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Friday, July 01, 2022Property Sales, Price Gains Slow as Investors Look Again at Big Markets Shunned in Pandemic
After the Federal Reserve’s borrowing rate increases this year, the total number of property sales in May slid nationally while price gains slowed in smaller markets away from the largest U.S. cities. The CoStar Commercial Repeat Sale Indices, which monitor price differences in sales of the same property, show that larger-dollar purchases common in the biggest markets rose 1.3% in May, its first advance since the beginning of 2022. The uptick represents a shift for investors, who generally began turning
Friday, July 01, 2022Port Labor Talks Ongoing With Contract Set to Expire, Consumer Income and Spending Fall, Jobless Claims Drop
Port Labor Talks Ongoing With Contract Set to Expire Labor negotiations involving dockworkers at the ports of Los Angeles and Long Beach, among the world’s busiest, are still going on as the end of the existing contract approaches and global supply chains reel from the pandemic. Port officials and representatives of the International Longshore and Warehouse Union, which represents 22,000 workers at 29 West Coast ports, told media outlets this week they were confident of avoiding a strike or lockout while
Thursday, June 30, 2022Walgreens Calls Off Sale of Boots Unit, Mortgage Applications Rise, GDP Fell in First Quarter
Walgreens Calls Off Sale of Boots Unit Global financial volatility has apparently halted at least one big corporate deal, as drugstore giant Walgreens Boots Alliance this week called off the planned sale of its Boots division, which operates stores primarily in the United Kingdom and Western Europe and markets beauty products internationally. Executives said the company, which operates about 13,000 stores worldwide, decided to keep Boots and its affiliated cosmetics brand, No7 Beauty, terminating a review
Thursday, June 30, 2022Real Estate Magnate Sam Zell Moonlights as Economist
With the Federal Reserve raising interest rates, real estate mogul Sam Zell has been spending some of his time out of the office visiting financial news outlets, opining on what the central bank should do next. On June 15, hours before the Fed raised its target lending rate by 75 basis points, or three-quarters of a percentage point, Zell went on CNBC's "Squawk Box" to urge the central bank to increase the rate by a full percentage point. He made a similar comment on Fox Business in early May, warning
Wednesday, June 29, 2022Consumer Confidence Falls, Home Prices Climb, Office Use Edges Higher
Consumer Confidence Falls Consumer confidence fell to its lowest level since February 2021 in a closely watched index from the Conference Board, a New York-based economic research organization, suggesting a rough ride could be ahead in the second half of 2022. Using 1985 as a base of 100 to gauge changes in consumer and business outlooks on the U.S. economy, the survey-based composite index came in at 98.7 for the month of June, down 4.5 points from May. The component that measures short-term expectations
Wednesday, June 29, 2022Google in Talks To Buy Chicago’s Thompson Center
Google is negotiating to buy the spaceship-like James R. Thompson Center in Chicago in a deal that could provide a much-needed boost to the city’s Loop business district. The Mountain View, California-based tech giant is seeking to buy the Helmut Jahn-designed building at 100 W. Randolph St., where it plans to expand its Chicago offices into a large portion of the 17-story building’s soon-to-be-renovated office space, according to people familiar with the deal. It’s the latest twist for a 37-year-old
Tuesday, June 28, 2022Supreme Court To Hear Case Involving Sears Lease, Pending Home Sales Climb, Durable Goods Orders Ris
Supreme Court To Hear Sears Lease Case The U.S. Supreme Court agreed Monday to hear a case involving a Sears lease at Minnesota’s Mall of America focused on whether creditors can challenge a bankrupt debtor’s asset sale after a buyer has closed on a court-approved sale. It was not immediately clear when the high court would review the matter. The case is MOAC Mall Holdings v. Transform Holdco, the latter being the holding company led by former Sears CEO Eddie Lampert that now controls real estate assets
Tuesday, June 28, 2022Amid Summer Travel Boom, US Hoteliers Prepare for Fall Demand Shifts
As hoteliers enjoy the latest wave of exceptionally strong leisure demand this summer travel season, the question hotel companies are left to answer is: How long can this last? Hoteliers said that's a difficult question to answer given how unpredictable things have been in the past few years, but the general expectation is for leisure demand to cool somewhat in the fall with overall demand evening out due to stronger group and corporate transient demand.Rob Smith, executive vice president for
Monday, June 27, 2022Tishman Speyer Calls Off Chicago Office Development Amid US Economic Concerns
Tishman Speyer has called off plans to buy a development site and put up an office tower along the southern edge of Chicago’s in-demand Fulton Market district amid rising interest rates and concerns of a potential recession. The halted project, involving a major developer and the fastest-growing U.S. urban office market, is a high-profile example of how much harder real estate deals are becoming to finance throughout the country at a time when inflation has reached levels not seen in 40
Monday, June 27, 2022Consumer Sentiment Hits Record Low, Used-Vehicle Prices Boost CarMax Revenue, New Home Sales Rise
Consumer Sentiment Falls to Record Low Inflation is weighing heavily on consumer sentiment, which fell to a record low in a closely watched monthly survey by the University of Michigan. The university’s June national index, gauging consumer outlooks in areas including labor market strength, inflation and personal finances, dropped 14.4% from the prior month and reached its lowest level since the university began tracking sentiment more than 40 years ago. Researchers said sentiment has reached a depth
Friday, June 24, 2022Slowing Home Sales Spur JPMorgan Chase Layoffs, Olive Garden Parent's Sales Rise, Jobless Claims Dec
Slowing Home Sales Spur Chase Layoffs A slowdown in home sales sparked by rising interest rates is now being felt in the offices of JPMorgan Chase. One of the nation’s largest financial services firms has started laying off the first of more than 1,000 employees in its mortgage services division. Bloomberg News was the first to report the news, noting that about half of those employees will be moved to other divisions within the New York-based company, which employs nearly 274,000 worldwide. “Our
Friday, June 24, 2022Hedge Fund Giant Citadel Moving Headquarters From Chicago to Miami
After years of threatening to move his business from Chicago, Illinois’ richest man has made it official, with Ken Griffin telling employees of Citadel that the massive hedge fund is moving its headquarters to Miami. In a note to employees Thursday, the billionaire said the global headquarters will move to a new property in Brickell Bay, which he described as Miami’s financial district. Citadel has been based in Chicago since Griffin started the company in 1990 Citadel’s move includes the headquarters
Thursday, June 23, 2022Recession Risk Grows, Mortgage Applications Increase Despite Rate Hikes, Office Use Ticks Up
Recession Risk Grows A prominent Federal Reserve economist has joined the ranks of analysts warning of rising potential for a recession within the next year, spurred largely by persistent inflation, rising interest rates and fallout from the pandemic. Senior economist Michael Kiley puts the risk of recession at 50% within the coming year and more than 60% within the next two years, according to a research note published Tuesday by the Federal Reserve. Kiley cites data from the past five decades and notes
Thursday, June 23, 2022Most Housing Market Indicators Are Turning Red
Most Housing Market Indicators Are Turning Red This may be the worst time to enter the housing market in more than 15 years, but that does not necessarily make homebuying a poor decision. The benefits of long-term wealth creation through real estate are well documented. And rising rents, including those of apartment units, also raise the opportunity cost of not owning a home. Buyers are paying record prices for homes. The median home price rose to $407,600 in May, according to the National
Wednesday, June 22, 2022US Logistics Costs Spike, Home Sales Decline as Prices Rise, Economic Growth Slows
US Logistics Costs Spike Total costs to store and transport U.S. goods soared more than 22% over the prior year in 2021, spurring the current wave of logistics onshoring and nearshoring aimed at insulating American companies from lingering snags in the global supply chain caused by the pandemic, according to a prominent trade group. U.S. business logistics costs hit $1.85 trillion, rising 22.4% from 2020 and representing 8% of 2021’s $23 trillion in national gross domestic product, according to a report
Wednesday, June 22, 2022Commercial Real Estate Needs To Replace 'Missing Generation' of Workers, Search Firm CEO Says
While attending high school about 40 miles northwest of London, Gemma Burgess' dream job would have been serving as a BBC News presenter or some other type of journalist. Instead, she ended up in the executive search business with a major focus on helping commercial property firms find talent. Though Burgess had never thought about working so closely with the commercial real estate industry, once she started she became hooked and never left. In April, Burgess took over as CEO of Chicago-based Ferguson
Tuesday, June 21, 2022REIT To Invest Almost $285 Million on Chicago-Area Industrial Properties, Including Big Amazon Wareh
A Denver-based real estate investment trust is paying almost $285 million for 15 warehouses in the Chicago area, including a pending deal for a big Amazon distribution center southwest of the city. Ares Industrial Real Estate Income Trust expects to complete a $102.5 million purchase of the 753,000-square-foot Amazon warehouse in the third quarter, according to securities filings. That property, at 23700 W. Bluff Road in Channahon, Illinois, is owned by IDI Logistics. That deal follows a 14-building
Tuesday, June 21, 2022Energy Prices and Inflation Top CEO Concerns, GDP Growth Projections Cut, Pandemic Office Disruption
Energy Prices, Inflation Top Concerns of CEOs Corporate CEOs are increasingly concerned that a volatile mix of energy price hikes, inflation and other fallout from the war in Ukraine could tip the U.S. economy into recession, according to a survey by a prominent economic research organization. Uncertainty sparked in large part by Russia’s invasion of Ukraine has forced many corporate leaders to reassess growth assumptions, with 80% of survey respondents now expecting a recession in their primary business
Monday, June 20, 2022Eleven US Cities Selected to Host World Cup Matches, Housing Starts Hit Two-Year Low, Jobless Claims
Eleven US Cities To Host World Cup Matches Eleven U.S. cities were among 16 in North America chosen by FIFA to host matches during soccer’s 2026 World Cup, with a chance to share in an estimated $5 billion in economic benefits from the global tournament. Dozens of cities submitted bids to host the World Cup after North America was named the host region four years ago by FIFA, the federation overseeing international soccer events. For 2026, matches will be played in Atlanta, Boston, Dallas, Houston, Kansas
Monday, June 20, 2022Biggest US Supermarket Chain Boosts Outlook as Inflation-Weary Shoppers Focus on Groceries
Kroger, the nation’s largest supermarket chain, raised its financial outlook for the rest of the year as it reported an increase in fiscal first-quarter sales buoyed by Americans facing record inflation redirecting their spending to essentials such as groceries. The Cincinnati-based company that operates 2,723 grocery stores under the Kroger, Harris Teeter, Ralphs and Fred Meyer brands said sales for the quarter ended May 21 rose to $44.6 billion from $41.3 billion in the year-earlier quarter. Sales,
Thursday, June 16, 2022Hotel Daily Room Demand Headed for All-Time High in 2023
Daily hotel room demand had been steadily increasing for a decade until its dip in 2020 with the onset of the pandemic. But the industry appears to be on the mend. Leisure travel has rebounded smartly during the public health crisis. And over the past few months, hoteliers have reported higher volumes of short-term business and group travel demand across the country. STR, CoStar's hospitality analytics firm, took note of the uptick when it recently updated its forecast for hotel performance. It predicts
Thursday, June 16, 2022Retail Sales Decline, Construction Costs Staying High Into 2023, Import Prices Rise
Retail Sales Decline U.S. retail and food service sales dropped 0.3% month over month in May to $672.9 billion, the Commerce Department reported Wednesday, underscoring earlier reports from big store chains now seeing consumers spend less on nonessential items and much more on high-priced necessities such as gasoline. On the retail side, sales were down 0.4% from the prior month but still up 6.9% from May 2021. May spending at gasoline stations was up 4% from the previous month but up 43.2% from the prior
Thursday, June 16, 2022Fed Responds to Market Worries, Accelerates Rate Hikes
The Federal Reserve’s policy-setting committee shifted gears on Wednesday and boosted its target lending rate by 75 basis points, or three-quarters of a percentage point, the highest uptick since 1994. The decision sets the overnight target rate for banks to between 1.5% and 1.75%. This is the third rate hike in the Fed’s current tightening cycle, following the Fed’s initial 25-basis-point hike at its March meeting and a 50-point increase at its May meeting. Until recently, the market had been largely
Wednesday, June 15, 2022Small Business Optimism Drops to 48-Year Low, Office Use Hits Pandemic High, Producer Prices Climb
Small Business Optimism Hits 48-Year Low Inflation is weighing heavily on small business optimism, as many operators trim capital spending across the board, including equipment and building purchases, according to the latest monthly survey data from the National Federation of Independent Business. The advocacy group’s optimism index fell to its lowest level in the 48 years of the survey, dropping 0.1 point in May to 93.1, marking the fifth consecutive month below the average of 98. The composite index is
Wednesday, June 15, 2022Unprecedented Surge in Speculative Construction No Match for Logistics Demand
The logistics property sector is experiencing its largest supply wave seen to date. The staggering amount of new speculative space coming online would be cause for alarm if it was any other property type. However, the rapid pace of construction is only exceeded by leasing activity in the sector, as net absorption of logistics space across the U.S. reached a record level of 470 million square feet in 2021. Given the exceptionally strong demand, low availability and pricing premium being commanded by
Tuesday, June 14, 2022Inflation Concerns Pull S&P 500 Into Bear Market, Consumers Expect Tighter Credit Access, Hourly Wag
Inflation Concerns Pull S&P 500 Into Bear Market The S&P 500 entered bear-market territory Monday, down 22% from its January peak, as concern over inflation and fears of a looming recession intensified. It was the first full-day response by investors to government data released Friday showing annual inflation hit a 40-year high of 8.6%, sparking concerns the Federal Reserve will begin to aggressively raise its key borrowing rate to curb inflation at its upcoming meeting this Wednesday. A significant
Tuesday, June 14, 2022Prologis To Acquire Duke Realty in $26 Billion All-Stock Deal
Real estate investment trust Prologis said it will buy smaller rival Duke Realty in a $26 billion deal, following months of Duke giving Prologis a cold shoulder about combining. The stock transaction, which includes the assumption of debt, comes at a time of fluctuation in the capital markets with volatility in stock values and borrowing costs. It also follows e-commerce giant Amazon, a major tenant of both REITs, saying it plans to scale back its expanding use of industrial space. “This transaction
Monday, June 13, 2022Southwest Airlines’ Call Centers Going Remote, Inflation Hits New High
Southwest Airlines’ Call Centers Going Remote Southwest Airlines is planning to close reservation centers in seven cities, with about 3,200 workers who now help customers book flights set to work fully outside of its offices effective Sept. 1. It’s a tilt in favor of remote work, at a time when the future of corporate offices is being debated with the rise of work-from-home technologies during the pandemic. Southwest emphasized that most of its reservation agents have already been working from home or
Monday, June 13, 2022Rates Drive US Hotel Recovery but Lag Inflation in Most Cases
NEW YORK — The numbers, and seemingly the stars, are aligning for the U.S. hotel industry. The ongoing recovery from the COVID-19 pandemic and the resulting economic environment are leading to improved performance and strong valuations for hotels across the country, industry experts said during the “Hotel Values and Trends – Statistically Speaking!” panel at the NYU International Hospitality Industry Investment Conference.Improving Forecast STR’s newest forecast isn’t a dramatic revision from the one it
Friday, June 10, 2022Redevelopment a Cure for the Chicago Office Market's COVID, Supply-Demand Woes
Over the course of the past 10 years or so, downtown Chicago office landlords have upped their amenity antes to entice tenants to choose their properties over those in other areas of the city and the suburbs. Breathtaking vistas of Lake Michigan from private company patios, state-of-the-art gym facilities, keyless entry, on-demand elevator calls and perennial happy hours in tenant lounges are all big draws. For the most part, it has worked. Corporate hiring and site selection shifted from bucolic
Friday, June 10, 2022Moody’s Warns of Possible 2023 Recession, Volkswagen Mulls US Electric Vehicle Expansion, Jobless Cl
Moody’s Warns of Possible 2023 Recession Moody’s Analytics has joined a chorus of analysts warning about a potential U.S. recession in the coming year, as the prominent financial data firm cites an evolving “danger zone” of perils facing real estate. Victor Calanog, the firm’s head of commercial real estate research, predicted in a report Thursday that there’s a 30% chance of a recession in 2022, rising to a 50% probability in 2023. “Climbing mortgage rates, coupled with unaffordable housing, especially
Thursday, June 09, 2022Kohl’s Bidder Looks to Sell Real Estate, Mortgage Applications Fall
Kohl’s Bidder Looks to Sell Real Estate If Kohl’s is sold for a reported $8 billion to its current lead suitor, Franchise Group Inc., the struggling retailer could end up lighter on real estate. Kohl’s and Franchise Group, which owns chains including The Vitamin Shoppe and Pet Supplies Plus, announced this week they have entered into exclusive negotiations on Franchise Group’s offer to buy Kohl’s and its more than 1,100 stores for $60 per share in cash. Delaware, Ohio-based Franchise Group said in a
Thursday, June 09, 2022Wage Gains Slow, Making the Fed’s Job Easier
Wage Gains Slow, Making the Fed’s Job Easier Last week’s federal employment situation report hints that inflation is still running high, albeit decelerating. Job growth slowed and the labor market remains tight, yet earnings only grew in a handful of low-wage sectors. Nonfarm jobs grew by 390,000 positions in May, the fewest jobs added over a month since April 2021. Still, monthly job gains have more typically been between 100,000 and 200,000 during previous periods of economic recovery or expansion,
Tuesday, June 07, 2022US Looks To Boost International Tourism, ‘Missing Middle’ Construction Flat, Employment Growth Index
US Looks To Boost International Tourism The Commerce Department unveiled a strategy aimed at restoring international tourism, still down considerably from pre-pandemic times and crucial to the business of hoteliers, theme parks and retailers. Commerce Secretary Gina Raimondo announced an initiative aimed at attracting 90 million international visitors annually to the U.S. over the next five years. The Commerce Department estimates those visitors would spend about $279 billion annually, supporting job
Tuesday, June 07, 2022American Dream Megamall at Risk of Default on $800 Million in Municipal Bonds
American Dream, the $5 billion megamall in North Jersey, is at risk of defaulting on an $800 million bond next week for failing to make a twice-yearly interest payment on the debt as the project's financial problems continue. Triple Five Group, the Canadian developer of the shopping-and-entertainment complex in East Rutherford, was notified last week by bondholder trustee U.S. Bank National Association that it had failed to pay an $11.4 million interest payment due last Wednesday, June 1, on the
Monday, June 06, 2022Memorial Day Weekend Hotel Demand Highest Ever in US
On the Friday and Saturday of Memorial Day weekend, the U.S. hotel industry sold more room nights this year than in any prior year, despite not setting a record for occupancy. Weekend room demand was also the highest it has been all year. Occupancy for Friday and Saturday nights reached 78%; and the record for Memorial Day weekend, set in 2016, was 81.4% occupancy, according to data from STR, CoStar’s hospitality analytics firm. The record-setting room night demand, then, is a result of increased
Monday, June 06, 2022Musk Eyes Tesla Layoffs, Retail Group Says Economy ‘Being Rebalanced,’ US Adds 390,000 Jobs
Musk Eyes Tesla Layoffs Tesla CEO Elon Musk is looking to cut about 10% of the electric vehicle maker’s workforce, after joining other high-profile corporate leaders expressing what the world's richest man described as a “super bad feeling” about the economy’s tilt toward a potential recession. According to internal corporate emails detailed June 3 by Reuters, Musk told Tesla staff to “pause all hiring worldwide” just two days after ordering its approximately 100,000 workers back to Tesla’s offices full
Friday, May 06, 2022Illinois’ Earns Credit Upgrade from S&P: Illinois’ Sixth Credit Upgrade Under Gov. Pritzker
Illinois’ Earns Credit Upgrade from S&P: Illinois’ Sixth Credit Upgrade Under Gov. PritzkerTwo-Notch Upgrades from All Three Rating Agencies in Less than a Year SPRINGFIELD -- Governor JB Pritzker today applauded S&P Global Ratings’ upgrade of Illinois bonds. This latest action means that Illinois has now received two-notch bond rating upgrades from the three major credit rating agencies in the last year – a total of six upgrades in less than a year. This fiscal progress was attained due to strong fiscal
Friday, April 01, 2022HIGHWAY 20 DESIGNATED AS MEDAL OF HONOR HIGHWAY
HIGHWAY 20 DESIGNATED AS MEDAL OF HONOR HIGHWAYIllinois passes SJR 28 to honor Illinois’ Medal of Honor recipients Senate Joint Resolution 28 designating U.S. Highway 20 as Medal of Honor Highway unanimously passed today as Illinois joins the effort to rename the 3,365 miles of Highway 20 spanning the nation from the Pacific to Atlantic Oceans. “This partnership of states honoring their Medal of Honor recipients amplifies our deep appreciation and recognition of their heroism,” said IDVA Director Terry
Wednesday, March 02, 2022Judson Seeks Nominations for the 2022 Volunteer Service Award and Youth Award at Annual Community Pr
Judson Seeks Nominations for the 2022 Volunteer Service Award and Youth Award at Annual Community Prayer Breakfast (ELGIN, IL – March 2, 2022) Judson University is seeking nominations for the D. Ray Wilson Volunteer Service Award and the Bea Wilson Youth Service Award, which are presented each year at Judson University’s Community Prayer Breakfast. Both awards recognize candidates who have contributed to the greater good in the Fox Valley community by voluntarily serving others' physical,
Tuesday, March 01, 2022Coalition to Stop CPKC submits filing to block $31B rail merger as proposed
ITASCA, IL—A coalition of eight communities filed its Opening Comments and Request for Conditions to the Federal Surface Transportation Board (STB) in a continued quest to block, as proposed, a merger between the Canadian Pacific and Kansas City Southern, (CPKC) freight railroads today. Back in October of 2021, CPKC filed a merger application with the STB to create the only single-line rail network linking the U.S.—from Canada to Mexico. The $31B merger would go through the heart of the eight
Thursday, February 24, 2022City of Elgin launches community solar program
Community solar subscriptions now available to Elgin residents and small businessesElgin, IL - Elgin residents and small businesses can save money on electric bills and help develop the solar industry in Illinois thanks to a new City-sponsored community solar program. Community solar program subscribers receive credits on their ComEd accounts, reducing the energy supply charges on their monthly bills by $100 per year on average. There are no credit checks, enrollment fees or termination
Wednesday, January 26, 2022COMCAST RISE APPLICATIONS NOW OPEN TO ALL WOMEN-OWNED SMALL BUSINESSES
In its first year alone, Comcast RISE has provided over $60 million in grants, marketing and technology services to support more than 6,700 small businesses owned by people of color in Comcast’s national footprint – including nearly 550 in the company’s Greater Chicago Region With the expansion to all women-owned small businesses, the program is on track to support 13,000 businesses by the end of 2022. CHICAGO (January 19, 2022) – Comcast announced today that its Comcast RISE program is open to all
