Willard Jones Real Estate

Life isn’t fair!

Why do bad things happen to good people?

Why me?

What have I done to deserve this?

Why must I suffer like this?

In life, tragic events that simply defy logic and explanation occur on a regular basis. It is common for so many people to continuously utter the aforementioned expressions and possess such self pitying thoughts. Matt Gould was never one of these individuals. Heaven knows he had every right to be, but that is just not the way this remarkable and inspirational individual was wired.

Matt passed away this week at the way-too-young age of 44. If you work in the real estate industry, there is a good chance you had the privilege of meeting Matt at some point over the past two decades when he worked either as an office broker at Real Estate Consultants, Rubloff, or for the last 11 years as a retail broker at Mid-America.

Matt’s spirit was unparalleled. He was the most positive, energetic and kind-hearted person in the business; no one ever had a bad word to say about him. He worked hard, always kept things light-hearted, played by the rules and cared deeply about his clients. They, in turn, reciprocated.

Matt and I met early on in our respective careers when he brought a client by to see a space I was marketing. We hit it off instantly and, from that point forward, went out of our way to try and do business together. After attending an industry event with Matt one night–having had just a bit too much to drink–we determined that we had to find a way to work together. The next day, I called the owners of Rubloff and told them that we needed to add this guy to our team. We quickly set up a meeting and fortunately, they saw the same traits in Matt that I did. Our 5 years together at Rubloff were filled with many ups and few downs. I often told him that as co-workers, we were better as friends. Still, I honestly enjoyed every minute.

While I struggle to make sense of what happened, I take comfort in our many joyous memories. It is difficult to mention them all, but here are a few of those clean enough for sharing in a public forum.

Matt and I complemented each other well and shared a similar mindset, as well a few silly superstitions. For example, prior to doing a showing for a good sized vacancy we had been marketing in the South Loop, we stopped in a greasy spoon for lunch. For some reason, we both ordered a plate of turkey and broccoli smothered with cheese sauce; it was utterly disgusting. However, we ultimately ended up making the deal and there was no doubt in our minds that it was due to this very meal. From then on, whenever we had a big meeting, we would first stop at this restaurant and “enjoy” the same dish.

Then there was the frustrating and futile attempt at leasing the dysfunctional Pittsfield Building. Initially, we were excited to get the listing, but really had no idea what we were getting ourselves into. The building was falling apart, the owner would not spend money and invoices were never paid on time. On our first day, it took us 7 hours to get through all of the many vacancies. I had my fill early on, but like he did with everything in life, Matt powered through and refused to give up. As always, he made the best of the situation. He befriended a group of very difficult tenants and even won over the owner, who I am convinced never liked a broker in his entire life until he met Matt.

I think back to our endless sports debates that usually led to disagreements (with the exception of our mutual love for the White Sox). We always overanalyzed everything related to fantasy football but our favorite topic was the NBA. The biggest Lakers fan in Chicago? Matt Gould. I would be a billionaire now if I had a penny for every time I heard the names Kobe Bryant or Shaquille O’Neal.
Without a doubt, however, my favorite Matt Gould memory has to do with his saint of a wife, Janel. I am proud to report that I can take at least partial credit for making the introduction. Janel had been working in the Office of the Building at 100 West Monroe, where our office also happened to be located. It was obvious that sparks were flying the moment they laid eyes on one another. After a few days, she commented that they “connect on an entirely different level”. Matt thought they were keeping their dating a secret, but everyone was on to them and could not be happier that they found one another. After some time of their indiscreet office dating, they decided to take it to the altar. Their wedding was one of the best I ever attended and I was honored to be part of that special day.

Some time later, Matt informed me that he had accepted a job with Mid-America; it was tough for me to swallow. On one hand, I knew it was a great opportunity that he could not pass up but I was saddened to see him go and knew that the office would never be the same. He made the right move, though, as he instantly found his niche in the industry and enjoyed significant and deserved success while touching many people along the way.

He was so altruistic and was always willing to put someone else’s needs before his own. I think back to the time I had a health issue which kept me out of the office for an extended period of time and Matt seamlessly picked up the slack and never once complained. A few years ago, when Janel courageously endured a health challenge of her own, Matt never lost his positive outlook on life. I knew he was torn up inside and terrified at what might happen, but he never let on. He simply supported her unconditionally and held the family together. Not only was he an amazing husband, but also a remarkable father to his adorable twin girls, Ava and Olivia.

Just a few months after Janel returned to good health, we learned of Matt’s cancer diagnosis. Everyone was completely floored; I still cannot wrap my mind around it. In true Matt form, however, his approach to life never changed. Throughout the endless number of chemotherapy sessions, he continued enjoying life to the fullest, never stopped joking around, and refused to give up. This darn guy even ran a marathon–and finished!–to raise money for cancer research while undergoing treatment.

Even in his hardest times, he was consistently one of the most positive and inspirational people I knew. It is rare when one is fortunate enough to meet a person who truly changes your life.

My Sunday mornings will never be the same without his endless number of text messages asking who he should start in this week’s fantasy football game. I will miss our mutual pep talks about our respective struggles in real estate and his smartass, juvenile, yet hilarious sense of humor that would always brighten my day. As painful as it is to lose him, I am heartened by that fact that Matt truly got every ounce out of his life.

Matt, thank you for all that you shared. Thank you for being my friend. I will never forget you.

Matt’s family requests that donations in his honor be made to the American Cancer Society (www.cancer.org).

Back by popular demand, I hereby present: More of the Most Outrageous Stories that I Have Encountered During My Career. While I would not necessarily place these in the Murphy’s Law category, looking back, they are quite amusing. Here we go.

1) In a building I formerly leased, a corner retail space became available on a prominent Loop corner and we had substantial interest. Perhaps the most persistent prospect was a well known fast food establishment. The use was not exactly what we had in mind, but their national real estate director was able to persuade the owner into a face-to-face meeting. He entered into the owner’s office dressed in a nice suit with a presentation in hand that he clearly spent a great deal of time on. His introductory words were barely out of his mouth when the owner cut him off with a question I will never forget: “I just have one single question for you: How the hell are you going to prevent my building from smelling like your f***ing hamburgers all day long?” Yada yada yada, a bank is now located at this site.

2) For that same retail space, we ended up having two financial institutions actually get into a bidding war, so the owner decided to meet with the respective bank presidents before making a decision. One was a national player who had a clear advantage going into the meeting; the other was a growing local bank and on the day of the meeting, the president and his attorney came in with a long, drawn out presentation. Frankly, this was not the right approach to win over this particular owner. Right in the middle of the meeting, the owner excused himself, walked into the adjacent room (still in clear sight of everyone) and opened up a wooden closet which contained a sink. He unzipped his fly and took care of business, essentially right in front of the bank president. Clearly flustered after that, the presentation came to a quick end. Afterwards, the owner said that he needed to get that guy out of his office and that was the best way he could think of to make that happen. We also learned that his coffee mug that he was incessantly sipping on throughout the meeting was filled with beer.

3) While working at Rubloff, one of the owners asked me to accompany 4 developers in town from Seoul, South Korea on a tour of several Class A Loop properties so they could get ideas for a new office tower they were planning to develop. Three of the four individuals did not speak a word of English and the one who did was shaky at best. Halfway through the tour, we took a break for an hour, went our separate ways and decided to meet back up on corner of Michigan and Wacker Drive. I showed up to what I thought was the designated meeting place but the group was nowhere to be found. This was pre cell phone, so I had no way to reach any of them. I was in a complete panic and feared an international incident was on the horizon. I just started walking around and miraculously, there they appeared … on Michigan and Wacker Place. They had gone shopping at Marshall Fields and bought me a picture frame to thank me for my time.

4) In a rather dysfunctional building that I used to lease, we rented a space to two gentlemen claiming to be jewelers. The build out was not very complicated and the tenant needed to take occupancy within 30 days of lease signing. As we crept up on the possession date, I walked into the space to check on the progress and not a single thing had been done. The property manager completely dropped the ball. The tenant was furious and made all kinds of threats against everyone, myself included. Ultimately, we ended up letting them out of their lease. Fast forward to two months later, someone from the Department of Homeland Security showed up to the building with pictures of these two individuals and asked many questions. As it turned out, they were being investigated on the suspicion of participating in terroristic activities.

5) My favorite lobby attendant ever was an 80-year old gentleman named Nick. All of the tenants loved him and I purposely showed up early prior to tours just so we could talk. Nick was not a big guy, but even at 80 years old, it was best not to mess with him. Case in point, a messenger was riding down the elevator with a woman and as the elevator doors opened, the messenger forcefully grabbed her purse and starting running. She screamed and Nick went chasing after him, actually caught him and held him down until the police arrived. He lectured the messenger the entire time to do better and make something out of his life, making for quite the memorable surveillance video.

6) One of the more difficult clients who I had the (mis)fortune of representing for nearly three years really put me though the ringer. I actually tried to fire her several times, but she told me that I was not her father and could do no such thing. Fortunately, we eventually found a space for her store. Unfortunately, patience was not her strong suit and she started construction early without either a permit or landlord approval. Her second-rate contractor promptly cut a main power line which effectively shut down the building’s parking garage for three days. The owner was not too happy and stuck her with the bill. Predictably, this was all my fault for introducing the space to her in the first place.

7) An owner who I used to do work for often liked to meet with prospective tenants if we ever needed help getting across the finish line on a deal. I took him up on the offer once when we had a few stubborn lease issues that could not be resolved. The owner was in his 60s at the time, while the two principles of the firm were in their early 20s. From the start, it was oil and water. The meeting ended after ten minutes with the owner yelling (something I never witnessed before), “You young whippersnappers think you have all the answers, but you do not know the first thing about running a business. Get out of my building; I will never rent space to you.” The tenant yelled back with a few choice words to the “old man” and left. The owner then looked at me and said, “If I need to experience that kind of treatment, I can call my son. He will gladly treat me that way.” As a side note, the owner was exactly right (as always). A year later, the business was caput.

8) A halfway decent vacant space that I was showing in an otherwise drab building always had one door that was locked. My master key would not open the door and even for showings, the manager refused to unlock it. One day when the manager was on vacation, I complained about the locked door to the building engineer. He took me up to the space, removed the lock and we discovered an elaborate computer network. It turned out that the manager had a day trading operation set up where he would hide out for several hours each day during trading hours. After he was confronted about this, he magically got a new job elsewhere shortly thereafter.

9) My shortest leasing assignment ever was at a star crossed Loop building. I was excited to get the listing because in spite of past problems at the property, it was very well located and there was a good amount of vacant space. After I went over to the owner’s office to hand over the signed leasing agreement, he said, “Well, this is probably as good of a time as any to tell you that I actually have no money right now and will probably have a tough time paying commissions and funding build outs. Will you still stick with me while I figure things out?” Uh, no.

10) A building I formally leased was expertly cleaned for many years by two wonderful ladies of Polish descent who did not speak English very well, or at least that is what everyone thought. One afternoon, one of the women came into the Office of the Building and, with nearly perfect English, described an encounter where she walked in on an attorney and his secretary “having relations” on the conference room table. I’m not sure if we were more shocked by act itself or the graphic description she rattled off; we had no idea she could speak English, let alone describe (in detail) something like that. The next day and from that point forward, it was as though it never happened and we heard maybe 10 words of English out of her mouth.

Lucky for you, I’m still accumulating these “experiences” so don’t worry, I’ll have plenty of blog material for the next few years.

After quite the extensive renovation and expansion, the new Hannah’s Bretzel at 180 W Washington is back open for business. As one of the food places in our spaces, I had to see it for myself (and grab some lunch).

The space, which was previously more of a to-go spot with a few small tables, has been totally revamped with new furniture and designs that encourage you to sit and stay a while. Walk past the ordering counter and you’ll find a bright yet cozy seating area–benches with throw pillows and private nooks. Even with its open layout and natural light, though, candles and lamps throughout create a peaceful, welcoming ambiance among the buzzing lunch crowd.

One thing that didn’t change? The deliciousness of those pretzel bun sandwiches.

Check out a few pictures of the new space:

Hannah’s Bretzel’s hours

Monday: 7:00 AM – 7:00 PM
Tuesday: 7:00 AM – 7:00 PM
Wednesday: 7:00 AM – 7:00 PM
Thursday: 7:00 AM – 7:00 PM
Friday: 7:00 AM – 7:00 PM
Saturday: 10:00 AM – 3:00 PM
Sunday: Closed

As with most things in life, a certain degree of luck comes in handy. However, it seems that Murphy fellow and his wicked Law is always lurking–something out of your control goes awry, thereby wrecking the event.

During my career, I have endured my fair share of these experiences.

For brokers, showings are a critical component of the job. Simply put, showings lead to deals. If we are not leasing space, there is no food on our respective tables. On a typical tour, prospects see several properties in sequence and there is a very limited window to make a positive impression; failure to do so means the deal is going elsewhere.

As a nod to Murphy’s Law, I thought back on a few different times when it truly seemed that whatever could go wrong, did go wrong. Here are a few notable examples. (Names and addresses have been excluded but will be revealed in my book due out in 2033).

1) I have one building where it seems like the locks are being changed on the vacancies every two weeks for no apparent reason. Once, a janitor was supposed to meet me at 9:00 AM sharp to unlock a space. After standing aimlessly with the prospect outside the entry door for a few minutes, I starting calling. On the fourth try, he finally answered in a groggy voice and said, “Dude, I am hung over and somewhere in Indiana. You best break down the door because I ain’t coming.” Since this was a small building with no onsite management, the tour ended abruptly, never to be rescheduled.

2) I scheduled a tour for a vacancy that had not been shown in a few weeks. When I opened up the door, it was magically occupied by a tenant who just moved in. It turned out that the building manager leased the space without bothering to tell me. Later, I learned he did that thinking he could keep the commission for himself.

3) During a tour, I took a prospect into a seldom shown vacancy on the 9th floor. When we entered the only office in the suite not facing the alley, a dead mouse was found right in the middle of the room. After a loud scream, the prospect was quickly out the door.

4) In the same building, on numerous occasions, I encountered roaches (dead and alive) during showings and often had to strategically hop from one area to the next in an attempt to cover the creatures up with my shoe, all while usually receiving puzzled looks. As a side note, why does every building engineer in Chicago emphatically refer to roaches as “waterbugs” and vehemently deny what these really are?

5) While conducting a tour in a building with notoriously awful elevators (even after a multi-million dollar modernization), a prospect and I got stuck on the ride up. The woman started to hyperventilate and I seriously thought she was going to die. After 20 minutes, the elevator doors finally opened and we found the fire department waiting with crowbars in hand.

6) Continuing with the elevator theme in a different property, I showed up 5 minutes before a scheduled showing to learn that the only two elevators were both out of service. The only way to access the floors was by walking the stairs. Of course, the space I planned to show was on the 12th floor. That was quite a message to deliver prior to starting a showing. The broker said he would contact me to reschedule, but shockingly, the client lost interest.

7) While patiently waiting for a tardy showing, a disheveled male entered the lobby and demanded to use a bathroom. Since the gentleman did not have an appointment with anyone, the guard denied access and asked him to leave. The man then promptly unzipped his pants and started urinating all over the security desk. On cue, my showing entered right as this was going on and said, “Oh wow, does this sort of thing happen often here?” As a matter of fact, yes it does.

8) A property I formerly leased had a small tenant who assisted the less fortunate with money management skills. A very good cause, indeed, but it also attracted some unique individuals. Case in point: while finishing up a positive showing, one of their clients, a 250 pound man with a bushy red beard and wearing a dress was seated with his legs wide open. Yep, you guessed it, no underwear. The prospect took note and then was no longer a prospect.

9) While bringing a prospect into a former coffee shop that I was marketing, we heard some rustling behind the counter. When I went for a closer look, I found the building manager lying naked on the floor wrapped up in a sheet. She said, “Oh, I wasn’t expecting you. Let’s keep this between us, okay?” 17 years later, I still cannot get that frightful image out of my mind.

10) On another retail showing, I approached the space and noticed homeless person nestled up against the front door and snoring up a storm. He was a rather large individual and would not move. Quite a first impression! Thank goodness for back doors.

11) While waiting to do a showing in a building with a school, a student thought it would be cool to pull the fire alarm. When my tour showed up, the relatively small lobby was filled with over 100 students and staff, plus a countless number of paramedics and firemen. Given there was nowhere to move and the elevators were shut down, it was time to chalk up another loss.

12) I leased a space to a tenant who had misrepresented its use (and subsequently was evicted as a result). It turned out to be a de facto union hall who decided to make the building a gathering point for a sizable rally being held downtown. Hundreds of people showed up in a building with a small lobby and tiny elevators. Not only could my prospect coming by to look at space not get into the building, neither could many tenants. It took a rare visit from a furious building owner to clear everybody out.

13) To save money, the owner of a basement office condo I was marketing decided to stop paying the electric bill and had the power shut off. Yes, showing a space in complete darkness makes it quite easy to lease (the fact that it showed better in the dark than light is a separate story).

14) Years ago, I was given the green light to start showing a small suite where the tenant was getting evicted. Being new to the business, I made a rookie mistake of not touring the space first before bringing someone inside. The manager told me it was exactly like another suite in the building, so I thought that was good enough. I opened the door with the prospect by my side and the space was a complete mess. Taking a closer look at some of the debris, we discovered several copies of Playgirl magazine and a box full of porn movies on VHS. We later found out the tenant was running a male escort service out of the space.

15) When showing spaces on two contiguous floors, I often will bypass the elevator and take the stairs instead. Well, I regretted that decision mightily one day when we encounter the building manager making out with the engineer. Both were married at the time, but not to each other.

As the saying goes, you cannot make this stuff up. Truth be told, I could probably fill another blog with additional stories. I cannot wait to try and top these moving forward.

You have to admit, downtown Chicago is a pretty amazing place to work; transcendent architecture, premier accessibility, fascinating cultural attractions, restaurants at every corner, and miles upon miles of shopping. Very few cities come close to topping what we get to enjoy.

As glorious as these elements are, however, I have to say my favorite thing about the city is the “buzz.”

The second I exit the train every morning and step outside into the Loop, there is a certain energy that strikes me right away and it simply cannot be matched. It is difficult to describe, but you know it when you see and feel it.

Crowds of people rushing from place to place, cars darting in and out of lanes, “L” trains racing around the tracks, gleaming skyscrapers in all their glory, the brilliance of the Chicago River and accompanying Riverwalk, the truly Magnificent Mile, the street musicians and peddlers, all framed by Lake Michigan in the background. Every piece comes together and crescendos into a certain kind of rush where you just know you are somewhere important.

My fascination with the city started long before my daily Metra commutes to work. I can still remember two instances from my youth that shaped my love of downtown Chicago.

The first time I felt the “buzz” was when my grandmother would take me with her to shop at “dime stores” (am I dating myself?) on State Street. We would ride the Ravenswood train (now the Brown Line) and spend hours walking around the late State Street Mall. The visit was always capped by a visit to the soda fountain at Woolworths for a root beer float.

My other memory was when I was in 5th grade and we took the greatest field trip ever–next to my senior ditch day excursion to Great America, but that is a story for another time–to downtown Chicago. I vividly remember going up and down the glass elevators at the recently-opened State of Illinois Building (now the Thompson Center) over and over until a security guard threw us out. We got to visit the Skydeck at the then-Sears Tower and even ate lunch at McDonald’s. From that moment on, I was hooked and I just knew I had to find a way to work downtown.

No disrespect to the suburbs, but I cannot imagine myself working in one of those far away office campuses and having to drive everywhere. They seem so ordinary and sterile compared to downtown. It totally makes sense why all of these corporations are relocating to downtown Chicago, or at least establishing a satellite office. Most people today want to work downtown; they want to be part of the buzz.

All these years later, the thrill is as strong as ever. One of the great things about my job as a downtown real estate broker is being right in the middle of the buzz on a daily basis. If the day starts to drag, all I need to do is leave my office and take a short walk around the block. That is as good as a jolt of caffeine. It is gratifying to play a role, no matter how small, in contributing to this phenomenon. As stressful as the job can be, I never lose sight of how fortunate I am to work in the center of such a dynamic place.

The good ol’ days. Is there such a thing? I like to think there was a different sort of peace before hashtags and online profiles. Recently, I found myself immersed in the show Mad Men, which takes place primarily in the 1960s and was surprisingly nostalgic, given I wasn’t even alive during that time.

After binging on all 8 seasons, I found myself comparing the way they work, seal deals and celebrate, to what it’s really like today. Of course, the added factor is that it is a TV show but I let my mind wander anyway.

This year, Mad Men is celebrating the 10th anniversary of the premiere. As a nod to the show, Heinz is using the promotional materials from the show in their own advertisements today. I wondered, “If an ad from a show based on the 1960s still holds up, how would some of the other things from the show compare to today?”

I decided to take a few of the situations from the show and compare it to how I think those situations would play out in this day and age:

How it goes on Mad Men: Call a company (any company) and get put right through to the CEO/decision maker.
How it would probably go for me: I make a call and get the automated voice menu. Patiently listen to options 1-9 without finding what I’m looking for; push 0 for a real person. Get connected to Amanda in sales from the San Francisco branch. After explaining my call, get transferred 4 times and end up at the voicemail of someone who will probably never call back.

How it goes on Mad Men: Pitch an idea to a client to get their business but they’re not interested. The execs take the potential client out to an expensive restaurant that the company practically begs them to go to. They eat some shrimp cocktail, down a whiskey neat or three and the client changes their mind right there and signs a deal with the waiter’s pen.
How it would probably go for me: Talk to a client and find they’re not interested. Take them out to lunch, order some shrimp cocktail, find out they have a seafood allergy.

How it goes on Mad Men: Take a nap on the couch in a private office (for who knows how long) and no one cares.
How it would probably go for me: Decide to take a nap on my couch. Realize I don’t have a couch. Settle for a nap that is actually just my open eyes glazed over, looking into the distance for 20 seconds before I realize what I am doing and snap back to reality and the work I need to do.

How it goes on Mad Men: Client shows up in the meeting room, eats a pastry and looks at one or two print advertising concepts. The client picks one on the spot and the meeting adjourns.
How it would probably go for me: Spend weeks going back and forth about the design of a new building marketing campaign. Create several versions with different color schemes and headlines, and then present it to the client. They note that something just seems “off” but can’t put a finger on it. Switch around a few more things, incorporate their exact ideas, and present it again. They decide that they like the first version best. But only for the email marketing idea, the regular informational concept should be slightly different, they just don’t know how exactly.

How it goes on Mad Men: Sign a deal. Celebrate by asking the personal secretary to fetch the ice while others pop the top off the custom glass vodka bottle from the bar cart in someone’s giant private office. After downing that drink, head to the bar to celebrate again. Then off to dinner with steaks and more drinks.
How it would probably go for me: Sign a lease (this particular one taking 8 months to come together). Breathe a sigh of relief. Have a drink…of water. Onto the next.

So maybe my expectations for the entire 1960s era are a little glamorized from the TV show; at the end of the day, I think some of the problems–picky clients and long work hours–are the same, but the tools we have are different.

We’ve traded typewriters for computers and cell phones (I can’t imagine life without a backspace key), secretaries for voicemails, and private couches for communal nap pods.

I think I may be able to move on from the nostalgia and be happy with the fact that we don’t celebrate by drinking straight liquor in someone’s giant corner office. I’m more of a piña colada person anyway.

The other day, a youngster who recently started in the real estate industry asked me about the most significant differences in the commercial real estate business today as compared to the time I first began in 1996. Those getting started today know only about the immediacy of emails on cell phones and easily-organized Gmail address books without a clue as to how it really used to be.

Over the past 20 years, the industry has evolved quite a bit and fortunately, (mostly) for the better. Here are some of the biggest differences between then and now that I could think of:

1) Cell phones – I vividly recall waiting in the lobby of buildings for hours upon hours trying to track down brokers running late for showings. I would bother the security guard every 5 minutes and use the land line phone at the security desk to call the broker’s office, knowing full well that they were probably out on the tour and not going to hear my message until they returned. I had to invent a “20 Minute Rule” where I would wait 20 minutes, call, wait another 10 minutes and then leave if no one showed up (inevitably, the tour would always show up the second I returned to my office).

2) Computers – Remarkably, I did not have a computer of my own until my third year in the business. I actually had a secretary who prepared all of my proposals. Of course, all documents were saved on floppy disks and everything was printed out and filed away.

3) Internet – It is such a luxury today to research prospective tenants by performing a Google search. Back in the day, I was limited to the Sullivan’s Law Directory, industry trade publications, the Yellow Pages and good old fashion door-to-door canvassing.

4) Communication – You want to communicate with someone? Pick up the phone and call! No email or texting was utilized 21 years ago. Everything was done over the phone or in person. Either listen to your answering machine or voice mail (a revolutionary feature back then) or sift through your mountain of pink message sheets and spend hours returning calls. Out for the day in meetings and need to check messages? Go find the nearest pay phone and hope you have proper change in your pocket.

5) Mail – Before the days of email, getting the mail delivery every day was a big deal. CoStar didn’t exist, so receiving an updated copy of Black’s Guide or the Metro Chicago Office Guide was a monumental day in my office. We would study each page, examining the revised vacancy lists, change in occupancy rates and asking rents and new leasing agency assignments. Also exciting was opening up the endless number of flyers and promotional materials. This is the one thing that I miss, since so much is done over email today.

6) Marketing – With computers and email just starting to become mainstream, proposals and marketing materials were either mailed or sent over the ever-popular fax machine. There was always quite a bit of unnecessary angst wondering if the fax was received and if the cover sheet was sufficiently informative. I spent hours each month in front of the fax machine sending blast faxes to brokerage firms stating on the cover to “please distribute to all brokers.” I wonder how many firms actually did that.

7) Paper –File cabinets and paper everywhere. No significant electronic data storage was available, so we would have to keep piles and piles of paper records. Going to sign a lease? Print and sign 3 hard copies. One of the buildings I represented at the time actually used a pre-printed lease form and typewriter to make changes to the document.

8) Customer Relationship Management – My CRM for many years was an elaborate system utilizing color coded 4″ x 6″ index cards stored inside shoeboxes. Every broker and tenant I came across from canvassing had a card and all interactions were properly documented. It was the most cumbersome method of recordkeeping ever, but it somehow worked. I still have all of my cards today and they take up an entire drawer in my file cabinet. I have not looked at these in years, but cannot bring myself to dispose of them due to all of the time put into maintenance.

9) Floor plans – Need a space plan? Pull out the roll of 1/8-inch scaled blue prints. I wasted an incredible amount of time trying to figure out how to fit the blueprints on the copy machine so the plans would photocopy in a manner that looked only somewhat professional. Scissors, scotch tape and white out were key components of this operation.

10) Office Hours – Getting bogged down with all of these menial tasks mentioned above created a need to work longer hours and physically be present in the office. I was sitting at my desk just about every Saturday trying to catch up on tasks so I could devote business hours to prospecting. While the time commitment to the job can still be overwhelming today, it is so nice to have the option of working from home or another place remotely.

It’s easy to say that today we live in a much more technologically dependant society and the real estate industry has followed suit. To me, the net result is that we are able to function in a much more efficient manner across the board. As far as we have come, I shudder to think how different things will be 20 years from today. Look for my follow up blog on your mini projection screen glasses then.

In a previous blog, I described how the name of my firm, Willard Jones Real Estate, came about (Blog). While I did conduct a fair amount of research prior to filing the Articles of Incorporation with the State of Illinois, there admittedly have always been a few holes and questions surrounding the tale.

For example, I have never been able to firmly establish the exact boundaries of Willard Jones’ farm as it relates to present day downtown Chicago. Even worse, some versions of the cow path story list the land owner as “William” Jones instead of Willard. With all due respect to people named William, the name William Jones Real Estate just did not seem to have the same amount of pizzazz. What I didn’t know is that nearly 5 years after starting the company I would ultimately be able to fill in all of the gaps.

On a November afternoon right before Thanksgiving, I received a call out of the blue. A woman from Alaska named Marilyn left me a voice message requesting that I phone her back, but provided no details regarding the basis of the call. I figured it probably was some sort of telemarketing campaign, but on the off chance that she was in need of office space, I felt compelled to respond.

Much to my surprise, Marilyn from Alaska claimed to be the great great great granddaughter of Mr. Willard Jones himself. Her niece had done some online research and came across our company website. She mentioned this to Marilyn, who in turn reached out to me and shared that she recently completed a family genealogy project and dug up all sorts of information on Willard and his family. She offered to send me copies of the data, along with some pictures. I was still a bit skeptical and half expected a letter to follow asking me to pay an undisclosed sum of money to the family in order to keep using the name or face legal action. In the back of my mind, I was already dreading the prospect of developing a new name for the business. Nevertheless, Marilyn seemed like a nice enough person so I consented and told her to send it all over.

Sure enough, about a week later, a giant tube arrived at my office filled with a treasure trove of fascinating information, including a picture of Willard Jones himself from the 1830s and an 1833 map of Chicago which shed some light on where exactly the Jones farm was located (see below for pictures of both). Among the other relics included was a complete genealogy of the family featuring pictures and another version of the 100 West Monroe cow path story that I had never seen.

All of this information was absolutely captivating and thankfully, confirmed the fable of Willard Jones. He really did exist, truly owned a good sized plot of land in the present day Central Loop, actually maintained a farm on the corner of Clark and Monroe, and played a direct role in the creation of the famed cow path. We even learned the reason why some of the stories contain the name William instead of Willard: William was Willard’s father and both lived in Chicago in 1833.

Marilyn and I have communicated several times since the package arrived. In fact, she has uncovered even more information on Willard that is in route to my office; I cannot wait to see what it contains. Of course, our new pen pal has a box of authentic Chicago treats coming her way as well.

In the end, as fantastic as it is to receive this information, I was equally heartened by Marilyn’s genuine act of kindness. Given the state of the world today, it is good to know that people like her still exist. I never could have imagined in my wildest dreams that my questions about Willard Jones, the man (and no longer the myth and the legend), would be answered by a random phone call from someone in Alaska. How wonderfully unpredictable life can be.

Here we go again. Another new year, another fresh set of predictions. Before we project what lies ahead for the next 12 months, let’s first see how we fared last year:

1) Leasing activity will remain strong for the majority of 2016, but activity will start to show some very subtle signs of slowing down towards the end of the year. True.

2) 151 North Franklin will be the last new office building constructed in this development cycle. False, thanks to 625 West Adams.

3) Landlords will be forced to continue raising rents to account for the property tax increase. Generally true, although taxes are not the only reason for this.

4) Many tenants will be furious once they receive their pass through bills or net rent increases, thereby making life miserable for landlords, property managers and leasing agents. True for the most part, although the reaction has not been as bad as feared.

5) The tax increase will also have a direct impact on retail and residential real estate. Retailers will be forced to raise prices and apartment rents will rise, as Chicago will become one of the more expensive cities in America to conduct business. True.

6) Sales activity will begin to decline in 2016. Because so many properties have changed hands over the past two years, there are simply not that many left to sell. True.

7) Firms not in dire need of expansion space will use the upcoming presidential election as a convenient excuse to put off decisions. With some exceptions, mostly False.

8) A notable technology firm will be the first to take the plunge and sign a significant lease in Goose Island, thereby laying the groundwork for this corridor to become the next growth market in downtown Chicago real estate. False. Still waiting.

9) A grocery store will sign a lease in the Loop this year to cater to the rapidly growing residential population in the central business district. False.

10) A combination of the tax increase, high crime rate and sustained issues with the police department and Chicago Public Schools will be cited as a key reason for a significant corporation pulling their headquarters out of downtown Chicago and relocating to either the suburbs or another part of the country. False, for now.

So, half of my predictions came true. Not bad for one of the most unpredictable industries out there. Let’s now see if I can improve upon my predictions in 2017:

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

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.

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.

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.

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.

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.

7) In spite of the planned redevelopment of the Tribune Tower, CIM Group will decide 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.

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.

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.

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.

To say the least, it will be interesting to see how this all plays out. Check back in a year to see how I fared. Best wishes to everyone reading for a happy, healthy and prosperous 2017!

With all of the other craziness that happened in 2016, it may be easy to forget some of the major events that occurred in commercial real estate. While not quite as frenzied as 2015, Downtown Chicago commercial real estate has remained quite active as the market continues to churn out deals at a healthy pace. Vacancy rates are historically low in some sectors, rental rates continue to climb, and sales keep closing at mind boggling numbers.

Now that we’re at the end of the 2016 saga, I decided to take a look back at the top 10 commercial real estate highlights from the past year:

10. Sustained Strength in the Leasing Market.
The beat went on in 2016, as vacancy continued to decline and rental rates increased. Downtown vacancy rate is currently hovering around 11%, which is historically low. River North continues to be the market with the most demand, but the West Loop/Fulton Market and Central Loop districts are close behind. Even the East Loop had a big year with several significant leases executed, highlighted by Wilson Sporting Goods’ planned relocation to the Prudential Building.

9. Co-Working Spaces Kept (Co)Working.
The co-working craze has not slowed down, as WeWork and various competitors continue to occupy large amounts of space throughout the Loop. While WeWork seems to be tapping the breaks on expansion, many of their facilities are operating close to full occupancy and commanding healthy rents from not only individual practitioners, but larger corporations as well. Other co-working facilities making their presence known in Chicago this year include Assemble, Make Offices and Serendipity Labs.

8. Advances in Public Transportation.
At long last, the Loop Link bus service and the related Union Station Transit Center are fully operational and reducing travel times between the East Loop and commuter train stations. Construction of the Washington/Wabash “L” superstation is nearly complete and plans are actively being discussed for the remodel and redevelopment of Union Station, which incidentally might also include the creation of a two million square foot office tower.

7. The Lucas Museum Debacle.
Chicago missed out on a singular opportunity to land a key tourist and cultural attraction when the Friends of the Park blocked the city’s attempt to provide George Lucas with 17 acres of lakefront property between Soldier Field and McCormick Place to construct a museum. In addition to the negative economic impact of losing the bid, it is also a blow to the ongoing efforts to develop an entertainment and retail district in the nearby Motor Row corridor of the South Loop.

6. The Great Migration.
A considerable number of firms continued to abandon their suburban office campuses and relocate downtown in order to take advantage of the more diverse and talented labor pool. Corporations such as McDonald’s (more on them later), Beam Suntory, Wilson Sporting Goods, SC Johnson, and STATS have all signed noteworthy leases in 2016.

5. Shiny New Developments.
The imminent opening of new skyscrapers at 444 West Lake and 150 North Riverside–along with various sized towers under construction at 151 North Franklin, 625 West Adams, in Fulton Market and the Old Post Office redevelopment–will collectively be the first true test of market strength in several years. The rapid pace in which these new buildings are leasing up demonstrates how pent up the demand has been for new development. However, there is still a substantial amount of new supply that remains unaccounted for. While the relocations from suburban markets and other cities will help with absorption, there are now many more options for tenants to choose from which could potentially give them the upper hand once again.

4. The Amazing, Ongoing Transformation of Fulton Market.
There is no sector of the city with more activity than Fulton Market. Between the planned office buildings, hotels, entertainment venues, retail, restaurants and residential developments, it is hard to keep track of everything going on. No less than 43 developments are either underway or in the planning stages and there are no signs of this juggernaut slowing down. Sterling Bay continues to lead the charge but other local and national developers and investors such as Shapack Partners, R2, Madison Capital and Thor Equities have all gotten into the game as well. National retailers such as Anthropologie and Free People are also beginning to plant their roots.

3. The Sale of Tribune Tower.
After years of speculation, Tribune Media announced plans to sell the iconic Tribune Tower for $240 million to developer CIM Group. The rumor is that the landmark building will be redeveloped into a combination hotel, residential, and retail building. As a result of the sale, Tribune Media inked a 61,000 square foot lease at 303 East Wacker Drive.

2. The Sale of the Old Post Office.
Following a countless number of failed attempts, 601W Companies acquired the cumbersome Old Post Office and put forth a sensible redevelopment plan modeled after their successful renovation of the Starrett-Lehigh Building in Manhattan. The project–which will ultimately add office space, a rooftop park, and a river walk–has been approved by the City of Chicago and work is now underway.

1. McDonald’s Relocation to Fulton Market.
In arguably the most momentous transaction in decades, McDonald’s solidified Fulton Market’s long term importance in the future of downtown Chicago real estate when it announced plans to relocate from Oak Brook to the site formerly occupied by Harpo Studios, to be known as 1045 West Randolph. Their lease for 567,000 square feet is due to begin in 2018. A direct result of this transaction is Sterling Bay’s plan to construct a 360,000 square foot property at 210 North Carpenter, which is being eyed to accommodate several suppliers who regularly do business with McDonalds.

So there you have it; what a fascinating year it has been. Now we have to wonder: What is in store for 2017? In my next blog, I’ll let you know what I think will happen and take a look back on how last year’s predictions fared.