Willard Jones Real Estate

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.

Amazingly, another year has flown by.  As 2018 comes to a close, it is time to look back on the year that was in downtown Chicago commercial real estate.  While activity has generally held steady, there are some subtle signs that the market is slowing.  Nevertheless, it was an interesting and active time with many notable storylines that could end up shaping the future of our city.  Let’s now review the past 12 months with my top 10 list of events:

10.  Motor Row, Start Your Engines! – Led by former Chicago Bears Israel Idonije and Julius Peppers’ planned redevelopment of 2222 South Michigan, along with the opening of several hotels, restaurants and live performance venues, Motor Row is finally starting to realize its vast potential. While there is still quite a bit of work to do, it is now not too hard to see the grand vision for this South Loop neighborhood coming alive at long last.

9.  Bear Down, Wacker Drive – Speaking of the newly crowned NFC North Division Champions, the Chicago Bears opened an 11,000 square foot office at 123 North Wacker Drive.  This is quite a significant deal for a prominent building undergoing a revitalization after a down period. The staff of 35 employees relocated from Soldier Field in order to free up space for more conferencing and special events at the renowned stadium.

8. The Gamble Pays Off– After rolling the dice and constructing a new high-rise on speculation with no anchor tenant, CA Office and White Oak Realty Partners’ gamble paid off nicely, as CDW inked a lease at 625 W. Adams St. for approximately 300,000 square feet. This brings the property all the way up to 68% leased.

7.  Googleville – Let’s face it, if not for Google’s decision back in 2015 to relocate their Midwest headquarters to 1000 West Fulton Market, Fulton Market would not be what it is today. Not only did Google fill up the rest of the available space in this building, they also leased an additional 132,000 square feet at soon-to-be completed 210 North Carpenter, firmly establishing themselves as the anchor of this dynamic neighborhood.

6.  Facebook Likes Chicago – Facebook’s expansion into 263,000 square feet at the newly constructed CNA Tower at 151 North Franklin is yet another example of how Chicago is gradually growing into a national tech powerhouse.

5.  The Old Post Office Delivers – Walgreens and Ferrara Candy Company became the first tenants to commit to the Old Post Office. While only accounting for approximately 10% of this massive 2.8 million square foot structure, these leases, in conjunction with the many upgrades planned to this showcase structure, promise to serve as a catalyst for future success.

4.  Stretch Those Boundaries – Lincoln Yards, The 78 in the South Loop, the Burnham Lakefront at the former Michael Reese Hospital site, and the River District at the Chicago Tribune printing plant location all represent momentous efforts by developers to expand the outer borders of the downtown market. While major questions remain on who exactly will occupy the space and how to get people to and from these places, it does create a new layer of competition for the traditional downtown areas.

3. Co-working More and More – From WeWork’s seemingly endless expansion, to growth by competitors such as Convene, Industrious, Spaces and several new entrants into the Chicago market, co-working is showing no signs at all of slowing down.

2. The Development Never Ends – The planned construction of Salesforce Tower Chicago at Wolf Point and BMO Tower at Union Station pile onto this extended development cycle. While the skyline will gain some beautiful new edifices anchored by top-notch tenants, more vacant space will be added to the market in not just these new properties but also in the buildings where these tenants are relocating from. Might this be the beginning of the end for this expansive market?

1. Amazon Snubs Chicago – Chicago made an admirable run and allegedly finished in the top 5, but ultimately fell just short as Crystal City, Va, Long Island, NY and Nashville, TN, ended up splitting the grand prize. While the pros outweighed the cons, on the bright side, we no longer have to hear about this story every 10 minutes. There you have it. In my next blog, I’ll let you know what I predict to be in store for 2019. Happy Holidays, everyone!

It is officially the season of giving and Willard Jones Real Estate is here to help.  To contribute to your holiday fun, we hereby present the first annual (possibly) Willard Jones Real Estate Best of Chicago Awards for 2018.  Apologies in advance to anyone we may have missed or offended.  The only ground rule is that the winner must do business in the City of Chicago.  Without further ado, away we go.

CATEGORY 1:  FOOD

Best Deep-Dish Pizza: Lou Malnati’s (multiple locations); runner-up: Pequod’s (2207 N Clybourn)

Best Thin Crust Pizza: Martino’s (3431 W Peterson); runner-up: Pete’s Pizza (3737 N Western)

Best Hot Dog: Superdawg Drive-In (6363 N Milwaukee); runner­­-up: Downtown Dogs (804 N Rush)

Best Italian Beef: Mr. Beef (666 N Orleans); runner-up: Al’s Beef (1079 W Taylor)

Best Cheeseburger: Twisted Spoke (501 N Ogden); runner-up: Au Cheval (800 W Randolph)

Best Corned Beef Sandwich: Manny’s (1141 S Jefferson); runner-up: Eleven City Diner (1112 S Wabash)

Best Ice Cream: Chocolate Shoppe (5337 W Devon); runner-up: Margie’s Candies (1960 N Western)

Best Gyro: Nick’s Drive-In (7216 N Harlem); runner-up: Hub’s (5540 N Lincoln)

Best Ribs: Gale Street Inn (4914 N Milwaukee); runner-up: Twin Anchors (1655 N Sedgwick)

Best Steak: Prime & Provisions (222 N LaSalle); runner-up: Chicago Chop House (60 W Ontario)

CATEGORY 2:  RESTAURANTS

Best Italian Restaurant: Zia’s Trattoria (6699 N Northwest Hwy); runner-up: Tufano’s (1073 W Vernon Park)

Best Mexican Restaurant: El Cid (2645 N Kedzie), runner-up: Cafe El Tapatio (3400 N Ashland)

Best Mediterranean Restaurant: Naf Naf Grill (multiple locations); runner-up: Old Jerusalem (1411 N Wells)

Best Asian Restaurant: Sunda (110 W Illinois); runner-up: Joy Yee (2139 S China Place)

Best Deli: Tony’s Italian Deli & Subs (6708 N Northwest Hwy); runner-up: Fumare Meats (131 N Clinton)

Most Romantic Restaurant: Tango Sur (3763 N Southport); runner-up: Geja’s Café (340 W Armitage)

Best Brunch: Gather (4539 N Lincoln); runner-up: Lula Café (2537 N Kedzie)

Best Food Hall: French Market (131 N Clinton); runner-up: Revival Food Hall (125 S Clark)

CATEGORY 3: BARS and SPIRITS

Best Dive Bar: Old Town Ale House (219 W North); runner-up: Burke’s Web Pub (2026 W Webster)

Best Sports Bar: State (935 W Webster); runner-up: Public House (400 N State)

Best Beer Garden: Sheffield’s (3258 N Sheffield); runner-up: Chief O’Neill’s (3471 N Elston)

Best Rooftop Bar: Cindy’s (12 S Michigan); runner-up: The J. Parker (1816 N Clark)

Best Local Beer: Revolution Brewing (3340 N Kedzie); runner-up: Half Acre (2050 W Balmoral)

CATEGORY 4: CHICAGO THINGS

Best Neighborhood: Old Town; runner-up: Lincoln Park

Most Interesting Street: Lincoln Avenue; runner-up: Milwaukee Avenue

Best L Line: Brown Line; runner-up: Blue Line

Best L Station: Washington – Wabash; runner-up: Cermak – McCormick Place

Best Movie Theater: The Music Box (3733 N Southport); runner-up: Davis (4614 N Lincoln)

Best Live Music Venue: The Elbo Room (2871 N Lincoln); runner-up: Lincoln Hall (2424 N Lincoln)

Best Live Theater: Second City (1616 N Wells); runner-up: Windy City Playhouse (3014 W Irving Park)

Best Barber Shop: Civic Opera Salon (20 N Wacker); runner-up: none

Best Yoga Studio: The Space Between (222 W Hubbard); runner-up: none

Best Park: Lincoln Park; runner-up: Millennium Park

Best Hotel: Alise (former Hotel Burnham – 1 W Washington); runner-up: Four Seasons (120 E Delaware)

Best Touristy Thing to Do: Architectural Boat Tour; runner-up: visit the Museum Campus

Best Sports Venue: United Center; runner-up: Guaranteed Rate Field

Best College Sports Program: Loyola Men’s Basketball; runner-up: Northwestern Football

CATEGORY 5: REAL ESTATE

Best Office Building Lobby: Franklin Center (227 W Monroe); runner-up: Santa Fe Building (224 S Michigan)

Best Office Building Exterior: 77 West Wacker; runner-up: Wrigley Building (400-410 N Michigan)

Best Classic Architecture: The Rookery (209 S LaSalle); runner-up: Monadnock Building (53 W Jackson)

Best Roof Top Deck: Civic Opera Building (20 N Wacker); runner-up: One Prudential Plaza (130 E Randolph)

Most Iconic Building: Willis Tower (233 S Wacker); runner-up: Merchandise Mart

Most Exciting New Development: The 78; runner-up: Lincoln Yards

Best Redevelopment: Old Post Office; runner-up; Tribune Tower

Best Tenant Rep Agency: CBIZ Gibraltar; runner-up: Colliers

Best Tenant Rep Broker: Jim Raisher (Corporate Real Estate Solutions); Tony Karmin (Colliers)

Best Landlord Rep Agency: Cushman & Wakefield; runner-up: Telos Group

Best Landlord Rep Broker: Dan Shannon (Aspire Properties); Aaron Zaretsky (Urban Innovations)

Best Co-Working Space: 1871 (Merchandise Mart); runner-up: Tech Nexus (20 N Wacker)

Now, bring on the debate!  Let us know who we excluded and how crazy we are for a certain selection.  Happy Holidays!

I complain about things out of my control. Some of the recipients of those complaints? The weather, CTA, and people who annoy me. Where have I found all of these things in one place? The city of Chicago. I can utter the words, “I love this city!” and “I hate this city!” simultaneously, so I challenged myself to pick each topic and fit in both points of view.

So here is why I love/hate Chicago:

Fall

Boo: Fall is the most overrated season of all time. Not only does it last about 8 seconds, but it is also a reminder that 6 months of dark, freezing, icy, sadness is just around the corner. And don’t get me started on the pumpkin spice flavored everything. I probably just put pumpkin spice gasoline in my car. Plus, that first fall morning when I step outside onto the frost-crusted grass and can see my breath…it causes my insides to curl inside themselves. Essentially, I spend 1/3 of the summer being sad that fall is on its way because I know that it’s only the appetizer to winter which is even worse. Did you know that it snowed on April 18 this year? APRIL!

Yay: Fall in the Midwest is so beautiful. I love to grab a cozy drink and just walk around to see kids bundled up playing football in the park, step on crunchy leaves, and see the trees change from yellow to orange to red (especially from way-up-high) Not only that, it’s the right temperature to get snugly  while still being able to do fall activities like visiting apple orchards and pumpkin patches, which just aren’t the same without a flannel shirt. Plus, Halloween isn’t Halloween without a long sleeve shirt or jacket under my costume.

The people

Boo: People who visit me in Chicago have, on multiple occasions, pointed out how much faster I walk and how much meaner I look since moving to the city. I blame it partly on having to learn to avoid the Green Peace and ASPCA people on all of the corners downtown. Now, my first instinct when someone comes up to me is “what are they trying to get from me?”.  That thinking encourages more entitlement and spiciness from people; everyone’s always honking their horn, cutting people off in traffic, and swearing at bicyclists (who, to be fair, are also very annoying; you don’t get to be a pedestrian AND a car).  Bottom line, in any city there are the creeps, the weirdos, and the ones you shouldn’t make eye contact with; my pink pepper spray I got as a Christmas gift–while never used–has been my little safety blanket for some iffy times.

Yay: I like to think that most people in the world want to do good and be good. And with a lot of the individuals I’ve met, that has been the case. In Chicago, I met people who will truly be friends for life. Right after I moved here, I quickly got into the volleyball community–and it really is a community–and it blew my mind how quickly everyone was to grow their friend group. They are like one big giant family–one who sets up tents, volleyball nets, and grills at 6 a.m. on the Fourth of July for an all-day barbecue. In my experience with almost anyone, even when a person seems standoffish, I try to greet them with kindness and their mood flips almost instantly. People hold doors open, are willing to help with directions, and understand the need for manners (most of the time). I’ve gotten that “we’re all in this together” feel a lot of the time.

The public transit

Boo: Are you kidding? I can hardly go a day without refreshing the CTA’s twitter page to find out why there’s another delay on the Brown Line during rush hour (of course). Let’s not forget the excruciating TENS of minutes spent on the platform in below-zero weather, standing beneath a flimsy lamp heater that makes me feel like an egg in a middle school science classroom. Oh how I love having someone’s arm hair in my face or worse, being the unlucky patron stuck in the middle of a crowded train car, not blessed with long enough limbs to reach a bar to hold, trying to get a wide enough stance to balance, while hoping that the conductor doesn’t make any sudden movements. Or perhaps walking onto the train and getting a whiff of a stale, farm-like stench, praying that it’s not from urine that was left un-mopped and is now the reason your shoes are sticking to the floor.

Yay: Cruising by car after car in stop and go traffic is one of my favorite pastimes. Once I’m aboard, I know the train will take me 21 minutes to get to work, which is, conveniently, just enough time to watch an episode of The Office and have a few pre-work laughs. Even when it’s rush hour, I don’t have to pay attention to the road or focus on anything but distracting myself. And back to the weather, (unless you’re spoiled with a heated garage) when you wake up to find an inch of ice clung to your windshield and must spend 10+ minutes scraping and clearing it away, sweating in your puffy jacket? I’ve never had to scrape ice off the windows of the train.

Oh Chicago, you have made me feel so many things in the past 7 years. I love your lake that looks like an ocean, your buildings that are equally beautiful whether it’s night or day, and your endless restaurants and trendy cocktail bars. Not a big fan of your weather for 8 months out of the year, but we toughed it out. No matter where I go after you, however, nothing will change the space you occupied in my heart as my sweet home Chicago.