Chicago has weathered its share of storms, waves of economic fluctuations and global uncertainties. Its commercial real estate market has demonstrated resilience in the face of those challenges, performing better than many other markets.
“I’m a developer at heart, so I see the glass partially full,” said Susan Bergdoll, senior vice president and wife of CRG’s Midwest region. “I choose to see the good. I see a lot of promise for the time being, part of 2024. I see even more promise for the first part of 2025. “
Susan Bergdoll, Senior Vice President and Partner, MAF Midwest Region
He said he’s surprised to remind others that while the 2024 metrics may possibly differ from 2021, they are comparable to the results of 2018 and 2019.
“No one complained about the market at the time,” Bergdoll says. The market is still good. “
Job openings remain stable, especially in buildings 300,000 square feet or less, a segment of the market that is scarce.
“If you can locate a piece of land and build a 250,000- to 300,000-square-foot building, lease it temporarily because there just aren’t a lot of opportunities like that and a lot of corporations need new, modern real estate. “Bergdoll explained.
While the market may have experienced a slowdown in activity, recent developments imply a revival in interest and activity. Factors such as stabilizing interest rates and the slow shift from warehousing to just-in-time inventory control contribute to this positive outlook.
“There are a lot of other people who had dropped their pencils, so to speak, and have gotten them back in the last 90 days,” Bergdoll said. “It’s going to take a little while for everyone to come back. “”We’re on the right track, but that’s why I’m hopeful for the second part of this year and the first part of next year. “
MAF’s commitment to speculative and custom allocations reflects a multifaceted technique tailored to market demands. The company’s new venture, Cubes at ORD, marks a significant addition to Chicago’s commercial landscape. Spanning 66,552 square feet on a 4. 27-acre site in Franklin Park, this speculative allocation exemplifies the city’s appeal to developers in search of prime locations. Located southeast of O’Hare International Airport, the ORD Cubes will offer unprecedented transit infrastructure, adding direct access to Interstate 294, meeting the desires of small and medium-sized users of Class A space.
The assignment is expected to be completed in the fourth quarter of 2024 and features modern amenities such as ESFR sprinkler systems, high-efficiency LED lighting, giant dock doors and garage spaces, as well as parking for cars and trucks. With CRG’s parent company, Clayco, the leader of the structure, and LAMAR Johnson Collaborative, a subsidiary of CRG, as the architect, ORD’s Cubes promise to deliver top-notch services sought after by the most giant companies.
“The wonderful thing about this task is that we’re going to start the structure in June of this year and finish it by the end of the year,” Bergdoll said. “We’ll be in a perfect position to take advantage of all of this. “activity that will be resumed in the coming months. “
Despite the turbulence in the interest rate and investment markets, CRG chose this location due to its length and prime location.
“We’re focusing on places similar to Cubes in ORD, and we’re taking a closer look at anything that’s suitable for a 50,000- to 300,000-square-foot building,” Bergdoll said, noting that the O’Hare submarket has maintained a void rate of about 2 percent, which is a testament to steady demand and limited land availability. We know that’s what the market wants right now, so we’re in favor of those opportunities. “
The progression of MAF Cubes ORD illustrates Chicago’s appeal as a center for business advancement. Against the backdrop of a dynamic market landscape characterized by resilience, demand, and strategic investments, the task exemplifies the city’s ability to adapt and thrive in a changing economic environment.
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