Midwest Real Estate News January February 2010 : Page 4

4 Midwest Real Estate News® January/February 2010 midwest ® WWW.REJOURNALS.COM Publisher | Mark Menzies menzies@rejournals.com Associate Publisher | Jay Kodytek jkodytek@rejournals.com Editor | Dan Rafter danrafter@sbcglobal.net Production | Phil Lonergan plonergan@rejournals.com Circulation | Penny Bernal bernal@lbpc.com Marketing Coordinator | Frank Biondo fbiondo@rejournals.com ConferenceManager | Stephanie Awe sawe@rejournals.com MidwestRealEstateNewsbrings realestateleaderstogetherto explorethechallengesand opportunitiesuniquetotheirmarkets. We’d all like to think that flipping the calendar to a new year means that we get a true fresh start. Unfortunately, it’s not true. For instance,my 2-year-old still wakes up every morning at 5:15 a.m., except for themornings he decides to get up at 4:45 a.m. or 5 a.m. That hasn’t changed. I still eat too much, and don’t like to exercise. It’s still too cold in Chicago during the winter. And the commercial real estatemarket is still in a brutal slump. Yeah, that hasn’t changed, either. It’s still a huge challenge for develop- ers to get funding for their strip centers, office buildings and restaurants. Vacancy rates are still rising at regional shopping malls. Rents are still plummeting at of- fice buildings in the hearts of Midwest downtowns and in the far reaches of the region’s suburbs. Brokers and develop- REAL ESTATE NEWS® TheMidwest’scommercial realestatepublication,providing useful,unbiasedandaccurate coverageoftheindustryand itsprofessionalssince1985. FROM THE EDITOR New year, same challenges? ers are still working harder than ever just to survive. So, no, flipping the calendar hasn’t changed any of this. But still … there is hope, isn’t there? I spoke with brokers, real estate attor- neys, financial analysts, developers and even an accountant or two while putting together the contents of this issue. And they all told me one thing: Yes, 2010 is going to be one tough, tough year. But it’s also going to be better, at least a bit, than 2009. I’ve seen this hope, too, in the year- end market research reports we receive fromcompanies such asMarcus &Milli- chap, NAI Hiffman and Inland: The num- bers from 2009 were bad across the board, whether you’re looking at vacan- cies, rents, absorption or new projects. The numbers in 2010 will be bad, too. But they won’t be as bad as they were in 2009. In fact, most of the people I inter- viewed for this issue told me that when we look back at this commercial real estate slump, we’ll look at 2010 as the year when the industry hit bottom and began building itself up again. No one’s looking forward to that “bot- tom” part, of course. Some of the people I’ve spoken with say that we’ve already hit it. Others say we’re almost there. But they all say that by the end of this year, we’ll see the industry begin to recover. We’ll seemore development.Rentsmight start to rise again. Vacancy rates might fall. It’d be a relief. The question, though, for every commercial pro is this: What are you going to do to get through the bad times and to the recovery, without, of course, resorting to dropping out of the industry? If you’re looking for some inspiration as you ponder this question, be sure to check out this issue.We have profiles of successful commercial brokers inside. And they all have advice on how to not only build a business, but howto sustain one through the inevitable crashes. (And, yes, therewill be future crashes. They are inevitable, unfortunately.) We also have a number ofmarket reports. And you’ll be glad to know that the Midwest’s steady nature — a cliché, perhaps, but one that’s true—has helped its major cities weather this worst of real estate slumps. Remember, it could always be worse; you could be trying to work in the com- mercial real estate business on either of the coasts. This issue also contains our usualmix of news, company announcements and guest columnists. If you’re interested in reading about what some of the sharp- est financial minds in the Midwest think about the commercial slump and when it’s going to start to end, you’ve come to the right place. Here’s hoping that your 2010 will be better than your 2009. But I’m also hop- ing that your 2011 will be even better still. Sincerely, Dan Rafter www.rejournals.com CHICAGO OFFICE 415 N. State Street Chicago, IL 60654 • 312-416-1860 MINNEAPOLIS OFFICE 5353 Wazata Blvd., Suite 307 Minneapolis, MN 55416 • 952-885-0815 MidwestReal EstateNews®(ISSN0893-2719) is published bimonthly by Real Estate Communications Group, a divi- sion of LawBulletin Publishing Company, 415 N. State St., Chicago, IL 60654 (rejournals.com). Current and back issues and additional resources, including subscription request forms and an editorial calendar, are available on the internet at rejournals.com. Subscriptions:WithinU.S.: 1 year, $60; 2 years, $100. Outside U.S. (surface mail): 1 year, $75. 2 years, $128; (air mail) 1 year, $115; 2 years, $208. Single copies, $10.00. Subscription information: PennyBernal,415N. State St.,Chicago, IL60654. 312-644- 2394.©2010LawBulletin Publishing Company.Member of American Business Media and BPA International.

From The Editor

New Year, same challenges?<br /> We’d all like to think that flipping the calendar to a new year means that we get a true fresh start.<br /> <br /> Unfortunately, it’s not true.<br /> <br /> For instance, my 2-year-old still wakes up every morning at 5:15 a.m., except for the mornings he decides to get up at 4:45 a.m. or 5 a.m. That hasn’t changed.<br /> <br /> I still eat too much, and don’t like to exercise. It’s still too cold in Chicago during the winter. And the commercial real estatemarket is still in a brutal slump.<br /> <br /> Yeah, that hasn’t changed, either.<br /> <br /> It’s still a huge challenge for developers to get funding for their strip centers, office buildings and restaurants. Vacancy rates are still rising at regional shopping malls. Rents are still plummeting at office buildings in the hearts of Midwest downtowns and in the far reaches of the region’s suburbs. Brokers and developers are still working harder than ever just to survive.<br /> <br /> So, no, flipping the calendar hasn’t changed any of this.<br /> <br /> But still … there is hope, isn’t there?<br /> <br /> I spoke with brokers, real estate attorneys, financial analysts, developers and even an accountant or two while putting together the contents of this issue. And they all told me one thing: Yes, 2010 is going to be one tough, tough year. But it’s also going to be better, at least a bit, than 2009.<br /> <br /> I’ve seen this hope, too, in the yearend market research reports we receive from companies such as Marcus & Millichap, NAI Hiffman and Inland: The numbers from 2009 were bad across the board, whether you’re looking at vacancies, rents, absorption or new projects.<br /> <br /> The numbers in 2010 will be bad, too.<br /> <br /> But they won’t be as bad as they were in<br /> <br /> 2009. <br /> <br /> In fact, most of the people I interviewed for this issue told me that when we look back at this commercial real estate slump, we’ll look at 2010 as the year when the industry hit bottom and began building itself up again.<br /> <br /> No one’s looking forward to that “bottom” part, of course. Some of the people I’ve spoken with say that we’ve already hit it. Others say we’re almost there. But they all say that by the end of this year, we’ll see the industry begin to recover.<br /> <br /> We’ll seemore development. Rentsmight start to rise again. Vacancy rates might fall.<br /> <br /> It’d be a relief. The question, though, for every commercial pro is this: What are you going to do to get through the bad times and to the recovery, without, of course, resorting to dropping out of the industry?<br /> <br /> If you’re looking for some inspiration as you ponder this question, be sure to check out this issue. We have profiles of successful commercial brokers inside.<br /> <br /> And they all have advice on how to not only build a business, but how to sustain one through the inevitable crashes. (And, yes, there will be future crashes. They are inevitable, unfortunately.) We also have a number ofmarket reports. And you’ll be glad to know that the Midwest’s steady nature — a cliché, perhaps, but one that’s true — has helped its major cities weather this worst of real estate slumps.<br /> <br /> Remember, it could always be worse; you could be trying to work in the commercial real estate business on either of the coasts.<br /> <br /> This issue also contains our usual mix of news, company announcements and guest columnists. If you’re interested in reading about what some of the sharpest financial minds in the Midwest think about the commercial slump and when it’s going to start to end, you’ve come to the right place.<br /> <br /> Here’s hoping that your 2010 will be better than your 2009. But I’m also hoping that your 2011 will be even better still.<br /> <br /> Sincerely, Dan Rafter

Walker & Dunlop

 

Loading