The downtown Chicago office market posted its best showing in eight years in the first half of 1997 as vacancy rates dipped below 15 percent for the first time since 1989.
A new survey by CB Commercial Real Estate Group found an overall vacancy rate of 14.9 percent, down from 16.5 percent one year ago. Although leasing activity fell about 25 percent versus the first half of 1996, a positive net absorption of more than half a million feet drove the vacancy rate down.
CB Commercial analysts said the downtown office market now shows a balance between supply and demand that has not been seen in a decade. In addition, the company said its survey found the recovery is occurring in all submarkets of the Loop.
A separate report from Cushman & Wakefield shows the suburban market continuing its long rebound as well, with vacancies dropping to 12.5 percent from 13.5 percent a year ago.
The strongest leasing activity since 1988 is helping the suburban market, and even leading to the first new speculative office construction of the decade. At least five new office buildings are under way, all of them in the East-West corridor of DuPage County.
Better plans
Better Homes and Gardens, a familiar name in the magazine world, is looking to expand its presence in the real estate arena and has targeted the Chicago market as the place to do it.
Better Homes and Gardens, which has more than 1,500 franchised real estate offices throughout the United States, has already added five local realty offices to its network and will woo additional companies at a select presentation set for Thursday in Bloomingdale.
Company executives say their goal is to increase Better Homes and Gardens’ name recognition in this area, where the firm feels it lacks adequate representation.
Better Homes and Gardens’ push here is set against the backdrop of a residential realty industry that is undergoing considerable change through mergers and acquisitions.
Nature’s way
Construction is under way on the new Nature Museum of the Chicago Academy of Sciences in Lincoln Park. The 73,000-square-foot facility, at Cannon Drive and Fullerton Parkway, is the first new museum to be built in Chicago’s parks in more than 60 years.
The museum focuses on the Chicago area environment and ecology. The new facility will allow it to expand its hands-on exhibits and offer more space for educational programming.
James McHugh Construction Co. is the museum’s general contractor and Perkins & Will the architect. The $20 million project is set for completion in late 1998.
Shop space
Ground has been broken for The Shops of Heatherfield and Heatherfield Center on Waukegan Road near Willow Road in Glenview.
The 83,000-square-foot retail center is anchored by a Jewel/Osco and will provide additional small shop space. Heatherfield Center, an office development on 11 adjoining acres, will house a Northern Trust bank facility and other office users.
The project is being developed by a subsidiary of the James Companies, which is also the builder of the Heatherfield planned residential community just to the northwest of the shops and offices.
Housing base
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 million 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
Cherry Corp.’s Control Devices Group, a designer and maker of electronic components, has contracted for a 153,000-square-foot office and manufacturing facility to be built on a 14.6-acre site at Wispark Corp.’s LakeView Corporate Park in Pleasant Prairie, Wis.
Cherry Corp. expects to move 600 to 700 employees to the new facility when it is completed next spring. The move will allow the company to expand other operations at its headquarters site, which will remain in Waukegan.
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Chicago Tribune real estate editor Steve Kerch reviews realty news and answers your questions on The Real Estate Show every Friday from 9:40 to 10 a.m. on Channel 26-WCIU.
