Willard Jones Real Estate

I have written in this blog space before how important it is for brokers to keep up on current events in the real estate industry. The truth is, it has never been easier to do so given the wide variety of resources available. Between Crain’s Chicago Business, Bisnow, GlobeSt, Connect CRE, Chicago Tribune, Chicago Sun-Times, Illinois Real Estate Journal, Real Deal, Curbed Chicago, Costar and QSR, it is difficult to miss much of anything these days. Since knowledge is power, this is generally a good thing.

As I peruse through these information sources on a daily basis, two things become evident. First, there has been and continues to be, a ton of activity in the marketplace. These past few years have been incredibly eventful and for this, we should all be grateful given the alternatives that might lie ahead in the future. Second, it seems like a lot of the news is essentially the same thing over and over again on a continuous loop. The names and addresses might change, but the general narrative remains constant. Honestly, it is starting to get just a bit tired.

As a public service to the writers and editors at the above-mentioned publications, here is a template that can be used for just about all articles for the immediate future:

• A new building is planned in Fulton Market on the corner of {insert address or intersection} to accommodate {insert company name} relocating its offices from {insert suburb}. {Insert company name} cited the ability to take advantage of Chicago’s vast and talented labor pool in a cutting-edge location as the primary reason for the move.

• {Insert Fortune 1000 company name} has signed a lease to relocate from {insert address of Class A or B building} to the Old Post Office. The building’s large floorplate and robust amenity package were mentioned as main selling points of the redeveloped property.

• WeWork is in turmoil and continuing to restructure internally, thereby concerning {insert building owner} about their long-term viability. Yet, {insert building owner} still inked a deal with the coworking behemoth for another 100,000 square foot lease at their {insert Class A building address} property.

• Co-working operator {insert name of any brand not named WeWork} is expanding its presence in Chicago at {insert address}.

• Real estate taxes on commercial properties are continuing to increase at record high levels in the City of Chicago and this is both depressing sales and investment activity and freaking out tenants who are contemplating signing new leases (Side note: this fact seems to be mentioned in EVERY Crain’s article about commercial real estate).

• A new controversy involving {insert topic} is surrounding Sterling Bay’s Lincoln Yards project and the public is outraged.

• Another tenant, {insert name}, just signed a lease at the Old Post Office. The building’s superior amenities yada, yada, yada…

Don’t get me wrong, these subjects are fascinating in their own right. However, perhaps we just need a few new topics thrown into the mix. History tells us that the narrative will likely change sooner rather than later. In due time, we will be reading about rising vacancy rates, more sublease space hitting the market, falling sales prices, rising unemployment and more Class C buildings being converted to hotels and apartments (granted this one will impact me more so than others). By then, we all will be yearning for the days of old.

Given the enormous budget deficit in Chicago, it comes as no surprise that the Mayor and members of the City Council are turning over every stone imaginable to unearth creative ways to raise revenue over the upcoming years. No industry appears to be exempt from their scrutiny, including commercial real estate. If some of the ideas being tossed around actually come to fruition, the results could be calamitous.

In a recent Crain’s Chicago Business article from September 10, it mentions that among the many ideas being pushed by certain coalitions include restoring and increasing Chicago’s corporate head tax to $16 per month for large companies, instituting a 3.5 percent tax on office leases, a vacancy tax on commercial properties vacant for more than 18 months, and a local income tax on those earning above a certain threshold. Wow, where do we even begin with all of this?

On a macro level, if more and more taxes continue to be implemented, at some point corporations and business owners are going to say enough is enough. Yes, the office market has been on quite a roll the last few years. Firms are relocating to and expanding in downtown Chicago like never before.  Unemployment is low and a healthy supply of new buildings have been and continue to be constructed to accommodate the vast demand. So far, the property tax increases which have been implemented have done little to deter activity. However, if these continue and more are piled on, there almost certainly will be a breaking point.

Proposals such as restoring the head tax will do nothing but suppress future hiring, push firms to automate more rapidly (thereby eliminating jobs), and drive businesses back to the suburbs or out of Illinois altogether. Do not be surprised to see more corporate headquarters going with split locations as a way to circumvent this altogether.

A tax on commercial leases would effectively be another add on charge forced upon weary tenants who already are dealing with having to pay rents at record high levels. Will this force landlords to cut rents in order to maintain occupancy levels, thereby reducing revenue in the process and curtailing sales activity? Might this push more businesses towards co-working, since many of these short-term arrangements are considered flexible memberships as opposed to leases?

The concept of a vacancy tax seems most unfair on many levels, as there are so many factors which go into why a space might sit empty for an extended period of time. Sure, there are instances where an owner overvalues its property or refuses to contribute a market-level improvement allowance and this could fairly be deemed as the main cause of a space not leasing.  However, what if it’s a flawed space that has, for example, little-to-no views or one which is situated way too close to the El tracks?  How can an owner reasonably change that?  What if high crime levels in the immediate area are scaring tenants away? What if the market tanks or an economic downturn ensues? The city is really going to punish these landlords at a time when no one is renting space?  Are they supposed to give spaces away to avoid paying this tax, or just chalk it up as another cost of doing business in the City of Chicago?

If the City ends up instituting these taxes, it makes one wonder what other charges could be on the horizon.  If the much-debated LaSalle Street tax is implemented, would the trading floors at the CBOT Building quickly become a ghost town? Advances in technology make it no longer necessary for trading firms to be in Chicago proper. If the tax on high end services goes into effect, could this ultimately include real estate brokers?  Might there one day be an additional tax placed on commissions?  Who knows, this could be the beginning of the end of the brokerage industry.

It cannot be disputed that we have a major problem and everyone collectively has to share the pain to get Chicago out of this massive fiscal abyss. There is a staggering amount of inequality in this town that needs to be addressed for Chicago to have a viable future. However, if the approach continues to involve taxing every industry and person in sight, we will suddenly encounter more serious problems than what we are faced with today. Mayor Lightfoot has said her priorities for the upcoming budget are to seek “reasonable options that relieve the financial burden on those least able to afford it while not driving businesses out of Chicago.”  In theory, this sounds ideal. In practice, it is much tougher to implement.

An endless string of property taxes increases in conjunction with a city income tax and taxing employees, leases and vacant spaces will have a detrimental effect on downtown Chicago commercial real estate. Businesses will stop growing here, leasing activity will decline, and rents and property values will take a tumble. The domino effect will slow down construction, architects will have less work, foreclosures will be on the rise, and more and more brokers will find it tougher to survive in the industry. Might this be the beginning of the end?  Let’s hope common sense ultimately prevails.

As we approach the Labor Day weekend and unofficial end of summer, here are 8 random thoughts that recently have crossed my mind as we conclude month number 8 of 2019:

1) A big thumbs down to the City of Chicago and State of Illinois regarding their handling so far of the proposed Chicago casino.  Did they really expect a casino operator to be willing to accept such an overbearing and obnoxious tax and fee structure?  Wake up!  This would be a positive development for the city.  Please do not drive away yet another potential draw which would generate revenue and expand tourism.  Meanwhile, the budget deficit continues to get bigger and bigger with no end in sight.

2) While it might be a moot point now, if generating tax revenue is truly the ultimate goal of a Chicago casino, I do not see how it can be located anywhere but downtown.  I am all for trying to boost struggling neighborhoods and love the concept of a casino being a catalyst for future growth and development, but in reality, people are not going to stray too far from the city center for this sort of attraction. Given all the issues with the Thompson Center, this seems like a no brainer site on the surface.  However, can a casino really be located right across from City Hall?  That is questionable.  Maybe if the casino access was from Lake Street and the entertainment and hotel component faced Randolph, it could be feasible. Perhaps a better idea is to exercise eminent domain and buy up one of the remaining dilapidated blocks in the Loop –   Clark between Van Buren and Ida B. Wells Drive comes to mind – and develop a complex over there.

3) Speaking of taxes, any Landlord reps out there who have lost a deal recently due to concerns about the upcoming property tax reassessment?  I sure have.  It seems like not a day goes by without someone expressing concern, and rightfully so. At some point, Springfield needs to step in and realize that it will become counterproductive for businesses and people, in general, to remain in Chicago if the tax rates continue going up, up and up. We need some certainty and common sense applied to the situation.

4) Some of the recent leases signed in the Central Loop with larger-sized tech firms (Kin Insurance, Showpad, Snapsheet, ActiveCampaign, SpotHero and ReviewTrackers, to name a few) are very exciting and a telling sign that the office leasing market is still buzzing along at a healthy pace.  If these types of users continue to embrace the Loop, things should be in fine shape for a long time to come, recession or not. This is good since there is going to be quite a bit of space to fill in upcoming years as tenants such as Bank of America and BMO Harris scamper off to new towers in the West Loop.

5) I am fascinated to see how one of those so-called holes is going to be filled at 135 South LaSalle.  It is such a wonderful building, so rich in history and an architectural genius.  However, I have a hard time seeing another anchor tenant coming in and taking over the gigantic space being vacated by Bank of America.  This reminds me of a lot of what happened at 11 South LaSalle in the late 1990s when LaSalle Partners relocated to the former Amoco Building.  This ultimately led to the building being transformed into a Residence Inn. Could 135 South LaSalle be next in line for a partial hotel or residential conversion?  It would make sense.

6) A standing ovation to all parties involved in bringing the Old Post Office back to life starting at the very top with the ownership of 601W Companies, leasing expertise by Telos Group, property management by JLL, architectural services by Gensler and Bear Construction as lead contractor. What a truly amazing job of filling this building up so quickly with such a high-level caliber of tenants.  This has to go down as one of the greatest redevelopments in the history of Chicago real estate.  Mad respect to all.

7) Here is a good question to bring up the next time you are at a gathering of real estate professionals: has there ever been a more important lease signed in Chicago than Google at 1000 West Fulton Market?  Would Fulton Market exist today in its present form if Google would have decided to stay and expand in River North?  Discuss.

8) Sincere condolences to the families and friends of two Chicago real estate veterans who recently left us too soon, Ann Anovitz and Gerald Frank.  Ann was a true pioneer of the industry who opened up so many doors for numerous people.  Gerald was a long-time broker who epitomized hard work and ethical behavior.  Both were total class acts in every sense, wonderful people and credits to the industry. They will be missed.

I will now end on a positive note with 4 words to get everyone through the fall and winter seasons:  Super Bowl, Super Bears!

Ready to test your knowledge of downtown Chicago real estate? Well, it’s your lucky day! We hereby present the first ever Willard Jones Building Quiz, past and present. Answers to follow below.

1) Which Loop property had manually operated passenger elevators until 2000?
A) 39 South LaSalle
B) 123 West Madison
C) 40 North Wells
D) 228 South Wabash

2) GE Capital’s Chicago headquarters was once based out of this building:
A) 919 North Michigan
B) 230 West Huron
C) 105 West Madison
D) 29 South LaSalle

3) Which property was originally part of the Illinois Bell office campus?
A) 309 West Washington
B) 100 West Monroe
C) 226 South Wabash
D) 180 West Washington

4) The beloved Dill Pickle deli was located at________:
A) 180 West Washington
B) 36 West Randolph
C) 218 South Wabash
D) 166 West Washington

5) Hannah’s Bretzel’s first ever location is here:
A) 180 West Washington
B) 209 West Jackson
C) 205 West Randolph
D) 309 West Washington

6) The Isolated Pier construction technique was first implemented at ________:
A) 2229 South Michigan
B) 819 South Wabash
C) 40 North Wells
D) 36 West Randolph

7) Which of the following office properties was the first to construct balconies on its exterior façade in the early 1900s?
A) 17 North Wabash
B) 205 West Randolph
C) 230 West Huron
D) 218 South Wabash

8) The AC McClurg Publishing Company was the original anchor tenant of:
A) 2325 South Michigan
B) 223 West Erie
C) 850 South Wabash
D) 218 South Wabash

9) This building was the home of Playboy Enterprises from 1965 – 1989:
A) 160 East Grand
B) 919 North Michigan
C) 200 East Ohio
D) 324 North Michigan

10) Which 3 buildings share a common basement?
A) 19-29-39 South LaSalle
B) 218-226-228 South Wabash
C) 819-828-850 South Wabash
D) 2036 South Michigan-2000 South Wabash-2001 South State

11) The A Bauer Distilling Company had a presence in which of the following properties?
A) 230 West Huron
B) 117 North Jefferson
C) 900 West Jackson
D) 555 West Jackson

12) The City Colleges of Chicago was offered a free space in perpetuity in this building, only to decide during construction that they did not need it after all:
A) 226 South Wabash
B) 205 West Randolph
C) 55 East Randolph
D) 850 South Wabash

13) Which building was once the home of the Reagle Beagle bar?
A) 40 North Wells
B) 230 West Huron
C) 218 South Wabash
D) 160 East Grand

14) Advertisements for Gold Medal Flour, believed to be from the early 1900s, can be found on the third floor walls of which building?
A) 324 North Michigan
B) 160 East Grand
C) 2229 South Michigan
D) 117 North Jefferson

15) Which building was named after the Haymarket Farmers Market?
A) 555 West Jackson
B) 117 North Jefferson
C) 36 West Randolph
D) 205 West Randolph

16) The original use of this building was a coffin manufacturing factory:
A) 2300 South Michigan
B) 819 South Wabash
C) 900 West Jackson
D) 228 South Wabash

17) Before being converted into an office property, which building was previously a movie theater?
A) 2229 South Michigan
B) 117 North Jefferson
C) 850 South Wabash
D) 223 West Erie

18) A Studebaker car showroom was previously located here:
A) 2300 South Michigan
B) 2229 South Michigan
C) 2245 South Michigan
D) 2036 South Michigan

19) A Buick car showroom was previously located here?
A) 2300 South Michigan
B) 2229 South Michigan
C) 2245 South Michigan
D) 2036 South Michigan

20) The Cowpath is part of which Loop office building?
A) 123 West Madison
B) 105 West Madison
C) 100 West Monroe
D) 39 South LaSalle

21) New York Life Insurance had its Chicago headquarters here:
A) 39 South LaSalle
B) 105 West Madison
C) 309 West Washington
D) 180 West Washington

22) Where was the Chicago Bar Association originally located?
A) 29 South LaSalle
B) 205 West Randolph
C) 123 West Madison
D) 36 West Randolph

23) Which of the following is the oldest standing Loop building?
A) 40 North Wells
B) 39 South LaSalle
C) 36 West Randolph
D) 228 South Wabash

24) Which property was originally two separate buildings that were merged together into one?
A) 218 South Wabash
B) 205 West Randolph
C) 160 East Grand
D) 17 North Wabash

25) Which building is known as the McKinlock Building?
A) 218 South Wabash
B) 230 West Huron
C) 166 West Washington
D) 209 West Jackson

Answers:
1) B – The elevator operators were relieved of their duties at 123 West Madison a mere 19 years ago.
2) C – General Electric Capital served as the anchor tenant at 105 West Madison until 2000.
3) A – The Illinois Bell campus included 309 West Washington, 301 West Washington, 208 West Washington and 212 West Washington.
4) D – The Dill Pickle lasted until it was ousted in favor of a Subway restaurant in 1999.
5) A – Florian Pfahler’s highly successful chain originated at 180 West Washington in 2003.
6) C – This innovative style of construction used at 40 North Wells paved the way for future skyscrapers.
7) A – These balconies are still functional today after being restored during a building renovation in 2006.
8) D – McClurg was one of the larger Chicago publishing houses in the early 1900s.
9) B – Better known as The Palmolive Building, Hugh Heffner called 919 North Michigan home for 24 years before relocating to 680 North Lake Shore Drive.
10) B – While each are three separate buildings, 218, 226 and 228 South Wabash all share a common basement.
11) A – Bauer owned several buildings near the intersection of Franklin and Huron in the early 1900s.
12) C – The third floor at 55 East Randolph has never been occupied since it was established in 2003 (hopefully this is about to change).
13) D – The Reagle Beagle at 160 East Grand was a take off of the famous bar that appeared on the television show Three’s Company in the 1980s.
14) A – Still in excellent condition, these ads were painted on the side walls of both neighboring properties and uncovered during a building renovation 10 years ago.
15) B – 117 North Jefferson is located a little over a block away from the original market location.
16) B – To the best of our knowledge, the coffins were all empty when shipped out of 819 South Wabash.
17) C – The Burnham Park Cinema was one of the main attractions in the South Loop, back when the neighborhood was known as Burnham Park.
18) D – 2036 South Michigan was one of many car showrooms in this historic district.
19) C – The Buick emblem still appears on the façade of 2245 South Michigan today.
20) C – 100 West Monroe was forced to build around the “cowpath” when constructed in 1927.
21) A – New York Life was the largest tenant at 39 South LaSalle for most of its tenure as an office building.
22) A – The Chicago Bar Association was based out of 29 South LaSalle until 1990.
23) C – The Delaware Building at 36 West Randolph was built shortly after the Chicago Fire.
24) B – Originally known as 122 North Wells when built in 1915, a 23-story addition was constructed next door and connected to the building in 1928, when it became known as 205 West Randolph.
25) D – A one-time owner of 209 West Jackson, George McKinlock, decided to name the building after himself in 1909.

It is rare when one can say they have been mentored by a legend.  A legend of not just their profession, but also of life in general. Well, I am one of the lucky few, as I had the extreme good fortune of being taken under the wing of the great Howard Weinstein.  Howard passed away last week after a brief illness at the age of 77, leaving behind a legacy few in the real estate field can match.

A lifelong Chicagoan who was raised in the Albany Park neighborhood, Howard entered the real estate industry immediately after graduating from his beloved University of Illinois and was hired by the original Chicago real estate icon, Arthur Rubloff.  It did not take Howard long to rise up the corporate ranks as he was eventually running the show, opening offices up all across the country.  Rubloff & Company was THE place to work in real estate back in the 1970’s and 80’s.  So many individuals had the privilege of getting their start at this prestigious firm and Howard played a central role in their development.

In the early 1990’s, Rubloff & Company split into three parts, with the commercial side merging with Koll (and ultimately becoming the modern day CBRE).  Howard and his long-time partner Tom Horwich purchased the residential division in 1996 and grew Rubloff Residential Properties into a Chicago powerhouse.

When I entered the commercial real estate business in 1996, my first assignment was to serve as the leasing agent of two Loop office buildings owned by Tom’s family, 100 West Monroe and 30 North Michigan.  After 2 fortunate years of experiencing some success, the firm I was working for at that time became mired in some difficulty and I needed to make a change.  Tom took pity on me and suggested I come work for Rubloff, as their non-compete clause just expired and they were able to practice commercial real estate again.  The catch was that I had to persuade Howard that this was a good idea.

Prior to the meeting, I asked as many people in the industry as I could about Howard Weinstein and the same message kept being conveyed: if you have the chance to work for this guy, do it!  The second I walked into his office, it was obvious he had a certain air about him where you could just tell he was someone important.  We talked for a few minutes and I somehow convinced him that a 25-year-old schmuck was worthy of using the Rubloff name.  He hired me the next day.

Very early on he established two rules that always stuck with me:  (1) Don’t embarrass the Rubloff name and (2) Make me a lot of money.  I am not sure I was successful with either, but can say without hesitation that working at Rubloff and for Howard was the greatest. He gave me complete autonomy to do my thing and always was there whenever I needed anything.  I would’ve stayed there forever if I could have, but that darn recession led to the sale of the firm and yada yada yada, Willard Jones was born.

Early in my Rubloff career, a new owner of a building I had been representing asked me to take over a renewal negotiation that he had been working on with little success.  The tenant had a well-deserved reputation for being quite difficult and seemingly had one foot out the door.  As a Hail Mary of sorts, I was asked to take a crack at keeping him in the building but warned the odds were slim-to-none.  Somehow, I was able to convince the owner of the firm to meet for a few minutes.  He basically ignored me and nothing was being accomplished, so I decided to leave.  On my way out I handed him my card which he surprisingly glanced at and saw that it said Rubloff.  His demeaner abruptly changed and he asked if I knew Howard Weinstein.  I told him that he was my boss.  Suddenly, he started blurting out all these stories about projects he and Howard once worked on together.  Sensing that the tide had turned, I asked if he would like to talk with Howard on the phone.  Fortunately, Howard picked up and the two spoke for 20 minutes, laughing hysterically as they recounted old times.  As the conversation was ending and the topic of why I was there finally came up, Howard told him to, “stop f-ing around and sign the damn lease.” Sure enough, we completed the renewal, I made a new friend and the owner felt like I pulled off a miracle.  That was the power of Weinstein.

Then there were the Rubloff holiday parties.  This was Howard’s annual night to shine.  He would throw these over-the-top galas at some of the most classic Chicago locations imaginable: the Chicago History Museum, Adler Planetarium, Chicago Cultural Center, Newberry Library, Peggy Notebaert Nature Museum and Chicago Yacht Club to name a few.  He always used to tell me that the revenue from the commercial division I ran was used to cover the cost of the party and let me tell you, that was a ton of pressure as I know how important that night was to him.  He went out of his way to create a pleasant environment for his agents, which is why so many remained loyal to him and the reason why so many moved on once he sold the business.

No one could command a room like Howard Weinstein.  The second he walked in anywhere, he immediately was the center of attention.  It was partially because just about everyone in the real estate industry knew who he was, but for those who didn’t, he had a certain approachable swagger about him. However, he never acted like he was better than anyone else.  To the contrary, he was always curious to learn about your background and find ways he could relate whether you were the CEO of a Fortune 500 company or the janitor of a building.  This is one of so many reasons why people loved him.

Over time, no one had a bigger influence on my career than Howard.  I affectionately referred to him as “The Chairman” of Willard Jones Real Estate.  We typically got together every other month for lunch and regularly talked about real estate, the Bears and life in general.  He talked me off the ledge thousands of times, gave me an immeasurable amount of advice (never expecting anything in return) and taught me Yiddish in the process.

Our cherished phone conversations always started the same way. At Rubloff, it was something like this:

Howard:  Jonathan? Weinstein!  Did you make me any money today?
Me: No.

Once I started Willard Jones, it changed slightly:
Howard: Jonathan, this is the Chairman calling.  Where are my dividends?
Me:  As soon as I make my first profit, you are next up on the list
Howard:  What am I going to do with you?

The topic would then shift to sports.  He was a huge Chicago sports fan, especially the Cubs (one of the few things we disagreed about).  I will miss our Monday calls about the Bears (aka “your crap team”) where he would often tell me how he was a better quarterback than Jay Cutler.

Howard also loved his food and regularly consumed the classic Chicago menu: Italian beef, steak (medium rare), deep dish pizza, hot dogs (NEVER with ketchup) and Long Grove Confectionary candy for desert.  I always let him select our lunch spots and he usually leaned towards the classics (Manny’s and The Berghoff were two of his favorites).  The truth is, I never much cared where we went.  I just enjoyed his company and wanted to soak in as much knowledge as I could.

Howard Weinstein was the true definition of a mensch: an honorable, decent stand up person. Not having Howard in my life is going to be tough, as I now have to fall back on 20 years of guidance to solve my problems.  While he will be missed so much by so many people, I am enormously grateful for our time together.  RIP, Mr. Chairman. Thank you for making me a better person.

Willard Jones Real Estate recently welcomed The Haymarket Building, located at 117 North Jefferson Street, into its leasing portfolio and has been tasked with returning this West Loop gem back to full occupancy. The new owners have some exciting plans for future upgrades and we are ecstatic to be part of this project.

Most local real estate brokers who have been in the industry for a while likely associate 117 North Jefferson with a prior owner, Mr. Henry Latkin. For over 40 years, Henry owned, managed, leased, entertained and even resided here. While his style might have been viewed by some as eclectic, you have to respect and admire an individual with that kind of staying power who enjoyed himself so much in the process. Being an avid and courageous world traveler, Henry accumulated quite a collection of art from all sorts of exotic places around the globe including Iran, Pakistan and Afghanistan. Many of these items were prominently displayed around the building. He was one of the first downtown owners to develop a rooftop deck. Outfitted with sculptures, trees and a full-blown garden, this was often used for hosting parties and special events. Henry even ran a small bed and breakfast on the rooftop level and many brokers were awarded a free night or two as a thank you for completing a deal in the property.

Whenever we take over a new leasing assignment, one of our first tasks is to develop an appropriate marketing program. Given this property is known as the Haymarket Building, it seemed like a no brainer on the surface to work with that somehow. However, as you dive deeper into the history involved with this name, it becomes a much more complicated decision.

The challenge, in this case, is how to strike a respectful tone which acknowledges the loss of life while commemorating the significance of the event itself and what it eventually laid the groundwork for. Taken literally, the Haymarket was essentially a large farmers market that serviced a West Loop neighborhood which at that time was heavily populated by working-class families and factory workers making low wages and struggling to get by.  Over time, it morphed into a town square and popular gathering place for these individuals.  Following an incident at the McCormick Harvesting Machine Company plant in May 1886 where Chicago police officers killed two protesters and wounded several others who lived in the neighborhood, a peaceful rally was planned for the following night at Haymarket Square (Randolph Street between Lake Street, Des Plaines and the modern-day Expressway). Once the police arrived to keep order, an anonymous person threw a stick of dynamite killing several police offices and a massive riot erupted. While this was a very significant moment in the American labor movement, it also led to a series of trials which concluded with questionable convictions and public hangings for some people that might have been innocent.

By all accounts, the Haymarket Building was named more so for the neighborhood rather than the event and this is what we have decided to focus on.  The farmers market was generally regarded as a place of happiness for the workers by all accounts.  The riot was a huge moment in American history and deserves to be remembered, but not celebrated. Our ultimate synopsis can be summed up with the following statement: Sitting on a historically significant land site in Chicago’s West Loop, the Haymarket Building at 117 North Jefferson pays tribute to those working class individuals who used to congregate at the nearby Haymarket Square farmers market in the 1880’s, as well as those permanently impacted by the Haymarket Affair that sent shock waves around the world and served as the catalyst for the American labor movement.

Once historical perspectives are properly dealt with, we can then turn our attention to all of the amazing attributes that 117 North Jefferson has to offer, such as exposed brick walls, high timber lofted ceilings, great natural light, efficient floor plates and a committed and service-oriented ownership group. The building also possesses one of the best locations in the West Loop, close to Ogilvie Transportation Center, Union Station and just a few blocks from Fulton Market (and at much lower prices to boot).

Tenants and brokers, we hope you will give The Haymarket Building at 117 North Jefferson a close look if you or your clients are in the market for office space at a historically noteworthy location. We think you will be pleased with what you see.

I know this is supposed to be a real estate blog, but I must make an exception this month and pay tribute to an individual who was a huge part of my childhood, one Chester William “Chet” Coppock.

For those not aware, Chet was the self-proclaimed “Godfather of Sports Talk Radio” and there really is no disputing this fact, as he flat out invented this genre at a time it did not exist. After successful stints as the producer of the 1971 NBA champion Milwaukee Bucks radio broadcast, sports anchor at WISH-TV in Indianapolis (where he proudly was voted as both the most and least popular broadcaster on local television) and lead national play-by-play commentator for the Roller Derby, Chet returned home in 1981 and became an icon in the Chicago sports scene. He established a heightened profile when hired as the sports director at NBC-5. After being fired there for “personality conflicts,” Chet transitioned over to WMAQ radio in 1983 and hosted Coppock on Sports, an in-depth, interview driven sports talk show. This was the first of its kind.

Chet hit the peak of his popularity when he moved Coppock on Sports over to the ever-popular Loop AM-1000 in 1988. His show was a who’s who of sports. If you were a big name, you just had to be a guest on Chet’s show. Supplementing his radio work was his starring role in WWF (before it was known as the WWE) events that frequently came to Chicago, as well as hosting shows with Mike Ditka and Phil Jackson. When the talk show ended in the mid-1990’s, Chet moved on to New York for a bit where he hosted the national NBA radio broadcast and did a live nightly television show. He eventually returned to Chicago and wound up his career by hosting Notre Dame radio broadcasts, doing work for the Blackhawks and writing several books.

After learning of Chet’s tragic and untimely death last week, it brought back a flood of memories. My friends and I listened to his radio show religiously and imitated him nonstop. Still do, to this day. So many of Chet’s patented lines became part of our regular vocabulary. Here are a few examples:

• You know you really made it when Chet referred to you by your full name: Michael Keller Ditka, Michael Jeffrey Jordan and of course, who could forget the General, Robert Montgomery Knight
• When you reached the pinnacle of your sport, such as winning a championship, you reached the top of the “big rock candy mountain”
• Everyone he interviewed was “his good friend” even if he barely knew you
• If you are the best in your field, you are the “creme-de-la-crème” and a top performance was “par excellence”
• Ready to go out and celebrate? Go out and “knock down some Drambuie”
• Whenever someone would call into his show, he would answer by saying “your dime, your dance floor”
• The Loop AM-1000 was a 50,000-watt radio station, or as Chet called it “the 50,000-watt blowtorch broadcasting over 38 states and Canada.” No one ever knew if this was true.

Chet was a master promoter and handsomely rewarded for it. Not only was he a spokesperson for Chevrolet, he would invite you regularly to visit Lawry’s Restaurant, home of the “spinning salad bowl” and Bigsby’s Sports Bar and Grill, where you can knock down the Michael Jeffrey Jordan 23-ounce steak.

He went through Diet Cokes like there was no tomorrow. You could often hear him cracking open several during a typical show (as well as occasionally munching on a sandwich). While blatantly eating dinner on air, he would toss out one of his patented lengthy questions which were often longer than the answers from his interviewees. To buy more time so he could finish up his meal, his follow up was always, “Can you amplify upon that?” That was code for, I need more time to finish up what I am doing behind the scenes.

Chet was the first to admit that he was a gimmick, but he was pure Chicago in every sense, from attending 68 consecutive Bears home openers to having legendary Cubs broadcaster Jack Brickhouse as the godfather of his daughter. There are not many 6’6” men who could pull off walking around in a full-length fur coat, but Chet was the one. It so fit his personality. If there ever was a real-life example of Ron Burgundy, he was it.

A few years ago, while at the Greektown Walgreens in the West Loop, I saw Chet there literally right in front of me. I so badly wanted to shake his hand and tell him how much I loved and admired his work…and I completely froze and said nothing. Boy, do I regret that now.

Chet, where ever you may be, I hope you are on top of the Big Rock Candy Mountain in the sky sipping on a giant glass of Diet Coke and knocking down a Michael Jeffrey Jordan 23-ouncer. Thanks for the memories.

Spring has arrived in Chicago and baseball season is now underway. As we look forward to another exciting campaign, an annual highlight for me is the opportunity to listen to renowned White Sox commentator Steve Stone and his expert analysis. One of his favorite refrains is to tell “all you young players out there watching at home” the proper way to fundamentally handle a situation. To borrow that mantra as it relates to commercial real estate, I would like to share some wisdom with all you young brokers out there.  Your reputation precedes you.  At the end of the day, it is all that you really have to go by in this business. Once it is trashed, good luck trying to succeed.

Common sense dictates that clients and fellow brokers prefer to work with individuals who are honest, hard-working, ethical and will follow through with promises. When you are regarded to have these traits, you will be amazed at how people tend to gravitate your way. Tenants, landlords and brokers alike will be inclined to try and do business with you whenever possible.  Referrals will follow on a regular basis and people will grow to respect you. I cannot emphasize enough how important this is.

Conversely, once you acquire a reputation of being dishonest, deceptive, lazy and/or all about the commission, word will travel fast. The commercial real estate industry is relatively small and tight-knit.  It has a barber shop component to it where fellow brokers like to sit around and gossip from time-to-time. If you rub enough people the wrong way, it will eventually all catch up to you.  After all, you know what they say about karma.

Don’t get me wrong, this business can be really difficult sometimes.  Brokers work on commission and there are plenty of spells where deals are few and far between.  We all have to make a living and plenty of us have families to support. Hence, it can be awfully tempting to take the easy way out, step on some toes and hold back on sharing critical information in order to get a deal done.  In spite of it all, ethical behavior must always win out.  If you tell a lie, it will come back and bite you, usually twice as hard.  Businesses want to work with people who have their best interest in mind, not those who only care about the size of their commission.

Undoubtedly, there have been instances where I have cost myself money by being overly candid.  I could have easy told a white lie or kept some details to myself just to get a deal done. On other occasions, I could have easily pushed tenants towards longer-term leases for no other reason than to pad my pocketbook and probably gotten away with it. Still, I refuse to act this way.  I simply have too much respect for people and the extreme effort they put forth towards establishing a successful business. Without exception, the number one rule to live by in business is the Golden Rule.  Plus, the internal guilt I would feel (thanks, mom) would render me useless for days.

So, all you young brokers out there, I cannot urge you strongly enough to do learn this lesson early in your career and never forget it.  After all, you do not want to have people feeling like they need a shower after they have an encounter with you. Sure, you will strike out or commit an error from time-to-time, but in the long run, there will be plenty of home runs that you can build upon.

Oh, and one more thing. To a particular broker out there who might be reading this blog and wondering if it is being directed towards him or her, it sure is, buddy.

So here we are nearing the end of February and this winter really seems to be dragging on, way more so than most. As I just start to get over my third cold in the last three months, I feel like I am usually seeing the light at the end of the tunnel by now, especially with spring training officially underway. Well, that theoretical tunnel is nowhere to be found.

Sure, Chicago winters are never a treat and I should be used to Mother Nature’s wrath by now after spending my entire life here, but this one seems particularly brutal. As I get older, I now understand why people I once mocked at a younger age choose to become Arizona or Florida snowbirds for the winter. The latest rendition of the polar vortex was excruciating and the continuous cycle of snow, ice, slush, freezing rain, wind chill warnings and winter weather advisories are just wearing me down.

Of course, it is more than the weather that has contributed to this long winter season. Consider some of the headlines making news over the past few weeks. On a national level, we have experienced an unnecessary government shut down, a seemingly never-ending investigation into Russian collusion, an alleged national emergency at the southern US border, a massive divide in our nation growing wider by the day and Amazon being spurned by New York (or vice versa) along with the realization that this entire Amazon HQ2 search was a gigantic waste of time and energy. In Chicago, we have witnessed another senseless mass shooting in Aurora causing loss of innocent lives, no let-up in the ridiculous amounts of shootings and crime around town, the apparently fraudulent saga of Jussie Smollett, a mess of a mayoral campaign with no clear front runner, corrupt aldermen being investigated by the FBI, and yet another lawsuit trying to stop what would be a transformation addition to Chicago in the Obama Presidential Center (didn’t we learn from the Lucas Museum debacle?). Last but not least, we cannot forget Sterling Bay’s battle to get the Lincoln Yards development approved amidst neighborhood backlash.

Do I dare even bring up the Chicago sports scene?  It will be a long while before I am over the Cody Parkey “double doink” debacle and these feelings were exasperated after watching the most uninspiring Super Bowl ever played. Now we have the Bulls being just good enough to fail in their “Dyin for Zion” pursuit and the Blackhawks alternating from being a candidate for the first pick in the draft to sneaking into the playoffs and likely losing in the first round.  Meanwhile, the Cubs are dealing with all of kinds of off the field distractions and as for the Sox, damn you, Manny Machado!

Are you still there? Have I depressed you enough yet? While it is so easy to let all of these things get you down, believe it or not, there is still some good out there to help us push through. For example, how about the group of good Samaritans who pooled their money together and put over 70 homeless people up in a hotel for all three nights of the polar vortex.  Then there are the relatively small, but still meaningful, acts of kindness like a group of people I witnessed running to assist a man at Ogilvie Transportation Center who tripped and fell and, in the process, dropped a gigantic box filled with Girl Scout cookies on the train tracks (all were successfully rescued, as it would be a tragedy to let a perfectly good box of Tagalongs go to waste). Next, there was a real estate broker I recently completed a deal with who donated 100% of his sizable commission to the not-for-profit group he represented. The funds were used to benefit a number of underprivileged children in their quest for a better education. These acts of kindness, no matter the size, still give me hope that all is not lost with the world. Will everything suddenly get better once temperatures start to rise and the sun begins to shine more frequently? Probably not, but at least our collective demeanors will be brighter. After all, there is no better city in America than Chicago in the summer (until we have our first 90-degree day and I start complaining again about the heat and humidity). Till then, to quote the great Steve Perry of Journey fame, “Don’t stop believin’.”

Happy New Year! As we welcome in 2019, it’s time again to dust off the crystal ball and predict what lies ahead for the new year.  Before we begin, let’s take a look back and see how my 2018 guesses playout out:

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

2) Sales activity will start to slightly pick up towards the end of 2018 due to lowered seller expectations and prices creeping downward. Those who have been sitting on the sidelines will start to get back in the game.  Not exactly. Activity remained steady and there is no sign of prices going down anytime soon. Those on the sidelines generally stayed put.

3) The Tribune Tower redevelopment plans will be announced and feature luxury apartments on the upper floors and a hotel on the lower half. The first two floors will be leased to a significant (and surprising) national retailer which will continue to accelerate the shift in retail activity towards the Chicago River and Millennium Park. The luxury apartments (and condos) as well as the hotel are happening, but no announcement of any retail tenants just yet.

4) As part of the ongoing Willis Tower renovation, Willis will give up its naming rights. Will the Sears name be restored? Nope, instead the building will be rechristened after its largest tenant. Welcome, United Tower.  This was very wrong.  Spoiler alert: I am not giving up on this idea just yet.

5) No new office developments will be announced, as there is more than enough going on now to satisfy every tenant currently in the market for the next few years.  A huge swing and a miss, as Salesforce Tower Chicago and BMO Tower will be joining the skyline in about 2 years.

6) After being declared a finalist, Amazon will ultimately not select Chicago for its HQ2. Atlanta will be declared the big winner.  Atlanta?  What in the world was I thinking?

7) As a strong consolation prize, Chicago will attract a significant corporate headquarter that will relocate here from another Midwest city. This tenant will become the anchor of the Old Post Office.  Nope, although Chicago did do well in continuing to lure several new tenants from both the suburbs and other cities. The Post Office landed two significant users in Walgreens and Ferrara.

8) With Amazon out of the picture, Goose Island, the River District, and believe it or not, Fulton Market, will struggle to find tenants. Of course, Lincoln Yards will not, because Sterling Bay.  No struggles at all from Fulton Market, but the other developments are still in the planning stages and yet to land any office tenants.

9) Plans will be announced to shut down and demolish the Thompson Center by the end of 2019. No firm redevelopment plans will be announced and the site will end up sitting vacant for an extended period of time. However, the State of Illinois’ search for new office space will provide a nice little boost to the market towards the end of the year.   Nah, this was essentially a non-story in 2018.

10) Take two on this prediction. Spurred on by the legalization of sports betting, plans will be announced for the former Michael Reese Hospital site to be redeveloped into a casino and entertainment complex…… which will include a grocery store.  No dice here, as Mayor Emanuel pushes the casino for the southeast side.

Okay, so 2018 was not one of my better efforts. Let’s see if I can improve upon my psychic abilities for 2019.  Here we go.

1) After an extended period of growth, leasing activity will begin to slow across the board in downtown Chicago. There will not be a full-blown collapse by any stretch, but absorption will be down and concessions will increase as competition becomes fiercer to attract tenants. Rents will generally remain steady as owners still struggle to cope with the unprecedented property tax increases.

2) A slowing market combined with a weakening economy will bring on the first group of distressed sales downtown in quite some time. This will be the first step in sales prices becoming a bit more reasonable as compared to the past few years.

3) An owner of multiple downtown office buildings will put their portfolio up for sale and exit the Chicago market.

4) Some cracks will begin to appear in the co-working phenomena. WeWork will tap the brakes on expansion in 2019, while two of their competitors merge together and another shuts down entirely.

5) None of the planned developments on the outskirts of downtown (Lincoln Yards, The 78, Burnham Lakefront, River District) will be successful in landing an anchor office tenant. One of the developers, citing economic concerns, will completely shelve their project for several more years.

6) While these planned developments struggle, the Fulton Market locomotive keeps on chugging, as another major corporation will announce plans to relocate their operation to a new Sterling Bay-developed property in the district.

7) Certain segments of retail will continue to struggle, but the Mag Mile starts to rebound. Multiple new, non-traditional concepts will sign leases and set up shop on North Michigan Avenue, all at significantly lower rents than in the past.

8) Speaking of North Michigan Avenue, the former Hancock Building will land a new anchor tenant of the tech variety and gain naming rights to this iconic property as part of the deal.

9) While on the topic of naming rights, let’s try this one again.  The Willis Tower will have a new name by this time next year.

10) A well-known tenant in the tech industry who occupies a significant portion of their building will substantially scale back in 2019 and put their space up for sublease.

Best wishes for a happy, healthy and prosperous 2019!