A new study conducted by Zillow puts the median rent across Chicago at what turns out to be a not-so-high $1,642 per month. Just compare that figure to a typical rental in San Jose, the Silicon Valley town outside San Francisco: $3,398 per month.
According to Zillow’s study the Chicago figure is pretty average for the United States in general, only slightly higher than $1,382 per month. Additional good news for Chicagoans is that their rents seem to be holding pretty steady in comparison to the rest of the country. Rentals in Chicago only 1.4 percent this past year, compared to an increase of 4.5 percent in the rest of the US.
It is expected that rents in downtown Chicago will be eased when new construction there is completed.
The cheapest rentals out of 35 of the country’s largest cities are in Pittsburgh where the average stands at only $1,097.
Tribune Media, owner of Chicago’s 36-story Tribune Tower, announced that it has acquired the services of real estate investment banker Eastdil Secured to explore the different options for selling or re-developing the property.
President Murray McQueen of Tribune Real Estate said that this deal can be “an incredible opportunity.” He added that they expect a lot of interest in this property from a large assortment of private and institutional investors and developers.
The Tower was built in 1925 and was granted landmark status in 1989, and is the home of the Chicago Tribune.
A McDonald’s is being considered to fill the space left empty by the long vacant Myoda Computer Center in Hoffman Estates outside Chicago. Myoda, located at 1070 North Roselle Road was taken over by a bank five years ago when the mortgage on the property was foreclosed.
Hoffman Estates is planning other improvements to their village, including putting in a traffic light this autumn at the entrance to the shopping center on Roselle Road.
If the plan for the McDonald’s is given a green light, then Hoffman Estates will have two of the newest McDonald’s in the area, instead of one of the oldest ones. That’s because the old McDonald’s is coming down as soon as a new, already approved, McDonald’s at Barrington Square Town Center opens up.
The Myoda building is a two-story structure that housed a computer store, but also had space for other tenants. The land is now owned by the BBCN Bank, which is planning to sell the property to a broker, who will then contract a lease for a new 4,338-square-foot McDonald’s complete with dual drive-through lanes.
If approved work on the new McDonald’s most likely won’t begin until the beginning of the next construction season, said Peter Gugliotta, Director of Planning, Building & Code Enforcement for Hoffman Estates. Once begun it should take between four to six months for the fast food restaurant to be completed.
Matt Garrison, managing principle of R2, a Chicago-based developer, announced that his company is planning to convert a 300,000 square-foot warehouse into office space. He said when the space in Pilsen is done it will be one of the largest office projects completed outside the Chicago central business district.
As of today R2 has the potential for a deal with a group of investors headed by Raymond Chin who own the five-floor vacant structure located at 465 West Cermak Road, along the river.
R2 has been rapidly looking for projects to develop non-traditional office locales, and its venture into Pilsen is just the latest on the Near South Side of Chicago.
Garrison explained that R2 is constantly looking for new areas for innovative offices as a response to the high cost of property in other areas of Chicago.
There have been significant real estate sales in the commercial realm in Chicago since the beginning of this year. Most notable to date have been the three tallest towers that are in the sale process. In addition to those, the sale of downtown office towers from January to June 2015 reached a value of $4.19 billion combined. That alone – just for the first half of the year – was more than the total of sales in the same category of 2014 in Chicago.
What has yet to have been calculated are the largest deals that are in process, including the sale of the Aon Center, the city’s third tallest building, that is due to reach $712 million. According to Senior Vice President and Investment Sales Expert at JLL, broker Nooshin Felsenthal, Chicago will “at the very least meet that $5.3 billion record and I’m pretty confident we’ll blow right past it.” The other two of the large towers that are in the process of sale is the two-tower Illinois Center, which will be sold for $376 million.