Q4 2015 Chicago Suburban Office Market Report
-
Upload
colliers-international -
Category
Documents
-
view
223 -
download
5
description
Transcript of Q4 2015 Chicago Suburban Office Market Report
Finishing On A High Note
Research & Forecast Report
SUBURBAN CHICAGO | OFFICEFourth Quarter 2015
Ronna Larsen Research Manager | Suburban Chicago
The Chicago suburban office market ended 2015 on a high note, reporting over one million square feet of positive net absorption for the first time in ten years.While some submarkets have gained more momentum than others, Chicago’s suburban market continued to regain its strength throughout 2015. Over one million square feet of notable new lease transactions were signed in 2015. In addition, the suburbs witnessed 17 new lease transactions greater than 25,000 square feet in 2015 compared to just 10 in 2014.
Trends
The velocity of investment and user sales throughout the suburban office market continued throughout 2015. Notable transactions included GE Capital/Arden’s seven-property, 3.6 million-square-foot portfolio sale to The Blackstone Group, GE Capital/Arden’s four-property, 697,672-square-foot portfolio to Cornerstone Realty Advisors and Wells Fargo/Hudson Advisors’ 423,369-square-foot, four-building portfolio sale to Walton Street Capital/Glenstar. In addition, several investment properties were added to the market in 2015, including seven in the fourth quarter alone.
Landlords of existing inventory struggle to make their properties relevant as today’s tenants demand a more efficient work environment. Amenities such as employee wellness / fitness centers, food service, tenant lounges and conference centers are now becoming standard. Those high quality, true Class A assets with these features are a hot commodity.
In addition, 4.00/1,000 parking ratios that were once standard are no longer able to accommodate some users. While some properties such as Continental Towers have taken on the expense of adding parking garages, others continue to offer aggressive concessions and rental rates.
Vacancy
Overall vacancy in the suburban office market reached pre-recession levels, ending the year at 19.6 percent compared to 20.7 percent at the end of 2014. While the O’Hare and North markets showed significant improvement, the Lisle-Naperville market reported the lowest vacancy of all the submarkets with 18.0 percent.
Vacancy in Class A properties reached a seven-year low, ending 2015 at 18.4 percent, down from 19.6 percent at the end of 2014. When considering high quality, true Class A assets, the improvement in vacancy is more significant at 16.0 percent, compared to 18.3 at the end of 2014. Sublease vacancy witnessed a decrease in 2015 as well, dropping to 1.2 percent from 1.8 percent at the end of 2014.
Absorption
Overall net absorption ended 2015 with positive 1,241,667 square feet, a vast improvement from year-end 2014’s total
Market IndicatorsRelative to prior periods Q4 2014 Q3 2015 CURRENT
VACANCY 20.7% 20.1% 19.6%
YTD ABSORPTION (193,623) 720,685 1,241,667
RENTAL RATE $20.00 $20.14 $20.34
INVENTORY 115,446,030 115,446,030 115,440,030
Class A Large Blocks of Space20,000 SF + 50,000 SF + 100,000 SF + 200,000 SF +
O'Hare 14 9 3 0
Northwest 36 19 11 5
North 36 13 7 4
Lisle-Naperville 19 8 3 3
Oak Brook 25 10 3 1
Total 130 59 27 13
2 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
of negative 193,623 square feet. Larger tenant movement including Baxalta and PSAV were major contributors to the increase of absorption.
Class A properties alone achieved 839,963 square feet of positive net absorption compared to negative 381,310 square feet at the end of 2014.
Large Blocks of Availability
There are currently 37 properties in the suburban office market that can accommodate large (100,000 square feet and above) users. 27 of those properties are Class A. While large blocks of space in the O’Hare and Oak Brook markets are limited, the Northwest market offers the majority of options.
Rents
Average Class A asking rents increased in 2015, rising to $28.40 per square foot gross, up from $27.70 per square foot gross at year-end 2014.
The average asking rent for all classes in suburban Chicago ended 2014 at $20.34 per square foot gross, up from 2014’s rate of $20.14.
Construction
While there hasn’t been any speculative construction delivered since 2010 and none is expected in 2016, build-to-suit activity continued within the suburban market. Most notably, Zurich North America’s 735,000-square-foot headquarters at Meacham Road and Interstate 90 in Schaumburg is still underway. In addition, American Academy of Pediatrics is expected to break ground on a 200,000-square-foot build-to-suit development at Park Boulevard and Pierce Road in Itasca early in 2016 and Chamberlain Group, a division of Duchossois Group, is building a 252,600-square-foot office development on the land it acquired from Follett Corporation on Swift Drive in Oak Brook.
What To Expect in 2016 > True Class A properties with amenities will continue to drive the market in 2016.
> We will see a continued increase in Class A rental rates, while Class B rates will begin a slow ascent.
> Investment sale activity will remain steady.
> A modest increase in absorption is expected.
1,241,667
(193,623)
617,277
426,989
(222,455)
550,552
19.6%
20.7%
20.5%
21.0%
21.4%
21.2%
19.4%
19.6%
19.8%
20.0%
20.2%
20.4%
20.6%
20.8%
21.0%
21.2%
21.4%
21.6%
(400,000)
(200,000)
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
201520142013201220112010
Net Absorption & VacancyOverall Suburban Office
Absorption VacancySource: Costar; Colliers International Research
Net Absorption and Vacancy | Suburban Office Market
Asking Gross Rental Rates
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
201520142013201220112010
Asking Gross Rental RatesOverall Suburban Office
Source: Costar; Colliers International Research
21.2%22.1%
18.2% 17.9%
22.8%
19.6%21.1% 21.8%
17.4%
21.8%
18.9%
21.7%
18.4% 18.0%19.8%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
O'Hare Northwest North Lisle/Naperville Oak Brook
Vaca
ncy
(%)
Submarket Vacancy Rates2013 - 2015
2013 2014 2015
Source: Costar; Colliers International Research
Submarket Vacancy Rates | 2013 - 2015
3 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
Tenants In The Market | Active Requirements
Lake Michigan
0 1 5 10 miles
NORTH
94
94
94
94
94
9457
294
80
80
55
55
55
355
294
290
290
290
88
88
355
294
90
90
90
90
90
190
41
Elgin-O
'Hare Expy.
East-West Tollway
45
45
41
41
45
12 20
45
34
34
12
12
14
83 60
8322
68
7262
21
5953
58
20
3120
64 53
64
83
59
43
504353
53
171
7 50
Lake Cook Rd.
WAUCONDA LIBERTYVILLE
VERNON HILLS
LINCOLNSHIRE
DEERFIELD
NORTHBROOK
GLENVIEW
BUFFALO GROVEBARRINGTON
SLEEPYHOLLOW
ELGIN
ROLLINGMEADOWS
ARLINGTONHEIGHTS
MOUNT PROSPECT
HOFFMANESTATES
SCHAUMBURGELK GROVE
VILLAGE
SKOKIE
ITASCA
CAROL STREAM
ST. CHARLESADDISON
ELMHURST
OAKBROOK
LOMBARD
OAK PARK
CICERO
AURORA NAPERVILLE LISLE DOWNERS GROVE HINSDALE
BOLINGBROOK
ORLANDPARK
MATTESON CHICAGOHEIGHTS
PARK FOREST
CHICAGO
LAKE FOREST
HIGHLAND PARK
WINNETKA
WILMETTE
EVANSTON
ROSEMONT
WEST CHICAGOBATAVIA
PLAINFIELD
HARVARD
MCHENRY
CRYSTAL LAKE
MARENGO
HUNTLEY
CARY
PLEASANT PRAIRIE
GURNEEWAUKEGAN
NORTH CHICAGOGRAYSLAKE
LAKE ZURICH
HANOVER PARK
FRANKLIN PARK
MELROSE PARK
BROADVIEW
McCOOK
BEDFORD PARKBURR RIDGE
WOODRIDGE
ROMEOVILLEALSIP
TINLEY PARK
SOUTH HOLLAND
GARY
HAMMOND
LANSING
JOLIET
MINOOKA UNIVERSITY PARK
ELWOOD
NEW LENOX
MONEE
KANE CO.
KEND
ALL
CO.
WIL
L CO
.
KENDALL CO. WILL CO.
WIL
L CO
.
COO
K CO
.
WILL CO.
COOK CO.
WIL
L CO
.
COO
K CO
.
KANE
CO
.
DuPA
GE C
O.
DuPA
GE C
O.
COO
K CO
.
COOK CO.DuPAGE CO.
COOK CO.
LAKE CO.
McH
ENRY
CO
.
ILLINOISWISCONSIN
KENDALL CO.GRUNDY CO.
GRU
NDY
CO.
WIL
L CO
.
KANE
CO
.
ILLI
NOIS
INDI
ANA
PALWAUKEEFIELD
O'HAREINTERNATIONAL
AIRPORT
MIDWAYAIRPORT
Northwest1,494,000 SF
North1,055,000 SF
East-West1,115,000 SF
O’Hare596,000 SF
Encouraging news for landlords in the Northwest market is the active tenants there need nearly 1.5 million square feet of space. Only time will tell if these tenants will defect to other submarkets or remain in place.
4 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
Significant Lease and Sale Activity
Top Suburban Office Leasing Activity 4Q 2015TENANT BUILDING TOWN SUBMARKET CLASS SIZE (SF) DEAL TYPE
Horizon Pharma* Landmark of Lake Forest Lake Forest N A 133,000 Sublease
Donlen 3000 Lakeside Dr Vernon Hills N A 73,000 New
MultiPlan Washington Pointe Naperville LN A 68,000 Renewal
Wistron Mobile Solutions* Meadows Corporate Center Rolling Meadows NW A 55,500 New
Option Care 3000 Lakeside Dr Vernon Hills N A 47,000 New
Abbott Molecular 1350 Touhy Plaza Des Plaines O B 40,500 New
Rail Europe 1350 Touhy Plaza Des Plaines O B 23,500 New
Avnet* Prairie Stone Business Center Hoffman Estates NW B 23,000 Renewal
Solo Cup* Tri-State International Lincolnshire N A 23,000 New
One Point Patient Care* North Grove Corporate Center Morton Grove N B 17,000 Renewal
Upp Technology* Oakbrook Terrace Tower Oakbrook Terrace OB A 15,500 Sublease
Connor & Gallagher Insurance Services Corporetum III Lisle LN A 15,500 New
Ceannate O'Hare International Center Rosemont O A 15,000 New
Top Suburban Office Investment Sales Activity 4Q 2015STATUS PROPERTY TOWN SUBMKT CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER
Sold Bannockburn Lakes I-IV Bannockburn N A 423,369 $27,450,000.00 $64.84 Walton Street Capital/Glenstar
Wells Fargo/Hudson Advisors
Sold Highland Pointe Lombard OB A 388,604 $44,000,000.00 $113.22 Hamilton Partners LaSalle Investment Management
Sold One O'Hare Centre Rosemont O A 380,360 $83,000,000.00 $218.21 MDC/Nicola Crosby Real Estate CBRE Investors
Sold Highland Landmark V Downers Grove OB A 250,545 $71,600,000.00 $285.78 Adventus Realty Services, Inc.
Cornerstone Real Estate Advisors
Sold 1600 Corporate Center Rolling Meadows NW A 253,500 $16,000,000.00 $63.12 Helios Property Management
C-III Asset Management
Sold Edens Corporate Center Northbrook N A 181,330 $30,200,000.00 $160.60 KBS Realty Advisors The Davis Companies
New Woodfield Corporate Center Schaumburg NW A 532,972 TBD TBD TBD MassMutual Life Insurance
New 90, 98, 100 Half Day Road Lincolnshire N A 343,000 TBD TBD TBD Medline Industries
New Parkview Plaza Oakbrook Terrace OB A 264,162 TBD TBD TBD TIAA-CREF
New Estancia Corporate Centre Burr Ridge OB A 167,401 TBD TBD TBD BJF Estancia, LLC
New Summit Oaks Oakbrook Terrace OB B 91,844 TBD TBD TBD WH&H Realty Advisors/Blue Vista
New Terrace Oaks Oakbrook Terrace OB B 55,829 TBD TBD TBD Terrace Oaks Associates
New Keystone Office Center Rolling Meadows NW B 60,100 TBD TBD TBD LeasePlan USA
UC 3 Lakes Dr Northfield N B 679,000 TBD TBD TBD W.P. Carey
UC Concourse Office Plaza Skokie N A 294,073 TBD TBD TBD Lionstone Investments
*Colliers International Transaction
LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O’Hare FS=For Sale NEW=New to Market UC=Under Contract
O’HareDespite being the smallest of the suburban office markets, O’Hare continues to attract corporate users with its convenient highway access and proximity to O’Hare International Airport. When companies, particularly national firms, are faced with consolidating locations in the Metropolitan Chicago area, they typically give strong consideration to the O’Hare market as it is well suited for regional operations and its location is ideal for serving virtually any suburban market. Vacancy
The O’Hare market continued to improve throughout 2015, ending the year with 18.9 percent overall vacancy, down from 19.6 percent at the end of 2014. Class A vacancy ended the year at 14.7 percent, down from 16.3 percent at the end of 2014. This marks the lowest Class A vacancy in O’Hare since year-end 2000. Although the O’Hare market’s Class B properties peaked at 27.6 percent earlier in the year, they also showed improvement, ending the year at 26.3 percent.
Sublease vacancy remained low at 0.5 percent, up slightly from 0.4 reported at year-end 2014.
Absorption
Although the O’Hare market had a rough start, it ended the year strong with 97,489 square feet of positive net absorption. The bulk of the positive absorption came from Class A properties which reported 135,121 square feet of positive absorption, the strongest year-end absorption in the past four years.
97,489
208,141
71,224
141,967
(43,073)
378,270
18.9%19.6%
21.2%21.7%22.8%22.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
(100,000)
(50,000)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
201520142013201220112010
Net Absorption & VacancyO'Hare Submarket
Absorption VacancySource: Costar; Colliers International Research
Class A8,128,975 SF14.7% Vacant
Class B4,798,093 SF26.3% Vacant
Class C304,430 SF
14.1% Vacant
Class A Class B Class C
Vacant Space By Property Type
Net Absorption and Vacancy | O’Hare Office Market
Market IndicatorsRelative to prior periods Q4 2014 Q3 2015 CURRENT
VACANCY 19.6% 19.5% 18.9%
YTD ABSORPTION 208,141 10,693 97,489
RENTAL RATE $20.65 $20.84 $21.19
INVENTORY 13,231,498 13,231,498 13,231,498
161,676
144,913
143,525
119,228
92,166
88,881
66,274
62,063
59,710
58,140
9600 W Bryn Mawr Avenue
1350 E Touhy Avenue
5450 N Cumberland Avenue
8420 W Bryn Mawr Avenue
8750 W Higgins Road
8725 W Higgins Road
10255 W Higgins Road
9801 W Higgins Road
999 E Touhy Avenue
9550 W Higgins *Sublease
6 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
Large Blocks of Availability
Options for large space requirements in the O’Hare market are limited. There are currently only four properties that can accommodate large (100,000 square feet and above) users, three of which are Class A.
Rents
Rental rates in the O’Hare market continued to rise in 2016, reaching pre-recession levels.
Class A average asking rent in the O’Hare market increased to $30.75 per square foot gross, compared to year-end 2014, when it averaged $29.86.
The average asking rate for all classes also increased, rising to $21.19 per square foot gross, up from $20.65 at year-end 2014.
Construction
No new speculative construction was completed in the O’Hare market during 2015 and none is expected in 2016.
Proposed projects include Pointe O’Hare II and O’Hare Corporate Campus, both in Rosemont. If completed, these projects could add 1.4 million square feet to the O’Hare market. In addition, Hosts Hotels & Resorts, Inc. is currently trying to obtain a zoning amendment to develop a 750,000-square-foot office building on the land next to its O’Hare Marriott property.
What To Expect in 2016
> Vacancy is expected to decrease throughout the O’Hare market, with a more significant decrease coming from Class A assets.
> Class A rental rates are expected to increase due to the lack of large blocks of availability.
> No significant multi-tenant construction is expected in 2015.
Significant Lease and Sale Activity
Top O’Hare Office Leasing Activity 4Q 2015TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE
Abbott Molecular 1350 Touhy Plaza Des Plaines B 40,500 New
Rail Europe 1350 Touhy Plaza Des Plaines B 23,500 New
Ceannate O’Hare International Center Rosemont A 15,000 New
Asking Gross Rental Rates | O’Hare Office Market
Top 10 Large Available Blocks by Square Feet
Top O’Hare Office Investment Sales Activity 4Q 2015STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER
Sold One O’Hare Centre Rosemont A 380,360 $83,000,000 $218.21 MDC/Nicola Crosby Real Estate CBRE Investors
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
201520142013201220112010
Asking Gross Rental RatesO'Hare Submarket
Source: Costar; Colliers International Research
CLASS A CLASS B
LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O’Hare FS=For Sale NEW=New to Market UC=Under Contract
NorthwestThe Northwest suburban office market has been home to an array of industries, making it the most diverse of the five submarkets. As a result, it was the hardest hit suburban market during the recession as firms began consolidating or altogether closing. Although certain pockets of the submarket have seen improvement in recent years, the Northwest market as a whole continues to struggle.Vacancy
The Northwest market retained the highest vacancy level of all the suburban markets as it ended 2015 with 21.7 percent vacancy, up from 21.1 at year-end 2014. However, this in an improvement from the 23.4 percent it witnessed during the height of the recession.
While Class A properties increased to 18.7 percent from 17.5 percent in 2014, Class B properties decreased slightly, dropping to 27.6 percent from 27.8 percent at year-end 2014. However, when considering high quality, true Class A assets in the Northwest market, there was improvement in vacancy as these assets ended the year at 19.0 percent, compared to 20.8 percent at the end of 2014.
Sublease vacancy remains low in the Northwest market with 0.8 percent vacancy, unchanged from year-end 2014.
Absorption
The Northwest market ended 2015 with 195,728 square feet of negative net absorption, compared to positive 331,754 square feet at year end of 2014.
Class A properties ended 2015 with 223,567 square feet of negative net absorption compared to 298,370 square feet of positive absorption in 2014.
(195,728)
331,754 313,723
104,670
(612,546)
392,957
21.7%
21.1%
22.1%
23.1%
23.4%
21.5%
20.5%
21.0%
21.5%
22.0%
22.5%
23.0%
23.5%
24.0%
(800,000)
(600,000)
(400,000)
(200,000)
0
200,000
400,000
600,000
201520142013201220112010
Net Absorption & VacancyNorthwest Submarket
Absorption VacancySource: Costar; Colliers International Research
Class A 19,656,237 SF18.7% Vacant
Class B10,981,118 SF27.6% Vacant
Class C1,110,727 SF17.5% Vacant
Class A Class B Class C
Vacant Space By Property Type
Net Absorption and Vacancy | Northwest Office Market
Market IndicatorsRelative to prior periods Q4 2014 Q3 2015 CURRENT
VACANCY 21.1% 21.5% 21.7%
YTD ABSORPTION 331,754 (118,969) (195,728)
RENTAL RATE $18.10 $18.17 $18.23
INVENTORY 31,748,082 31,748,082 31,748,082
8 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
Large Blocks of Availability
The Northwest market continues to offer the most options for large space requirements with 15 properties that can accommodate large (100,000 square feet and above) users, 10 of them being Class A.
Rents
The Northwest suburban Class A average asking rate measured $24.33 per square foot gross, up from year-end 2014’s rate of $23.85.
The average asking rate for all classes measured $18.23 per square foot gross, up slightly from $18.10 at the end of 2014.
Construction
No new speculative construction was completed in Northwest market during 2015 and none is expected in 2016.
However, construction continues on Zurich North America’s 735,000-square-foot headquarters at Meacham Road and Interstate 90 in Schaumburg. Zurich Insurance will move from its current Schaumburg location in 2016, when the development is completed. In addition, American Academy of Pediatrics is expected to break ground on a 200,000-square-foot build-to-suit development at Park Boulevard and Pierce Road in Itasca early in 2016.
What To Expect in 2016
> Class A concessions will hold firm while rents remain flat.
> Investment sales activity will increase.
> With road improvements on Roselle, Meacham, Barrington and the Tollway expected to be completed in the fall of 2016, the Northwest market will become more desirable and convenient to tenants.
> No significant speculative construction is expected, however, build-to-suit activity will persist.
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
201520142013201220112010
Asking Gross Rental RatesNorthwest Submarket
Source: Costar; Colliers International Research
Asking Gross Rental Rates | Northwest Office Market
Top 10 Large Available Blocks by Square Feet
Significant Lease and Sale Activity
Top Northwest Office Investment Sales Activity 4Q 2015STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER
New Woodfield Corporate Center Schaumburg A 532,972 TBD TBD TBD MassMutual Life Insurance
Sold 1600 Corporate Center Rolling Meadows A 253,500 $16,000,000.00 $63.12 Helios Property Management
C-III Asset Management
New Keystone Office Center Rolling Meadows B 60,100 TBD TBD TBD LeasePlan USA
Top Northwest Office Leasing Activity 4Q 2015TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE
Wistron Mobile Solutions* Meadows Corporate Center Rolling Meadows A 55,500 Renewal
Avnet* Prairie Stone Business Center Hoffman Estates B 23,000 Renewal
*Colliers International Transaction
1,300,000
882,069
574,000
328,378
216,592
183,498
145,020
128,663
126,284
125,323
*2000 W AT&T Drive
1400 & 1450 American Lane
2001 Lakewood Boulevard
2 Pierce Place
2550 W Golf Road
1000 E Woodfield Road
21440 Lake Cook Road
1501 E Woodfield Road
5201 Tollview Road
700 N Wood Dale Road *Sublease
CLASS A CLASS B
LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O’Hare FS=For Sale NEW=New to Market UC=Under Contract
NorthHome to many corporate users, The North market has primarily attracted tenants for its low Lake County tax rate to the north and its proximity to Downtown Chicago to the south. As some of these larger corporate users began to vacate, the North market suffered its largest vacancy in decades. However, with several large users beginning to expand and return to the market, North market is making a rebound.Vacancy
The North market ended the fourth quarter of 2015 with 18.4 percent overall vacancy, down significantly from year-end 2014 when it reported 21.8 percent overall vacancy. Class A properties reported the most dramatic decrease, dropping to 20.9 percent for 25.5 percent at the end of 2014.
When considering high quality, true Class A assets, the improvement in vacancy is more substantial at 11.8 percent, compared to 20.0 percent at the end of 2014.
Overall sublease vacancy ended 2015 at 1.0 percent, down from 2.6 percent at the end of 2014. Sublease vacancy in the North market is at a sixteen year low.
Absorption
The North market witnessed the most improvement of all the suburban market in 2015, ending the year with positive 995,309 square feet, compared to negative 1,068,397 square feet at year-end 2014.
While all classes achieved positive absorption in the North market in 2015, Class A properties attributed to the majority of the increase, ending 2015 with 854,298 square feet of positive net absorption, compared to negative 1,198,766 square feet at year-end 2014.
995,309
(1,068,397)
249,627 187,724 5,302
(1,680)
18.4%
21.8%
18.2%19.0%19.7%19.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
(1,500,000)
(1,000,000)
(500,000)
0
500,000
1,000,000
1,500,000
201520142013201220112010
Net Absorption & VacancyNorth Submarket
Absorption VacancySource: Costar; Colliers International Research
Class A18,227,812 SF20.9% Vacant
Class B9,117,235 SF14.7% Vacant
Class C1,646,725 SF12.0% Vacant
Class A Class B Class C
Vacant Space By Property Type
Net Absorption and Vacancy | North Office Market
Market IndicatorsRelative to prior periods Q4 2014 Q3 2015 CURRENT
VACANCY 21.8% 19.8% 18.4%
YTD ABSORPTION (1,068,397) 587,637 995,309
RENTAL RATE $21.58 $21.89 $22.02
INVENTORY 28,991,772 28,991,772 28,991,772
966,061
405,039
365,268
304,013
175,545
159,821
120,999
107,984
103,115
85,816
600 N US Highway 45
**1000 Milwaukee Avenue
3100 Sanders Road
2 Overlook Point
300 Tower Parkway
26125 N Riverwoods Boulevard
3600 W Lake Avenue
1 Overlook Point
2355 Waukegan Road
100 S Saunders Road*Sublease**Direct/Sublease Combined
CLASS A CLASS B
10 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
Large Blocks of Availability
There are currently seven blocks of space available for large-sized tenants (100,000 square feet and above), all of them being Class A.
Rents
Asking rates in the North market have achieved pre-recession levels, as average Class A asking rent increased to $30.23 per square foot gross from $29.36 at year-end 2014.
The average asking rate for all classes also increased, rising to $22.02 per square foot gross, compared to year-end 2014 when the overall rate was $21.58 per square foot gross.
Construction
No new speculative construction was completed during 2015 and none is expected in 2016.
There are a few sites available for future build-to-suit projects in the North market, including Janko’s 170,000 square-foot project in Lake Forest. In addition, John Buck Company’s 200,000-square-foot project in Deerfield recently sold to Quadrangle Development for a build-to-suit development.
What To Expect in 2016
> Overall vacancy and absorption will remain steady.
> Tenants seeking large blocks will diminish. However, increased activity from small to mid-size tenants is expected.
> Product near Lake-Cook Road, Skokie Boulevard and the Tollway will continue to see an increase in absorption.
> True Class A rents will continue to increase, while Class B rates will remain steady.
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
201520142013201220112010
Asking Gross Rental RatesNorth Submarket
Source: Costar; Colliers International Research
Asking Gross Rental Rates | North Office Market
Significant Lease and Sale Activity
Top North Office Investment Sales Activity 4Q 2015STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER
Sold Bannockburn Lakes I-IV Bannockburn A 423,369 $27,450,000 $64.84 Walton Street Capital/Glenstar
Wells Fargo/Hudson Advisors
Sold Edens Corporate Center Northbrook A 181,330 $30,200,000 $160.60 KBS Realy Advisors The Davis Companies
New 90, 98, 100 Half Day Road Lincolnshire A 343,000 TBD TBD TBD Medline Industries
UC 3 Lakes Dr Northfield B 679,000 TBD TBD TBD W.P. Carey
UC Concourse Office Plaza Skokie A 294,073 TBD TBD TBD Lionstone Investments
Top North Office Leasing Activity 4Q 2015TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE
Horizon Pharma* Landmark of Lake Forest Lake Forest A 133,000 Sublease
Donlen 3000 Lakeside Drive Vernon Hills A 73,000 New
Option Care 3000 Lakeside Drive Vernon Hills A 47,000 New
Solo Cup* Tri-State International Lincolnshire A 23,000 New
Option Care* 544 Lakeview Pky Vernon Hills A 22,500 New
*Colliers International Transaction
Top 10 Large Available Blocks by Square Feet
LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O’Hare FS=For Sale NEW=New to Market UC=Under Contract
Lisle-NapervilleThe Lisle-Naperville market, known for its ability to attract technology tenants seeking newer construction and bigger floor plates, continues to retain the lowest vacancy of all the suburban markets.Vacancy
Despite an increase in overall vacancy in the fourth quarter of 2015 as vacancy rose to 18.0 percent from 17.4 percent at the end of 2014, the Lisle-Naperville Market continues to have the healthiest vacancy of all the markets.
Class A assets also witnessed an increase in vacancy, ending 2015 at 15.9 percent, compared to 14.7 percent in 2014.
While sublease vacancy in the Lisle-Naperville market decreased to 2.5 percent in 2015 compared to 3.8 percent at the end of 2014, it remained the highest of the suburbs.
Absorption
The Lisle-Naperville market ended 2015 with 109,629 square feet of positive net absorption, compared to positive 86,346 square feet at year-end 2014.
While Class A properties witnessed negative year-end net absorption of 113,317 square feet, Class B properties ended the year with a modest increase of postive 7,419 square feet.
Large Blocks of Availability
Six properties in the Lisle-Naperville market can accommodate large (100,000 square feet and above) users, three of which are Class A.
Rents
The average Class A asking rent in the Lisle-Naperville market measured $27.82 per square foot gross at the end of 2015, up from $26.60 per square foot at the end of 2014.
(109,629)
86,346
200,888
37,519
207,178
(151,967)
18.0%
17.4%
17.9%
19.0%19.2%
20.4%
17.0%
17.5%
18.0%
18.5%
19.0%
19.5%
20.0%
20.5%
21.0%
(200,000)
(150,000)
(100,000)
(50,000)
0
50,000
100,000
150,000
200,000
250,000
201520142013201220112010
Net Absorption & VacancyLisle/Naperville Submarket
Absorption VacancySource: Costar; Colliers International Research
Class A9,735,675 SF15.9% Vacant
Class B7,341,219 SF22.0% Vacant
Class C914,382 SF8.7% Vacant
Class A Class B Class C
Vacant Space By Property Type
Net Absorption and Vacancy | Lisle-Naperville Office Market
Market IndicatorsRelative to prior periods Q4 2014 Q3 2015 CURRENT
VACANCY 17.4% 17.8% 18.0%
YTD ABSORPTION 86,346 (73,056) (109,629)
RENTAL RATE $19.93 $19.85 $20.20
INVENTORY 17,991,276 17,991,276 17,991,276
12 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
The average asking rate for all classes also increased to $20.20 per square foot gross, up from $19.93 at the end of 2014.
Construction
While no new speculative construction was completed in the Lisle-Naperville market during 2015, developers here are seeking locations for build-to-suit properties.
What To Expect in 2016 > While the transaction velocity of large tenants has subsided, small- to mid-sized tenants will remain active.
> Class A and B asking rates are expected to increase in 2016.
> No speculative development is expected in 2016. However, build-to-suit activity will increase.
> Investment sales activity will remain steady.
CLASS A CLASS B
Asking Gross Rental Rates | Lisle-Naperville Office Market
Significant Lease and Sale Activity
Top Lisle-Naperville Office Investment Sales Activity 4Q 2015STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER
NO SIGNIFICANT Q4 TRANSACTIONS
Top Lisle-Naperville Office Leasing Activity 4Q 2015TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE
MultiPlan Washington Pointe Naperville A 68,000 Renewal
Connor & Gallagher Insurance Services Corporetum III Lisle A 15,500 New
*Colliers International Transaction
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
201520142013201220112010
Asking Gross Rental RatesLisle/Naperville Submarket
Source: Costar; Colliers International Research
593,360
360,000
354,000
249,996
205,633
132,134
112,605
96,278
83,792
77,006
2701 Navistar Drive
*6200 S Route 53
263 Shuman Boulevard
4201 Winfield Road
2400 Cabot Drive
2441 Warrenville Road
*750 N Commons Boulevard
4343 Commerce Court
535 E Diehl Road
150 S Lincolnway
Top 10 Large Available Blocks by Square Feet
*Sublease
CLASS A CLASS B
LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O’Hare FS=For Sale NEW=New to Market UC=Under Contract
Oak BrookThe Oak Brook market, which typically attracts smaller tenants in the 10,000- to 20,000-square-foot range and benefits from steady leasing velocity, continued to show improvement throughout 2015.Vacancy
The Oak Brook market ended the fourth quarter of 2015 with an overall vacancy rate of 19.8 percent, down from 21.8 percent at year-end 2014. While the number of large users in the market has dissipated, the Oak Brook market has been able to remain stable as velocity of small- to mid-size users continues to improve.
While both Class A and B properties showed improvement in 2015, Class A achieved the most significant change, down to 21.8 percent from 23.9 percent at year-end 2014.
Sublease vacancy remained stable ending 2015 at 1.4 percent versus 1.5 percent at the end of 2015.
Absorption
The Oak Brook market ended 2015 with 454,226 square feet of positive net absorption, an improvement over year-end 2014’s 248,533 square feet of positive net absorption.
All classes in the Oak Brook market achieved positive year-end absorption.
Large Blocks Of Availability
Four properties in the Oak Brook market can accommodate large (100,000 square feet and above) users. Three of the four properties are Class A.
Rents
Class A average asking rent in the Oak Brook market measured $28.86 per square foot gross at the end of fourth quarter 2015, up from $27.43 per square foot gross at year-end 2014.
The average asking rate for all classes totaled $20.06 per square foot gross, up from $19.72 per square foot gross at year-end 2014.
454,226
248,533
(218,185)
(44,891)
220,684
(67,028)
19.8%
21.8%
22.8%
21.9%21.7%
22.5%
19.5%
20.0%
20.5%
21.0%
21.5%
22.0%
22.5%
23.0%
(300,000)
(200,000)
(100,000)
0
100,000
200,000
300,000
400,000
500,000
201520142013201220112010
Net Absorption & VacancyOak Brook Submarket
Absorption VacancySource: Costar; Colliers International Research
Class A13,225,199 SF18.5% Vacant
Class B9,203,330 SF21.8% Vacant
Class C1,048,873 SF19.3% Vacant
Class A Class B Class C
Vacant Space By Property Type
Net Absorption and Vacancy | Oak Brook Office Market
Market IndicatorsRelative to prior periods Q4 2014 Q3 2015 CURRENT
VACANCY 21.8% 20.4% 19.8%
YTD ABSORPTION 248,533 314,300 454,226
RENTAL RATE $19.72 $19.93 $20.06
INVENTORY 23,477,402 23,477,402 23,477,402
14 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
Construction
No new construction was completed in the Oak Brook market during 2015. However, build-to-suit activity continues as Chamberlain Group, a division of Duchossois Group, is building a 252,600-square-foot office development on the land it acquired from Follett Corporation on Swift Drive in Oak Brook.
What To Expect in 2016 > Class A and B asking rates are expected to increase.
> No speculative development will occur, however, build-to-suit activity will increase.
> While the transaction velocity of large tenants has subsided, small- to mid-sized tenants will remain active.
> Investment sales will remain steady
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
201520142013201220112010
Asking Gross Rental RatesOak Brook Submarket
Source: Costar; Colliers International Research
Asking Gross Rental Rates | Oak Brook Office Market
Significant Lease and Sale Activity
Top Oak Brook Office Investment Sales Activity 4Q 2015STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER
Sold Highland Pointe Lombard A 388,604 $44,000,000 $113.22 Hamilton Partners LaSalle Investment Management
Sold Highland Landmark V Downers Grove A 250,545 $71,600,000.00 $285.78 Adventus Realty Services, Inc.
Cornerstone Real Estate Advisors
New Parkview Plaza Oakbrook Terrace A 264,162 TBD TBD TBD TIAA-CREF
New Estancia Corporate Centre Burr Ridge A 167,401 TBD TBD TBD BJF Estancia, LLC
New Summit Oaks Oakbrook Terrace B 91,844 TBD TBD TBD WH&H Realty Advisors/Blue Vista
New Terrace Oaks Oakbrook Terrace B 55,829 TBD TBD TBD Terrace Oaks Associates
Top Oak Brook Office Leasing Activity 4Q 2015TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE
Upp Technology* Oakbrook Terrace Tower Oakbrook Terrace A 15,500 Sublease
256,767
149,615
120,156
101,487
95,078
92,932
78,300
74,319
68,000
55,514
700 Oakmont Lane
2655 Warrenville Road
*2707 Butterfield Road
3010 Highland Parkway
747 E 22nd Street
*3333 Finley Road
2000 S Finley Road
3050 Highland Parkway
1000 Royce Boulevard
1111 W 22nd St
*Colliers International Transaction
Top 10 Large Available Blocks by Square Feet
*Sublease
CLASS A CLASS B
LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O’Hare FS=For Sale NEW=New to Market UC=Under Contract
15 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
Fourth Quarter 2015 Office Market Statistics | Local Standards
CLASS BLDGS TOTAL INVENTORY SF
DIRECT VACANCY
RATE
SUBLEASE VACANCY
RATE
VACANCY RATE
CURRENT QTR
VACANCY RATE PRIOR
QTR
QUARTERLY NET ABSORPTION –SF
NET YTD ABSORPTION –SF
COMPLETIONS CURRENT QTR
- SF
UNDER CONSTRUCTION
- SFRENTS
O’HAREClass A 37 8,128,975 13.9% 0.8% 14.7% 14.9% 17,864 135,121 0 0 $30.75
Class B 50 4,798,093 26.3% 0.1% 26.3% 27.7% 67,212 (40,479) 0 0 $19.07
Class C 9 304,430 14.1% 0.0% 14.1% 14.6% 1,720 2,847 0 0 $13.76
Subtotal 96 13,231,498 18.4% 0.5% 18.9% 19.5% 86,796 97,489 0 0 $21.19
NORTHWESTClass A 87 19,656,237 17.5% 1.1% 18.7% 18.2% (86,021) (223,567) 0 0 $24.33
Class B 174 10,981,118 27.3% 0.2% 27.6% 27.6% 3,853 29,911 0 0 $17.00
Class C 27 1,110,727 16.5% 1.0% 17.5% 18.0% 5,409 (2,072) 0 0 $13.37
Subtotal 288 31,748,082 20.9% 0.8% 21.7% 21.5% (76,759) (195,728) 0 0 $18.23
NORTHClass A 108 18,227,812 19.5% 1.3% 20.9% 23.3% 446,301 854,298 0 0 $30.23
Class B 153 9,117,235 14.2% 0.5% 14.7% 14.2% (42,715) 52,773 0 0 $18.96
Class C 32 1,646,725 12.0% 0.0% 12.0% 12.2% 4,086 88,238 0 0 $16.86
Subtotal 293 28,991,772 17.4% 1.0% 18.4% 19.8% 407,672 995,309 0 0 $22.02
LISLE/NAPERVILLEClass A 50 9,735,675 15.5% 0.4% 15.9% 15.3% (60,277) (113,317) 0 0 $27.82
Class B 126 7,341,219 16.6% 5.5% 22.0% 22.4% 23,104 7,419 0 0 $17.40
Class C 24 914,382 8.7% 0.0% 8.7% 8.8% 600 (3,731) 0 0 $15.37
Subtotal 200 17,991,276 15.6% 2.5% 18.0% 17.8% (36,573) (109,629) 0 0 $20.20
OAK BROOKClass A 66 13,225,199 18.0% 0.5% 18.5% 18.8% 40,564 187,428 0 0 $28.86
Class B 147 9,203,330 19.0% 2.8% 21.8% 22.9% 100,896 197,878 0 0 $17.44
Class C 21 1,048,873 18.7% 0.6% 19.3% 19.1% (1,534) 68,920 0 0 $13.87
Subtotal 234 23,477,402 18.4% 1.4% 19.8% 20.4% 139,926 454,226 0 0 $20.06
SUBURBAN TOTALClass A 348 68,973,898 17.4% 0.9% 18.4% 18.9% 358,431 839,963 0 0 $28.40
Class B 650 41,440,995 20.6% 1.8% 22.3% 22.7% 152,350 247,502 0 0 $17.97
Class C 113 5,025,137 13.9% 0.3% 14.2% 14.4% 10,281 154,202 0 0 $14.65
Subtotal 1,111 115,440,030 18.4% 1.2% 19.6% 20.1% 521,062 1,241,667 0 0 $20.34
QUARTERLY COMPARISON AND TOTALSQ4-15 1,111 115,440,030 18.4% 1.2% 19.6% 20.1% 521,062 1,241,667 0 0 $20.34Q3-15 1,111 115,440,030 18.6% 1.4% 20.1% 20.6% 648,824 720,605 0 0 $20.14
Q2-15 1,111 115,440,030 19.0% 1.6% 20.6% 20.7% 81,024 71,781 0 0 $20.06
Q1-15 1,111 115,440,030 19.0% 1.7% 20.7% 20.7% (9,243) (9,243) 0 0 $20.02
Q4-14 1,111 115,440,030 18.9% 1.8% 20.7% 20.7% 7,083 (193,623) 0 0 $20.00
16 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
Fourth Quarter 2015 Office Market Statistics | Includes Owner Occupied Properties
CLASS BLDGS TOTAL INVENTORY SF
DIRECT VACANCY RATE
SUBLEASE VACANCY RATE
TOTAL VACANCY RATE CURRENT QTR
TOTAL VACANCY RATE
PRIOR QTR
QUARTERLY NET ABSORPTION –SF
NET YTD ABSORPTION –SF
COMPLETIONS CURRENT QTR - SF
UNDER CONSTRUCTION - SF
O’HAREClass A 40 8,500,582 13.4% 0.8% 14.1% 14.2% 8,385 125,642 0 0
Class B 61 5,290,398 26.0% 0.2% 26.2% 27.4% 63,812 (33,654) 0 0
Class C 17 653,418 11.2% 0.0% 11.2% 11.2% (132) 4,681 0 0
Subtotal 118 14,444,398 17.9% 0.5% 18.4% 18.9% 72,065 96,669 0 0
NORTHWESTClass A 100 21,606,486 17.6% 1.0% 18.6% 18.3% (62,321) (196,567) 0 0
Class B 318 16,687,874 21.4% 0.3% 21.8% 22.0% 31,322 (209,094) 0 0
Class C 64 2,083,814 15.9% 0.7% 16.6% 17.1% 16,005 (20,618) 0 0
Subtotal 482 40,378,174 19.1% 0.7% 19.8% 19.8% (14,994) (426,279) 0 0
NORTHClass A 137 23,940,384 17.9% 0.9% 18.8% 19.2% 94,635 503,632 0 0
Class B 278 21,190,324 7.8% 0.4% 8.2% 7.9% (54,786) (74,386) 0 0
Class C 61 2,520,723 10.1% 0.0% 10.1% 10.0% (2,274) 85,851 0 0
Subtotal 476 47,651,431 13.0% 0.6% 13.6% 13.7% 37,575 515,097 0 0
LISLE/NAPERVILLEClass A 56 11,013,178 13.7% 0.4% 14.1% 13.6% (60,277) (113,317) 0 0
Class B 205 11,542,502 12.9% 3.5% 16.4% 16.7% 34,605 40,145 0 0
Class C 54 1,727,043 10.2% 0.0% 10.2% 10.7% 8,837 (3,602) 0 0
Subtotal 315 24,282,723 13.1% 1.8% 14.9% 14.8% (16,835) (76,774) 0 0
OAK BROOKClass A 69 13,724,307 15.9% 0.5% 16.4% 16.8% 56,818 212,973 0 0
Class B 222 12,815,580 15.4% 2.1% 17.5% 17.9% 51,173 110,824 0 0
Class C 50 1,958,358 13.9% 0.4% 14.2% 14.1% (2,736) 74,795 0 0
Subtotal 341 28,498,245 15.5% 1.2% 16.7% 17.1% 105,255 398,592 0 0
SUBURBAN TOTALClass A 402 78,784,937 16.4% 0.8% 17.2% 17.2% 37,240 532,363 0 0
Class B 1,084 67,526,678 14.9% 1.2% 16.0% 16.4% 126,126 (166,165) 0 0
Class C 246 8,943,356 12.4% 0.2% 12.6% 12.8% 19,700 141,107 0 0
Subtotal 1,732 155,254,971 15.5% 0.9% 16.4% 16.6% 178,390 613,233 0 0
QUARTERLY COMPARISON AND TOTALSQ4-15 1,732 155,254,971 15.5% 0.9% 16.4% 16.6% 178,390 613,233 0 0Q3-15 1,732 155,254,971 15.4% 1.1% 16.6% 16.9% 516,223 434,843 0 0
Q2-15 1,732 155,254,971 15.7% 1.2% 16.9% 16.9% 4,493 (191,984) 0 0
Q1-15 1,732 155,254,971 15.6% 1.3% 16.9% 16.8% (85,873) (196,477) 26,000 0
Q4-14 1,731 155,228,971 15.4% 1.4% 16.8% 16.9% 348,751 608,176 180,000 26,000
17 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
TOP LEASE TRANSACTIONS OF 2015 | SUBURBAN CHICAGO
ADDRESS TOWN SUBMARKET CLASS SIZE (SF) TYPE QUARTER
Baxalta* 1200 Lakeside Dr Bannockburn N A 260,000 New 1Q2015
Ulta* Tallgrass Corporate Center Bolingbrook LN A 206,500 Renewal 1Q2015
United Stationers Supply* One Parkway North Deerfield N A 200,000 Renewal 2Q2015
HSBC Northwest Crossings Arlington Heights NW B 162,500 New 3Q2015
Verizon Wireless Continental Towers Rolling Meadows NW A 160,000 New 2Q2015
Horizon Pharma* Landmark of Lake Forest Lake Forest N A 133,000 Sublease 4Q2015
American Imaging Management* Corporate 500 Centre Deerfield N A 93,500 Renewal 1Q2015
PSAV* 5100 River Rd Schiller Park O A 75,000 New 1Q2015
Barilla 885 Sunset Ridge Rd Northbrook N B 75,000 New 1Q2015
Donlen 3000 Lakeside Dr Vernon Hills N A 73,000 New 4Q2015
Hartford Insurance 4245 Meridian Pky Aurora LN A 71,000 Renewal 1Q2015
MultiPlan Washington Pointe Naperville LN A 68,000 Renewal 4Q2015
LTD Commodities* Tri-State International Lincolnshire N A 61,500 Renewal 2Q2015
Protective Life* 1707 N Randall Rd Elgin NW A 55,500 Renewal 1Q2015
Wistron Mobile Solutions* Meadows Corporate Center Rolling Meadows NW A 55,500 Renewal 4Q2015
Panasonic Continental Towers Rolling Meadows NW A 49,000 New 1Q2015
NCH Marketing Services* 155 Pfingsten Rd Deerfield N A 48,000 Renewal 2Q2015
Option Care 3000 Lakeside Dr Vernon Hills N A 47,000 New 4Q2015
Inland Real Estate 814 Commerce Dr Oak Brook OB B 45,000 New 3Q2015
Abbott Molecular 1350 Touhy Plaza Des Plaines O B 40,500 New 4Q2015
Accertify Two Pierce Place Itasca NW A 40,000 New 1Q2015
Microsoft Highland Landmark II Downers Grove OB A 37,000 Renewal 1Q2015
Accuity* 1007 Church St Evanston N A 35,000 New 2Q2015
Fullerton Engineering Consultants Woodfield Lake Office Park Schaumburg NW A 32,000 New 3Q2015
Kellen Company Parkview Plaza Oakbrook Terrace OB A 30,500 New 2Q2015
Fleetmatics USA 1600 Corporate Center Rolling Meadows NW A 28,000 Renewal 1Q2015
Reed Elsevier* 1007 Church St Evanston N A 28,000 New 3Q2015
Platinum Mortgage* 2200-2400 Hicks Rd Rolling Meadows NW B 27,000 Renewal 1Q2015
Ceannate 1100 W Lake Cook Rd Buffalo Grove N A 27,000 Expansion 2Q2015
Healthcare Information Services Park Ridge Plaza Park Ridge O B 24,500 Renewal 3Q2015
First Union Rail Riverway Rosemont O A 24,000 New 3Q2015
Portillo's Commerce Plaza Oak Brook OB A 24,000 New 3Q2015
Rail Europe 1350 Touhy Plaza Des Plaines O B 23,500 New 4Q2015
Midwest Orthopaedics at Rush, LLC* Westbrook Corporate Center Westchester OB A 23,000 Renewal 1Q2015
Avnet* Prairie Stone Business Center Hoffman Estates NW B 23,000 Renewal 4Q2015
Solo Cup* Tri-State International Lincolnshire N A 23,000 New 4Q2015
Option Care* 544 Lakeview Pky Vernon Hills N A 22,500 New 4Q2015
Ecra Group Schaumburg Corporate Center Schaumburg NW A 22,500 Sublease 3Q2015
Ex Libris 1350 Touhy Plaza Des Plaines O B 22,000 Renewal 1Q2015
Sedgwick 4245 Meridian Pky Aurora LN A 22,000 New 1Q2015
Nationwide Acceptance Company O'Hare International Center Rosemont O A 22,000 New 3Q2015
Personal Staffing Group ArborLake Centre Deerfield N A 21,000 New 1Q2015
United Healthcare Services* Corporetum Office Campus Lisle LN A 20,500 Renewal 3Q2015
Alliant Credit Union 1600 Corporate Center Rolling Meadows NW A 20,500 Expansion 2Q2015
MetLife Financial Services Presidents Plaza Chicago O A 19,500 Renewal 3Q2015
ComEd One Lincoln Centre Oakbrook Terrace OB A 19,500 Expansion 3Q2015
CNA Insurance Schaumburg Corporate Center Schaumburg NW A 19,000 New 3Q2015
*Colliers International Transaction
LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O’Hare FS=For Sale NEW=New to Market UC=Under Contract
18 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
2015 INVESTMENT SALE ACTIVITY | SUBURBAN CHICAGO
STATUS PROPERTY TOWNSUB-MARKET CLASS SIZE (SF) SALE PRICE
PRICE/SF BUYER SELLER QUARTER
Sold 6300 N River Rd Rosemont O B 137,942 $4,675,000.00 $33.89 Village of Rosemont
AAOS 1Q2015
Sold Oak Creek Center Lombard OB B 78,300 $4,100,000.00 $52.36 De Amertek Corporation Trust 104906 1Q2015
Sold Corporetum Office Campus X Lisle LN A 63,409 $3,300,000.00 $52.04 Napleton
Dealership GroupWells Real Estate Funds 1Q2015
Sold Corporate 500 Center Deerfield N A 697,672
$154,000,000.00 $220.73 Cornerstone Realty Advisors GE Capital/Arden 2Q2015
Sold 3333 Finley Rd Downers Grove OB B 236,440 $38,705,153.00 $120.00 Lone Star Funds Columbia Property Trust 2Q2015
Sold 8501 W Higgins Rd Chicago OH B 166,203 $23,250,000.00 $139.89Phoenix International Investment Mgmt
Lowe Enterprises 2Q2015
Sold 1717 Deerfield Rd Deerfield N A 141,186 $8,759,925.00 $62.05 Lone Star Funds Equity Commonwealth 2Q2015
Sold Old Orchard Woods Skokie N B 112,597 $29,500,000.00 $262.00 MB Real EstateDevelopment Resources RE Services
2Q2015
Sold Corporate Lakes IV Lisle LN A 94,375 $18,602,070.00 $197.00 Griffin Capital Wells Fargo 2Q2015
Sold Meridian Business Park Aurora LN B 74,266 $6,932,460.00 $62.05 Lone Star Funds Equity
Commonwealth 2Q2015
Sold 1955 W Field Ct Lake Forest N A 59,130 $3,668,737.00 $62.05 Lone Star Funds Equity Commonwealth 2Q2015
Sold Highland Plaza II Lombard OB B 53,195 $2,595,000.00 $48.78 BAIHP Management, LLC
RiverSource REO, LLC 2Q2015
Sold Westbrook Corporate Center Westchester OB A 1,073,408 Portfolio Sale* The Blackstone
Group GE Capital/Arden 3Q2015
Sold Oakbrook Terrace Tower Oakbrook Terrace OB A 792,192 Portfolio Sale* The Blackstone
Group GE Capital/Arden 3Q2015
Sold Commerce Plaza Oak Brook OB A 515,005 Portfolio Sale* The Blackstone Group GE Capital/Arden 3Q2015
Sold One Lincoln Centre Oakbrook Terrace OB A 303,098 Portfolio Sale* The Blackstone Group GE Capital/Arden 3Q2015
Sold Highland Landmark III Downers Grove OB A 275,197 $41,078,656.00 $149.27 Lone Star Funds Columbia
Property Trust 3Q2015
Sold One Parkway North Deerfield N A 271,500 Portfolio Sale* The Blackstone Group GE Capital/Arden 3Q2015
Sold Pointe O'Hare Rosemont O A 270,512 Portfolio Sale* The Blackstone Group GE Capital/Arden 3Q2015
Sold 1111 W 22nd St Oak Brook OB A 229,756 Portfolio Sale* The Blackstone Group GE Capital/Arden 3Q2015
Sold Corridors III Downers Grove OB A 221,969 $33,133,312.00 $149.27 Lone Star Funds Columbia Property Trust 3Q2015
Sold 747 E 22nd St Lombard OB A 209,577 $8,750,000.00 $41.75 Midas Medical Group Holdings
Vectron Corporation 3Q2015
Sold Metrowest Naperville LN A 205,055 $32,500,000.00 $158.49 Equus Capital Partners Franklin Partners 3Q2015
Sold Lisle Executive Center Lisle LN B 150,000 $15,000,000.00 $99.98 Boxer Property Pearkmark Real
Estate Partners 3Q2015
Sold 215 W Diehl Rd Naperville LN A 150,000 $22,390,500.00 $149.27 Lone Star Funds Columbia Property Trust 3Q2015
Sold 544 Lakeview Pky Vernon Hills N A 145,000 $21,644,150.00 $149.27 Lone Star Funds Columbia Property Trust 3Q2015
Sold 1-9 Commerce Dr Schaumburg NW B 51,513 $5,000,000.00 $97.06 Carepoint Healthcare
The Missner Group 3Q2015
*Part of a 188 property portfolio sale which sold for $3.3 Billion
LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O’Hare FS=For Sale NEW=New to Market UC=Under Contract
19 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
2015 INVESTMENT SALE ACTIVITY | SUBURBAN CHICAGO
STATUS PROPERTY TOWNSUB-MARKET CLASS SIZE (SF) SALE PRICE
PRICE/SF BUYER SELLER QUARTER
Sold Bannockburn Lakes I-IV Bannockburn N A 423,369 $27,450,000.00 $64.84 Walton Street
Capital/GlenstarWells Fargo/Hudson Advisors 4Q2015
Sold Highland Pointe Lombard OB A 388,604 $44,000,000.00 $113.22
Hamilton Partners
LaSalle Investment Management
4Q2015
Sold One O'Hare Centre Rosemont O A 380,360 $83,000,000.00 $218.21
MDC/Nicola Crosby Real Estate
CBRE Investors 4Q2015
Sold 1600 Corporate Center Rolling Meadows NW A 253,500 $16,000,000.00 $63.12 Helios Property
ManagementC-III Asset Management
Sold Highland Landmark V Downers Grove OB A 250,545 $71,600,000.00 $285.78 Adventus Realty
Services, Inc.Cornerstone Real Estate Advisors 4Q2015
Sold Edens Corporate Center Northbrook N A 181,330 $30,200,000.00
$160.60 KBS Realty Advisors
The Davis Companies 4Q2015
New Woodfield Corporate Center Schaumburg NW A 532,972 TBD TBD TBD
MassMutual Life Insurance
4Q2015
New 90, 98, 100 Half Day Road Lincolnshire N A 343,000 TBD TBD TBD Medline
Industries 4Q2015
New Parkview Plaza Oakbrook Terrace OB A 264,162 TBD TBD TBD TIAA-CREF 4Q2015
New Estancia Corporate Centre Burr Ridge OB A 167,401 TBD TBD TBD BJF Estancia,
LLC 4Q2015
New Summit Oaks Oakbrook Terrace OB B 91,844 TBD TBD TBDWH&H Realty Advisors/Blue Vista
4Q2015
New Terrace Oaks Oakbrook Terrace OB B 55,829 TBD TBD TBD Terrace Oaks Associates 4Q2015
New Keystone Office Center Rolling Meadows NW B 60,100 TBD TBD TBD LeasePlan USA 4Q2015
UC 3 Lakes Dr Northfield N B 679,000 TBD TBD TBD W.P. Carey 4Q2015
UC Concourse Office Plaza Skokie N A 294,073 TBD TBD TBD Lionstone
Investments 4Q2015
FS Central Park of Lisle Lisle LN A 622,287 TBD TBD TBD The Blackstone
Group Marketing
FS 3, 6, 9 Parkway North Deerfield N A 484,328 TBD TBD TBD John Buck
Company Marketing
FS Atrium Corporate Center Rolling Meadows NW A 483,000 TBD TBD TBD Spear Street
Capital Marketing
FS Old Orchard Towers Skokie N A 335,967 TBD TBD TBD Zeller Realty Marketing
FS Meadows Corporate Center Rolling Meadows NW A 270,200 TBD TBD TBD John Buck
Company Marketing
FS 3000 Lakeside Dr Bannockburn N A 209,628 TBD TBD TBD C-III Asset Management Marketing
FS One Woodfield Lake Schaumburg NW B 204,345 TBD TBD TBD Westport Capital Partners Marketing
FS O'Hare Corporate Towers Rosemont O B 202,325 TBD TBD TBD Lincoln Property Marketing
FS Washington Commons Naperville LN B 202,101 TBD TBD TBD EverWest Real
Estate Partners Marketing
FS Edens Corporate Center Northbrook N A 181,330 TBD TBD TBD The Davis
Companies Marketing
FS Oakbrook Place Oak Brook OB B 179,400 TBD TBD TBD TA Realty Marketing
FS Corporetum VI Lisle LN A 172,695 TBD TBD TBD Winthrop Realty Trust Marketing
FS Olympian Office Centre Lisle LN A 167,756 TBD TBD TBD Riverview Realty
Partners Marketing
*Part of a 188 property portfolio sale which sold for $3.3 Billion
LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O’Hare FS=For Sale NEW=New to Market UC=Under Contract
20 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International
2015 INVESTMENT SALE ACTIVITY | SUBURBAN CHICAGO
STATUS PROPERTY TOWNSUB-MARKET CLASS SIZE (SF) SALE PRICE
PRICE/SF BUYER SELLER QUARTER
FS One Oakbrook Terrace Oakbrook Terrace OB A 161,373 TBD TBD TBD UBS Realty
Investors Marketing
FS Woodlake Corporate Center Lombard OB B 158,454 TBD TBD TBD UBS Realty
Investors Marketing
FS Lisle Executive Center Lisle LN B 150,036 TBD TBD TBD Boxer Property Marketing
FS 600 N Field Dr Lake Forest N A 137,498 TBD TBD TBD James Campbell Company Marketing
FS 777 Big Timber Rd Elgin NW A 127,280 TBD TBD TBD InterCoastal Group Marketing
FS 500 Davis St Evanston N A 126,788 TBD TBD TBD Sabal Financial Group Marketing
FS Boulevard 40 Northbrook N A 106,850 TBD TBD TBD EverWest Real Estate Partners Marketing
FS Golf Corporate Centre Arlington Heights NW B 93,000 TBD TBD TBD Chicagoland
Commercial Marketing
FS Corporetum III Lisle LN A 91,722 TBD TBD TBD Prudential Life Insurance Marketing
*Part of a 188 property portfolio sale which sold for $3.3 Billion
LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O’Hare FS=For Sale NEW=New to Market UC=Under Contract
Copyright © 2015 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
About Colliers InternationalColliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is a global leader in commercial real estate services with more than 16,300 professionals operating from 502 offices in 67 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 10 consecutive years, more than any other real estate services firm.
colliers.com
502 offices in 67 countries on 6 continentsUnited States: 140 Canada: 31 Latin America: 24 Asia Pacific: 199 EMEA: 108
$2.3billion in annual revenue
1.7billion square feet under management
16,300professionals and staff
MARKET CONTACT:Ronna Larsen Research Manager, Suburban Office | Chicago+1 847 698 [email protected]