Two new reports out recently confirm the renewed strength in the commercial sector.
Torto-Wheaton Research, which held its annual seminar in Chicago recently, reported that new construction is inching up in most markets across the country. The trend indicates a slow, healthy comeback, especially in the office markets where demand is still outstripping the new supply.
In a separate report, the CCIM/Landauer database reported that the sale of commercial properties in the United States rose more than 18 percent in the first quarter of this year compared to a year earlier. Analysts called that a very strong report for the commercial sector and cited an increased number of land sales as evidence of further growth potential.
Chicago, which is the nation’s third-largest office market, ranks 11th of 34 cities surveyed by Torto Wheaton in terms of new office construction–all of which is in the suburbs.
On the industrial side, Torto Wheaton said Chicago remains the nation’s power house with more than 16.5 million square feet of new projects planned or projected in 1997. The unit of CB Commercial Real Estate Group warned, however, that the country’s No. 1 industrial market could be in danger of overbuilding if industrial demand in the region falls.
Summer school
Looking to make the grade with your next real estate purchase? How about buying your own school?
The Board of Education of Bensenville School District No. 2 has decided to sell its administration building, which was built in 1917 as an elementary school. The property is zoned for high-density, multifamily use and is expected to draw interest from residential redevelopers.
The school, which sits on a one-acre site on East Green Street in the suburb, is being auctioned in a sealed-bid sale by Rick Levin & Associates of Chicago. Bids are due Tuesday.
Hard knocker
Restoration Hardware, an unusual retailer that presents an eclectic and nostalgic mix of products and furniture for the home, has opened in Woodfield Mall in Schaumburg.
In addition to more than 600 styles of draw pulls, knobs, switch plates, house numbers, mailboxes, lamps and gourmet utensils, the stores offer quirkier merchandise such as English owl calls, aluminum zeppelins, terry cloth shower berets, fishing rulers and dog biscuit mixes.
The company, which has become one of the most talked about retail concepts in the country, started in California and has just 20 stores nationwide. The retailer has identified Chicago as a prime market for expansion.
Shoe in
Preconstruction sales are under way at Metropolitan Place, a new residential loft and condominium conversion that is transforming the former Florsheim Shoe Co. headquarters into homes.
The property, at 130 S. Canal St., will have four new floors added to the existing six-story base by owners Everest Partners. When complete, the project will include 212 luxury one-, two- and three-bedroom lofts, as well as gallery homes and terrace homes.
Prices will range from $125,000 to $475,000.
The project is one of a handful of downtown office-to-residential conversions that have been announced, paving the way for other older office buildings to find new life.
Growth opportunity
Sapient Corp., a Boston-based software consultant, has leased 40,000 square feet of office space at 200 W. Adams St. and will move from 161 N. Clark St.
Tanguay-Burke-Stratton, which represented the tenant, said the new space provides Sapient with expansion opportunities over the next 24 months. The office will serve as Sapient’s Midwest headquarters.
Keeping track
The Census Bureau estimates that the number of housing units in the United States rose to 109.6 million in 1996, a 7.1 percent increase over 1990. Almost 26 million units are in the Midwest, an increase of 6.1 percent over 1990.
In the East North Central region, Illinois has 4.7 miilion units, up 4.8 percent. Indiana and Wisconsin posted bigger percentage gains in units, up 8.7 and 7.9 percent respectively.
Deal of the week
Andrew Corp., the Orland Park-based maker of wireless communication systems, has leased a 221,000-square-foot office/warehouse building at Meadows Lake Business Park in Addison and will nearly triple the size of its Wireless Product Group operations there in a move from Itasca.
Colliers, Bennett & Kahnweiler, which represented Andrew in the deal, said the building was developed on speculation by Hamilton Partners, but was snatched up by the communications firm before construction was completed.
About 300 people are expected to be employed at the new plant.
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Chicago Tribune real estate editor Steve Kerch reviews realty news and answers your questions on housing and other topics on The Real Estate Show every Friday from 9:40 to 10 a.m. on Channel 26-WCIU.
