Commercial Investment Real Estate September/October 2017 | Page 43

{ NORTHEAST }
Boston Is Beacon for Retail
Construction: 700,000 sf completed YOY
Completions and Absorption
Completions
Absorption
4
3
2
1
0
2013
2014
2015
2016
2017*
Vacancy: 50-basis-point decrease in vacancy YOY
Vacancy Rate Trends
Metro
United States
8.0%
{ MIDWEST }
• Union Station also is getting a makeover in three
phases. The first phase includes renovation of Union
Station’s historic rail house, a new 110,000-sf food
hall, 100,000 sf of offices and hotel rooms, and two 12-story
residential structures. Phases two and three will add more
office and residential buildings.
• Vacant since 1997, Chicago’s Old Main Post Office will
undergo a massive interior and exterior renovation by
601W Companies, a New York-based developer. The historic
art deco building will be turned into an office develop-
ment with a large public riverfront plaza with a boat
launch and outdoor seating for restaurants and other
amenities for office tenants.
Source: MB Real Estate
CCIM.COM
• Blackstone has started a $500 million renovation of
the 3.9-msf Willis Tower (built as Sears Tower in 1970),
which is the most the company has ever invested in
a single building. Renovations encompass replacing the
existing plaza with a glass wrap-around structure at the base
of the tower; expanding the Skydeck for tourists; and adding
amenities for office tenants.
6.5%
5.0%
3.5%
2.0%
2013
2014
2015
2016
2017*
Retail Rents: 4 percent increase in the asking rent for retail YOY
Asking Rent Trends
Metro
Transforming Chicago’s
Southwest Loop
United States
6%
3%
0%
–3%
–6%
2013
2014
2015
2016
2017*
* Forecast
Source: Marcus & Millichap
September | October 2017
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