Retail Space Available in River North – 33 W. Grand/515 N. Dearborn


Office Space Downtown

 

Description: Prime Corner retail space in the heart of River North. This is a great opportunity for a restaurant, bar, coffee shop, etc. with lots of natural light and a ton of foot traffic. It is also less than 2 blocks from the blue, brown, green, pink and orange line trains.

Size:
2,700sf

 

Demographics:
Population: 136,118
Households: 83,751
Average Age: 37.80
Median HH Income: $98,991
Daytime Employees: 535,558
Population Growth ’19-’24: 6.5%
Household Growth ’19-’24: 6.2%

 

Location:33 West Grand Avenue, Chicago, IL/ 515 North Dearborn Street, Chicago, IL

Voyage Chicago Features Tenant Advisory Group


Voyage Chicago reached out to Bill Himmelstein to dive deep into the history of how Tenant Advisory Group began, and the foundation it was built upon. Click here to read more.

Chicago’s Next Top Neighborhood


The South Loop, River West and West Loop each have taken their turn as being Chicago’s “it” neighborhood. Now it’s time to turn our eyes towards the Clybourn Corridor, the thin strip of land on the western edge of Lincoln Park between Clybourn Ave. and the Chicago River. This area already serves as a main shopping destination for Northsiders, and the recent addition of Newcity is part of a continuing trend in this area. There are many developments currently in progress with many more slated to come online for the near- and long-term future.

High Demand

The Clybourn Corridor is currently exploding with new developments planned and in progress. Despite the rising vacancy rates from the influx of new buildings, retail rent has remained steady and even reached higher levels in recent years. This stretch of well-located land is continuing to attract businesses, both large and small, and they are not shying away from the increasing rents. With retail, professional and residential buildings on the dockets, the Clybourn Corridor has the attention of the city.

Room to Grow

In the last five years, over two million square feet of commercial real estate space has come online with over 1,000 new residential units. Even with the high amount of proposals, there is plenty of room for development and redevelopment in the Clybourn Corridor. Most famously, the Finkl & Sons steel plant is one of the headlining redevelopment projects. Sterling Bay has recently unveiled their vision for the redeveloped Finkl & Sons steel plant which includes a mixture of office, retail and residential buildings to be built on over 30 acres of riverfront property.

A Fresh Start

One driving factor behind the surging demand to reshape the Clybourn Corridor is its ability to act as a blank canvas. Large developers are purchasing old properties with dated buildings and redeveloping these sprawling sites into efficient retail, office and residential buildings. Its extreme demand is also fueled by the dense nearby population and affluent neighborhoods near the Clybourn Corridor, which attracts shoppers and businesses. Additionally, Metra plans to update their Clybourn train station to match the rapid updates the area is receiving. The proposals to revamp the community expects to draw a large, new employment base and add thousands of residents, all creating a positive influence on Chicago’s economy.

Chicago’s real estate industry continues to grow as a plethora of new buildings come online each year. The city’s lively entertainment scene, attractive amenities and its role as a booming international business hub make it a highly sought after location for corporations, and the employees who work for them. It will be exciting to watch the plans for the Clybourn Corridor unfold into a redeveloped, bustling stretch of Chicago.

Three Reasons Why Businesses Are Investing in Chicago


Site Selection magazine has listed Chicago as the best city for corporate investment for the fourth consecutive year. This comes as little surprise with the long list of large corporations that have been moving their headquarters into downtown Chicago. So, what makes this city such an attractive investment for businesses?

Home to Headquarters

Since Google moved to Chicago, a number of other large companies have thrown their hat in the ring, such as McDonald’s, Wilson Sporting Goods, Cars.com and Motorola Solutions. While the stream of corporate giants relocating to Chicago appears to have slowed, other large businesses (Kraft-Heinz, ConAgra and GE) have announced their plans to relocate to downtown Chicago as well. This trend has extended beyond the corporate giants, as World Business Chicago reports that the entire Chicago metro area saw 350 corporate expansions and relocations in 2016.

Top-Tier Talent

Within Chicago’s city limits is one of the country’s largest concentration of universities. Which unsurprisingly leads to 36 percent of people in Chicago earning a four year college degree, compared to the 30 percent national average. Corporations are moving to be closer to where their employees want to live, which allows them to create a greater range of amenities to provide a higher quality of life for their workforce. Compared to California, New York and Boston, Chicago has a low cost of living while maintaining a high caliber quality of life (clean parks, museums, elite restaurant scene, iconic sports teams, etc.).

Good For Business

Chicago leads all major U.S. cities in direct foreign investments, which is a critical element of creating a successful global economy. With the 350 corporate expansions and relocations in 2016, came nearly $2.8 billion in new investments and roughly 14,000 jobs. Chicago is a leader when it comes to business growth, and that doesn’t exclude small businesses. The city of Chicago ranks among the best in the world for tech startups to plant their roots, as Chicago has a reasonable cost of living and cost of operating a company. After three consecutive years as the leader of corporate relocations, more top talent is following. This has helped lift Chicago to become a renowned technology hub, as well as a location for companies and their employees to flourish.

The last four years have been significant for the city of Chicago, as it grows into its role as the nation’s best location to invest. With access to highly educated talent, an elite business community and a leading startup scene, Chicago appears poised for ongoing, long-term success.

Infographic: Chicago’s Next Neighborhood to Watch


Vacancy Rates will Ease in 2017


The Chicago commercial real estate market is enjoying a 15-year low in its downtown vacancy rates, hitting 11.7 percent during the second quarter of 2016. This is the lowest Chicago has seen since 11.6 percent in 2001. The surge of businesses moving downtown has been a driving factor in reducing the vacancy rates and contributing to a healthy Chicago market.

Downtown Chicago is Trending

Chicago’s historic architecture, lively nightlife, accessible public transportation, renowned restaurant scene and robust housing options make it a highly sought after location for companies to call home. Chicago is a great city – that is no secret. Businesses realize this as well as that tremendous amounts of young talent live in the heart of this bustling city. As businesses move towards a more employee-centric focus, it becomes a logical decision for them to be in the core of sweet home Chicago.

The Landlord Advantage

Low vacancy rates are the prelude to a tight rental market. Tenants aren’t going anywhere, which means when a space becomes available, it won’t remain on the market for long. In economic terms, there is a high demand for spaces in downtown Chicago with a limited supply. Those who already have their spot reserved in these coveted spaces are holding on to them with a strong grip causing a lower turnover. The low vacancy rates and high desire for downtown locations give landlords the advantage of raising their rents while enjoying a boom in tenants.

New Developments to Come Online in 2017

The city of Chicago is expecting a significant number of new developments to open in 2017. This new increase in office inventory will throw some slack into the tight commercial real estate market. Chicago will see a rise in office vacancy rates, but to a more normal, sustainable level over the course of the coming year.

It will be interesting to follow the natural ebb and flow of Chicago’s commercial real estate market in 2017. With vacancy rates nearing a record low and a plethora of new projects looming in the near future, there should be some natural fluctuations throughout the market with it eventually settling into a vacancy rate more favorable for tenants. The high-level forecast previews a healthy 2017 for the Chicago commercial real estate market.

Infographic – What’s in a Lease? Part 1.


What’s in a Lease? Part 1.


who can help with my office lease

The best way to navigate the tricky landscape of a lease is to stay current on all the common phrases, clauses and definitions. You may have a general understanding of the terms, but it takes a professional to really navigate the ins and outs. Here are a few of the most common points you may encounter in your Chicago office space search.

 

  • Letter of Intent: The purpose of the letter of intent is for both parties to come to agreement on various terms before spending significant resources and legal fees in pursuing an acquisition. Double check the business terms agreed upon in the Letter of Intent are the same as those outlined in the lease document. You’ll want to make sure you receive everything that was promised.
  • Sublease Clause: A sublease clause outlines the terms for when you transfer all or part of your lease to another tenant while you remain on the property. When negotiating a sublease, reasonable consent should not be withheld by the landlord. The landlord will also ask for 100% of profits, but a 50/50 split is fair. Try to minimize the notice you must give, as well as the response time from your landlord to allow you more flexibility. Consent isn’t always necessary.
  • Holdover Clause: A holdover occurs when a tenant continues to remain in possession of the leased property after the lease expires or terminates. The holdover clause specifies if a holdover can occur and at what rent. Landlords will ask for 200% of your monthly rent; however, 150% is the market standard. The clause itself should make clear that the tenant is not holding over unless they’re staying after the term ends without notifying the landlord and gaining permission. When negotiating the holdover clause, there are a few items you will want to have clearly stated in the lease: length of the lease; termination of lease; rent amount; and liability for damages.
  • Renewal Clause: A renewal clause will attempt to automatically renew your lease unless you submit a notice. This clause is something you need to know about as a landlord may ask for automatic renewal without having to give you notice. It’s nice to have the rights to a space, but it is also nice to have the freedom to move. If you plan on staying, negotiating for renewal is a great opportunity for you to negotiate for a new rent rate.
  • Work Letter: The work letter is an addition to a lease outlining the stipulations for all improvement work done by the landlord, and what work will be completed by the tenant at their own expense. This should be monitored closely to make sure everything matches up with what the landlord promised. If there is an allowance, base building items should be taken care of by the landlord, and if the landlord has ongoing construction, make sure the landlord is liable if improvements aren’t completed by the agreed upon date.

 

Negotiating a lease is the most crucial step when moving into a new building, and can potentially save you a significant amount of money. Armed with the new knowledge of these phrases, words and definitions, you’ll be ready to tackle any upcoming lease negotiation.

Here’s Why Major Corporations are Moving Downtown


Corporate giants ditching their suburban campuses for Chicago skyscrapers has been a common occurrence in the last few years — Kraft Heinz, ConAgra, McDonald’s, Google and Motorola. Now Wilson Sporting Goods joins the movement, leaving its location near O’Hare Airport for the iconic Prudential building.

Chicago isn’t the only market experiencing this massive shift in commercial real estate. The New York Times recently reported the same situations in metropolitan areas around the country. Just what is causing these corporations to leave their sprawling headquarters for fast-paced urban areas?

Tech-Savvy Talent
Countless reports have indicated that millennial workers are attracted to living and working in high-energy urban areas. These tech-savvy employees may not even have a car, so driving an hour to the office isn’t an option. International corporations looking to attract the next generation need to be easily accessible via public transportation, which rules out most suburbs.

Better Amenities
Trendy lunchtime spots and snacks from local food trucks are just a few of the many amenities offered simply by working in Chicago. These urban incentives are exactly what top talent are looking for when selecting their next position. Additionally, clients and customers who visit their corporate partners prefer to spend time downtown.

Top Vendors
The booming South Loop and West Loop neighborhoods are filled with smaller companies built to serve the needs of the ConAgras and McDonald’s of the world. Corporations that don’t want to miss out on the next big mobile ordering app or company culture trends need to be where these ideas are born.

Click here to read more about how the South Loop is the neighborhood to watch for commercial real estate.

Landlords Can’t Afford to Ignore Traditional Tenants over Tech Companies


It’s an exciting time in the Chicago tech scene, with new startups changing the entire face of our commercial real estate market. This infusion of creativity and drive is fantastic for our city, but is it really driving our overall economy forward? Reports say it’s not.

According to the Bureau of Labor Statistics, the Leisure & Hospitality, Construction and Professional Services industries led the market in job growth in May 2016. Tried-and-true professions – e.g. lawyers, accountants, architects, etc. – are the real drivers in keeping Chicago diversified and thriving. These facts, however, are not receiving the same attention as tech to keep the commercial real estate industry fully informed.

Landlords across Chicago are investing in these tech companies, providing incentives such as tenant improvement dollars, rent abatement and leasing commissions, in the hopes they will turn into long-term commitments. Like banks, though, landlords can’t lend on ideas over a tenant’s actual ability to pay. We need to continue to support our tech scene while remembering which leasees prove to be the smartest investments.

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