Caton Commercial

Chicago real estate

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.

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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.

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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.

Chicago Industrial Market Grows According To 2018 Report

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The growth trend in industrial real estate that was happening in 2017 in certain Chicago submarkets continues to be strong in 2018. The submarkets like O’Hare and Central DuPage continue to set record low vacancy rates while other submarkets along the I-80 and I-55 corridors remain extremely attractive as well.

Below is an article from rejournals.com that chronicles the industrial real estate climate and the rapid rise in demand for industrial space since 2013 in the Chicago metro area. After reading the article, give us a call at Caton Commercial so we can partner with you to find the industrial space that best meets your needs now and in the future.

Source: rejournals.com | Re-Post Caton Commercial 5/3/2018

Key submarkets in the Chicago industrial market continue to surge ahead. According to a research report, the Chicago metro area as a whole had new leases and lease expansions of 6.9 million square of during the first quarter of 2018. The 4.5 million square feet of total net absorption is the strongest first quarter tally since 2016.

However, some submarkets continue to remain more attractive than others. The I-80 and I-55 Corridors saw net absorptions of 1.79 and 1.22 million square feet, respectively. The next largest submarket by net absorption was I-290 South, with 642,049 square feet. Meanwhile, I-290 North shed 380,007 square feet and McHenry also had negative absorption with -303,007 square feet; there is currently 1.34 million square feet under construction in the former.

What had been three straight quarters of vacancy rate rises following the completion of numerous vacant spec projects has slowed. The rate is close to matching the low of 6.59 percent recorded a year ago during Q1 2017. The usual suspect infill submarkets like O’Hare and Central DuPage continue to set record low vacancy rates while submarkets that have seen significant spec development, including the I-55 Corridor and I-80 Joliet Corridor, are witnessing rising vacancy rates.

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Why Chicago Made The Final Cut For Amazon HQ2

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After receiving 238 proposals, Amazon has narrowed its search for HQ2 locations to a list of 20. This is exciting news as Chicago has made the list. Since most of the locations are in the east half of the United States and with 3 distribution centers in the Chicagoland area, there is optimism that they will be the location of choice.

Below is an article from bisnow.com that details why Chicago would be a great option for Amazon and some of the locations locally that were part of the proposal. After reading the article, give us a call at Caton Commercial so we can assist you in locating commercial real estate that best meets your needs.

Source: bisnow.com | Re-Post Caton Commercial 1/25/2017 –

Amazon sent commercial real estate into a frenzy Thursday when the e-commerce giant announced the 20 finalists for its second North American headquarters.

Chicago made the cut in a list heavy on East Coast cities and the reasons why are as clear as the skies on this sunny day in the Windy City. The proposal put together by Mayor Rahm Emanuel and Gov. Bruce Rauner included 10 sites, many of them with large tracts of contiguous land for Amazon to develop.

Those include Sterling Bay’s 70-acre Lincoln Yards, Related Midwest’s 62-acre South Loop site, “the 78,” which will already be home to a tech incubator run by the University of Illinois system, Farpoint Development’s redevelopment of the Michael Reese Hospital Site, and even dark horse sites like the Illinois Medical District, McDonald’s soon-to-be-vacant Oak Brook Campus and the Motorola Solutions campus in Schaumburg.

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How Real Estate Trends Will Impact The United States In 2018

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In 2018, Commercial Real Estate (CRE) stands to be impacted by several emerging trends. Some of these factors include increased regulatory costs, others relate to technological advances and space-sharing in commercial business and co-living models. Additionally, disruptions to traditional CRE management styles will arise from collaboration and information sharing, coupled with new modes of transportation, especially in urban areas.

Take a moment to read the article below from thebrokerlist.com detailing predicted trends for the coming year and how they will impact business practices of Commercial Real Estate Brokers. Then, give us a call at Caton Commercial so that we can partner with you to take advantage of the positive changes and navigate any challenges brought about by changes in the industry.

Source: thebrokerlist.com | Re-Post Caton Commercial 1/11/2018

Rapid technological advancements and significant demographic shifts significantly influence the real estate industry. These various factors like growing urbanization, longevity of Baby Boomers and differentiated lifestyle patterns of Millennials are changing the way people value real estate. Add into the mix macroeconomic and regulatory developments, and you have the perfect storm for some significant changes to come to the real estate market in 2018.

With the many changes that have already taken place in 2017, many real estate companies find themselves searching for ways in which they can gain a competitive advantage and drive top- and bottom-line growth in the New Year.

To achieve this, we must identify and monitor emerging trends that are likely to impact the economy moving into 2018. Take a look at the top trends that are shaping the U.S. real estate industry right now!

ECONOMIC OUTLOOK: Increasing Interest Rates Could Temper Growth

Federal Reserve is likely to raise interest rates in the short-to-medium term. Volatile global markets have led to continued low-interest rates, but that’s expected to come to an end in 2018. Higher interest rates are likely to increase mortgage costs and could deter real estate investments to some extent.

Gross domestic product growth will likely increase 2.5 percent in 2018. It’s the same as in 2017, but better than the 2.1% growth in 2016. The modest economic improvement could temper the pace of commercial real estate (CRE) transaction activity.

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New Construction Will Impact Another Round Of Chicago Office Moves

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During the first half of 2017 Chicago has seen an increase of almost 7000 employees in the downtown area. Most of this is due to an influx of companies from suburban Chicago and the expansion of the tech sector. Additionally, as the amount of available space decreases the rent is trending upwards.

Below is an article from rejournals.com that describes the current office space climate in Chicago. New construction as well as re-evaluation of space usage is having an impact on the decisions companies are making concerning their office space. After reading the article, give us a call at Caton Commercial to schedule a time to meet with you and create the best strategy for office space for your company.

Source: rejournals.com | Re-Post Caton 8/17/2017

In the last six months, office-using employment in Chicago has increased with more than 6,800 jobs and along with that the leasing activity has grown 35 percent to 2.7 million square feet in the second quarter, according to an office report from Savills-Studley released in August.

Office leasing activity also jumped up in the second quarter to 2.7 million square feet, which exceeds the long-term market average of 2.3 million square feet. Class A availability closed mid-year at 16.2 percent and has exceeded 15 percent every quarter since the first quarter of 2016.

Rents have pushed higher as well, in part due to the high percentage of new product and because landlords remain confident. Their confidence is bolstered by the influx of companies from suburban Chicago and the expansion of the tech sector. Employers in the area, such as Allstate, who said it will bring 400 tech jobs to its innovation center at the Mart.

The new construction also allows companies to reevaluate how they use space and truly optimize their office for efficiency. Some have been able to reduce their occupancy by as much as 20 percent, according to the Savills-Studley report.

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Amazon Opening Third Chicago-Area Warehouse In Romeoville

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As consumers desire short delivery times for their goods, the need for suppliers to open additional fulfillment centers increases. Warehouse space needs to be strategically located to meet these needs.

Below is an article below from chicagotribune.com that includes the details of the 3rd Amazon fulfillment center in the Chicagoland area. After you read the article, contact us at Caton Commercial so we can develop a plan to meet your Commercial Real Estate needs.

Source: outlook.office.com | Re-Post Caton Commercial 8/3/2017 –

E-commerce giant Amazon is opening a third Chicago-area fulfillment center in Romeoville. The company didn’t receive any local or state tax breaks.

Employees at the more than 750,000-square-foot warehouse will pick, pack and ship large items, such as big-screen TVs, sports equipment and kayaks, Amazon said in a news release Tuesday.

“It’s very exciting for us. To have a large employer of this scale come into your community and bring in hundreds of new jobs almost overnight is always a positive,” said Romeoville Mayor John Noak.

After years of keeping physical operations out of Illinois to avoid sales taxes, Amazon has been rapidly ramping up operations in Will County. Amazon announced plans for its first Illinois warehouse last summer, a 500,000-square-foot facility employing 1,500 in Joliet. In May, Amazon said it would add an even bigger 700,000-square-foot facility with more than 2,000 full-time jobs in Joliet.

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