1120 E Ogden

Retail / Office Space For Lease | 3,674 SF | $20/SF NNN
1120 E Ogden Ave, Suite 101 | Naperville, IL 60563
Broker: Randolph Taylor rtaylor@creconsult.net | 630.474.6441

https://www.creconsult.net/retail-office-for-lease-1120-e-ogden-ave-suite-101-naperville-il-60563/?wpo_all_pages_cache_purged=1

9301 Golf

Golf Sumac Medical Offices For Lease | 998 - 2,853 SF | $28/SF MG
9301 West Golf Rd | Des Plaines, IL 60016
Broker: Randolph Taylor rtaylor@creconsult.net | 630.474.6441
https://www.creconsult.net/golf-sumac-professional-building-medical-office-space-for-lease-9301-golf-rd-des-plaines-il-60016/

Cushman & Wakefield, Marcus & Millichap Quietly Cut Jobs Last Year As Business Slowed

/ .whereAndWhen

Two of the nation's largest brokerage firms saved millions of dollars by quietly laying off workers at the end of last year.

Cushman & Wakefield and Marcus & Millichap reported headcount reductions in their fourth-quarter earnings reports. However, details regarding the number of layoffs and which departments were most impacted were scant.

Cushman & Wakefield cut $24.4M in operating and administrative expenses in Q4 primarily through lowered employment costs. The firm also reported an increase of $800K in restructuring changes, which was linked to severance payouts.

Marcus & Millichap's workforce shrunk by 5% last year, with the majority of turnover concentrated among employees who had been with the firm for one to three years, CEO Hessam Nadji said during the firm's earnings call.

In December, the company tightened expenses by reducing headcount, Nadji said, though he stopped short of sharing how many employees were laid off.

The reduction at Marcus & Millichap was relegated to corporate staff, Vice President of Public Relations Gina Relva told Bisnow. She said that despite economic headwinds prompting some layoffs, the company has also hired new agents and loan originators.

"Marcus & Millichap remain focused on strategically managing controllable expenses while continuing to provide best-of-class services on behalf of our clients and sales professionals," Relva said in an email.

Cushman & Wakefield did not respond to Bisnow's request for comment.

A growing number of large brokerage firms have implemented cost-cutting measures following a steep decline in transactions and capital market activity in the latter half of 2022.

JLL reported spending $9.3M in severance costs in Q3 before laying off an unspecified number of workers in November. CBRE also confirmed plans to reduce expenses by $300M through staff reductions.

Those staff reductions are "largely done," a CBRE spokesperson told Bisnow Thursday following the firm's Q4 earnings call.

 

Read: eXp World Holdings Reports Q4 and Full-Year 2022 Results

 

Source: Cushman & Wakefield, Marcus & Millichap Quietly Cut Jobs Last Year As Business Slowed

https://www.creconsult.net/market-trends/cushman-wakefield-marcus-millichap-quietly-cut-jobs-last-year-as-business-slowed/

Reversing Pandemic Trend, Apartment Sizes Shrink As Developers Try To Boost Yield

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Rising interest rates and the proliferation of build-to-rent contributed to a decrease in the average size of U.S. apartment units in 2022 as developers chased yield after two years of pandemic-driven upticks.

“Cost" to develop has played more of a factor in the decrease than market location,” Yardi," I Matrix Senior Analyst and Manager of Business Intelligence Doug Ressler told Bisnow.

The average size of new apartments started in the United States last year came in at 887 SF, a 30 SF year-over-year decrease, according to RentCafé calculations, based on Yardi Matrix data.

It’s tIt'sirst decrease since the pandemic spurred the development of slightly larger units aimed at people working from home. But now, developers are figuring out how to build remote workspaces while keeping overall floor plans small, motivated by the need to outsmart a high interest-rate environment.

“Small"r apartment units can largely be attributed to changing floor plans and unit mixes,” Ress" er said. “These" two factors and minimalist living explain the decrease in apartment size across markets and cost trends.”

Coun"intuitively, work-from-home office space can shrink or at least not increase a unit'sunit'sll size, especially when it is built instead of more oversized bedrooms or storage plans. Access to green space or nearby amenities can also mean tenants don't need large units.

“Two-b"droom units have decreased from about 40%-plus of the total share of teams to 30% of total units,” Ress" er said. “The i"production of the single-family build-to-rent product, which accommodates larger families and three or more bedrooms configurations, may influence this trend.”

Butthehe decreases in unit size aren’t intake across the board, with some surprising changes coming in the countrcountry'sst-cost markets like New York City and San Francisco, where unit sizes crept up.

Apartments in Manhattan, for example, grew 19 SF, or 3% compared with a decade earlier, despite the borougborough'sation for minuscule domiciles. In San Francisco, the average unit size grew 52 SF, or 7%, from 2013, according to RentCafé, and in Los Angeles, renters had an average of 45 feet more space.

Still, the U.S. average is down as developers up the proportion of studios and one-bedroom apartments they develop. Indeed, 57% of the apartment units set last year were studios or one-bedrooms, RentCafé reports. In 2013, studios and one-bedroom units represented 50% of multifamily units.

“There" is a trend for smaller units as developers try to squeeze out more yield in the same amount of space given the current challenges with interest rates and hard-cost pricing,” NRPgroupup Vice President of Development Jason Mochizuki said.

“Oourou" projects, so far, we haven'haven'tdoing that yet. Still, as this year progresses and pro formas continue to get tighter, I can see some developers increasingly shrinking unit sizes,” Moch" Mizuki said.

In early February, NRP Group broke ground on South Tryon, a market-rate community in Charlotte, North Carolina, bringing 310 units, including a mix of one-, two- and three-bedroom apartments, with den floor plans available in one-bedroom units to accommodate post-pandemic work-from-home.

PTM Partners Managing Partner Michael Tillman said his company has been building units that are “more "efficiently sized” sinc" its inception, typically averaging 5% to 10% smaller than comparable developments. PTM is active in Florida and the mid-Atlantic.

“Our p"primary motivation for smaller unit sizes is to create a Class-A building that that's-accessible to a larger percentage of residents within a 1-mile radius of the property,” Till,"  said. “But w" also realized that the next generation of renters was spending more time in the common areas and utilizing those amenities. Thus we typically provide amenity spaces that are significantly larger in size and variety.”

Unit size shrank during a record year for the construction of new apartments.

Given the sharp rise in the cost of debt and continued higher costs of construction and labor, Tillman said one possible way to reduce costs is to reduce unit sizes. Still, not all markets are the same, and smaller unit sizes may not be commercially acceptable in specific needs where land is more readily available. Also, he noted that merely shrinking unit sizes doesn'doesn'tatically mean cost savings.

“You n" ed to consider unit layouts, appliance sizing, storage, and lighting,” Till,"  said. “For e"ample, a smaller unit may reduce the ability to have walk-in closets or larger furniture pieces, so built-ins and millwork might be necessary. Smaller units to reduce costs may not be the best solution.”

Some"developers say they aren'taren'ting their unit size yet, but acknowledge that market realities increasingly require more attention to design and construction details rather than geography.

“What ha"en'haven'tapartments shrunk in size, either during Covid or continuing to the present,” Dive"sified Properties Managing Partner Nicholas Minoia said. “As mattered of fact, the outer ring markets we serve are still seeing demand for somewhat larger units that include either a den or — minimally — a work-from-home area for employees working a hybrid schedule.”

Acti"e in most property types, Diversified ProperProperties'family development focuses on metro New York City, including outer ring communities and dense urban cores. Minoia acknowledges that supply chain delays persist and development costs are high.

“Still" we also recognize the need to balance these construction and financial realities with the space needs of renters in our markets,” Mino,"  said. “Looking"g ahead, developers will need to be even more hands-on in understanding the specific demands of the renters in their respective markets.”

 

 

Source: Reversing Pandemic Trend, Apartment Sizes Shrink As Developers Try To Boost Yield

https://www.creconsult.net/market-trends/reversing-pandemic-trend-apartment-sizes-shrink-as-developers-try-to-boost-yield/

Should I Sell or Should I Hold? When is the best time for asset repositioning?

When it comes to selling their investment properties, clients typically ask me,’ Why should I sell?’ Great question. Why should you sell? The obvious answer is that you purchased the investment property as an investment, and it may not be doing as well as other investment opportunities, and after a while, you don’t realize the appreciation and thus maximization of profit from the property until you sell and acquire another investment property. So the question is really, ‘When should I sell? Clients really lose the perspective of the driving reason why they invested in an investment property in the first place. An investment property is just that; an investment. Treated as such, every investment must have a horizon and an exit strategy. If a property was purchased as an investment, then it makes full sense to profit as much as possible from the investment.

The real estate market, like any other market, will go through peaks and valleys. Trying to predict the exact moment of peak or the exact moment the market reaches the bottom is practically impossible. The real estate cycle has four phases; recovery, expansion, hyper supply, and recession. The complete real estate market cycle seems to have an average duration of about 18 years as there is good historical data to support that. So, where are we in that cycle now? How much more upside will we see before we reach the peak? The question really is, ‘What is your appetite for risk?’

Below is a chart of the real estate cycles dating back from the 1800s. The last real estate market crash started at 2006. We are almost 16 years into that cycle. Interest rates are still at all-time lows. Money is cheap, and the threat of inflation is very high. How long can government print money without paying the price down the road? How much road do we have left?

So when is a good time to exit an investment property? As with everything else, real estate is cyclical. Those of us that have been around for some time have witnessed several cycles in the real estate market. Since it is practically impossible to predict the peak of cycles, what strategy should you then use to maximize your investments? Keeping it simple, when evaluating if you should consider selling an investment property, it doesn’t really matter what the current real estate market is like. If you are looking to replace the investment property with another investment property, the ultimate decision to sell should also be based upon if you can increase your returns with the new replacement property, not what state the current market is in now.

There are a number of factors that can impact real estate prices; availability, investment potential, and interest rates, to name a few. Interest rates impact the price and demand of real estate—lower rates bring in more buyers due to the lower cost of money but also expand the demand for real estate, which can then drive up prices. As interests rate starts to inch up, the cost of money increases, and thus the appetite for real estate investments declines.

However, there are many ways that one can still protect their investments. 1031 Exchanges give investors a vehicle to reposition assets and mitigate risk. There are certain asset classes that inherently hold less risk and still perform as an investment vehicle. The questions really come down to; ‘How long do I hold on during this cycle? Do I have the time horizon to outlast another cycle? Is it time to reposition and take advantage of 1031?

As part of the team for our client’s investments, we specialize in building solutions around our client’s needs. We analyze the requirements, crunch the data, and present assets entirely based on their circumstances and the goals they are trying to achieve with their investment.

Have you thought of selling your property and would like to know what it’s worth? Request a valuation for your property below:

Request Valuation

 

Source: Should I Sell or Should I Hold? When is the best time for asset repositioning?

https://www.creconsult.net/market-trends/should-i-sell-or-should-i-hold-when-is-the-best-time-for-asset-repositioning/

Sam “Simcha” Applegrad Pays $31M for Schaumburg Apartments

Applegrad pays $31M for Schaumburg apartments

Seller paid $47M for a 396-unit property in 2014.

Sam “Simcha” Applegrad picked up an apartment complex in the northwest Chicago suburbs for $31 million, adding to the streak of multifamily trades in the area as deal volume for other commercial real estate assets dives while rising interest rates wedge pricing gaps between buyers and sellers.

While the deal's price was about $16 million less than what the San Francisco Bay Area-based seller, Friedkin Property Group, paid for the property nearly a decade ago, it looks to have taken slightly more cash than out from a loan during its ownership.

Several LLCs affiliated with Applegrad’s New York-based firm YMY Acquisitions are listed as the buyer of the 396-unit, three-story Fieldpointe of Schaumburg apartments at 1708 Arbor Square in a deal executed Dec. 16 and documented late last month in Cook County records.

Friedkin, which Morton Friedkin helms, paid $47M for the apartments in 2014, part of the firm’s Chicago-area shopping spree underway. ADVERTISEMENT It’s unclear whether the lower sale price indicates the property sold at a loss or whether the deal included a creative financing arrangement. Friedkin took out a $49 million mortgage on the property in 2020, and it’s possible the deal involved the buyer taking over the loan for the remaining balance. YMY declined to comment on the sale. Friedkin did not respond to requests for comment.

However, losses on apartment play in the Chicago area have been rare in the last several years, even as occupancy at suburban multifamily properties dipped a bit in the past year. They were still nearly fully leased, though, at 97.5 percent occupied in the third quarter last year, down from a rate of 98 percent and higher in the past year, according to the most recent data from Integra Realty Resources.

Integra said the average suburban net effective rent was steady throughout last year, ending the third quarter at $1.92 per square foot. The complex includes studio, one-bedroom, and two-bedroom apartments. One-bedroom apartments lease start at $1,557 a month, with the price going up to $1,910 monthly for a two-bedroom unit.

The property was built in the 1970s and renovated in 2008. According to the firm's website, Friedkin still owns several Chicago-area residential and mixed-use properties in the city and the suburbs of Naperville, Elk Grove Village, Aurora, and Evanston.

Other significant multifamily assets that have traded hands in the Chicago suburbs in recent months are the 586-unit Stonebridge Village Apartments in Arlington Heights for a price of about $224,000 per unit in January and a 236-unit complex in Buffalo Grove that DRA Advisors bought for $53 million in December.

Source: Sam “Simcha” Applegrad Pays $31M for Schaumburg Apartments

https://www.creconsult.net/market-trends/sam-simcha-applegrad-pays-31m-for-schaumburg-apartments/

2023 eXp Commercial Commercial Real Estate Symposium

REGISTER TODAY

The Commercial Real Estate Symposium will provide junior and senior agents and brokers with valuable insights on topics, including: international opportunities, capital and funding for small businesses in today’s market, how to attract investors, and much more.

Dates: April 25-26, 2023
Start Time: 9 a.m. - 4 p.m. CST
Location: eXp Commercial Campus

We look forward to seeing you in the metaverse!

Important: Please download the virtual eXp Commercial Campus prior to the event, and follow the instructions to login and create your avatar. Feel free to explore the campus before the event begins.

 

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Interested in Joining eXp Commercial as a Commercial Real Estate Agent?

Further Info

https://www.creconsult.net/market-trends/2023-exp-commercial-commercial-real-estate-symposium/