not speak a word of English and the one who did was shaky at best. Halfway through the tour, we took a break for an hour, went our separate ways and decided to meet back up on corner of Michigan and Wacker Drive. I showed up to what I thought was the designated meeting place but the group was nowhere to be found. This was pre cell phone, so I had no way to reach any of them. I was in a complete panic and feared an international incident was on the horizon. I just started walking around and miraculously, there they appeared … on Michigan and Wacker Place. They had gone shopping at Marshall Fields and bought me a picture frame to thank me for my time.

4) In a rather dysfunctional building that I used to lease, we rented a space to two gentlemen claiming to be jewelers. The build out was not very complicated and the tenant needed to take occupancy within 30 days of lease signing. As we crept up on the possession date, I walked into the space to check on the progress and not a single thing had been done. The property manager completely dropped the ball. The tenant was furious and made all kinds of threats against everyone, myself included. Ultimately, we ended up letting them out of their lease. Fast forward to two months later, someone from the Department of Homeland Security showed up to the building with pictures of these two individuals and asked many questions. As it turned out, they were being investigated on the suspicion of participating in terroristic activities.

5) My favorite lobby attendant ever was an 80-year old gentleman named Nick. All of the tenants loved him and I purposely showed up early prior to tours just so we could talk. Nick was not a big guy, but even at 80 years old, it was best not to mess with him. Case in point, a messenger was riding down the elevator with a woman and as the elevator doors opened, the messenger forcefully grabbed her purse and starting running. She screamed and Nick went chasing after him, actually caught him and held him down until the police arrived. He lectured the messenger the entire time to do better and make something out of his life, making for quite the memorable surveillance video.

6) One of the more difficult clients who I had the (mis)fortune of representing for nearly three years really put me though the ringer. I actually tried to fire her several times, but she told me that I was not her father and could do no such thing. Fortunately, we eventually found a space for her store. Unfortunately, patience was not her strong suit and she started construction early without either a permit or landlord approval. Her second-rate contractor promptly cut a main power line which effectively shut down the building’s parking garage for three days. The owner was not too happy and stuck her with the bill. Predictably, this was all my fault for introducing the space to her in the first place.

7) An owner who I used to do work for often liked to meet with prospective tenants if we ever needed help getting across the finish line on a deal. I took him up on the offer once when we had a few stubborn lease issues that could not be resolved. The owner was in his 60s at the time, while the two principles of the firm were in their early 20s. From the start, it was oil and water. The meeting ended after ten minutes with the owner yelling (something I never witnessed before), “You young whippersnappers think you have all the answers, but you do not know the first thing about running a business. Get out of my building; I will never rent space to you.” The tenant yelled back with a few choice words to the “old man” and left. The owner then looked at me and said, “If I need to experience that kind of treatment, I can call my son. He will gladly treat me that way.” As a side note, the owner was exactly right (as always). A year later, the business was caput.

8) A halfway decent vacant space that I was showing in an otherwise drab building always had one door that was locked. My master key would not open the door and even for showings, the manager refused to unlock it. One day when the manager was on vacation, I complained about the locked door to the building engineer. He took me up to the space, removed the lock and we discovered an elaborate computer network. It turned out that the manager had a day trading operation set up where he would hide out for several hours each day during trading hours. After he was confronted about this, he magically got a new job elsewhere shortly thereafter.

9) My shortest leasing assignment ever was at a star crossed Loop building. I was excited to get the listing because in spite of past problems at the property, it was very well located and there was a good amount of vacant space. After I went over to the owner’s office to hand over the signed leasing agreement, he said, “Well, this is probably as good of a time as any to tell you that I actually have no money right now and will probably have a tough time paying commissions and funding build outs. Will you still stick with me while I figure things out?” Uh, no.

10) A building I formally leased was expertly cleaned for many years by two wonderful ladies of Polish descent who did not speak English very well, or at least that is what everyone thought. One afternoon, one of the women came into the Office of the Building and, with nearly perfect English, described an encounter where she walked in on an attorney and his secretary “having relations” on the conference room table. I’m not sure if we were more shocked by act itself or the graphic description she rattled off; we had no idea she could speak English, let alone describe (in detail) something like that. The next day and from that point forward, it was as though it never happened and we heard maybe 10 words of English out of her mouth.

Lucky for you, I’m still accumulating these “experiences” so don’t worry, I’ll have plenty of blog material for the next few years.