Midwest Real Estate News August 2010 : Page 3

www.rejournals.com midwest ® WWW.REJOURNALS.COM Publisher | Mark Menzies menzies@rejournals.com Associate Publisher | Jay Kodytek jkodytek@rejournals.com Editor | Dan Rafter danrafter@sbcglobal.net Production | Mark Cesarik mcesarik@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. There are plenty of reasons to be down about commercial real estate. Vacancies are up in every sector. New development activity has ground to a halt. Brokerage revenues are falling or flat-lining. It’s far from an ideal market these days. There is hope, though. At least that’s what I find when I talk with the commer-cial pros who broker industrial, office, re-tail and multi-family deals for a living. These folks have plenty of reasons to be sour. Most of them admit that they’ve never had to work through an industry slowdown quite as severe as this one has been. Most of them say that they’re work-ing harder than ever to keep their busi-ness relationships strong. Most of them are hoping to outlast the slump. When I talk to brokers, though, whether 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, $29; 2 years, $49. 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. they’re working in Kansas City or Cleve-land or Chicago, they tell me the same thing: This recession and its painfully slow recovery have been tough on the industry. But the industry will survive. Deals will again be done. And commercial markets will again boom. It’s just a matter of time. How much time? That remains the big question. But the brokers I interviewed for this issue of Midwest Real Estate News all cited a number of positive signs for me. They pointed to vacancy rates that weren’t quite as high as they once were. They pointed to the small number of new de-velopments that were still breaking ground. And they all found signs that banks were finally starting to lend again, provided that the developers asking for funds came to them with strong, well-planned projects. It’s good to see this optimism in an in-dustry that has been rocked by bad news for what seems like forever. It helps, too, to be working in theMidwest. TheMidwest markets are far from glamorous. But they are steady. There aren’t the severe ups and downs in places like Indianapolis and Omaha. Things here tend to be more sta-ble. In a down market, stable isn’t a bad thing. This issue of Midwest Real Estate News is all about stable. We have a closer look at the Kansas City market, one that is far-July/August 2010 Midwest Real Estate News® 3 FROM THE EDITOR REAL ESTATE NEWS® TheMidwest’scommercial realestatepublication,providing useful,unbiasedandaccurate coverageoftheindustryand itsprofessionalssince1985. Midwest brokers keep the faith ing reasonably well despite the sputtering economy. Like all markets, Kansas City does face its share of problems. But in comparison to others, the region is hold-ing up these days. We also have a report on the state of commercial activity in Ohio. The Buckeye state is a diverse one, with different markets performing better than others. We take a look at the Cleve-land, Cincinnati and Columbus area mar-kets. We also have a report on a sustainable business park making head-lines in the state. This issue also contains profiles of two Chicago commercial real estate icons, Richard Stein with Mesirow Financial and J. Paul Beitler with Beitler Real Estate Cor-poration. You’ll want to hear what these commercial real estate veterans have to say about the state of the industry and the odds that we’ll be seeing a commercial real estate recovery anytime soon. If you’re looking for hope in this tough commercial market, you’ve picked up the right magazine. Things aren’t rosy, that’s for sure. But in the Midwest, at least, they could be a lot worse. Sincerely, Dan Rafter

Editor’s Letter

There are plenty of reasons to be down about commercial real estate. Vacancies are up in every sector. New development activity has ground to a halt. Brokerage revenues are falling or flat-lining. It’s far from an ideal market these days.<br /> <br /> There is hope, though. At least that’s what I find when I talk with the commercial pros who broker industrial, office, retail and multi-family deals for a living.<br /> <br /> These folks have plenty of reasons to be sour. Most of them admit that they’ve never had to work through an industry slowdown quite as severe as this one has been. Most of them say that they’re working harder than ever to keep their business relationships strong. Most of them are hoping to outlast the slump.<br /> <br /> When I talk to brokers, though, whether they’re working in Kansas City or Cleveland or Chicago, they tell me the same thing: This recession and its painfully slow recovery have been tough on the industry. But the industry will survive. Deals will again be done. And commercial markets will again boom. It’s just a matter of time.<br /> <br /> How much time? That remains the big question. But the brokers I interviewed for this issue of Midwest Real Estate News all cited a number of positive signs for me. They pointed to vacancy rates that weren’t quite as high as they once were. They pointed to the small number of new developments that were still breaking ground. And they all found signs that banks were finally starting to lend again, provided that the developers asking for funds came to them with strong, wellplanned projects.<br /> <br /> It’s good to see this optimism in an industry that has been rocked by bad news for what seems like forever. It helps, too, to be working in the Midwest. The Midwest markets are far from glamorous. But they are steady. There aren’t the severe ups and downs in places like Indianapolis and Omaha. Things here tend to be more stable. In a down market, stable isn’t a bad thing.<br /> <br /> This issue of Midwest Real Estate News is all about stable. We have a closer look at the Kansas City market, one that is faring reasonably well despite the sputtering economy. Like all markets, Kansas City does face its share of problems. But in comparison to others, the region is holding up these days. We also have a report on the state of commercial activity in Ohio. The Buckeye state is a diverse one, with different markets performing better than others. We take a look at the Cleveland, Cincinnati and Columbus area markets. We also have a report on a sustainable business park making headlines in the state.<br /> <br /> This issue also contains profiles of two Chicago commercial real estate icons, Richard Stein with Mesirow Financial and J.Paul Beitler with Beitler Real Estate Corporation. You’ll want to hear what these commercial real estate veterans have to say about the state of the industry and the odds that we’ll be seeing a commercial real estate recovery anytime soon.<br /> <br /> If you’re looking for hope in this tough commercial market, you’ve picked up the right magazine. Things aren’t rosy, that’s for sure. But in the Midwest, at least, they could be a lot worse.<br /> <br /> Sincerely,<br /> Dan Rafter

Levenfeld Pearlstein, LLC

 

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