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The 1031 Exchange: Avoiding Common Mistakes

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As commercial real estate investors look to build wealth for the long-term, many turn to the 1031 Exchange, a common vehicle used to defer capital gains and related federal tax liabilities. The U.S. tax code allows investors to sell property and buy “like kind” assets as part of a 1031 Exchange to defer capital gains.

This is a valuable means for building wealth, yet it is often misunderstood. If the timing, structure and requirements are not followed, the result could be detrimental — saddling investors with capital gains liability and newly purchased investment property that is not suited to their goals.

Here are ways to avoid common mistakes with 1031 Exchanges.

Understand the Terminology

“Tax deferred” does not mean “tax free,” for example. A 1031 Exchange allows investors to defer capital gains of 20 to 30 percent, depending on their tax bracket, and roll those gains into the next property. Eventually, when the property is sold without a replacement, the capital gains liability will kick in. This is typically timed to occur after many years of building wealth, when the investor is in retirement and/or in a lower tax bracket.

Hire the Right Professional

There are many requirements to a 1031 Exchange — from legal language in the contracts to the timing of filing documents and buying real estate to replace the asset sold. Any missteps could jeopardize the 1031 status and leave an investor in a no-win situation as the clock ticks down to closing. When interviewing brokers, ask for details about their experience with 1031 Exchanges, including obstacles they have faced and the team of accounting, legal, title and related professionals they will assemble to navigate the process.

Start the Search for Replacement Property Early

It can take time to find the right asset, so start ahead of closing on the sale, which triggers a 45-day timeline for identifying the new asset. The goal is to find the right asset and avoid coming up on a deadline and having to quickly purchase a less desirable property or pay capital gains.

Look at a Broad Range of Replacement Assets

1031 Exchanges can be completed using any asset class. Some commercial real estate investors assume that “like kind” means the same asset class, however, and they narrow their search accordingly. This can lead to missed opportunities or buying an asset that will not provide the desired return. Experts also caution investors to look at the whole picture, including investment horizon and other factors outside of the capital gains benefits, according to Kiplinger’s.

Know the Market

Investors should spend at least three to four months researching a market, ideally with the assistance of an experienced broker. This will help with understanding market fundamentals and allow for making decision from a position of strength.

Remember to Factor in Any Depreciation on the Property Being Sold

When trading an improved property, commercial real estate investors may have to recapture the portion of the gain on the sale related to depreciation.

The 1031 Exchange is a valuable tool for helping investors build appreciation and long-term value, but it should be approached with an inquisitive mind. By planning ahead, finding the right resources, and being aware of all the nuances regarding timing and contractual issues, investors will be in the best position to move forward.

Experiential Chicago Retail: Pour the beer, walk the wine

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As the retail shopping center industry continues to embrace experiential concepts, such as restaurants, entertainment, wellness and fitness concepts as a driving force behind their merchandising mix, a similar transformation has moved into the Chicago suburban restaurant scene. New tech-forward concepts, designed to engage the consumer at every turn, are being introduced to enhance the dining experience.  These experiential enhancements bring a highly customized approach to meal selection, ordering– and even pouring craft beer.

One example is Tapville Social, a creative Chicago suburban restaurant concept that has become an integral part of the downtown social scene in west suburban Naperville and Elmhurst. With an engaging backdrop of self-serve beer and wine stations, customers drive the dining experience, from the swipe of a credit card to an IPad ordering system to free pouring craft beer.  Entertainment is also on the menu in the form of trivia nights and other engaging social activities. The experience is highly customer-driven and focused on efficiency — less waiting time for food and drinks, more time to socialize.

Tapville Social Expands: Rosemont and Beyond

This American-food themed restaurant concept has caught on quickly, prompting expansion plans that will take Tapville Social to select markets nationally. The concept is also expanding to reach other slices of their key demographic (30 to 49-year olds with $100K income and above).

One new segment is the high traffic retail shopping and convention scene. A kiosk “sip and shop” approach will debut soon. Customers can pour a beverage and go, sipping as they shop. The focus is on safe, responsible consumption in a family-friendly environment. Look for expansion to convention sites in the near future, as well.

To satisfy investors’ appetites to tap into this important demographic, both concepts are also being offered as restaurant franchise opportunities as well.

The Big Picture: Chicago Suburban Restaurants

The Illinois restaurant scene is a $30.1 billion industry in Illinois, with some 25,000 eating and drinking establishments and growing, according to the Illinois Restaurant Association. In an industry that strives to always stay relevant, new Chicago suburban restaurant concepts such as Tapville Social are keeping the industry in the forefront of consumer trends.

According to Restaurant Hospitality, nearly one in three Americans prefers a restaurant dining establishment that has food, drinks and activities.  And, 24% want more “eatertainment” venues. This all bodes well for creative concepts that can keep consumers engaged — and returning for more.

For the latest on Tapville Social’s expansion plans, contact Nick O’Donnell or Christina Caton Kitchel. As the exclusive master tenant representation team, they are actively looking for high traffic retail shopping sites to support this expansion.

3 Points to Consider When Doing a 1031 Exchange

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3 Points to Consider When Doing a 1031 Exchange

As a commercial property investor, there are many reasons to consider utilizing a 1031 exchange. With the ability to swap properties without taking a financial hit from capital gains tax, a 1031 exchange is an excellent resource in commercial real estate investment. However, before you begin the process of a 1031 exchange, you’ll need to consider these three important components to make your exchange a success.

Understand the Timeframes

In completing a 1031 exchange, there are two critical dates to remember. First, you’ll need to understand the 45-day identification period. From the date that the relinquished property closes, you, the taxpayer, will have 45 days to identify a replacement property that you intend to acquire in the exchange. In addition to the 45-day identification window, you’ll need to consider the 180-day exchange period. The replacement property or properties must be received by the taxpayer and the exchange must be completed within 180 days of the exchange property’s sale, or by the due date of the tax return for the year in which the relinquished property was sold (whichever comes first). 

Both rules are strictly held and cannot be extended even if the 45th or 180th days fall on a Saturday, Sunday, or federal holiday. If you make these timelines an afterthought, your attempt at a 1031 exchange may be unsuccessful. So, plan ahead and keep these key deadlines in mind. 

Property Identification

When it comes to property identification, rules govern this as well. Generally, limits exist as to how many properties can be identified.  One rule of thumb is the three property rule, which allows the taxpayer to identify up to three properties.  All three properties do not necessarily need to be acquired. To identify more than three properties, the 200% rule may be used. This allows for any number of properties may be identified, as long as the combined value does not exceed 200% of the fair market value of the relinquished property. 

Any property that you identify must be considered like-kind, meaning that they are the same type of property (i.e. any property used for trade of business). Though the property must be like-kind, you will also need to consider whether you are planning to invest in a different asset class. Perhaps you would like to make the move from a multi-family property investment to a retail investment. This is something that needs to be considered well before you begin the process. With the help of an experienced commercial real estate broker, you can properly appraise the value of potential properties and identify the best property for your 1031 exchange. 

Know the Key Players

Finally, you need to know who is involved in a successful 1031 exchange. There are many players contributing to the process, not just the seller and the buyer. Other key players include qualified intermediaries, attorneys, and commercial brokers, to name a few. 

These professionals have vital roles to play in the exchange process as well. Attorneys are a valuable resource during a 1031 exchange, helping you make sure that you are compliant with the associated regulations. You may even choose to consult with a tax lawyer before beginning the process to educate yourself on the current regulations in place. Commercial real estate brokers can help you understand the current and future market conditions, enabling you to maximize your financial position. In addition, brokers are invaluable for disposing of your current property, identifying new properties for the exchange, and evaluating possible replacement properties. 

Get Started on Your 1031 Exchange

Are you considering a1031 exchange? If so, you’ll need the right people in your corner. At Caton Commercial Real Estate Group, we offer a variety of  commercial property services, including commercial property valuation, as well as brokerage and investment expertise that is invaluable during a 1031 exchange.  Get in touch with us today to learn more about how Caton Commercial can partner with you!

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Naperville’s Central Park Place: Shop, Dine, Live

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Central Park Place in Naperville

A rare and exclusive opportunity, in the heart of one of Chicago’s most desirable suburbs, Central Park Place is the new development that you don’t want to miss. Located in downtown Naperville, this four-story, mixed-use development has everything; street retail space, restaurant space,  and high-end condominiums,  with an anticipated delivery of Fall 2019. The building is within walking distance of the Metra stop, providing easy access to and from downtown Chicago.

Shop: Premier Retail Space

Located at 110 South Washington Street, Central Park Place offers 7,868 square feet of premier retail space with spacious 20-foot ceilings fronting Washington Street.

Near the famed Naperville Riverwalk and Water Street district, this location is highly desirable,  boasting a walk score of 93/100 and traffic counts of 37,300 Vehicles Per Day (VPD), offering businesses maximum visibility and access. Central Park Place is situated among a multitude of national retailers including Pottery Barn, M.A.C., lululemon athletics, Apple, Pandora, Loft, J. Crew and many more.  Join their ranks with a beautiful storefront at Central Park Place.

Dine: Restaurant Space with Outdoor Patio

Downtown Naperville is a popular destination for shopping and dining. With more than 70 restaurants in a 5-block radius, location and visibility are key factors for success when entering this market.

Central Park Place highlights a premier restaurant space, to be located within the historic Nichols Library, with a raised outdoor patio on Washington Street. The historic building is being revitalized to house a high-end restaurant space with 3,822 SF of interior and a 1,412 SF outdoor patio.  Channel the history of Naperville in this landmark building.

The High Profile of Downtown Naperville and its Residents

Located only 30 miles from the Chicago Loop, Naperville is known locally, and nationally, as a prime location for elite shopping, dining, and living. These accolades speak to the viable opportunities awaiting your business expansion or relocation in Naperville. The following awards provide a snapshot of what Naperville has to offer:

  • Best Places to Live in the Chicago Area (Niche.com, 2019)
  • City with Best Public Schools in America (Niche.com, 2019)
  • 13 for Best Regional Universities in the Midwest (U.S. News, 2019)
  • Best City to Raise a Family in America (Niche.com, 2018)
  • The Next Hot Foodie Town (Forbes, 2018)
  • Safest City in America (Niche.com, 2018)
  • 1 retail sales in Chicago Suburbs, with $3.4 billion in sales (Melaniphy & Associates, Inc., 2017)
  • Wealthiest City in the Midwest (NerdWallet, 2016)

In addition to the successes of the Naperville business district, Naperville’s demographics are some of the strongest in the state.

  • Average Household Income: $186,442
  • Average Net Worth: $1,989,580
  • Average Home Value: $550,000

Don’t Miss This Opportunity

With the incredible synergy of thriving retail and customer base, it’s clear that Central Park Place is a once in a lifetime opportunity for businesses looking to locate in downtown Naperville. Don’t miss the chance to be the next successful restauranteur or retailer in this marketplace. For more information about leasing space within Central Park Place, call Steve Caton, CCIM or Christina Caton Kitchel at (815) 436-5700.

What is an Opportunity Zone and How Do They Work?

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Opportunity Zones have been gaining attention in the world of commercial real estate. As a commercial real estate investor, there are many aspects of Commercial Opportunity Zones to be aware of as you move forward. Here is what you need to know about the options available through this program that may enable you to substantially reduce your income tax bill, while providing an economic boost to a distressed community.

A Brief History of Commercial Opportunity Zones

Opportunity Zones were added to the tax code as a result of the 2017 Tax Cuts and Jobs Act. The zones signify economically distressed communities, and the intent of the new tax break benefits is to stimulate economic development and job growth in these areas through investment in commercial real estate. Governors and the U.S. Department of Treasury designate which low-income areas are classified as Opportunity Zones. The first Opportunity Zones were designated in April 2018 and covered regions in 18 states. Today, Opportunity Zones have been designated in areas of all 50 states, as well as areas in the District of Columbia and five United States territories.

Commercial Real Estate Benefits

There are several key federal tax advantages offered for investing in Opportunity Zones. Most importantly, investors can defer and/or reduce capital gains through a qualified Opportunity Fund. Opportunity Funds are investment vehicles that devote at least 90% of holdings into partnerships, businesses, or properties within qualified Opportunity Zones.

Key benefits are:

  • Defer capital gains tax on asset sales by investing them into these Opportunity Zones
  • Eliminate a portion of those capital gains taxes by holding the Opportunity Zone investments for a significant period of time
  • Eliminate capital gains taxes once the Opportunity Zones asset is sold

Caton Commercial: Representing Opportunity Zones

Caton Commercial Real Estate Group is dedicated to helping commercial real estate investors make an impact in these communities by listing qualified Opportunity Zone properties in Joliet, Country Club Hills, and Maywood. Our featured Opportunity Zone properties include:

  • Former Applebee’s  in Country Club Hills: 5,553 SF free-standing building with a large parking lot containing 87 parking spaces. This property includes a large monument sign with excellent visibility.
  • Former School  in Joliet: 40,000 SF brick building on a 1.9 acre lot that includes office space, elevator, and warehouse. This property is perfect for an educational institution or a corporate headquarters with a light manufacturing facility.
  • Cathedral and Rectory  in Joliet: 38,000 SF mixed-use space with potential for entertainment, retail, and multifamily use. The cathedral building offers two stories with 8,000 SF on each floor, and the rectory building offers three stories with 4,000 SF each.
  • Repair Shop  in Maywood: 3,775 SF automotive repair and tire shop equipped with three bays and four lifts. This shop is located in a high traffic area.

Contact Caton Commercial Real Estate Group today to learn more about how you can take advantage of these tax benefits and be a part of stimulating economic growth by investing in one of these qualified Opportunity Zones. To learn more about the above available properties, visit our current  listings  or  contact us  today. We look forward to partnering with you!

Amy Hall Among Initial Recipients of Prestigious ICSC CRRP Credential

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Amy Hall, COO at Caton Commercial is among the first to receive ICSC’s new Certified Retail Real Estate Professional (CRRP) credential. As the retail industry continues to grow and transform, professionals are expected to develop a broader body of knowledge and perspective to be successful. The inclusive and broad nature of the ICSC CRRP credential demonstrates a well-rounded competency of the industry.

A mark of excellence, ICSC professional certifications give special recognition to retail real estate professionals who demonstrate the highest levels of competency in the industry. Ms. Hall holds several other designations including Certified Retail Property Executive (CRX), Certified Leasing Specialist (CLS), and Specialty Leasing Designation (SLD). These certifications raise the industry’s professional standards through professional education, experience, ethics and rigorous exams.

Congratulations to Amy and to all who are committed to their learning and professional business development.

Is There a Benefit to Using Commercial Tenant Representation?

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Is There a Benefit to Using Commercial Tenant Representation?

Trying to find a space to lease can be really tough. Finding the perfect space to lease can be close to impossible. While you might think this is something that only you, as the business owner, can do, it could be worth asking yourself, “Is there a benefit to using commercial tenant representation?”

Make no mistake, the answer to that is an absolute YES! Tenant brokers will not only stand with you, they will stand for you during negotiations. Their endurance and expertise in the commercial real estate market will earn not only your respect but the landlords’ as well. There is no question–you want someone like that in your corner the next time you are looking for space to lease.

Think of it this way. Having a tenant broker is like having a negotiator, data analyst, market expert, and property manager all rolled into one -and working only for you.

If that isn’t enough to convince you, here are some more reasons:

Real Estate is Complicated

For the normal person, not involved in real estate on a day-to-day basis, commercial real estate is a complex industry and few people outside of industry professionals understand all the jargon and can navigate the intricacies involved, whether buying, leasing, or co-working.

To do what is best for your company, to find the perfect space, to evaluate your needs vs. wants, and to have someone to negotiate with your best interest in mind, hiring a tenant broker is essential.

Gives You the Gift of Time

Hiring a tenant broker gives you the gift of time. Time to focus on your business. Time to get things done. Time to direct your employees instead of spending all your time trying to learn the finer points of commercial real estate and -you can admit it here, to yourself -not doing a very good job of it.

Congratulations–you’re normal. You know your business inside and out and can do what needs to be done in half the time of anyone else and it suffers when your focus isn’t there. Let a tenant broker do the same for your business on the real estate end.

They know their business, too. They can use a needs assessment to determine if leasing or buying is better for your business. And, they know the market, the region, towns, and neighborhoods. Putting your trust in their knowledge, skills, and ability to negotiate will be one of the best things you do for yourself and your business in a long time.

Negotiate the Deal, Terms

Not only do landlords respect tenant brokers enough to actually return their phone calls, they respond differently in negotiations than if you went in alone. Tenant brokers know the lingo, the game and are rarely fooled, making it much easier for you to walk away from the negotiating table with a lease that you are happy with.

Get in Touch Today

Call us at Caton Commercial Real Estate  today and let’s set a time to meet and discuss your needs. We are always looking out for the interests of our clients and love finding the right spaces for the right company.

Founder of Bulldog Ale House To Open New Restaurant Concept

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Matt Ahmeti, founder and owner of Bulldog Ale House, currently operating at 11 Chicagoland locations, has leased a 7,500 SF standalone building for a new restaurant concept. Unlike Bulldog Ale House, with its focus on rotating craft beer selections, the new restaurant will have a menu based around wine pairings.

Steve Caton, CCIM, CIPS and Nick O’Donnell brokered the transaction for 195 Remington Blvd in Bolingbrook where the new restaurant has plans to open later in 2019. We are excited to watch for developments at the location.

Molly’s Cupcakes Opens to Wild Success in Downtown Naperville

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Molly’s Cupcakes opened to wild success on Monday, January 21st, selling out in hours. Christina Caton Kitchel facilitated the deal to bring Molly’s to downtown Naperville. The much anticipated opening of the store located at 30 W. Jefferson lead to 1,000 cupcakes selling out within two hours of their opening. Molly’s plans to increase its cupcake supply to meet the overwhelming demand.

In addition to gourmet cupcakes, Molly’s serves cookies, cheesecake, and homemade ice cream.

Ins and Outs of Commercial Leasing

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Ins and Outs of Commercial Leasing

Leasing commercial space can be time-consuming, frustrating, and exciting all at the same time, no matter if you are the tenant or the landlord. Learning more about the ins and outs of commercial leasing can better prepare you for the road ahead.

If you’re a pro at leasing business space, then you know certain terms of the lease can make or break your business. Having someone on your side, a commercial real estate broker who specializes in representing landlords or tenants, can be crucial to your success. They will help you not only negotiate terms but will help you find the appropriately sized and located space for your needs.

Understanding the terminology and concepts in commercial leasing will help you to get acclimated more quickly and knowing what the goals are for the other side will help you when looking for certain terms for your own.

Landlord Reps – Before Leasing Your Property

Do Research: There is a lot to this and it will take time. Finding the vacancy rate for the area your building is in, and even more specifically, for buildings like yours. These rates vary by the type of building, such as an office building or a warehouse.

Check Zoning Laws: Zoning laws change and you need to make sure you have the latest ones. These laws can restrict what type of businesses are allowed to lease and failure to comply can be expensive, from paying fines to losing a tenant. For instance, tattoo parlors may be restricted into specific zoning areas, depending on the city, and might not be welcome in a downtown district.

Know Who Your Tenants are: For instance, those with businesses that won’t be allowed due to zoning can be crossed off, as can those whose financials show their long-term ability to pay is in question. Cultivate those with strong cash flow and whose needs mesh well with those things you can accept, such as outside signage and foot traffic.

Asset and Property Management: Do you want to keep tabs on when to upgrade parking lots and make sure your buildings perform well on energy audits? Do you want to oversee regular maintenance of loading docks, ADA compliance, and a myriad of other building items? If not, an asset manager is your next best friend. If you don’t want to deal with building inspections and monthly rent payments, a property management company will be another must-have.

Tenant Reps – Before Leasing or Renewing a Lease

Start Now: Well, maybe not right now, but definitely well ahead of when you want to be moved in. 12 to 15 months gives plenty of time to negotiate a lease renewal, especially if you don’t want to move, but have to create competition to play one landlord against another in order to get what you need. A tenant broker shines when it comes to this type of work.

Winning is the Game: Both you and the landlord are in this to win. Negotiating aggressively is vital as you want to get as many landlord inducements as possible -free rent, tenant allowance, waived deposit, low rates, etc. Always ask for more than you want, enough to go a few rounds of negotiation. That might be asking for 10 months of free rent when you really want seven, or $25,000 more on the tenant allowance than you really want.

Talk to Others: Don’t be afraid to ask other tenants questions. Introduce yourself and explain why you are asking about the landlord, the property management, how much they pay for rent, and how the negotiations went for them.

Be Quiet: Landlords don’t mind taking a piece of your proverbial pie, if you share it. To make sure they don’t try to do that in the form of higher rent, be quiet about your successes. Landlords know how disruptive a move can be and feel they have you stuck in a place where you have to accept an increase at renewal time. If they don’t know, the point goes to you.

Don’t Take the First Offer: Negotiation means you go back and forth, and it is expected. No landlord expects you to take the first offer and if you do, it is certain you have left money on the table that could be in your pocket instead. Also, remember to ask for the same inducements that would be offered a new tenant, except you have a proven track record, and better influence.

Find a Commercial Real Estate Broker

Having a commercial real estate broker at your side is your ace in the hole. He or she will have your best interests at heart, have a thorough understanding of the market you are looking in, have intimate knowledge of how landlords think, and know exactly how to get what you need during negotiations. It may take nerves of steel and you will have to place your trust in them, but you will come away from the negotiation table satisfied with the lease.

At Caton Commercial Real Estate, we have brokers on both sides of the aisle, so to speak. No matter which side you find yourself on, we have an experienced broker to help you.  Give us a call  today and see what we have to offer.

Velkme Receives NAR National Commercial Award

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We are excited to announce that Andy Velkme, Caton Commercial Real Estate Group’s Senior Vice President, has received the NAR National Commercial Award for 2018. This exclusive award, presented by the National Association of Realtors, was given to 79 realtors nationwide this year, and Velkme is one of only 522 to have received the award over the last 13 years.

This award recognizes the recipient’s outstanding achievement in commercial real estate. Only those who have already received an award or honor locally are qualified to be nominated for the national award.

Earlier this year, Velkme was honored with Northern Illinois Commercial Association of Realtors’ NICAR Realtor of the Year 2018 for demonstrating excellence in the industry. He is also the Chairman of the NICAR Global Business Network and the 2019 Treasurer of NICAR’s Executive Board.

A commercial real estate broker, advisor, and industry speaker, Velkme has been focusing on innovative real estate concepts including co-living, co-working, adaptive reuse, creative mixed use, and incubation spaces. Partnering with developers, PropTech firms, investors and owner/operators, he looks worldwide for concepts and ideas that are changing the way space is used on a day-to-day basis.

Currently, Velkme is focused on building his client base of international firms and investors, especially those planning to expand into the US marketplace.

Cousins Subs First Chicago Location Opens in the Loop

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Caton Commercial brokers, Brian Blackmore and Nick O’Donnell, represented Cousins Subs  franchisees Dr. Amit and Kalpesh Patel of OM Group in the lease of their first Chicago location. The 2,600 SF location at 120 W. Madison Street in the Loop is now open for business. Cousins Subs has plans to continue its expansion with 40 locations in Chicago and the suburbs over the next several years.

Cousins Subs is a Wisconsin-based chain that serves quality made to order grilled and deli-fresh subs on freshly baked bread to “Dairy Land” classics including cheese curds.. YUM!   Congratulations to all involved on the first of many store openings!

Shoot Point Blank coming to Shorewood

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Shoot Point Blank Shorewood is coming soon! Bill Caton, Owner and Managing Broker, of Caton Commercial Real Estate Group sold 4.17 acres at 19747 NE Frontage Rd in Shorewood to HGR Development LLC. The developer plans to open Shoot Point Blank  a retail store and shooting range that started in Cincinnati, Ohio   but now has multiple locations in different states. This will be the fourth Illinois location adding to their current locations in Naperville, Mokena, and Hodgkins.

Shoot Point Blank offers:

  • Indoor ranges designed for safety and comfort
  • The best stock of popular firearms and ammo always available
  • Climate controlled shooting lanes with triple HEPA filter ventilation
  • Range Safety Officers on staff in our ranges always
  • Free test fire on top name handguns and long guns
  • NRA-Certified instructors offering classes for all experience levels

$1.14B Investment in Co-Living Facilities with U.S. Expansion Plans

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German property firms, Medici Living and Corestate Capital Holding SA, plan to invest $1.14 billion to develop their co-living facilities across Europe and the United States.

Young professionals that were priced out of major city housing markets are driving the demand for the co-living concept where tiny apartments are grouped around shared facilities such as dining areas, lounges, work spaces, laundry rooms and gyms.

Caton Commercial brokers, Bill Caton, CIPS, Steve Caton, CCIM, and Andy Velkme, CIPS will partner with Medici for site selections as they target U.S. cities for expansion. Medici Living currently operates two sites in New York and one in Chicago under their QUARTERS brand name.

Click here for full article.

Codeverse an Immersive Coding Studio for Kids comes to Downtown Naperville

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Caton Commercial Real Estate Brokers, Christina Caton Kitchel and Nick O’Donnell, leased 3,596 SF at 55 S. Main St. in Downtown Naperville to Codeverse. This exciting new tenant is the world’s first fully interactive coding studio for kids aged 6-13. Classes will be offered after-school, evenings, and weekends as well as week long camps.

Classes include:

  • Robot Programming
  • Hackable Classroom – program everything in the studio
  • 3D Printer & Maker Lab
  • Mobile Game Coding
  • And more!

From Farming to Commercial Real Estate Broker: Finding His Passion

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Bill Caton grew up in Pennsylvania, a coal miner’s son. When the coal mining recession hit, it changed his life, but not the way he might have expected. The first change came when he was 11 and he left home to live with a dairy farmer and his family, working as a hired hand.

“It changed my life,” Caton said. “They were very well connected in the community, deacons of the church, on the board of banks, and his wife’s brother was the state’s attorney. I found a whole other way of life and went to a different high school than my other four siblings did. That set me on a different path for life.”

A Career in Education

Caton’s degrees and experience started out in Education. “I spent two years in Pennsylvania teaching in Jr. High. It gave me an appreciation for children moving into adolescence and I discovered that was difficult for me to relate to.”

Then, he moved to Illinois where he began teaching high school biology. He eventually became the science department chairman at Bolingbrook High School, and retired after 34 years there.

A life-long learner, Caton was a quick study when he set his sights on a second career in real estate.

Moving into Real Estate

Caton’s life on the farm taught him to embrace a work ethic of keeping busy, no matter the day or time–dairy farmers work 24/7, 365 days a year. This, more than anything else propelled him into a second career, while he was still in the midst of his first.

“While I enjoyed a teaching career, being done at 3:30 was like working a half day. I had excess energy and that’s why I decided to do something additional,” he said.

“Something” started out as purchasing an insurance company with a business partner.  It was the early 80’s and Caton planned to take over the insurance side of the company and his partner was going to head up the real estate end.

“Somewhere along our eight-year tenure, we flip flopped,” Caton said. “I thought real estate was more fun, more tangible, and an easier product to sell.”

Starting a New Company

In 1988, Caton decided to open his own real estate company in Plainfield, a town just starting to develop.

“I was the second one to come in. The other {company} had been there for many years and was a good old boy network,” he recalled. “We did things completely differently and achieved success in that marketplace. We grew until our office was destroyed in 1990 by the tornado, so we had to start all over again in Plainfield. That started the community developing rapidly also.”

Starting the Transition to Commercial Broker

Caton quickly found he was dealing with a lot of commercial brokers from outside the area. At that time, commercial real estate brokers and residential brokers didn’t mix well, but Caton, as a broker/owner who knew everyone in Plainfield, was able to overcome that obstacle and find common ground.

A few years later he started selling farmland. Local farmers didn’t trust the outsiders and asked Caton, “Would you help me?’”

Growing Pains

Taking a year sabbatical from teaching, Caton focused on real estate and opened his second office in Morris, Illinois. He then completed his teaching, so he could retire and focus full time on real estate.

Caton began opening new offices in 2002. Soon after, his son and daughter joined him and between 2004-07, they opened eight new offices, six handling residential and two in commercial.

“We had 30 commercial agents and 170 residential agents. It was a crazy point in my life,” he said. “Then the great depression hit. People called it the great recession, but if you were in it, it was a depression. I was fairly stubborn. In 2007 I said, I got through the 80’s when interest rates were 18 and19 percent. I’ve got a war chest, I can make this two years. But it wasn’t two years. It was five. I’ve never claimed to be the smartest person around, but I am certainly the most determined.”

Caton said, “In 2010 I sold off my residential company, reincorporated with my two children as partners, and have been growing steadily ever since.” Growth jumped again when they moved from Will County into DuPage County, affording them new opportunities.

Wise Advice

As he looks back, Caton offers some advice. “The support of your family and the people around you keep you centered. Pay more attention to your physical, mental, spiritual and family life and balance that with your business goals.”

“Engaging the Future” at MIPIM 2019

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MIPIM, an annual conference held in Cannes, France, is holding its 30th Edition next March 12-15, with a goal of “Engaging the Future.” They recognize that economics in real estate is changing and they are committed to a conversation with industry players about how to manage risk as new revenue streams open up.

Driving the change, MIPIM.com says, is: “Evolving new technology and human behavior, which is transforming the nature of real estate as an investment, and as a product or service we use as consumers; people centricity as a key factor for growing a successful business; government regulation pushing sustainability up the real estate agenda as energy prices rise and the impact of climate change becomes real; and the need for investors and owners to improve asset performance and manage the broader range of risks emerging.”

Who Attends?

Those who attend MIPIM come from a wide array of backgrounds, businesses, municipalities, and countries. In 2018, MIPIM brought together “The world’s foremost sovereign wealth funds, pension funds, insurance funds and other leading institutional investors in the real estate industry.”

On the public representatives or politicians, side, investors, developers, and political leaders met with cities and local authorities to talk about urban development investment opportunities, project development, market expertise, and innovative ideas for urban development.

A sampling of those attending last year showed: Former Prime Minister, Israel; The Secretary of State, Brussels; Minister for Housing and Urban Development, Egypt; Secretary for Tourism, Brazil; General Consuls from Germany, Italy, Russia, and Turkey; Mayors from cities all across Europe; and Ambassadors from Czech Republic, Ukraine, and Luxembourg.

In all, 26,000 participants, including 5,400 investors, came together in 2018 to talk about urban development. With 100 countries and 500 cities across the globe represented, the potential impact on a world-wide level is unparalleled.

The Next 30 Years

In 2019, MIPIM says attendees will have “A unique opportunity to envision the next 30 years under the lens of ‘durability’: an enabler for economic growth, sustainable performance, and community cohesion.”

They aim to take a close look at ways to choose the best strategies for long-term benefit, to ensure quality of life, and to optimize use of existing resources. It will continue to focus on global and societal topics impacting the real estate industry.

On the Local Level

When talking to Bill Caton, Owner and Managing Broker of Caton Commercial Real Estate Group, about developing international business and his attendance at MIPIM the last few years, his excitement is contagious. While he thought he knew what to expect, his first experience surprised him, and he said he felt like the “deer in the headlights.”

Caton doesn’t stand still for long, though, and while checking out every event and session possible, made sure the second year he was well prepared to fully participate and leverage what he learned.

From a lifetime of experience, he knew that finding those with similar interests, getting to sessions early, and careful, consistent networking would help him. In this way, he was able to find and develop valuable relationships with investors and others, bringing home clients year-after-year who have not only become some of his best clients but also consistent, repeat clients.

These relationships might have been founded in France, but they were nurtured, grew and evolved, here in the U.S. with careful, thoughtful follow-up from Caton.

To learn more about how the Caton Commercial Real Estate Group can help you, contact us today.

How Does One Develop International Business?

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Developing international business might seem daunting, but it’s not as difficult as it seems. Instead, think of it as developing and nurturing relationships with people you actually like. Not only does that take the intimidation quotient out of it, it takes the “work” out of it, too.

Bill Caton, owner and managing broker of Caton Commercial Real Estate Group, has traveled internationally for this specific purpose.

His first trip was to MIPIM in Cannes, France, the largest commercial investment conference in Europe. “By going there, I was able to see a whole different perspective of the world,” he said. “Previous to that, I had attended ICSC (Illinois Council of Shopping Centers) in Las Vegas, so I had a concept of what this conference might be like. However, I was very surprised when I got there, that there was a huge difference between them.”

“At MIPIM it’s more about developing relationships,” explained Gary Clayton, CEO of Illinois Association of Realtors. “There is no instantaneous gratification as far as products, sales and investments. It’s a relationship that evolves, and they have evolved. Our members have, and continue to have, relationships and investment opportunities with the participants of MIPIM. Those participants are countries, cities -it’s a massive endeavor—there are 20,000+ people at just one pavilion.”

The second year Caton attended MIPIM, he found that if he attended an event about which he was passionate, or interested, the people attending that event would have the same passion or interest. As a result, he has developed valuable relationships, turning them into some of his best clients. One of those people came from Germany after Caton’s second year attending, and remains a client today. In fact, this year he brought back five possibilities for investors, all looking to bring money back into the United States.

While at the conference, Caton said, “I always got there early, got a spot up front so I could interact with the speakers or, if I wanted to talk to a speaker, at least I could get there. And, I was able to interact with people in the group …This formula can work at any convention or place you go to. Be prepared, set your schedule and, of course, follow up.”

For additional information on developing international business,  watch this video  from the Commercial Global Business Network (CGBN).

Commercial Property Brokerage Services

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Commercial Property Brokerage Services

How many times this month have you been asked to help or step into a particular role you have some slight knowledge of, but are not well-suited for? If it’s becoming a copier repairman to help clear the paper jam, that’s not a big risk, other than breaking apart you shouldn’t have tried to open. Think bigger …sounds like you’re talking to an admin or support staff …something like “You/Your company is successful, and you’re ready to take on new challenges/move into bigger space …but how do you do both …not focusing on your business leaves you vulnerable to lost opp’s …etc …” see?

Stepping into a role that has you negotiating deals for leased property, or to buy or sell a building complete with reading through all the legalese, has more potential for costing the company a lot of money due to Taking your eyes off your business. (We DON’T read legalese, that’s a license law thing. We negotiate deals or opportunities, Leases, etc …but we can’t function as lawyers.

Wouldn’t it be smarter–even more cost-effective–to hire a commercial property broker to represent your company? The short answer is yes, and here’s why:

Landlord Representation

When acting as a broker on the landlord’s behalf, your broker will have solid up-to-the-minute knowledge of property market conditions. Those would include other available space, current and future, building conditions, rent levels, and where they are predicted to go, and concession packages with a variety of different options.

They can help landlords avoid negotiations that could result in new and/or lower rent levels for his buildings. It’s certainly in the landlord’s best interest to maximize rental rates and market value.

Tenant Representation

Hiring a broker to represent you and your company as a tenant representative is a big deal. Some might call them miracle workers. Not only will they save you the stress of finding the right property all on your own, but they will also make sure the space is right for you and negotiate the lease for you as well.

They also have specialized knowledge that can help them avoid language in a lease document that could have big impacts on operations and expenses down the road.

1031 Exchange

Commercial property brokers are also equipped to help with 1031 Exchanges, also called a Starker Exchange or a Like-Kind Exchange, a powerful tax-deferment strategy. It lets investors defer paying capital gains taxes so long as a similar (or like-kind) property is bought with the profit from the sale of the first property.

Brokers not only know how to find the best match for an investor, but they also have a solid understanding of the four most common like-kind exchange types, including the simultaneous, delayed, reverse, and construction/ improvement exchanges.

Hiring a Broker

Hiring a broker not only allows you to generate leverage, but it will also save you time (and, thus, money) and provides you with objective insight so you can weigh costs and benefits, ultimately letting you make the best possible choice for your business.

At Caton Commercial Real Estate, we have several of the industry’s top commercial brokers on staff.  Give us a call  and let’s talk about how we can help you.

Leasing vs. Purchasing Commercial Real Estate

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Should I buy or lease? This is a question often asked by small business owners. Of course, it’s quickly followed by questions regarding cost, benefits and timeline.

FitSmallBusiness.com, a small business resource center, conducted an analysis on buying vs. leasing. It found buying commercial real estate is a better option if you plan to stay in the same location for seven or more years. If you plan to stay in a single location for less than seven years, then leasing might be a better option.

“This is because we found that over a 15-year occupancy period, leasing commercial real estate costs as much as 86.6% more in our example than buying commercial real estate,” said FitSmallBusiness.com. “However, when the expected occupancy period drops from 15 years to seven years, the cost of leasing is actually less than buying commercial real estate. This makes seven years the ‘break-even’ point for buying vs. leasing.”

The analysis took into account up-front costs, monthly recurring costs, opportunity costs, tax savings, asset price appreciation, increases in business equity, and money earned in the sale of property.

Pros of Buying

Building Equity: Whether you buy it for cash or take out a loan, you will have and/or build equity. Equity in the property helps to build up the value of your business. In addition, SBA 504 Small Business Loans might be available to you.

Appreciation: Ownership of property lets you benefit from capital appreciation. The rate of appreciation varies based on a number of different factors.

Rental Income: If you don’t utilize the whole building, renting part of it out -and adding some monthly income -might be something worth considering.

Tax Breaks: Owning property can give you tax deductions from mortgage interest, property taxes and other items.

Control: Having control means you don’t have to renegotiate a lease with a landlord every five to 10 years. It also means you will enjoy a fixed rate mortgage payments rather than possible increases upon renewal of a lease.

Retirement Savings: Real estate appreciates over time and can help fund your retirement when you are ready to sell.

Pros of Leasing

Prime location: When the location you want is not for sale, leasing space could give you the chance to be in that location, or in a similar, high-visibility location. In this scenario, leasing can be more cost-effective than buying.

Free up capital: You will have more available cash to take advantage of marketplace opportunities and will have greater ability to borrow funds if needed.

More time: Ownership can be a huge headache at times. Leasing allows more time for you to focus on running your business.

Easier to budget: Leasing means that significant maintenance, many repairs and upkeep to the property are the landlord’s problem, not yours. This can save you huge unforeseen costs and you will be able to budget exactly what you need to pay each month.

Greater tax breaks: As with buying, you will enjoy tax breaks. Those with leasing may be greater as you can deduct not only property taxes and insurance, but the entire lease payment plus utilities and maintenance.

Get Help From a Professional

Sorting through the options for buying vs. leasing can be time-consuming, as can negotiations. Enlisting the help of a professional such as Caton Commercial Real Estate Group can save you valuable time and assure you that you’ll have a professional at your side during negotiations, answering your questions, and making certain you get the best deal possible.

Contact us to find out how we can help you find the best location for your business to grow and flourish.

Commercial Property Leasing: What You Should Know

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What You Should Know About Commercial Property Leasing

So you’re ready to put your business into a commercial space. The process may seem daunting.

It’s long and impatience can lead to costly mistakes.

A commercial real estate lease, or business rental agreement, lets a business rent commercial space. There are several types of commercial leases, including gross/full service, modified gross, net, and triple net (NNN), to name a few. The process leading up to making a commitment includes identifying the property that will serve your company best, and negotiating with the landlord in order to get the best deal possible, and one your company can afford.

There are many pitfalls which a broker providing tenant representation can help you avoid. There are a few rules of thumb.

  • Put Together a Business Plan: Landlords want to know you have a plan and financial resources before they will sign a lease. Also, know your budget.
  • Allow Enough Time: Give yourself several months before you plan to open. This will allow time to find your perfect location, and allow for any build-out that needs to happen.
  • Do Your Research: Decide the type of location you’re looking for, what you need to succeed. Is it foot traffic? High visibility? Near a major road? Know what you’re looking for before you start.
  • Talk to other business operators: You can learn a lot by talking to business operators about the things they wish they’d have known before opening in a particular location. What do they wish they’d done differently, or what really worked well?
  • Be Ready to Negotiate: Many aspects of a commercial lease can be negotiated, and not just the monthly rent. You might want changes made to a space, or a landlord’s approval for additional signage. Lease negotiation can be frustrating or rewarding, but it’s an absolute must to get what you need.
  • Hire an Attorney Before Signing a Lease: Leases are complex legal documents and you need to understand them before you sign. An attorney can alert you to important details that are in your best interest to be added or deleted.
  • Don’t: Lease more space than you need. This is a common mistake made by first-time tenants and even if you can afford it, the extra cost will needlessly cut into your bottom line.

The Golden Rule of Commercial Real Estate Leasing: Don’t go into it on your own. Find a good tenant broker with a solid commercial real estate background to help you. These brokers work only for you, not the landlord, and are market experts.

Tenant brokers will not only help you hit the “Do’s,” they’ll help you avoid the “Don’ts.” They are trained to help get you the most favorable lease terms and will often make suggestions you haven’t thought of.

According to Under30CEO.com, “Having a tenant broker can typically save the tenant up to 25 percent of the total value of the lease.”

We Should Work Together

Caton Commercial Real Estate includes tenant representation amongst its services, giving businesses and developers an advantage over their competition by identifying commercial locations that meet a diverse range of criteria. Innovative marketplace software tracks demographic information, traffic patterns, and surplus/leakage data from consumer sources.

This, combined with our wealth of knowledge in the local marketplace, provides a double-edged approach to tenants that continues to yield success for our clients by positioning their businesses near their consumer base.

Contact us today and let’s talk about how we can help you.

Industrial Service Facilities Are Great Option For Your Portfolio

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As e-commerce continues to grow, Industrial Service Facilities (ISFs) are being actively sought. ISFs meet the growing needs of companies in the transportation industry due to the need for large spaces, companies needing to house bulk goods or materials and e-commerce companies such as Amazon.

Below is an article from rejournals.com that discusses the advantages ISFs have and how they are being used in the Chicagoland area. After reading the article, give us a call at Caton Commercial so we can review your industrial real estate needs and assist you in finding the best fit for your business.

Source: rejournals.com | Re-Post Caton Commercial 7/26/2018 –

What if there was an industrial property type with a lower vacancy than the overall asset class, catering to mature and stable tenants, that was projected to increase in value? There is and it further benefits from -but does not rely solely on -e-commerce-driven growth.

Industrial service facilities (ISFs) are mission-critical properties used to store, maintain or dispatch heavy equipment or bulk materials. They are primarily occupied by companies engaged in the transportation industry, everything from school bus companies to national trucking firms.

ISFs can serve as container yards, trailer drop yards or event to collect surplus trailer chasses. Any firm with a large fleet, such as utilities or companies with field technicians, may also use these sites. They can also house bulk materials, such as roofing supplies, stone or construction materials.

Essentially, these are low-FAR, single tenant industrial sites. They occasionally have limited utility infrastructure in place, making them expensive to convert to a higher use. But with the impact that transportation and logistics are having on the real estate sector, these sites are beginning to have an outsized role.

Read the full article…

European Co-Living Concept, Quarters, Opens In Chicago

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We are pleased to announce that the Medici Co-Living Group has just opened their new QUARTERS location at 171 Aberdeen in Chicago’s Fulton neighborhood. Several Caton Commercial brokers and our business partners attended the grand opening along with the QUARTERS team and many members residing at the property. These co-living apartments offer shorter term leases for as little as three months, a common kitchen, outdoor grills, skyline bar seating and recreation lounges. These accommodations and amenities are particularly appealing to young professionals, entrepreneurs and millennials and provide all-inclusive housing and built-in networking opportunities.

Following the success of QUARTERS in Europe and New York City, Chicago was a prime market to bring the upscale co-living concept. Our partnership with the Medici Co-Living Group is leading to expansion opportunities in several other CBDs. Take a moment to look over this article from rejournals.com, then give us a call if you have any questions about co-living apartments or to let us know how we can assist with your other commercial real estate needs.

Source: rejournals.com | Re-Post Caton Commercial 7/10/2018 –

QUARTERS, a new community way of living, recently celebrated its grand opening in Chicago’s Fulton Market district. Medici Living Group helped to pioneer the new living experience in Germany; Naperville-based Caton Commercial Real Estate Group, representing Medici Living Group, helped bring this concept to Chicago.

The QUARTERS co-living concept is aimed at young professionals, entrepreneurs and millennials and provides all-inclusive housing and built-in networking opportunities. It is a lifestyle built on a community that includes access to a network of like-minded people and modern technology all in the comfort of your own home.

“This new trend in living is not about a single room but about the whole experience,” said Gunther Schmidt, QUARTERS founder and CEO. “We not only offer an easy housing solution but also a community that shares similar ideas and passions. The networking opportunities are endless and QUARTERS has weekly events to help build your social network.”

Read the full article…

Hotels Help Bring New Life To Retail Centers

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One of the trends we are starting to see is the partnering of the retail and hotel sectors. This makes a lot of sense as folks traveling get to enjoy easy access to shopping, restaurants and entertainment. Lodging continues to do well, so this is a smart fit for both.

Below is an article from National Real Estate Investor that talks about the relationship between retail and the hotel owner/operators and the benefits to both. Please enjoy the article and let us know how we can help with any of your commercial real estate needs.

Source: nreionline.com | Re-Post Caton Commercial 6/28/2018 –

Hotels appear to be a particularly good fit for retail centers, which tend to have ample parking, prime locations and shopping, restaurants and entertainment options readily available for travelers.

Owners and operators of hotels and retail centers are increasingly partnering up in an effort to help drive traffic to retail properties and create more pedestrian-friendly developments.

It’s a trend that has arisen amid continuing headwinds facing retail real estate, a sector that has long seen challenges from the growth of e-commerce and changing consumer behaviors.

To curtail the effects of these challenges -which have led to mass store closures, particularly amid big-box chains and department stores -some retail property owners are looking to hotels, as well as multifamily uses, to help fill vacant space. This comes as a wide variety of non-traditional retail uses, including fitness centers, medical offices and entertainment venues -are being brought in to also help boost foot traffic and, ultimately, sales.

Read the full article…

Why Retail Property Investors Are Still Looking To Acquire Assets

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The retail market continues to see store closures and big-box vacancies. However, in spite of that change, commercial real estate investors are seeing opportunities to embrace a new type of space to acquire. They are looking to meet the needs of people that purchase goods and services they cannot get online, such as ice cream, gasoline or dry cleaning.

Below is an article from dailyherald.com that provides details on how retail investors are seeing a trend in experiential or some variation of mixed-use spaces that are being actively sought and acquired. After reading the article, give us a call at Caton Commercial so we can discuss the best strategy for finding the best property to meet your commercial real estate needs.

Source: dailyherald.com | Re-Post Caton Commercial 6/14/2018 –

Retail investors are still in a buying mode, as they continue to focus on finding assets that can meet the changing needs of today’s consumers and produce desirable returns, according to Real Capital Markets’ May 2018 Retail Investor Sentiment Report.

While big box vacancies and high-profile retail store closures continue to adversely affect parts of the industry, investors surveyed noted optimism in other retail segments. Retail owners who embrace new models — whether they are experiential or contain some variation of mixed-use — are considered to be in the best position to succeed in today’s retail environment.

“Retail may be the most diverse and bifurcated of all commercial real estate asset classes,” said Steve Shanahan, executive managing director at Real Capital Markets. “Certain subsets of retail perform well, are in great demand and push the market in terms of price and value. Others have issues and are part of what is leading investors to consider other options, such as exploring other asset types.”

In May 2018, RCM surveyed its U.S. database of retail investors to gauge their sentiment on various investment-related topics. Highlights of the 2018 RCM Retail Investor Sentiment Report include:

Read the full article…

CBS 2 News Features QUARTERS Co-Living Location in Chicago’s Fulton Neighborhood

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CBS 2 News Chicago has featured the new QUARTERS co-living building in Chicago’s Fulton Market. Caton Commercial brokers Steve Caton, CCIM, Bill Caton, and Andy Velkme have partnered with The Medici Group to bring QUARTERS to the Midwestern United States. The co-living concept is gaining ground among millennials and others who wish to be in the heart of a CBD with plenty of nearby amenities, without shouldering the city’s rising rents.

To watch the full video, click here.

Brick-And-Mortar Retail Outlook Remains Positive

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With the increase in consumer’s desire for e-commerce and the decline of some legacy retailer, many have predicted a retail apocalypse stating that brick-and-mortar stores will eventually be phased out. But the reality is that while people enjoy shopping online, the general belief is that people still have a strong preference to go out and shop in-store.

Below is an article from bisnow.com that provides statistics on how online and brick-and-mortar shopping compare and predictions for the future. After reading the article, give us a call at Caton Commercial to discuss your commercial real estate needs. Thank you to everyone we met at the ICSC conference in Vegas. It was a pleasure speaking with you and look forward to partnering with you.

Source: bisnow.com | Re-Post Caton Commercial 5/30/2018 –

The doomsday scenarios about the retail industry’s demise that have made headlines are grossly overblown, experts say, and many expect retailers to continue to acclimate to the growing presence of e-commerce by shifting how they draw in consumers. Speakers at the International Council of Shopping Centers’ RECon conference underway this week delivered reports and their assessment of the state of the industry.

“People still spend money,” JLL President of Retail Advisory Services Naveen Jaggi said at a breakfast panel with media Monday. “Consumer spending is still up. It is incumbent on the owner and retailer to shift and bring consumers in.”

“We’re going to see the pendulum swing back,” CBRE Americas Head of Research Spencer Levy told a crowd of hundreds at a luncheon where the company unveiled the company’s top three predictions of the future of the retail segment. “The end of [brick-and-mortar] retail story is the most oversold story I have ever seen in my career. People are going to realize that bricks-and-mortar retail isn’t dead,” Levy said.

Read the full article…

New Concept Stores Are Taking Vacant Retail Spaces

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Although online shopping continues to grow, a variety of retailers are seeking out shopping center space formerly occupied by departing brands. That includes both new concepts and variations of tried-and-true stores. The trend is that even as some brands collapse, other retailers are jumping to fill the void because consumers still want to shop

Below is an article from bisnow.com that describes what is taking place in the shopping center real estate market and what is predicted in the near future to continue. Please enjoy the article and give us a call if we can help with any of your real estate needs.

We will be attending the RECon The Global Retail Real Estate Convention May 20-23. We hope to see you there as well.

Source: bisnow.com | Re-Post Caton Commercial 5/17/2018

Retail is an industry of churn. Old retailers go, new ones take their place.

That is what is happening now more than a “retail apocalypse,” the International Council of Shopping Centers reports, with a broad array of retailers seeking out space in shopping centers formerly occupied by departing brands. That includes both new concepts and variations of tried-and-true stores.

For example, this year the TJX Cos. will open 15 HomeSense stores, which sell furniture, lighting and art, following a successful U.S. test of that Canadian concept. The company also opened 25 of its existing Ross Dress for Less brand stores and a half-dozen DD’s Discounts stores in early 2018.

Retail giant Target is planning 35 more stores this year, mostly small prototypes, such as a 24,700 SF store in Washington, D.C. It plans to open as many as 130 such small stores by the end of 2019.

Whole Foods will open 16 more 365-branded stores this year, according to Amazon. This concept’s 30K SF space makes it a better fit for shopping centers than the Whole Foods’ standard size of 43K SF, the company says.

Read the full article…

Medici Co-Living Group Reveals QUARTERS in Chicago

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A sneak peek of the terrace view of Chicago’s skyline from the new Quarters building at Fulton Market District f
Caton Commercial brokers attended a pre-opening event for Berlin-based Medici Co-Living Group  in preparation for the grand opening of their first Midwest-based co-living concept called QUARTERS  in late May 2018. The newest building is located at 171 Aberdeen in Chicago’s Fulton Market district. Caton Commercial‘s Steve Caton, Bill Caton, and Andy Velkme worked to secure the first Midwest location for Quarters and more locations across the nation. Quarters’ co-living concept, a new approach to targeted to young professionals, offers a move-in ready apartment space for 1-5 people overlooking the Chicago skyline.

From L to R: Caton Commercial’s Bill Caton, Christina Caton Kitchel, and Steve Caton, CCIM attended the pre-opening event of Berlin-based Medici Co-Living Group’s first Midwest co-living building.

On Thursday, April 26th, Caton Commercial’s Steve Caton, Bill Caton, Christina Caton Kitchel, and Andy Velkme  attended the special pre-opening event for Quarters, where Medici’s CEO Gunther Schmidt spoke on plans for the new location.

Medici Co-Living Group’s CEO Gunther Schmidt speaking on the pre-opening event last Thursday, April 26th, on the new opening of their first Chicago co-living building.

Click the video link below for your own tour of Quarters Co-Living location in Chicago’s Fulton neighborhood.