Willard Jones Real Estate

I hate shopping. For me, the ability to purchase things online goes down as one of the greatest phenomena of my lifetime. I don’t have to schlep through stores or circumvent big crowds and I can have things delivered right to my doorstep within days? Sign me up! Based on the high–and rapidly increasing–number of vacant retail spaces, it seems many Americans agree with me.

There is no denying the fact that the internet has permanently changed retail forever. As convenient as internet shopping is, however, part of me aches for the shop owners who dreamed of starting up their own store and poured tons of money and time into making their dreams come true.

Here I go dating myself again, but in my youth, there was no internet. Sure, you could order things from a catalog and have them shipped to you but by and large, if you needed to buy something, you went to a store. Malls, department stores, and retail centers everywhere were thriving. Today, legendary brands such as Sears, Kmart, Toys “R” Us, Radio Shack, JC Penny and Carson Pirie Scott (after 160 years in business) are shuttering a significant number of locations or disappearing completely.

The one that really hit home for me was Toys “R” Us. I used to take on whatever odd jobs I could find around the house or in the neighborhood and diligently save up my allowance so I could visit this kids’ utopia and buy video games (on floppy disks!) for my Commodore 64 computer (which was the greatest gaming computer of all time, but that is an argument for another day). Sure, the games were tons of fun to play, but just getting myself in a position to even go to Toys “R” Us was an accomplishment to be proud of and helped teach me the value of hard work.

Now, store owners are facing a dire call to either adapt to the times or find a new line of work. In order to draw customers, retailers need to present an “experience” and a reason to leave the house. These days, it isn’t unusual to see stores add coffee shops, wine bars and interactive events such as live demonstrations and classroom sessions. This is what it takes today to attract crowds and once they come, people will theoretically want to spend their money.

With retail vacancy rates approaching historic levels, landlords have been forced to change direction as well. Big box closings have left massive holes where anchor tenants once dominated. Today, there is less focus on filling these spaces with other big box stores and more emphasis on creating smaller sized spaces for such uses as restaurants, movie and entertainment venues, health clubs, grocery stores and medical clinics. Investors now seek out retail centers that are “internet-proof” and tenanted with users that cannot be threatened by e-commerce. In fact, in some cases, Landlords are even having to go way outside of the box and convert old big box stores into co-working facilities, office space, distribution centers, hotels or residences. All options are in play moving forward.

Downtown Chicago is a convenient microcosm of what is happening nationwide. The old Carson Pirie Scott Building on State Street is now a landmark office building, anchored by Target on the ground floor and a loft office conversion for the upper floors of Macy’s on State Street is up next.

Even the locations that have traditionally been as good as it gets in terms of visibility and obtaining high rents are no longer a slam dunk. Crate and Barrel, which once dominated a five-story building on Michigan Avenue, is out and a completely new Starbucks experience will take over. Their “roastery” concept will far exceed a typical store and genuinely be interesting to visit. While a company like Starbucks can pull this off, it is fair to wonder how many more retailers can develop a similar experience of this magnitude and be able to afford the rents these locations command.

As shopping experiences evolve, expect more and more of the classic stores to go by the wayside. Tenants will need to get more imaginative and give customers a reason to get away from their computers and phones. As we have learned, in all branches of real estate, change is the only constant. So, what will the new generation of savvy retailers create in the next retail revolution?

I can still see the poster hanging in my third-grade classroom: “Listen and silent have the same letters for a reason.” At the time, I thought it was a teacher-way of saying “lights off, voices off”. Fast forward to today, and I now know the poster meant a whole lot more.

Almost all of us talk to people every single day, but dare I say that very few are good listeners? It turns out that listening takes more than just being silent.

So, what does it take to be a good listener and why is it important? Here are 4 things I’ve learned and try to keep in mind:

1. Listen to get out of the small talk rut
“How’s business? How ‘bout this weather we’re having? How ’bout them Sox/Cubs?” Those are good openings, but take it bit further and ask a follow-up question. “What are you looking forward to this month?” “What season is your favorite?” or “How long have you been a fan?” People generally like to talk about themselves. Learn something, remember it, and mention it the next time you see that person. They’ll appreciate you paying attention.

2. Listen and don’t make it about you.
I was talking with one of my friends recently about a problem. By the end of the conversation, I realized our roles had flipped and we had started discussing her similar problem and I became the one listening and giving advice.

When someone is talking, remember: It. Is. Not. About. You. Yes, it’s good to offer relatable points or a similar story if it can help. But listening means you must take a genuine interest in the other person rather than finding ways to make you seem interesting to them. Leave your ego at the door.

3. Listening means you don’t talk. Aim to speak for no more than 90 seconds at a time (unless your point is particularly riveting)
I love my grandma. We all love her. But we know when we get her on the phone, it is going to be a minimum 8-minute straight monologue. I remember a time my dad was talking to her on the phone, fell asleep, woke up some time later and she was still talking, completely oblivious. As much as we enjoy hearing about the “good, fresh, bread” she got on sale (plus she had a coupon, and it was 5% off day because her friend Linda told her about the senior discount last Saturday when she was over at her house to watch the Wild game), it’s nearly impossible to have a true conversation with her. For grandmas, it works. For most of the rest of us, it does not. Be conscious of how the people you are talking to are responding. Conversation is a dialogue, not a monologue.

4. Listen to discover what’s expected of you during the conversation
When I call my dad with a problem, I preface by saying “I just want to get this out” or “I want your help, you can give advice when I’m done”. It’s important to understand your role in listening–what does that person expect from you when they’re done talking? If you’re not in a place for the person to spell it out as clearly as I do for my dad, pay attention to their cues and figure out if they just want a pair of ears or need some advice. If they break in their conversation, say “mhm” and give it a few seconds. If they start back up, they probably just want to let it all out.

I thought grownups had it all figured out, yet it can still be painful for me to go to events where I know I will be faced with hours of small talk and conversations that don’t do anything to grow a relationship. I love connecting, I hate small talk. But I’ve learned that, in the beginning, some of that small talk is necessary. It doesn’t take much more than a good listener, however, to take that small talk and turn it into slightly larger talk.

In case there was any remaining doubt, my youth has officially ended. That was my first thought after learning this week that The Loop, one of Chicago’s most iconic radio brands ever, announced that it was selling to a Christian broadcasting company and changing formats after a remarkable 41-year run. The Loop was not just a radio station, it was an institution. It epitomized the fabric of Chicago: edgy, in-your-face, hardworking, rocking-with-attitude, and having a ton of fun along the way.

I have always been somewhat of a radio junkie and during my formative years, The Loop played a huge part in shaping my life. The same is probably true for many people who grew up in Chicago from the late 1970s through the 1990s. Almost everyone in my neighborhood used to walk around wearing those legendary black and white Loop T-shirts and raid the Flip Side record store for free Loop bumper stickers—the same stickers that were plastered all over my bedroom, much to the chagrin of my parents.

The legendary black and white Loop t-shirt

Every male’s first crush was on Lorelai, the Loop rock girl, and we all acquired a healthy hatred of disco, courtesy of Disco Demolition. Not only did The Loop launch my love of rock & roll music, but it was also my link to the older, cooler kids. Our affection for the station was a common bond that helped me gain acceptance into their crowd.

I felt like I was part of an exclusive club, listening to things I clearly had no business knowing about at a young age. Since there were no podcasts or on-demand services back then, I would rush home from school every day to listen to Steve & Garry, as I did not want to miss a single word. To this day, I am convinced that I learned more from listening to this station than from my classes.

While legendary disc jockeys such as Bobby Skafish, Sky Daniels, Patty Haze and Bob Stroud were spinning tunes, the true game changer for me was when I first heard Jonathon Brandmeier in the morning. I would think, “Wait, can you really say and do these things on the radio?” Jonny B’s show was simulcast on the new Loop, AM-1000, which was a personality-driven talk and entertainment station unlike anything ever on the airwaves. Who knew talk radio could be funny? Talents like Steve Dahl, Garry Meier, Kevin Matthews with his alter ego Jim Shorts, Buzz Killman, Bruce Wolf, and Chet Coppock comprised arguably the greatest radio station ever.

Even after a series of events caused the AM Loop to break up, the FM Loop kept going strong. As the commercial said, you can’t stop rock & roll (shout out to Joey Bag of Donuts)

While these days I prefer to Hit ‘em with the Hein on Sirius XM due to the sad state of Chicago radio (a blog for another time), I would still listen to the Loop whenever I needed a classic rock music fix and it was always reassuring to know the station was there.

In its own special way, the Loop was as much of the fabric of Chicago as the Bears, Michael Jordan, Wrigley Field, The Mag Mile, Lake Michigan, and so many of our amazing skyscrapers along the beautiful skyline. Just as 233 South Wacker Drive will always be the Sears Tower, 875 North Michigan will always be the John Hancock Center and Macy’s will forever be known as Marshall Fields, FM-98 will always be the Loop to me no matter what is broadcast over its airwaves. Long live rock, Chicago and the Loop.

Since I started doing a monthly blog for our company website and the Intelligent Office Blog in 2015, I generally have been successful in coming up with topics fairly easily. This month? Not so much.

I have piles of random thoughts rolling around my mind–some commercial real estate related, some not–but none detailed enough to pull off a 500+ word article. Therefore, out of desperation if nothing else, I hereby present to you a series of arbitrary ideas, points, and opinions. Let’s call this “Random Thoughts For February.” Away we go.

• Anyone else get thoroughly confused/annoyed when someone calls, emails, and texts you the exact same message within a 30-second span? And then why do I always seem to pick the wrong means to respond?

• When given a choice, I will always select a small, local business over a national chain to do a job. Us mom-and-pops need to stick together.

• A personal message to several individuals who own real estate in the downtown Chicago market: Why is it so hard for you to keep your word? If you sign a commission agreement committing to pay someone by a certain date if a series of events transpire, follow through on your promise. I did my job, now you do yours. When one of your tenants is late with rent, you put a 5-day notice in front of them on day 6, yet when I inquire about a tardy commission payment, I need to be more patient and show more compassion. Of course I do.

• For those owners who do keep your word, I appreciate you more than you will ever know.

• I used to like cold weather and snow. As I get older, I dread it more and more each year. I now understand the snowbird concept.

• Charleston, South Carolina is the most underrated city in America and has the best food on the planet (with the exception of pizza). My next career move will be to retire there and open a Lou Malnatti’s franchise.

• If I get something for free, I really have no right to complain about the service, do I?
• For my money, there is no nicer building in Chicago, from the outside (and in the lobby), than 77 West Wacker. It is a true masterpiece and I never get tired of staring at it.

• I no longer feel guilty when I bump into someone who has his or her head buried in their phone, not paying attention to where they are going. Just watch where you are walking! It is not too much to ask.

• Along the same lines, to the person at Ogilvie Transportation Center this morning who thought it would be fine to stop inches in front of a revolving door to send a text with at least 40 people trailing close behind, get a clue.

• Anyone know a broker looking to make a change? Willard Jones Real Estate is looking for a few good people to join our gregarious team.

• While I love everything about Amazon, can you please make a second headquarters decision already.

• No, Mr. Tenant, I did not secretly insert language into the lease that you signed 3 years before I even started representing your building without your knowledge.

• It takes very little effort to be nice to others. Just treat people the way you want to be treated and you can never go wrong.

• Am I a fool for starting to get excited about the possibility of the Loyola Ramblers making the NCAA basketball tournament, or am I just setting myself up for another disappointment? My motto of “no expectations = no disappointments” has always served me well with LU basketball (not to mention the Bears, Bulls, Hawks and Sox).

• I really need to find a way to get more sleep.

Finally, my most important thought of all. The real estate world lost another superstar recently when Cindy Freese of the Cloverleaf Group passed away in December after a heroic battle with cancer. Cindy, along with her business partners Michael and Jonathan Basofin, will forever be towards the top of my favorite client list. Cindy was one of the nicest people you will ever meet and was always more concerned about others than herself, even after her diagnosis. Before talking business, she never failed to ask for a status report on me and my family. Cindy was a deal maker at heart, always trying to find any and every creative way to shoehorn a potential deal into the 174 North Michigan building, which to be honest, was not an easy task. Even though my dealings with Cindy ended when Cloverleaf sold the building in 2015, we continued to stay in touch and I am heartbroken to learn of her passing. I will always fondly remember how wonderful Cindy was.

Happy New Year! As we dig into 2018, it is time once again to pull out the crystal ball and predict what events lie ahead. Before we start, let’s look back and see how I did in 2017:

1) With the increased supply caused by new construction and resulting shadow and sublease space, the total vacancy will rise by approximately 1.5%. Close. It actually went up 2.3%.

2) Average rents will increase slightly in the first half of 2017, then begin to plateau for the second part of the year. Average tenant improvement allowances, rent abatement, and other incentives will remain about the same as last year. Generally true.

3) The Old Post Office will land a significant anchor tenant who will occupy over a quarter of the building. Other smaller tenants will commit as well over the course of 2017, as this notable redevelopment becomes a quick success. Not yet. Could Amazon be the first and only?

4) The bloom will be off the Fulton Market rose just a bit, as several of the new office buildings either planned or under construction will struggle to fill space.This will lead to a slowdown of new development projects for a while. Wrong. Not only is the space briskly being filled, even more buildings are planned.

5) The sales market will remain quiet for most of 2017. In the fourth quarter, however, things will begin to loosen up just a bit and price expectations will be dialed back a notch. This will allow for some of the investors who had been sitting on the sidelines for the past few years to start getting back in the game. The market did remain relatively quiet for much of the year, but there has been no loosening up yet.

6) Just when we thought Loop office development would be on hiatus for a few years, the market will be shocked by one more announcement: a new tower located on the General Growth site at 110 North Wacker Drive to be anchored by a well-known, Fortune 500 tenant who will take occupancy in early 2021. Yes! Thanks, Bank of America for making me look good.

7) In spite of the planned redevelopment of the Tribune Tower, CIM Group will decide to keep floors 3 – 7 for office use and sign WGN Radio to a long-term lease. As part of the new deal, they will be forced to abandon their ground floor studio, which will be leased to a national retailer for $300 per square foot. Wrong. WGN is off to 303 East Wacker and development plans for the Tribune Tower have yet to be announced.

8) Leasing activity will remain slow in Goose Island. However, the city will announce a series of notable infrastructure improvements that will make this sector much more accessible to prospective users long term. Success will come, just not as fast as most hoped. Activity did remain slow, but the infrastructure improvements are still in the discussion stages.

9) As part of the City of Chicago’s astonishing decision to legalizing sports gambling, plans will be announced to construct a land-based casino on the site of the former Michael Reese hospital, kicking off a billion-dollar development which will include hotels, retail and housing. Wrong, but still a good idea.

10) Let’s try this one once more: A grocery store will sign a lease in the East Loop this year to cater to the rapidly growing residential population in the central business district. Still, no. I am giving up on this one, which means it is certain to happen in 2018.

Overall, not too bad. Can I top my performance in 2018? Here are my best guesses:

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 as and might even lead to an advantage in certain circumstances. For the most part, though, we will be at equilibrium.

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.

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.

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.

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.

6) After being declared a finalist, Amazon will ultimately not select Chicago for its HQ2. Atlanta will be declared the big winner.

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.

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.

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.

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.

Best wishes for a happy and prosperous 2018!

2017 has certainly been a year for the ages. In spite of all the controversies and uncertainty, the downtown Chicago commercial real estate market kept chugging along at a solid pace. While not quite as active as the past few years, vacancy remained relatively low and rental rates and sales prices continued to push upward. Let’s look back on the top 10 events that made this past year interesting.

10. Macy’s Shedding Space – After years of speculation, Macy’s finally announced plans to downsize their iconic State Street department store. Brookfield Asset Management is redeveloping floors 8 – 14 and while their plans have not officially been announced, it is expected that they will convert these 700,000 square feet into loft office space that would be accessed by a newly created office lobby.

9. The Old Post Office Returns to Relevance – As one drives down Congress Parkway, it is a wonderous sight to watch this hulking edifice gradually come back to life after nearly two decades of dormancy. The renovation is now in full swing and the building is actively courting tenants with their plans for a high-end amenity package, creative atmosphere, and all new finishes.

8. Changing Face of Retail – E-commerce is forcing retailers to offer their customers an enhanced shopping experience as an attempt to get them offline and into stores. Those who cannot adapt will not survive and this metamorphosis is being illustrated on the Mag Mile, which has unprecedented availability as several notable retailers have already–or are looking to–vacate. Crate & Barrel is one example, as it will soon be replaced by a gigantic Starbucks Roastery which is expected to be just as much of a museum as it is a store.

7. The Ever-Growing Boundaries of Downtown Chicago – Move over Goose Island and Fulton Market, it’s time for some new hot spots. Riverside Investment & Development and Tribune Media are teaming up to create the River District, a 37-acre site at 700-777 West Chicago Avenue–right where River North, River West and Goose Island all come together. This site will feature as many as 18 mixed-use buildings totaling 9 million square feet, as well as a river walk. Not to be outdone, Sterling Bay’s Lincoln Yards development will create a 70-acre mixed-use site along the North Branch of the Chicago River where Lincoln Park and Bucktown meet. In addition to office, retail and residential buildings, a soccer stadium/concert venue is planned.

6. Still No Slowdown in Fulton Market – Just when it seemed like there was nothing left to develop, Fulton Market kept churning out new deals and development plans. Notable leases in 2017 include WPP committing to over 250,000 square feet in a planned 24-story Sterling Bay Development at the former Coyne College site and Leopardo Construction leasing a full floor at the soon-to-be-completed 210 N Carpenter building. Among the plethora of development plans announced include IBT Group’s proposed 1.2 million square feet of office, hotel and retail tower at 1200 West Fulton, as well as Shapack Development’s 17-story office development at Lake and Halsted.

5. Media on the Move – With the Tribune Tower redevelopment project approaching, two of the most legendary media empires, the Chicago Tribune and WGN Radio are being forced to relocate. Tribune Media is off to the Prudential Building, while WGN is heading to 303 East Wacker. Not to be outdone, the recently-acquired Chicago Sun Times vacated their riverfront location at 350 North Orleans and headed west to Fulton Market, setting down roots at 30 North Racine.

4. Welcome to the Skyline – After a lengthy break from new development, 444 West Lake and 150 North Riverside opened and welcomed an all-star cast of tenants, creating a chain reaction of new vacancy in some highly desirable properties. Adding 151 North Franklin and 625 West Adams to the mix in 2018 may very well push the pendulum slightly to favor the tenant when it all shakes out.

3. The Biggest Gets Better – A $500 million dollar-rehabilitation of the Willis Tower is now underway and will feature a new, three-story glass retail structure on the lower floors, three additional underground floors, restaurants, a fitness center, tenant lounges, 30,000 square feet of outdoor space, and upgrades to the common areas and Skydeck.

2. Even More Development – Just when it appeared as if this current development cycle had concluded, Riverside Investment & Development and the Howard Hughes Company jointly announced plans to erect a 1.35 million square foot office tower at 110 North Wacker Drive–the current site of the low rise General Growth Properties building. Bank of America has been confirmed as the anchor tenant and will be occupying approximately 500,000 square feet when the building opens in 2020.

1. HQ2 Fever – The possibility of Amazon choosing Chicago as the home for their second headquarters has rightfully dominated the news for the last quarter. The fantasy of gaining up to 50,000 new jobs, along with ancillary development, economic growth, and the national attention it would bring to Chicago could go down as the most meaningful event to ever transpire in our city. Between the speculation over where the site would be located (Old Post Office? Fulton Market? Lincoln Yards? River District?), to trying to figure out what incentives the city and state have offered, it has been fun to wonder.

There you have it. What is in store for 2018? In my next blog, I’ll let you know what I predict to appear in this annual recap one year from now. Happy Holidays everyone!

Think back to the last time you shopped around for an apartment. Likely, the process was straight-forward and to the point: figure out your budget, pick a neighborhood, set aside a couple of days to tour, select a place you like, fill out the application, then sign a lease for a year or two. Apartment units are generally well-maintained and move-in ready, so there was probably no talk of demolishing or constructing walls, re-painting with wild colors or replacing carpet. The goal was to get in there fast and make it work.

Now, let’s contrast this with searching for office space. Traditionally, it is a much more cumbersome process which can easily drag on for many months. Since office leases are usually a longer term and greater in value, more time is spent searching for just the right space, negotiating every deal term, and constructing the space to the tenant’s exact specifications; that’s the way it has been done for years. Recently, however, it appears that we are on the cusp of a fundamental shift in the way businesses office.

Millennial attitudes and expectations now place greater emphasis on flexibility, move-in readiness, and amenities. What does that mean for the next generation of office space? For example, let’s look at a tech firm. While the company is starting up, co-working space will serve their needs well. The firm can walk into a building with pre-built, move-in ready suites, standardized layouts, and the option of furniture in place. It is only logical that at some point, though, that business will want to take the next step up from co-working space and graduate to a private, autonomous atmosphere.

Rapid growth in co-working space for smaller-sized tenants combined with larger office buildings adding common amenities at a robust pace is putting pressure on office buildings to become a hybrid of office space, apartments, and hotels.

Attentive landlords have caught onto this trend and have already started creating small and mid-sized prebuilt offices positioned as both an alternative to shared office space as well as an option for young companies who have outgrown the co-working model.

To facilitate this new approach, expect to start seeing even more buildings demise larger-sized suites into smaller units ranging from around 1,000 to 10,000 square feet, and molding them into a move-in ready state. These smaller suites will be designed for shorter terms, likely 3 years or less, which will fit right into the desired strategy of the new era business model. By breaking up larger sized suites into smaller units, buildings will not be as devastated if one is vacated, as compared to a situation where a large tenant moves out and leaves a building half empty. Landlords will benefit because these types of spaces often lease quickly and at higher rents, as tenants have demonstrated a willingness to pay more in exchange for flexibility.

If the system is functioning, turnover costs are less, as tenant improvements will not be required each time a space changes hands and only some elementary redecorating will be needed every few years. If a tenant moves out, another should come along and fill it shortly thereafter, just like an apartment.

The hotel component comes in with the amenities, many of which are offered by the co-working providers. These features include things like shared conference facilities, w-fi lounges with big screen televisions and gaming, food service onsite, fitness centers, rooftop decks or equivalent outdoor space, bike storage, ability to bring dogs into the building, and concierge service. Having a plentiful supply of shared elements makes tenants even more willing to go along with the standardized layout approach for their office as they are buying into the entire package offered by the building, not just the space.

While news and statistical analysis of the office market mostly made up of large tenants who work in Class A properties, small and mid-sized users have always been the lifeblood and will be the ones to lead the thrust into the next generation. While there are now and will continue to be certain types of tenants—law firms and medical tenants, for example—who will have no interest in this type of arrangement, technology, media, creative-oriented firms and nonprofits will continue to propel this fundamental transformation.

Tenants no longer want to wait 6 to 12 months to find a space, take time to execute a lease, and build it out. In a world of Amazon prime and same-day grocery delivery, the demand for getting things now has increased in all areas and office space is no exclusion. Change is the one constant in real estate and perceptive landlords who are willing to adjust to the market demand and stay ahead of the curve are the ones who stand to benefit the most as we move into the next decade.

If these last few months have taught us anything, it is how truly fragile life can be. Collectively, we have witnessed way too many horrific tragedies and natural disasters as of late. The Las Vegas shooting, along with Hurricanes Harvey, Irma and Maria, have caused permanent destruction – both physically and mentally – that have altered many innocent lives forever. While human life supersedes everything else, there is also a palpable element of buildings and businesses being crippled and in some cases, ruined beyond repair. Everything is seemingly fine one moment, then in the blink of an eye, everything can change.

The latest example, albeit on a smaller scale, happened a few days ago when a local storefront theater in my neighborhood burned down due to a freak electrical fire. I had tickets to attend a children’s show there with my daughter this past weekend. If the show would have been scheduled one week earlier, the fire would have occurred right as the show was beginning. Though it was incredibly lucky that no one was hurt, the theater now needs to be re-built from scratch. The founder worked so hard to create this business from the ground up, putting in incredible amounts of time and capital. It took a few years, but recently the theater seemed to hit its stride and fill an important niche in the community; just like that, it is all gone.

The sad reality is that tragedy can strike any one of us at a moment’s notice. It is borderline terrifying to ponder, but as a business owner or manager, it’s necessary for an action plan to be in place. There are many important points to consider and questions to ask to ensure that you are prepared should something happen.

Here are a few key questions to keep in mind so that you are equipped to handle any emergencies :

• Is there a contingency plan in place? Do you have the necessary updated insurance lined up if the unthinkable happens, including business interruption insurance? As the business grows, insurance should be adjusted accordingly to adequately reflect new circumstances.
• If your business suffers a catastrophe due to a fire or natural disaster, will you be completely shut down until repairs are made or can you work remotely? If not, can a temporary office space be obtained to help get through the reconstruction period? Does your landlord have other buildings in the area which can be offered as interim space? After the hurricane in Houston, many firms moved their office to co-working facilities while their buildings were being repaired.
• Modern technology has made it easier to work from home or at a local coffee shop for a few days. In case of a fire or natural disaster, is all of your data backed up sufficiently, whether it be in the cloud or on backup drives? Without this, working remotely may not be an option.
• If the catastrophe strikes during the business day, does everyone in the office know the proper evacuation route? Other than calling 9-1-1, are there any contacts within your building who could be of assistance?
• Is your building or facility properly equipped with smoke detection systems and sprinklers in case of a fire?
• Does your place of work have a proper security system in place, whether it is a guard on the premises or an alarm or buzzer to keep out unwanted guests?
• If crisis counselors are ever needed to assist fellow staff members in coping with a particular occurrence, do you know who to contact?
• In the case of a small business run by a sole proprietor, is there a contingency plan in place if something abruptly happens to the owner? Will employees continue to get paid? Can the business continue to function?

Ultimately, while tragedies and trying conditions are never going away, the more you prepare when times are calm, the better the chance you will be able to successfully cope.

Outside of debating who the Bears’ starting quarterback should be, the number one topic of discussion in Chicago these days involves Amazon’s headquarters announcement. Do we really have a chance to land HQ2? Are they seriously considering other cities? How many people would they hire?

I have never seen a story take on a life of its own so quickly but it’s fascinating to ponder the possibilities. On the surface, it appears as if Chicago really does have a legitimate opportunity to make this happen. Sure, other venues such as Atlanta, Boston, Denver, New York, Philadelphia and Washington DC are formidable contenders indeed, but in my semi-biased opinion, Chicago really does check all of the boxes.

1. We have the population. There over one million people in the metropolitan area. We have access to first class universities both in the city and in the immediate Midwest region. We have the necessary public transportation and an international airport with numerous direct flights to and from Seattle (where Amazon’s current headquarters is located). Not to mention the culture, a vibrant tech scene and of course, plenty of solid real estate options.

2. We have the Amazon presence. The company just expanded into 70,000 square feet at the Franklin Center and added 8 warehouses and a sorting center.

3. We have a vast history of housing corporate headquarters. We all remember when Boeing decided to fly its headquarters from Seattle into town back in 2001. National department stores, like Sears and Montgomery Wards, once called Chicago home and one can argue that Amazon’s platform is the next logical progression from these catalog houses that ruled the way Americans shopped for so many years.

So when news of the story broke, my immediate thought for this month’s blog was to analyze all of the potential city locations for the corporate headquarters. After reading 20 different articles already doing this, however, I decided to back off and take a different angle.

While landing Amazon would be quite the coup for Chicago, suppose that they do eventually bring in 50,000 new jobs. How would this impact the city? The positives are substantial: they would make a reported $5 billion dollar investment in the area, add increased tax revenue (eventually), amplify prestige–which could very well attract more corporate headquarters in the future, create an almost certain tightening of the real estate market (both residential and commercial), generate more development in all sectors, and a produce a strengthened job market.

While the benefits are appropriately touted, there is another side being neglected in the analysis…

•Can downtown really support 50,000 more people?
•Given the anticipated vast number of relocations to Chicago, where will these people live?
•How will they get to work?
•Can the CTA and Metra handle the additional demand?
•Whether it be more frequent trains and additional cars on each route, are the funds available to run additional service?
•Can our already-packed expressways handle more volume, or will suburbanites working downtown need to leave at 6:00 AM in order to arrive to work at 8:30?
•How will our aged infrastructure hold up with increased demand?
•Can the schools handle more students if people are moving to the city?
•Can emergency services handle the additional demands?
•Will the increased demand for real estate end up driving people out?
•Will Chicago become too high priced, a la Manhattan?
•Will downtrodden neighborhoods gentrify to the point that there will be no more affordable housing?
•Will the city and state be able to get their act together to put together an incentive package great enough to lure Amazon?
•Will the amount needed to lure them be so great that it will be counter productive?

These are just a few of the questions that need answers. At the end of the day, though, Amazon HQ2 in Chicago would truly be a transformational experience for our city; it would impact all Chicagoans and certainly take some getting used to. Can we handle it? I would love the opportunity to see us figure it out.

I recently listed to a town hall style interview/concert with the legendary musician Billy Joel. I have always been a fan but never realized until now how truly meaningful the titles and lyrics are in many of his songs.

I also noticed that some of his sage advice applies remarkably well to the real estate industry. Since he will be bringing his brilliant act to Wrigley Field on August 11, this is a timely opportunity to take a closer look.

I. Applicable Song Titles

• Movin Out
The deal is done and notice is given to all parties involved. We are blowing this pop stand and heading on to greener pastures.

• The Longest Time
For those lease deals that should take a month–two, tops–to complete, but actually take a year to close.

• Honesty

The one courtesy to always extend to all participants in a transaction.

• Pressure

This one is self explanatory. Need evidence? Check out my rapidly thinning hairline.

• A Matter of Trust
The key to a successful relationship between either a broker and client, or tenant and landlord.

• New York State of Mind
For all of our respective New York clients who insist on always telling us how things are done in the Big Apple. With all due respect, this is Chicago. We don’t care!

II. Relevant Lyrics

• Why Should I Worry
Once you hit on that first deal, you feel like the city is your oyster.

The rhythm of the city
But once you get it down
Then you can own this town
You can wear the crown
Why should I worry? Tell me.
Why should I care?
I Said, I may not have a dime. Oh!
But I got street savoir faire.

• Scenes From An Italian Restaurant
Obviously, the key to a happy life is having a good office, right?

Things are okay with me these days
Got a good job, got a good office

• Summer, Highland Falls
In honor of the many ups and downs we endure.

Now we are forced to recognize our inhumanity
A reason coexists with our insanity
Though we choose between reality and madness
Its either sadness or euphoria

• You May Be Right http://www.youtube.com/watch?v=cih0btgJw8s
For those times when you offer advice to those know-it-all clients, only to have them look at you as if you need professional help.

You may be right
I may be crazy
But it just may be a lunatic you’re looking for
Turn out the light
Don’t try to save me
You may be wrong for all I know
But you may be right

• The River of Dreams
When clients insist on searching and searching for that perfect space that doesn’t exist:

I know I’m searching for something
Something so undefined
That it can only be seen
By the eyes of the blind

• It’s Still Rock and Roll To Me
In the world of office leasing, tenant preferences and demands constantly change. While you need to keep up with the times, the fundamental lessons of real estate still remain the same.

Oh, what’s the matter with the crowd I’m seeing?
“Don’t you know that they’re out of touch?”
Well, should I try to be a straight-A student?
“If you are then you think too much
Don’t you know about the new fashion, honey?
All you need are looks and a whole lotta money”
It’s the next phase, new wave, dance craze, anyways
It’s still rock and roll to me

• Big Shot

When you open your know-it-all mouth one too many times…

Because you had to be a big shot, didn’t you
You had to open up your mouth
You had to be a big shot, didn’t you
All your friends were so knocked out
You had to have the last word, last night
You know what everything’s about
You and to have a white hot spotlight
You had to be a big shot last night

• The Stranger
We all screw up from time-to-time. No one is perfect. Pick yourself up, try again and be supportive when others make mistakes.

Don’t be afraid to try again
Everyone goes south every now and then
You’ve done it
Why can’t someone else
You should know by now
You’ve been there yourself

• The Downeaster Alexa Working on commission can be rough. At the end of the day, we have families to support and the pressure mounts when deals are not getting made.

I got bills to pay and children who need clothes
I know there’s fish out there but where God only knows
They say these waters aren’t what they used to be
But I got people back on land who count on me

• This is the Time http://www.youtube.com/watch?v=1M443VsY4XI
We may gripe and moan about our jobs a lot, but admit it, we would miss it if it was gone.

This is the time to remember
Cause it will not last forever
These are the days
To hold on to
Cause we won’t
Although we’ll want to
This is the time
But time is gonna change

•I Go To Extremes
When a deal is about to go south and we are just about at the breaking point.

Sometimes I’m tired, sometimes I’m shot
Sometimes I don’t know how much more I’ve got
Maybe I’m headed over the hill
Maybe I’ve set myself up for the kill
Tell me how much do you think you can take
Until the heart in you is starting to break?
Sometimes it feels like it will

• Keeping The Faith
Don’t worry, it WILL get better…

You can get just so much
From a good thing
You can linger too long
In your dreams
Say goodbye to the
Oldies but goodies
Cause the good ole days weren’t
Always good
And tomorrow ain’t as bad as it seems

• Vienna
Billy Joel sums it all up perfectly in this song. It is a good reminder to work hard, but not let the profession consume your life. There are so many salient points in this masterpiece; I have decided to close this blog by presenting all of the lyrics in their entirety. See you at the concert!

Slow down, you crazy child
You’re so ambitious for a juvenile
But then if you’re so smart, then tell me
Why are you still so afraid?

Slow down, you crazy child
And take the phone off the hook and disappear for awhile
It’s all right, you can afford to lose a day or two
When will you realize, Vienna waits for you?
And you know that when the truth is told
That you can get what you want or you can just get old
You’re gonna kick off before you even get half through
Why don’t you realize, Vienna waits for you