Bruce Kaplan and Joe Billitteri: Commercial Real Estate Agents with Premier Commercial Realty. Your Profit is our Success!
Wednesday, September 21, 2011
Thursday, June 16, 2011
IDOT PLANS ROUTE 31 EXPANSION
Last week I attended a show and tell by IDOT held at the City of Crystal Lake. IDOT has aspirations of widening Rt 31 from Rt 176 all the way to Rt. 120. As I studied the plan, it became clear that all they were going to do is add a turn lane on this major North-South artery. I filled out a feedback form that asked why they weren’t talking about a 4 lane highway with a turn lane. They apparently have no plans to actually do the work til after 2017 but will be considered for future proposed highway improvement programs subject to funding availability and project readiness. I had the feeling they were just making the people of McHenry County feel that our tax dollars were possibly going to put to use for our benefit sometime in the next century…maybe. It is astounding that they would do all this work and research and have no clue as to when they might actually be able to deliver a product. That’s government for you! What is your opinion?
Wednesday, June 15, 2011
HUGE CHANGE BREWING FOR LEASE ACCOUNTING
The Financial Accounting Standards Board (FASB) is a private sector group that makes the rules and reporting standards for accountants. It seems they have been busy trying to figure out a way to make life miserable for companies with commercial leases. Currently, leases are off balance sheet items, appearing only in footnotes to the financial statements, if at all. The FASB is proposing to change that so that operating leases, which includes most real estate leases, that will treat leases as if the company had purchased and financed the leased asset. They will require the lease to be set up as an asset called a “right of use asset” and will require a corresponding liability related to the rent payments and any direct costs such as brokerage fees. An article in the June issue of Realtor magazine by Marc Betesh (page 22) talks about this as if it is likely to be enacted this year and go into effect next year. Maybe this is a good thing and will cause more people to buy rather than lease. Any thoughts?
Thursday, June 9, 2011
Local Chicago construction contracts are up 14% so far in 2011!
Crains reported on 6/6 that local contractors and architects “are enjoying a modest uptick” in activity and they couldn’t be happier. Of course they aren’t sure if it will continue. Health care is one of the brightest spots on the local construction scene but the apartment sector is gathering momentum while institutional work for colleges and some commercial and office work is showing evidence of an uptick. This news seems to dovetail with what our office is seeing – more calls, more showings, more offers, more accepted contracts, more closings ad lease consummations. We’re not celebrating yet . . . how do you see it?Crains reported on 6/6 that local contractors and architects “are enjoying a modest uptick” in activity and they couldn’t be happier. Of course they aren’t sure if it will continue. Health care is one of the brightest spots on the local construction scene but the apartment sector is gathering momentum while institutional work for colleges and some commercial and office work is showing evidence of an uptick. This news seems to dovetail with what our office is seeing – more calls, more showings, more offers, more accepted contracts, more closings ad lease consummations. We’re not celebrating yet . . . how do you see it?
Wednesday, June 8, 2011
Shame on Woodstock!!
No more liquor licenses to be issued. They call it a moratorium. They claim they have too many already. I have a 7-11 franchisee ready to go in a vacant space that was built 3 years ago and Woodstock won’t consider it. All they need is a beer and wine license. Liquor isn’t their primary business. Something is rotten in Denmark! What about the jobs? The sales tax revenue? Other communities are salivating for this type of business. This is an example of short sightedness. Tell me if you think I’m wrong.
Wednesday, May 18, 2011
INDUSTRIAL SECTOR BOUNCING BACK
by: Bruce Kaplan
Reasons cited for the resurgence of the industrial sector are several: 1) PENT UP DEMAND-may companies have been parking their profits due to the uncertainties in the economy and sitting on the sidelines waiting for the right moment to make their next move. Businesses by nature can’t stand still; they need to grow. Eventually they need to DO something that propels them forward. More and more companies are reaching a conclusion that they can’t keep sitting on the fence. 2) SUPPLY CHAIN EFFICIENCIES- many companies have taken the position that they need to get “lean and mean” from top to bottom as a survival strategy. Sometimes the process of becoming more efficient leads to an EXPANSION, sometimes a RE-LOCATION (getting closer to customers or suppliers; other times a CONSOLIDATION or even a CONTRACTION. Certainly there are many companies who have done absolutely nothing to trigger a need for larger or smaller manufacturing or warehousing facilities, but many have been forced to buy or lease other space because of this quest for supply chain efficiencies. We in the business call that a (“cha ching”) transaction and it’s what we live for.
Wednesday, May 11, 2011
Easier Credit, Agreeable Sellers Drive Up Property Sales
August 23, 2010
Easier credit, agreeable sellers drive up property sales
By: Eddie Baeb
Easier credit, agreeable sellers drive up property sales
By: Eddie Baeb
(Crain's) — Commercial property sales are back in vogue in 2010.
Through the first half of the year, sales of Chicago-area office buildings, shopping centers and industrial properties were up compared with the same period last year, according to data from research firm Real Capital Analytics Inc.
The biggest increase came in the retail sector, where 17 local malls and strip centers were sold for $177 million, a robust 329% increase from the dollar volume in the first half of 2009.
The other big gainer was the suburban office market, where 13 properties fetched $228 million, a 230% increase in volume from the year-earlier period, data from the New York-based Real Capital shows.
The return of activity can be attributed to the credit market, as loans have become easier to come by, and to sellers more willing to pull the trigger than they were a year ago. The economy seeming to have bottomed out also has helped.
“There was a lot more uncertainty last year; that made transacting much more difficult,” says Ryan Stoller, a Chicago-based regional asset manager with KTR Capital Partners, a New York investment firm looking to buy industrial properties here. “I think now we've reached relative stability in terms of not only cap rates but market rents. Rents have stabilized, so it's a little easier to peg values.”
One Government Program That Works!
February 9, 2011
If you are thinking of purchasing or refinancing a commercial property in the near future, you must familiarize yourself with a great financing option offered through the U.S. Small Business Administration (SBA). There are two main programs available through the SBA: 1.The SBA 504 Program and 2: The SBA 7a Program. These types of financing have been around a long time but in this depressed economy, it is the savior of many a commercial/industrial real estate deals.
If you are thinking of purchasing or refinancing a commercial property in the near future, you must familiarize yourself with a great financing option offered through the U.S. Small Business Administration (SBA). There are two main programs available through the SBA: 1.The SBA 504 Program and 2: The SBA 7a Program. These types of financing have been around a long time but in this depressed economy, it is the savior of many a commercial/industrial real estate deals.
To give you some perspective on how this program has gained in popularity, in fiscal year 2010, SBA supported more than $22 billion (54,833 loans) in lending to small businesses through its two largest loan programs, compared to more than $17 billion (47,897 loans) in fiscal year 2009. The average weekly loan volume for fiscal year 2010 was $333 million, which was a 29 percent increase over the average weekly loan volume of $258 million for fiscal year 2009.
The SBA funds a portion of the project or guarantees a percentage of the loan depending on which program is chosen, but in general the SBA takes away a lot of the risk for the commercial bank in the event the loan goes bad. Whereas a commercial lender may not be willing to make a conventional loan (where the bank typically absorbs 100% of the risk) that same lender will often be a willing participant with the government absorbing a percentage of it.
The SBA funds a portion of the project or guarantees a percentage of the loan depending on which program is chosen, but in general the SBA takes away a lot of the risk for the commercial bank in the event the loan goes bad. Whereas a commercial lender may not be willing to make a conventional loan (where the bank typically absorbs 100% of the risk) that same lender will often be a willing participant with the government absorbing a percentage of it.
Fundraiser For Ailing Realtor
October 14, 2010 1:43 PM
A couple of months ago, a fellow Realtor from Woodstock, R.B. McCallister, became stricken with acute transverse myelitis, which is a debilitating inflamation of the spinal cord. Groups of McCalister's friends have come up with some creative ways to help raise money to pay for his hospital and rehab expenses. R.B.'s 2009 Harley Davidson is being raffled with 3,000 $10 tickets to be sold. There is also a Bar Crawl on the Square scheduled for Nov. 6 and an art sale on Dec. 4. For details contact Harding Real Estate 815-338-3850 or just send a contribution of any amount you can afford to:
R.B. Benefit Trust, c/o Harding Real Estate, 1710 S. Eastwood, Woodstock, IL 60098.
A couple of months ago, a fellow Realtor from Woodstock, R.B. McCallister, became stricken with acute transverse myelitis, which is a debilitating inflamation of the spinal cord. Groups of McCalister's friends have come up with some creative ways to help raise money to pay for his hospital and rehab expenses. R.B.'s 2009 Harley Davidson is being raffled with 3,000 $10 tickets to be sold. There is also a Bar Crawl on the Square scheduled for Nov. 6 and an art sale on Dec. 4. For details contact Harding Real Estate 815-338-3850 or just send a contribution of any amount you can afford to:
R.B. Benefit Trust, c/o Harding Real Estate, 1710 S. Eastwood, Woodstock, IL 60098.
Office Vacancy Improves- Industrial Vacancies Dip
October 12, 2010 11:02 AM
Office Vacancy Rate Improves While Industrial Vacancies Dip
Crains reported this month a positive improvement in suburban office vacancies which ended a string of 13 straight quarters of increases. The third quarter rate came in at 25.2% meaning one out of every 4 sq. ft. of office space is empty. This is great for prospective tenants who can just about write their own ticket in lease or lease renewal negotiations. Some experts predict this tenant advantage will continue thru 2011 before moving back the landlord’s way. Job growth or lack thereof is the stimulus that will boost the vacancy meter further in the right direction.
Crains also reported a slight surge or uptick in industrial vacancy rates in the third quarter after reporting a slight dip in the second quarter. 12% of all factory and warehouse space is vacant vs. 11.9% in the second quarter. This represents 3,000,000 sq. ft. of negative absorption. The vacancy rate is approximately half that of the office vacancy rate and gives you an idea of which property type has been hurt the most by this recession which is now going on 3 years.
To read the full articles click on the links below:
Office Vacancy Rate Improves While Industrial Vacancies Dip
Crains reported this month a positive improvement in suburban office vacancies which ended a string of 13 straight quarters of increases. The third quarter rate came in at 25.2% meaning one out of every 4 sq. ft. of office space is empty. This is great for prospective tenants who can just about write their own ticket in lease or lease renewal negotiations. Some experts predict this tenant advantage will continue thru 2011 before moving back the landlord’s way. Job growth or lack thereof is the stimulus that will boost the vacancy meter further in the right direction.
Crains also reported a slight surge or uptick in industrial vacancy rates in the third quarter after reporting a slight dip in the second quarter. 12% of all factory and warehouse space is vacant vs. 11.9% in the second quarter. This represents 3,000,000 sq. ft. of negative absorption. The vacancy rate is approximately half that of the office vacancy rate and gives you an idea of which property type has been hurt the most by this recession which is now going on 3 years.
To read the full articles click on the links below:
Did I Miss the Memo?
September 27, 2010 11:41 AM
The news last week from the National Bureau of Economic Research (known as the official referee of the economy) was that the recession ended 15 months ago in June, 2009. I was so relieved to hear this news that I called all my friends, clients, fellow commercial real estate brokers to make sure they knew about this. Then I called all my banker connections to tell them it was ok to start loaning money again. After that, I called every business owner I know and told them it was ok to start hiring again. After the laughter died down I wondered to myself whether I had mis-read the report. Then I remembered something about government propaganda and an upcoming election cycle with Obama’s Chief Economic Advisor (Larry Summers) bailing this week along with the announcement that his Chief of Staff Rehm Emanual escaping to run for Chicago Mayor, this administration may be about to see the wheels fall off. Lies and propaganda are a last ditch effort to save themselves. I usually don’t believe everything I read but I don’t believe ANYTHING coming out of the White House these days. How about you?
The news last week from the National Bureau of Economic Research (known as the official referee of the economy) was that the recession ended 15 months ago in June, 2009. I was so relieved to hear this news that I called all my friends, clients, fellow commercial real estate brokers to make sure they knew about this. Then I called all my banker connections to tell them it was ok to start loaning money again. After that, I called every business owner I know and told them it was ok to start hiring again. After the laughter died down I wondered to myself whether I had mis-read the report. Then I remembered something about government propaganda and an upcoming election cycle with Obama’s Chief Economic Advisor (Larry Summers) bailing this week along with the announcement that his Chief of Staff Rehm Emanual escaping to run for Chicago Mayor, this administration may be about to see the wheels fall off. Lies and propaganda are a last ditch effort to save themselves. I usually don’t believe everything I read but I don’t believe ANYTHING coming out of the White House these days. How about you?
I Should Have Known This!
September 8, 2010 1:59 PM
The old saying “you learn something new every day” was certainly true on September 3 for me. I have been under the mistaken assumption that the Illinois Responsible Property Transfer Act (IRPTA) was still the law of the land in Illinois. This 1989 law invented a whole new industry of environmental consultants and cumbersome requirements that required the delivery and recordation of statutorily prescribed forms disclosing the presence of underground storage tanks or storage of certain hazardous materials. But the law was repealed 9 years ago. Illinois statues no longer require disclosure and recordation. Now, any such disclosures are merely among the many matters to be negotiated between sellers, buyers and lenders. Phase I and Phase II Environmental Reports have become such a natural extension of what commercial brokers have to deal with on virtually every sale transaction, I figured IRPTA was still the driving force. Live and learn! Thanks to attorney Bob Gorecki for telling me.
The old saying “you learn something new every day” was certainly true on September 3 for me. I have been under the mistaken assumption that the Illinois Responsible Property Transfer Act (IRPTA) was still the law of the land in Illinois. This 1989 law invented a whole new industry of environmental consultants and cumbersome requirements that required the delivery and recordation of statutorily prescribed forms disclosing the presence of underground storage tanks or storage of certain hazardous materials. But the law was repealed 9 years ago. Illinois statues no longer require disclosure and recordation. Now, any such disclosures are merely among the many matters to be negotiated between sellers, buyers and lenders. Phase I and Phase II Environmental Reports have become such a natural extension of what commercial brokers have to deal with on virtually every sale transaction, I figured IRPTA was still the driving force. Live and learn! Thanks to attorney Bob Gorecki for telling me.
Hidden Taxes on Businesses
August 19, 2010 2:51 PM
We have noticed that many (not all) communities are now charging fees to new businesses for obtaining occupancy permits and for business registrations or licenses. The trend is troubling because these fees are all in to just another tax on businesses. There are enough "barriers to entry" for businesses to start up operations without these manatory fees. We are developing a spreadsheet of the communities in which we do business and what their fees are for occupancy permits and business licenses. Let us know if you'd like a copy.
We have noticed that many (not all) communities are now charging fees to new businesses for obtaining occupancy permits and for business registrations or licenses. The trend is troubling because these fees are all in to just another tax on businesses. There are enough "barriers to entry" for businesses to start up operations without these manatory fees. We are developing a spreadsheet of the communities in which we do business and what their fees are for occupancy permits and business licenses. Let us know if you'd like a copy.
Apartment Investors Fare Well
August 11, 2010 1:58 PM
The Chicagoland suburban apartment market appears to be alive and well if you believe an article on the August 9 ChicagoRealEstateDaily.com by Alby Gallan. He cited a study by Appraisal Research that claims median net rents rose in 7 out of 10 submarkets in the second quarter. Occupancy rates also climbed to 93% in Q2, heading back toward the 97.1% peak in 2006. Even though the local unemployment rate is 10.6% (June) and the country lost 131,000 jobs in July (U.S. Labor Department), the local job market has apparently stabilized enough so that people who had moved in with parents due to uncertainty are starting to venture back out on their own. Unfortunately, McHenry County was one of the “Loser” submarkets studied with a 3.2% decline in median net rents from 1 year ago. That’s the price we pay for living in “the sticks.” By the way, that’s good if you’re the one renting, not so good if you are the landlord.
The Chicagoland suburban apartment market appears to be alive and well if you believe an article on the August 9 ChicagoRealEstateDaily.com by Alby Gallan. He cited a study by Appraisal Research that claims median net rents rose in 7 out of 10 submarkets in the second quarter. Occupancy rates also climbed to 93% in Q2, heading back toward the 97.1% peak in 2006. Even though the local unemployment rate is 10.6% (June) and the country lost 131,000 jobs in July (U.S. Labor Department), the local job market has apparently stabilized enough so that people who had moved in with parents due to uncertainty are starting to venture back out on their own. Unfortunately, McHenry County was one of the “Loser” submarkets studied with a 3.2% decline in median net rents from 1 year ago. That’s the price we pay for living in “the sticks.” By the way, that’s good if you’re the one renting, not so good if you are the landlord.
Positive Winds of Change
August 9, 2010 2:11 PM
The summer 2010 issue of Commercial Connections contained an article called “The Winds of Change.” In it, was a graphic showing Commercial Real Estate Transaction Closings per week since 2007. Here’s what it said:
2007 512
2008 262
2009 127
2010 124
* Source: Real Capital Analytics, Inc.
Our business has been trashed in 3 years. The NAR Chief Economist, Lawrence Yun talked about how “brutal” the last 3 years have been for commercial real estate practitioners. He said “commercial real estate investment sales collapsed by 90% from peak just a few years ago.” He also said that the MIT Center for Real Estate alleges that average property values have tumbled by 58%. The tenor of the publication, however, was that positive things are starting to happen.
Check out the 2010 1st quarter CAP and vacancy rates compiled by the NAR Research Division:
2010 Q1 Cap Rates 2010 Q1 Vacancy Rates
Office 9.1% 21.2%
Industrial 9.0% 18.8%
Retail 8.9% 20.8%
Multi-family 8.6% 12.1%
Hotel 10.3% 26.0%
Development 11.7% 38.6%
The summer 2010 issue of Commercial Connections contained an article called “The Winds of Change.” In it, was a graphic showing Commercial Real Estate Transaction Closings per week since 2007. Here’s what it said:
2007 512
2008 262
2009 127
2010 124
* Source: Real Capital Analytics, Inc.
Our business has been trashed in 3 years. The NAR Chief Economist, Lawrence Yun talked about how “brutal” the last 3 years have been for commercial real estate practitioners. He said “commercial real estate investment sales collapsed by 90% from peak just a few years ago.” He also said that the MIT Center for Real Estate alleges that average property values have tumbled by 58%. The tenor of the publication, however, was that positive things are starting to happen.
Check out the 2010 1st quarter CAP and vacancy rates compiled by the NAR Research Division:
2010 Q1 Cap Rates 2010 Q1 Vacancy Rates
Office 9.1% 21.2%
Industrial 9.0% 18.8%
Retail 8.9% 20.8%
Multi-family 8.6% 12.1%
Hotel 10.3% 26.0%
Development 11.7% 38.6%
Some Rare Positive News
August 4, 2010 1:47 PM
The Daily Herald Business Section on August 3 reported that the Manufacturing sector of our U.S. economy has experienced 12 consecutive months of positive growth. The so-called Purchasing Manager's Index surveys about 400 Production Managers around the U.S. and readings over 50 are deemed positive growth or expansion. From July '09 to July '10, the readings were 50 or higher. Since manufacturing accounts for about one fifth of U.S. economic activity, it can't carry us out of the recession by itself. But with hiring managers reporting intentions to resume hiring, job creation in the Manufacturing sector has begun and will be increasing. Jobs, we have been saying for months, is what it will take to drag us out of this recession. Private sector jobs. So do you see why this is a ray of sunshine? People get hired; they fill up empty space in industrial buildings. I don’t know about you, but this negative absorption is getting old. Closer to home, we just read in the NW Herald today that Precision Twist in Crystal Lake will lay off 169 of its 263 employees and will close its manufacturing operations over the next 5 months.
The Daily Herald Business Section on August 3 reported that the Manufacturing sector of our U.S. economy has experienced 12 consecutive months of positive growth. The so-called Purchasing Manager's Index surveys about 400 Production Managers around the U.S. and readings over 50 are deemed positive growth or expansion. From July '09 to July '10, the readings were 50 or higher. Since manufacturing accounts for about one fifth of U.S. economic activity, it can't carry us out of the recession by itself. But with hiring managers reporting intentions to resume hiring, job creation in the Manufacturing sector has begun and will be increasing. Jobs, we have been saying for months, is what it will take to drag us out of this recession. Private sector jobs. So do you see why this is a ray of sunshine? People get hired; they fill up empty space in industrial buildings. I don’t know about you, but this negative absorption is getting old. Closer to home, we just read in the NW Herald today that Precision Twist in Crystal Lake will lay off 169 of its 263 employees and will close its manufacturing operations over the next 5 months.
You Tube Videos Experiment Now Working
July 27, 2010 10:55 AM
The Power Team added one more tool to the toolbox last week and created our first 3 You Tube videos. Check out the links below. Our next step is to improve quality and add voice. Any input (constructive only) will be appreciated.
The Power Team added one more tool to the toolbox last week and created our first 3 You Tube videos. Check out the links below. Our next step is to improve quality and add voice. Any input (constructive only) will be appreciated.
Good News About Retail Vacancy
July 23, 2010 12:28 AM
A July 19 Crains article by Thomas Corfman heralded the news that the retail vacancy rate dropped for the first time in three years in the second quarter of 2010. The amount of vacant space in shopping centers and strip malls dropped to 11.9% from a 12.1% rate the first quarter. To keep things in perspective, 3 years ago, the rate was 7.51%. Retail rents are also edging upward. In the last month, Crains has reported vacancy rate decreases for the office and industrial sectors also. Could it be that we are rounding a corner? Don’t break out the champagne just yet. We’re monitoring this closely and will continue to bring you updates as we see them.
A July 19 Crains article by Thomas Corfman heralded the news that the retail vacancy rate dropped for the first time in three years in the second quarter of 2010. The amount of vacant space in shopping centers and strip malls dropped to 11.9% from a 12.1% rate the first quarter. To keep things in perspective, 3 years ago, the rate was 7.51%. Retail rents are also edging upward. In the last month, Crains has reported vacancy rate decreases for the office and industrial sectors also. Could it be that we are rounding a corner? Don’t break out the champagne just yet. We’re monitoring this closely and will continue to bring you updates as we see them.
What If Realtors Went On Strike?
July 21, 2010 11:15 AM
Watching the lack of progress on the Virginia Road repaving project (due to the truckers strike, which may actually be over), I found myself daydreaming about the prospect of all real estate agents forming a union and staging a nationwide strike, for higher commissions, of course. Just think of it each and every licensee walking a picket line or sitting on lawn chairs like the truckers union does. The image sends chills down my spine! In my reverie I contemplated taking an extra 10% or so from the greedy brokers that we work for, making them grovel and sweat, taking the already meager profit margins right away from them. Maybe we could also force the “man” to provide benefits such as health insurance or even pensions. I was really getting into this euphoric daydream when like a bucket of ice water thrown in my face, I woke up, came to my senses as it were. None of us Realtors are employees; we’re independent contractors. We have no union. We can’t strike. Even if I could strike, I wouldn’t make any money during the strike. I’m already not making any money due to the economy, so why bother? Some real estate offices are a lot like the truckers and the concrete workers recently on strike. You’ll have 3 or 4 real estate agents in the office sitting around eating donuts and drinking coffee instead of making calls. You’ve seen a similar scene in the construction zones, I’m sure.
The federal government hands these jamokes a gift with our tax dollars (or is it money they just printed?), gives them legitimate work to do (although I still question them re-paving a perfectly good road like Virginia Road as “legitimate”) and like a bunch of complete INGRATES, they go on strike for three weeks during prime construction season! Inconveniencing everyone who drives anywhere; they don’t care. It’s all about the greed. I’ve watched teacher’s strikes, garbage workers strikes, airline personnel strikes. It’s all a power play, the unions muscling the owners. The usual service recipients are of necessity inconvenienced. I guess that’s where the leverage of a work stoppage comes in. I liked it when the air traffic controllers union was busted. Did my heart good. Who did they think they were, crippling air line travel, one of our basic rights? May all the unions suffer the same fate! When the unions get what they want (more of this, more of that) somebody pays. And that someone is always US. They win, we lose. I say get your butts back to work, be satisfied that you have a job while so many others can’t find work. Stop being pigs and actually do a days work for a days pay. Be happy you’re not on a straight commission like us real estate agents!
Watching the lack of progress on the Virginia Road repaving project (due to the truckers strike, which may actually be over), I found myself daydreaming about the prospect of all real estate agents forming a union and staging a nationwide strike, for higher commissions, of course. Just think of it each and every licensee walking a picket line or sitting on lawn chairs like the truckers union does. The image sends chills down my spine! In my reverie I contemplated taking an extra 10% or so from the greedy brokers that we work for, making them grovel and sweat, taking the already meager profit margins right away from them. Maybe we could also force the “man” to provide benefits such as health insurance or even pensions. I was really getting into this euphoric daydream when like a bucket of ice water thrown in my face, I woke up, came to my senses as it were. None of us Realtors are employees; we’re independent contractors. We have no union. We can’t strike. Even if I could strike, I wouldn’t make any money during the strike. I’m already not making any money due to the economy, so why bother? Some real estate offices are a lot like the truckers and the concrete workers recently on strike. You’ll have 3 or 4 real estate agents in the office sitting around eating donuts and drinking coffee instead of making calls. You’ve seen a similar scene in the construction zones, I’m sure.
The federal government hands these jamokes a gift with our tax dollars (or is it money they just printed?), gives them legitimate work to do (although I still question them re-paving a perfectly good road like Virginia Road as “legitimate”) and like a bunch of complete INGRATES, they go on strike for three weeks during prime construction season! Inconveniencing everyone who drives anywhere; they don’t care. It’s all about the greed. I’ve watched teacher’s strikes, garbage workers strikes, airline personnel strikes. It’s all a power play, the unions muscling the owners. The usual service recipients are of necessity inconvenienced. I guess that’s where the leverage of a work stoppage comes in. I liked it when the air traffic controllers union was busted. Did my heart good. Who did they think they were, crippling air line travel, one of our basic rights? May all the unions suffer the same fate! When the unions get what they want (more of this, more of that) somebody pays. And that someone is always US. They win, we lose. I say get your butts back to work, be satisfied that you have a job while so many others can’t find work. Stop being pigs and actually do a days work for a days pay. Be happy you’re not on a straight commission like us real estate agents!
Industrial Vacancy Falls
July 13, 2010 11:33 AM
A July 12 article in chicagorealestatedaily.com (powered by Crains Chicago Business) reported a trend-breaking drop in the industrial vacancy rate from 12.3% to 11.9% in the second quarter. You gotta love it when a 10 quarter trend is disrupted for the first time in 2 years. Colliers International who tracks 21 submarkets in Chicagoland is giving us something positive to talk about in the industrial real estate market. They also reported a positive result in "net absorption" which turned positive after nine straight quarters in the negative numbers. Net absorption measures the change in the amount of leased and occupied space compared with the prior period. A negative 32 million square feet of negative absorption took place in the 9 quarter period prior to the 2nd quarter. 2.1 million square feet of positive absorption took pace in the 2nd quarter. The article said that the Fox Valley submarket was one of 7 submarkets that experienced positve absorption. Is this a trend in the making? Perhaps. Some of the larger industrial firms are reporting a pipeline of big deals in the works. The deals that are getting done are getting done at rates and terms very favorable to the tenants. This tenant's market is expected to continue until the net absorption rate remains positive for a few more periods.
A July 12 article in chicagorealestatedaily.com (powered by Crains Chicago Business) reported a trend-breaking drop in the industrial vacancy rate from 12.3% to 11.9% in the second quarter. You gotta love it when a 10 quarter trend is disrupted for the first time in 2 years. Colliers International who tracks 21 submarkets in Chicagoland is giving us something positive to talk about in the industrial real estate market. They also reported a positive result in "net absorption" which turned positive after nine straight quarters in the negative numbers. Net absorption measures the change in the amount of leased and occupied space compared with the prior period. A negative 32 million square feet of negative absorption took place in the 9 quarter period prior to the 2nd quarter. 2.1 million square feet of positive absorption took pace in the 2nd quarter. The article said that the Fox Valley submarket was one of 7 submarkets that experienced positve absorption. Is this a trend in the making? Perhaps. Some of the larger industrial firms are reporting a pipeline of big deals in the works. The deals that are getting done are getting done at rates and terms very favorable to the tenants. This tenant's market is expected to continue until the net absorption rate remains positive for a few more periods.
Suburban Office Vacancy Rates Continue to Increase
July 7, 2010 1:56 PM
A July 6 Crains article reported 96.5 million square feet of suburban office space in Chicago of which 25.4% (one out of every 4 square feet) is currently vacant. The second quarter of 2010 was the 13th consecutive quarter of increasing vacancy. This was the highest vacancy rate in more than a decade. The vacancy rate is directly related to new jobs. The U.S. Labor Department announced in June only 83,000 new private sector jobs were added to the economy. That's not even treading water. Some brokers are reporting some larger companies putting preliminary feelers out for new office space but the small and medium size companies, the one's that generate the bulk of jobs, still remain hesitant to hire. If you're the one owning vacant space, call us. We may be able to give you some ideas how to fill it up or a least get some cash flow.
A July 6 Crains article reported 96.5 million square feet of suburban office space in Chicago of which 25.4% (one out of every 4 square feet) is currently vacant. The second quarter of 2010 was the 13th consecutive quarter of increasing vacancy. This was the highest vacancy rate in more than a decade. The vacancy rate is directly related to new jobs. The U.S. Labor Department announced in June only 83,000 new private sector jobs were added to the economy. That's not even treading water. Some brokers are reporting some larger companies putting preliminary feelers out for new office space but the small and medium size companies, the one's that generate the bulk of jobs, still remain hesitant to hire. If you're the one owning vacant space, call us. We may be able to give you some ideas how to fill it up or a least get some cash flow.
Monday, April 11, 2011
Select Vendors Get Plugged In
June 8, 2010 11:58 AM
The June 4 N.W Herald printed an article we wrote about our ongoing Fundraiser for the local Food Pantries. We are building a list of reputable businesses that provide services related to the commercial real estate transactions. This is our third year orchestrating this program and to date our vendors have contributed $11,200 to the Cary and Crystal Lake Food Pantries. We are looking for an appraiser, a roofing firm, a commercial flooring company, a computer company, office interiors firm, telecommunications firm. To see the article, click here.
The June 4 N.W Herald printed an article we wrote about our ongoing Fundraiser for the local Food Pantries. We are building a list of reputable businesses that provide services related to the commercial real estate transactions. This is our third year orchestrating this program and to date our vendors have contributed $11,200 to the Cary and Crystal Lake Food Pantries. We are looking for an appraiser, a roofing firm, a commercial flooring company, a computer company, office interiors firm, telecommunications firm. To see the article, click here.
Economic Incentive Policy
June 3, 2010 1:25 AM
Lake in the Hills has impressed us by recently adopting a new Economic Incentive Policy which provides perks to certain businesses on a case by case basis for opting to locate in their commercial corridors. About 640 business licenses will be issued in LITH in 2010 and $2.7 million in sales tax is expected to be generated. Dan Olson, Director of Community Development spoke at the June 1 monthly meeting of McHenry County Commercial brokers and mentioned how successful this program was when they did it for Costco in 2003 with a sales tax sharing proposal.
We wish more communities put their minds to incentivizing businesses to move there. For more information contact Dan Olson at:
dolson@pith.org or call 847-960-7440.
Lake in the Hills has impressed us by recently adopting a new Economic Incentive Policy which provides perks to certain businesses on a case by case basis for opting to locate in their commercial corridors. About 640 business licenses will be issued in LITH in 2010 and $2.7 million in sales tax is expected to be generated. Dan Olson, Director of Community Development spoke at the June 1 monthly meeting of McHenry County Commercial brokers and mentioned how successful this program was when they did it for Costco in 2003 with a sales tax sharing proposal.
We wish more communities put their minds to incentivizing businesses to move there. For more information contact Dan Olson at:
dolson@pith.org or call 847-960-7440.
Turning Down Listings
May 26, 2010 10:48 AM
No broker wants to turn down a listing. There are times when listings are hard to come by. Not now! But we find ourselves saying "no thanks" more and more these days. Some sellers are just not motivated enough or realistic enough to offer up a marketable property. The price is often the culprit. Commercial real estate values have plummeted 30-40% nationwide in the past two years. Trying to sell it at the price on your two year old appraisal is lunacy. The old appraisal means nothing. Property condition is another obstacle. A mold odor or an unresolved environmental issue reduces the odds of selling enormously. I tell people if you don't have to sell right now, don't. But I'd rather turn you down than let you down trying to market a property that doesn't have a chance of selling or leasing. No offense!
No broker wants to turn down a listing. There are times when listings are hard to come by. Not now! But we find ourselves saying "no thanks" more and more these days. Some sellers are just not motivated enough or realistic enough to offer up a marketable property. The price is often the culprit. Commercial real estate values have plummeted 30-40% nationwide in the past two years. Trying to sell it at the price on your two year old appraisal is lunacy. The old appraisal means nothing. Property condition is another obstacle. A mold odor or an unresolved environmental issue reduces the odds of selling enormously. I tell people if you don't have to sell right now, don't. But I'd rather turn you down than let you down trying to market a property that doesn't have a chance of selling or leasing. No offense!
Craigslist For Real Estate?
May 19, 2010 1:34 PM
We started experimenting with posting listings on Craigslist about a year ago. We heard it was like Alice's Restaurant. Remember the song lyrics? "You can get anything you want at Alice's Restaurant". With some 20 billion (with a B) page views per month, and 50 million U.S. individuals using the service, and the fact that it is free, why not try it out? We got some response a year ago but not enough to encourage us to keep using it. So several months later, we are posting new listings to see if the response has improved. Tell us whether you would use Craigslist to find commercial real estate listings? Check out Craigslist.org.
We started experimenting with posting listings on Craigslist about a year ago. We heard it was like Alice's Restaurant. Remember the song lyrics? "You can get anything you want at Alice's Restaurant". With some 20 billion (with a B) page views per month, and 50 million U.S. individuals using the service, and the fact that it is free, why not try it out? We got some response a year ago but not enough to encourage us to keep using it. So several months later, we are posting new listings to see if the response has improved. Tell us whether you would use Craigslist to find commercial real estate listings? Check out Craigslist.org.
Lazy Backwards Brokerage - RFP's Have No Place For Smaller Deals
April 20, 2010 1:26 PM
I really didn’t want to write an article “dissing” my fellow commercial brokers. Everyone
has a right to make a living in their own way. But a certain brokerage practice is gaining
prevalence in today’s market and it’s starting to get under my skin. Maybe I’m just too
traditional but the use of an RFP (Request for Proposal) has become a practice that seems
like the “lazy broker’s” approach to initiating a deal. The use of RFP’s has been around
for a long time. Some brokers are using them for small deals (under 10000 sf) and this is
a waste of everybody’s time.
Here’s how it works: the broker has a leasing client that needs space, let’s say 5,000 sf of
office space. The broker may or may not actually take his client through some 5000 sf
properties currently on the market for lease. From the safety and comfort of the broker’s
office, he shoots out multiple RFP’s to anyone who has a listing remotely close to his
client’s requirement. He wants the listing brokers to go to their respective clients and
coax them to commit in writing to the best deal they can offer…the bottom price, the
sexiest concessions, the longest period of free rent, the highest commission, etc. Instead
of picking one or two top candidates and making a legitimate approach or proposal, they
want the property owner to negotiate against himself, cut to his bottom number, and take
any “fluff” or profit out of his side of the deal. By telling him that he is competing with
several others who have been handed the EXACT SAME RFP, the property owner is
supposed to “sharpen his pencil” and come up with the best possible deal. The theory is
you have property owners fighting over the lone tenant prospect for the privilege of
giving their property away for a song. Using this” backwards” brokerage procedure, they
hope to uncover the most desperate property owner and secure the best deal for the
tenant/client. If I am working for a property owner, I have a hard time allowing my client
to negotiate against himself. Not to mention the false expectations this process engenders
with the property owners being put thru this gauntlet.
I say hogwash! Get off your duff and do the work. The property owner is paying your
fee…go EARN IT! Find a property that will meet the client’s specifications and make a
legitimate proposal. Tell us what you need or what you want and how much you are
willing to pay for it. And then wait for a response. Negotiate a “win-win” deal (remember
those?) If that doesn’t work, go on to your second choice. I don’t know where this
practice started, but if it were up to me, I’d put an end to it. Especially on the smaller
deals. If I get an RFP from another broker, I’m likely to ask him if he has an exclusive
agreement to procure property with his client which authorizes the submittal of RFP’s. If
he doesn’t have such an agreement, I’m counseling my client to take a pass.
I really didn’t want to write an article “dissing” my fellow commercial brokers. Everyone
has a right to make a living in their own way. But a certain brokerage practice is gaining
prevalence in today’s market and it’s starting to get under my skin. Maybe I’m just too
traditional but the use of an RFP (Request for Proposal) has become a practice that seems
like the “lazy broker’s” approach to initiating a deal. The use of RFP’s has been around
for a long time. Some brokers are using them for small deals (under 10000 sf) and this is
a waste of everybody’s time.
Here’s how it works: the broker has a leasing client that needs space, let’s say 5,000 sf of
office space. The broker may or may not actually take his client through some 5000 sf
properties currently on the market for lease. From the safety and comfort of the broker’s
office, he shoots out multiple RFP’s to anyone who has a listing remotely close to his
client’s requirement. He wants the listing brokers to go to their respective clients and
coax them to commit in writing to the best deal they can offer…the bottom price, the
sexiest concessions, the longest period of free rent, the highest commission, etc. Instead
of picking one or two top candidates and making a legitimate approach or proposal, they
want the property owner to negotiate against himself, cut to his bottom number, and take
any “fluff” or profit out of his side of the deal. By telling him that he is competing with
several others who have been handed the EXACT SAME RFP, the property owner is
supposed to “sharpen his pencil” and come up with the best possible deal. The theory is
you have property owners fighting over the lone tenant prospect for the privilege of
giving their property away for a song. Using this” backwards” brokerage procedure, they
hope to uncover the most desperate property owner and secure the best deal for the
tenant/client. If I am working for a property owner, I have a hard time allowing my client
to negotiate against himself. Not to mention the false expectations this process engenders
with the property owners being put thru this gauntlet.
I say hogwash! Get off your duff and do the work. The property owner is paying your
fee…go EARN IT! Find a property that will meet the client’s specifications and make a
legitimate proposal. Tell us what you need or what you want and how much you are
willing to pay for it. And then wait for a response. Negotiate a “win-win” deal (remember
those?) If that doesn’t work, go on to your second choice. I don’t know where this
practice started, but if it were up to me, I’d put an end to it. Especially on the smaller
deals. If I get an RFP from another broker, I’m likely to ask him if he has an exclusive
agreement to procure property with his client which authorizes the submittal of RFP’s. If
he doesn’t have such an agreement, I’m counseling my client to take a pass.
Illinois Shameful Job Loss Record
March 2, 2010 1:08 PM
The January – February issue of the Illinois Real Estate Journal contained an article on page 25 that starts to put into perspective why our state is in such bad financial shape. It quotes Geoffrey Hawkins, a U of I professor and Director of Regional Economics Applications Laboratory (REAL) who had some UNREAL statistics. Since 2000, the State has lost 440,000 jobs and is predicted to lose another 100,000 in 2010. The 440,000 figure equates to nearly $1 billion in lost revenue for the State - $400 million in lost sales tax and $500 million in lost income tax. Illinois has had 13 consecutive years of no job growth. Hey, we’re trying to fill up some buildings here!
The January – February issue of the Illinois Real Estate Journal contained an article on page 25 that starts to put into perspective why our state is in such bad financial shape. It quotes Geoffrey Hawkins, a U of I professor and Director of Regional Economics Applications Laboratory (REAL) who had some UNREAL statistics. Since 2000, the State has lost 440,000 jobs and is predicted to lose another 100,000 in 2010. The 440,000 figure equates to nearly $1 billion in lost revenue for the State - $400 million in lost sales tax and $500 million in lost income tax. Illinois has had 13 consecutive years of no job growth. Hey, we’re trying to fill up some buildings here!
I attended a Legislative Breakfast on March 1 when State Representative Mike Tryon was saying that only 5 states in the U.S. have budget surpluses. Two of these states have no state income tax. One would ask how a state can have a budget surplus with no income tax? If a prospective business had the option to set up shop in a state with a 3% income tax vs. one with zero income tax, what are the odds it would go to the higher taxing state? With the businesses come the jobs. Seems to me we need to LOWER the income tax rate, not increase it. What’s your take on this?
Ignorance or Apathy?
February 8, 2010 12:19 PM
When asked if it was ignorance or apathy, Jimmy Buffet said "Hey, I don't know and I don't care." McHenry County voters sure demonstrated their ignorance, apathy or both by turning out only 18% of the registered voters. Excuse me for breathing but doesn't that mean a little over 9% (a majority) of the eligible voters can dictate which elected officials will represent us? Have we really given up on our democracy? We complain about the current flock of politicians and when we have a chance to do something about it, we choke? The Democrats are complaining that Scott Lee Cohen was elected for Lt. Governor by 212,902 out of 7.5 million registered voters in Illinois (less than 3%) because they found out after the fact that Cohen has a questionable past. Now, to add insult to injury Mike Madigan has convinced Cohen to withdraw his name from the race, which he has agreed to do and the Democratic Central Committee will hand pick a replacement. Perhaps it will be someone who hasn't spent a penny to get elected and someone the voters didn't pick. Is this even legal? I suspect we're going to get what we deserve as long as we ignore the very process that makes this country great. What do you think?
When asked if it was ignorance or apathy, Jimmy Buffet said "Hey, I don't know and I don't care." McHenry County voters sure demonstrated their ignorance, apathy or both by turning out only 18% of the registered voters. Excuse me for breathing but doesn't that mean a little over 9% (a majority) of the eligible voters can dictate which elected officials will represent us? Have we really given up on our democracy? We complain about the current flock of politicians and when we have a chance to do something about it, we choke? The Democrats are complaining that Scott Lee Cohen was elected for Lt. Governor by 212,902 out of 7.5 million registered voters in Illinois (less than 3%) because they found out after the fact that Cohen has a questionable past. Now, to add insult to injury Mike Madigan has convinced Cohen to withdraw his name from the race, which he has agreed to do and the Democratic Central Committee will hand pick a replacement. Perhaps it will be someone who hasn't spent a penny to get elected and someone the voters didn't pick. Is this even legal? I suspect we're going to get what we deserve as long as we ignore the very process that makes this country great. What do you think?
Algonquin Commons in Trouble
December 17, 2009 3:01 PM
A Crain’s article by Alby Gallun reported today that the 565,000 SF lifestyle center known by all as Algonquin Commons is “no longer generating enough cash flow to cover its loan payments.” This is primarily due to the loss of their second and third largest tenants, Wickes Furniture and Circuit City, liquidating after filing a Chapter 11 protection last year. Oakbrook based Inland Real Estate Comp is the owner of Algonquin Commons which is a joint venture. When they bought it in 2006, occupancy was at 99% whereas it has dropped to 91% at the end of September. On the other end of this joint venture is the New York Teachers Retirement System which paid $154 million for the Commons in February of 2006. That was no doubt a nice commision for Inland at the time. I doubt if the teachers are too happy with this turn of events.
Where Are the Jobs?
December 9, 2009 3:18 PM
It seems to me this Job Summit last week in Washington is necessary but way late in the big scheme of things. I know Obama inherited all the problems of the last administration and he can’t fix everything overnight. But if you really think about it, no single problem he has tried to tackle is more important than the creation of jobs. Why? Forget commercial real estate for a minute and I’ll get back to that later. Let’s start with healthcare (which should really be called “sickness” care). If the 7 million people now out of work had jobs most would not have lost their health insurance and the subject would not be so critical. Then there’s the home foreclosure problem. If the 7 million people who lost jobs were employed they could make their house payments and keep their homes. How about the war in Afghanistan? It seems like Obama’s decision to get in and get out in 18 months was in large part a function of the cost ($30 billion) of sending 30,000 more troops to the area. Because so many are out of work and have no income, they are not paying income taxes into the Dept. of Revenue. The IRS coffers are fuller when only 5% are unemployed vs. 10-11%. Now back to employment and how it has hit the commercial real estate business. All the empty stores and office spaces, not to mention the industrial buildings are a function of jobs lost and businesses failed. Businesses need to hire people (create jobs) to fill up all the empty spaces. When that happens, landlords get their rent money and can afford to pay their mortgage payments. That keeps them out of foreclosure. Fewer foreclosures help keep the banks from failing. So I ask Obama, what took so long to hold this job summit? Isn’t it obvious that instead of throwing stimulus money at your campaign supporters, instead of giving money to people to buy cars, instead of giving money to people who buy existing housing stock, why not give incentives to businesses to hire employees and put people on a payroll back to work? How simple is this concept? This would solve a myriad of problems for our Federal, State, local governments and our overall economy. I’m talking about jobs for people who actually make stuff that other people buy and use. The retail and service jobs will fall in place after that. Let me know what you think. Did the Jobs Summit do any good?
It seems to me this Job Summit last week in Washington is necessary but way late in the big scheme of things. I know Obama inherited all the problems of the last administration and he can’t fix everything overnight. But if you really think about it, no single problem he has tried to tackle is more important than the creation of jobs. Why? Forget commercial real estate for a minute and I’ll get back to that later. Let’s start with healthcare (which should really be called “sickness” care). If the 7 million people now out of work had jobs most would not have lost their health insurance and the subject would not be so critical. Then there’s the home foreclosure problem. If the 7 million people who lost jobs were employed they could make their house payments and keep their homes. How about the war in Afghanistan? It seems like Obama’s decision to get in and get out in 18 months was in large part a function of the cost ($30 billion) of sending 30,000 more troops to the area. Because so many are out of work and have no income, they are not paying income taxes into the Dept. of Revenue. The IRS coffers are fuller when only 5% are unemployed vs. 10-11%. Now back to employment and how it has hit the commercial real estate business. All the empty stores and office spaces, not to mention the industrial buildings are a function of jobs lost and businesses failed. Businesses need to hire people (create jobs) to fill up all the empty spaces. When that happens, landlords get their rent money and can afford to pay their mortgage payments. That keeps them out of foreclosure. Fewer foreclosures help keep the banks from failing. So I ask Obama, what took so long to hold this job summit? Isn’t it obvious that instead of throwing stimulus money at your campaign supporters, instead of giving money to people to buy cars, instead of giving money to people who buy existing housing stock, why not give incentives to businesses to hire employees and put people on a payroll back to work? How simple is this concept? This would solve a myriad of problems for our Federal, State, local governments and our overall economy. I’m talking about jobs for people who actually make stuff that other people buy and use. The retail and service jobs will fall in place after that. Let me know what you think. Did the Jobs Summit do any good?
Copehagen Threat
October 26, 2009 1:44 PM
We found this interesting website that seems to have a clearcut Conservative bias politically. But the article below speaks to an issue that scares us enough to want to share it. We cannot allow Obama to sign this treaty in Copenhagen in December. Check out moonbattery.com.
Lord Christopher Monckton is one of the last true Britons, a countermoonbat who has been eviscerating the global warming hoax for years. At a speech at the Minnesota Free Market Institute Wednesday, he warned of what Comrade Obama is planning to do to us in Copenhagen. From the transcript at Watt's Up With That:
At [the 2009 United Nations Climate Change Conference in] Copenhagen, this December, weeks away, a treaty will be signed. Your president will sign it. Most of the third world countries will sign it, because they think they're going to get money out of it. Most of the left-wing regimes from the European Union will rubber stamp it. Virtually nobody won't sign it.
I read that treaty. And what it says is this, that a world government is going to be created. The word "government" actually appears as the first of three purposes of the new entity. The second purpose is the transfer of wealth from the countries of the West to third world countries, in satisfaction of what is called, coyly, "climate debt" — because we've been burning CO2 and they haven't. We've been screwing up the climate and they haven't. And the third purpose of this new entity, this government, is enforcement.
How many of you think that the word "election" or "democracy" or "vote" or "ballot" occurs anywhere in the 200 pages of that treaty? Quite right, it doesn't appear once. So, at last, the communists who piled out of the Berlin Wall and into the environmental movement, who took over Greenpeace so that my friends who funded it left within a year, because [the communists] captured it — Now the apotheosis as at hand. They are about to impose a communist world government on the world. You have a president who has very strong sympathies with that point of view. He's going to sign it. He'll sign anything. He's a Nobel Peace Prize [winner]; of course he'll sign it.
The country that will be looted the most aggressively on behalf of socialist Third-World dictators for the greater glory of the radical left agenda will of course be the financially staggering USA.
So, thank you, America. You were the beacon of freedom to the world. It is a privilege merely to stand on this soil of freedom while it is still free. But, in the next few weeks, unless you stop it, your president will sign your freedom, your democracy, and your humanity away forever. And neither you nor any subsequent government you may elect will have any power whatsoever to take it back. That is how serious it is. I've read the treaty. I've seen this stuff about [world] government and climate debt and enforcement. They are going to do this to you whether you like it or not.
But I think it is here, here in your great nation, which I so love and I so admire — it is here that perhaps, at this eleventh hour, at the fifty-ninth minute and fifty-ninth second, you will rise up and you will stop your president from signing that dreadful treaty, that purposeless treaty. For there is no problem with climate and, even if there were, an economic treaty does nothing to [help] it.
Even the BBC is now admitting not only that economic freedom doesn't make it be too hot out, but that the climate has been cooling despite rising levels of harmless CO2. But by the time awareness that the grand global warming crisis is a complete and absolute farce fully penetrates the public, the socialists who have taken control of our country will have us locked into this treaty, subjugating American sovereignty to unaccountable, anti-democratic global entities and subjecting American taxpayers to slavery not just to generate wealth for the bloated pigs in Washington, but to buy palaces for Robert Mugabe types around the world.
Here's where we find out if we deserve to call ourselves Americans. If the radicals running the government aren't stopped, we don't.
We found this interesting website that seems to have a clearcut Conservative bias politically. But the article below speaks to an issue that scares us enough to want to share it. We cannot allow Obama to sign this treaty in Copenhagen in December. Check out moonbattery.com.
Lord Monckton Warns of Obama's Copenhagen Threat - Posted by Van Helsing at 9:23 AM
Lord Christopher Monckton is one of the last true Britons, a countermoonbat who has been eviscerating the global warming hoax for years. At a speech at the Minnesota Free Market Institute Wednesday, he warned of what Comrade Obama is planning to do to us in Copenhagen. From the transcript at Watt's Up With That:
At [the 2009 United Nations Climate Change Conference in] Copenhagen, this December, weeks away, a treaty will be signed. Your president will sign it. Most of the third world countries will sign it, because they think they're going to get money out of it. Most of the left-wing regimes from the European Union will rubber stamp it. Virtually nobody won't sign it.
I read that treaty. And what it says is this, that a world government is going to be created. The word "government" actually appears as the first of three purposes of the new entity. The second purpose is the transfer of wealth from the countries of the West to third world countries, in satisfaction of what is called, coyly, "climate debt" — because we've been burning CO2 and they haven't. We've been screwing up the climate and they haven't. And the third purpose of this new entity, this government, is enforcement.
How many of you think that the word "election" or "democracy" or "vote" or "ballot" occurs anywhere in the 200 pages of that treaty? Quite right, it doesn't appear once. So, at last, the communists who piled out of the Berlin Wall and into the environmental movement, who took over Greenpeace so that my friends who funded it left within a year, because [the communists] captured it — Now the apotheosis as at hand. They are about to impose a communist world government on the world. You have a president who has very strong sympathies with that point of view. He's going to sign it. He'll sign anything. He's a Nobel Peace Prize [winner]; of course he'll sign it.
The country that will be looted the most aggressively on behalf of socialist Third-World dictators for the greater glory of the radical left agenda will of course be the financially staggering USA.
So, thank you, America. You were the beacon of freedom to the world. It is a privilege merely to stand on this soil of freedom while it is still free. But, in the next few weeks, unless you stop it, your president will sign your freedom, your democracy, and your humanity away forever. And neither you nor any subsequent government you may elect will have any power whatsoever to take it back. That is how serious it is. I've read the treaty. I've seen this stuff about [world] government and climate debt and enforcement. They are going to do this to you whether you like it or not.
But I think it is here, here in your great nation, which I so love and I so admire — it is here that perhaps, at this eleventh hour, at the fifty-ninth minute and fifty-ninth second, you will rise up and you will stop your president from signing that dreadful treaty, that purposeless treaty. For there is no problem with climate and, even if there were, an economic treaty does nothing to [help] it.
Even the BBC is now admitting not only that economic freedom doesn't make it be too hot out, but that the climate has been cooling despite rising levels of harmless CO2. But by the time awareness that the grand global warming crisis is a complete and absolute farce fully penetrates the public, the socialists who have taken control of our country will have us locked into this treaty, subjugating American sovereignty to unaccountable, anti-democratic global entities and subjecting American taxpayers to slavery not just to generate wealth for the bloated pigs in Washington, but to buy palaces for Robert Mugabe types around the world.
Here's where we find out if we deserve to call ourselves Americans. If the radicals running the government aren't stopped, we don't.
78 Year Old Quote
July 6, 2009 3:20 PM
Here's an interesting quote written 78 years ago that still applies today. Feel free to weigh in. . . .
Here's an interesting quote written 78 years ago that still applies today. Feel free to weigh in. . . .
"You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because someone else is going to get what they work for, that my dear friend, is the beginning of the end of any nation. You cannot multiply wealth by dividing it."
Heartland Real Estate Business Ad
June 11, 2009 3:28 PM
The June issue of Heartland Real Estate Business had a blurb about the Suburban Chicago Office Market. What they found was:
The June issue of Heartland Real Estate Business had a blurb about the Suburban Chicago Office Market. What they found was:
Suburban vacancy rates have been increasing since 2007 and ended first quarter 2009 at 21.5 percent, the highest it has been since the first quarter of 2005. Absorption totaled negative 1.2 million square feet, with all of the suburban submarkets posting negative absorption except for the Interstate 55 Corridor. Sublease and direct listings have increased during the past several quarters, driven by weakening economic indicators. New construction throughout the Chicago metro area remains limited, with few projects breaking ground and even fewer in the planning stages. Throughout the rest of 2009, expect many of the ongoing trends to continue, including rising vacancy, negative absorption, increased available sublease space, limited construction and a frozen capital market. This was contributed by Michael Flynn of NAI Hiffman's Office Services Group.
What a Stimulus!
March 23, 2009 3:03 PM
On March 14, we had a sneak peek at the new Buffalo Wild Wings restaurant in Crystal Lake. When I read the NW Herald article about it the next day it occured to me what a real stimulus is. I called John Weiler, the owner of 7 of these restaurants to get some stats so I could wrap my mind around what something like one restaurant means to a community. Let me start with the cost. It cost over $1 million for the dirt which is about 1 1/2 acres. The 6,250 + SF building costs over $2 million, so we are talking about a $3+ million investment "all in". Aside from all the jobs that are created to construct and equip a restaurant in the building process, the 120 employees it takes to run a single restaurant like this is significant. Why? Because they generate $750,000/year in wages, the bulk of which are pumped back into the local economy. The average Buffalo Wild Wings generates $3.5 million annual revenue. You can bet over $1 million of that goes to "cost of goods" which is primarily the cost of food which they buy from any number of purveyors, pumping more money into the economy. The sales tax revenue on $3.5 million at 7.75% is $271,250. The portion Crystal Lake gets to keep which gets pumped back into the community is $61,250.
The completion of a new commercial real estate project represents a powerful stream of benefits for the community in which it is located, especially when that property is occupied and put to productive use. It's projects like these and the net new jobs they create and the sales tax revenue they generate that help keep a community economically healthy.
Let us know about any new or proposed commercial projects you are aware of in the McHenry and Kane County corridors.
The completion of a new commercial real estate project represents a powerful stream of benefits for the community in which it is located, especially when that property is occupied and put to productive use. It's projects like these and the net new jobs they create and the sales tax revenue they generate that help keep a community economically healthy.
Let us know about any new or proposed commercial projects you are aware of in the McHenry and Kane County corridors.
The Stimulus Package and Commercial Real Estate
March 17 2009
One of our lender's (Mark Johnston of American Chartered Bank in Mt. Prospect) told us some great news regarding SBA 504 loans which allows the purchase of owner-occupied real estate with only 10% down. President Obama signed into law the American Recovery and Reinvestment Act of 2009 ("Recovery Act"). Section 501 of this legislation provides for the reduction and elimination of certain SBA fees associated with 504 loans. The SBA issued a policy notice on 3/16 which authorizes the elimination of 0.5% third party lender fee and the 1.5% processing fee from all 504 loans approved on of after 2/17/09. How long will this last? We're told that until the aggregate dollar amount of 504 loans exhausts the funds dedicated to this purpose. With $3.6 billion funds being appropriated to this program, SBA estimates these fee eliminations to be applicable thru 12/31/09. On a $1 million commercial real estate purchase, fees decrease 63% resulting in a savings of more than $8500! This SBA program requiring only 10% down flys in the face of the typical conventional loan where you are required to put down 20-30% down on commercial real estate purchases. Even I would have to call this a stimulus!
Welcome to our Blog!
February 10, 2009 12:28 PM
Welcome to our Blog. We never imagined we'd be writing about commercial real estate in this format. We have a lot to say and you have a lot to say about this crazy business of buying, selling, leasing, managing, exchanging, developing and investing in commercial real estate. We thought there ought to be a place where people could come and talk about our chosen field as it relates to the local scene in Chicagoland and the Upper Fox Valley as well as the national arena. Like Charles Dickens said at the beginning of a Tale of Two Cities, "It was the best of times and the worst of times". We see people downsizing and closing their doors. We also see some businesses growing and expanding and taking advantage of opportunities that present themselves when the economy is bad. We feel fortunate thet we can be of help to both ends of the spectrum which is why our 2008 incomes were better than 2007. More opportunities for us to help more people.
We have named 2009 "The Year for Networking". We've read some books on the subject and have come to the conclusion that we are as Barbara Streisand's song goes "People who need People." (By the way, I like her singing but not her politics.) Things just seem to go better when we focus on helping other people solve their real estate problems versus where we can find our next commission check. Networking with other commercial and even residential brokers who do some commercial seems to make sense. Increasing the access to and velocity of market information is an objective of ours. Five years ago we formed a group of local commercial brokers who meet monthly and share market knowledge. This forum will become increasingly valuable to the participants, many of whom are not used to cooperating (sharing fees with other brokers because they never had to before). Working on straight commission for my 31 year (full time) career has meant some unbelievably lean years butted up to the poverty level and some unbelievably lucrative years. But networking doesn't only mean playing nice with our fellow competitive brokers. It has a lot to do with expanding our client base to include more clients who need our services, finding ways to get introduced to these people who we would be hard pressed to meet on our own. When they say it's not what you know, but who you know, that starts to get at what we're talking about. We're fascinated by the recent growth of social networking sites on the internet and we're trying to figure out how we can position ourselves to take maximum advantage of some of those sites like LinkedIn, Twitter, Facebook, Ecademy, Realera.net, etc. I don't know about you but this stuff does not come naturally to us who are in the last quarter of our careers. Let's kick off this blog by talking about books or articles you've read or social/business networking and what you have learned and how it can be applied to increase your income.
posted in General at Tue, 21 Dec 2010 13:02:23 -0600
We have named 2009 "The Year for Networking". We've read some books on the subject and have come to the conclusion that we are as Barbara Streisand's song goes "People who need People." (By the way, I like her singing but not her politics.) Things just seem to go better when we focus on helping other people solve their real estate problems versus where we can find our next commission check. Networking with other commercial and even residential brokers who do some commercial seems to make sense. Increasing the access to and velocity of market information is an objective of ours. Five years ago we formed a group of local commercial brokers who meet monthly and share market knowledge. This forum will become increasingly valuable to the participants, many of whom are not used to cooperating (sharing fees with other brokers because they never had to before). Working on straight commission for my 31 year (full time) career has meant some unbelievably lean years butted up to the poverty level and some unbelievably lucrative years. But networking doesn't only mean playing nice with our fellow competitive brokers. It has a lot to do with expanding our client base to include more clients who need our services, finding ways to get introduced to these people who we would be hard pressed to meet on our own. When they say it's not what you know, but who you know, that starts to get at what we're talking about. We're fascinated by the recent growth of social networking sites on the internet and we're trying to figure out how we can position ourselves to take maximum advantage of some of those sites like LinkedIn, Twitter, Facebook, Ecademy, Realera.net, etc. I don't know about you but this stuff does not come naturally to us who are in the last quarter of our careers. Let's kick off this blog by talking about books or articles you've read or social/business networking and what you have learned and how it can be applied to increase your income.
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