Healthcare Reform Could Have A Significant Impact On Commercial Real Estate

February 18, 2010

as seen in Illinois Real Estate Journal, Jan/Feb 2010 issue:

As the healthcare industry and U.S. population eagerly follow the healthcare debate in Washington, the medical office sector of commercial real estate also stands waiting to see how these historic changes could affect the demand for space within Medical Office Buildings (MOBs). Many experts agree that the prospect of providing healthcare coverage to a significant part of 46 million uninsured Americans, coupled with an aging Baby Boom population, will have a significant effect on the demand for the space in which healthcare service is delivered. The question is how much demand will be generated?

While the medical office segment of commercial real estate has historically performed stronger than other asset types (general office, industrial, retail), the current economic climate, pending healthcare reform, and rising medical costs have slowed demand as many wait on the sidelines to watch what unfolds in the coming weeks and months.

According to the CoStar Group, as of December 2009, the national vacancy rate for medical office space sits at 10.7 percent as compared to a traditional office vacancy rate of 13.1 percent. Here in Illinois, the vacancy rate for medical office is 11.9 percent as compared to the traditional office space vacancy rate of 15. 4 percent.

With so many factors at play, it is difficult to quantify the expected demand at this time. But we do know certain factors that will play a part in what we predict will ultimately lead to the steady positive absorption of current, quality, vacant medical space in addition to a demand for an additional supply of clinical and ambulatory care space in the near future if healthcare reform passes. Read more

Posted by NAI Hiffman | Filed Under Media Coverage, Medical

West Side manufacturing plant sells for $2.05 million

February 16, 2010

Source: REJournals.com

by Paula Widholm

Ionian LLC, a private real estate investment firm, bought a 492,000-square-foot manufacturing building at 501 N. Sacramento Boulevard at auction for $2.05 million.

The receiver, Gregg Szalagi, president of Tailwind Services, took title to the building in April 2009 following the bankruptcy of the property’s owner, box fan maker Lakewood Engineering & Manufacturing Co. Larry Goldwasser, vice president in the industrial brokerage group of NAI Hiffman, co-brokered the listing of the property with Hilco Real Estate.

“The buyer bought it as an investment and plans to modify the building as required to make it suitable for users,” said Rodger Chenore, executive vice president of Paine Wetzel. He represented the buyer with team members Jeff Girling and Terence Lynch as well as with Paine Wetzel brokers Ed Wabick and William Kerrins. Read more

Posted by NAI Hiffman | Filed Under General Business, Industrial, Sale

O’Hare Modernization Update

February 15, 2010

Adam Marshall recommends the following article on the O’Hare Modernization Program, as seen in Crain’s Chicago Business:

Rift between city, airlines threatens O’Hare expansion plans

City Hall is playing hardball with airlines at O’Hare International Airport in a last-ditch effort to keep alive hopes for building a new terminal.

Aviation Commissioner Rosemarie Andolino caught the airlines by surprise last month by insisting the completion of O’Hare’s expansion include the terminal, which the airlines oppose. She antagonized carriers further by raising their landing fees and terminal rents in part to pay down debt incurred in the first phase of the expansion. Read more…

For more information regarding the O’Hare Modernization Program, please contact Adam: amarshall@hiffman.com.

Posted by NAI Hiffman | Filed Under Adam Marshall, O'Hare International Airport, O'Hare Modernization Program

OHL LEASES 183,500-SQUARE-FOOT INDUSTRIAL SPACE

February 11, 2010

OHLBolingbrook BOLINGBROOK, ILL. — Tennessee-based Ozburn-Hessey Logistics (OHL) has signed a lease for 183,500 square feet of industrial space at Bolingbrook Corporate Center West Building II in Bolingbrook. The property features 32-foot clear heights, 48 docks and parking for 265 cars. The facility offers OHL the opportunity to expand into a 269,590-square-foot flex space. Jeff Smith of IDI, along with Ben Cremer and Mike Robbins of NAI Hiffman, represented the landlord, IDI, in the lease negotiations. J.D. Salazar of Champion Realty & Advisors represented OHL.

Source: RE Business Online

Posted by NAI Hiffman | Filed Under General Business, Industrial

NAI Hiffman Wins 2009 NAI Global Company of the Year

February 11, 2010

Last week at the NAI Global Convention in Las Vegas, NAI Hiffman was recognized as the “NAI Global Company of the Year” as well as being awarded the Primary Market “Eagle Award”.

In presenting the NAI Global Company of the Year award, David Blanchard, EVP with NAI Global, noted the winner’s “quality in leadership and their participation throughout the network. This is a company that has developed and built and innovated from the inside out, and has become the dominant player in property management, in addition to building teams all throughout the Chicago region to serve their people there.”

In his acceptance speech, Michael Flynn acknowledged that there are, “a lot of great members doing great things. It is wonderful to be a part of that, and even greater to be recognized.”

Dave Petersen, COO of NAI Hiffman, acknowledged, “This is a tremendous honor and one that we take very seriously as the top recognition from NAI Global and from our peers in the network. We have raised the bar and will continue to do so.”

Posted by NAI Hiffman | Filed Under Awards and Honors, NAI Global

Hiffman’s success secret: “I work every day. I work a lot of hours.”

February 2, 2010

by Dan Rafter

In Legends of the Industry, Midwest Real Estate News profiles the commercial real estate veterans who’ve made the biggest impact in the commercial real estate business during their long careers. We start this regular feature by profiling Dennis Hiffman, chairman and chief executive officer of Chicago-based real estate services firm NAI Hiffman. During his commercial real estate career, which has lasted more than 35 years, Hiffman has seen the business evolve from notepads and ballpoints to smart phones and laptops.

Midwest Real Estate News: What led you to this field?
Dennis Hiffman: In 1969 I was a high school teacher. I was ready to change careers. I went to a man who I knew who was involved in the business. We belonged to the same church. That man happened to be Jack Gearen, former chairman of the board at industrial brokerage Nicolson, Porter & List. He got me started in this business. He told me where to go to talk to people. At the time I got into the business, you basically had to be born with a silver spoon in your mouth, which I didn’t have. You had to be recommended by someone else in the business or you had to have spent 10 years at Xerox for a commercial brokerage to consider talking to you. It was a very small, very close community.

MWREN: It sounds like a big difference from the way the business operates today.
Hiffman: It was. After I was hired and became part of the commercial real estate community, I became the 100th or 98th broker who joined AIR (the industrial real estate association). There were only 100 brokers at the time. That’s amazing. There were no retail brokers and no office brokers. It was just industrial. Building managers made the office deals.

MWREN: What were some of the other changes you saw in this business?
Hiffman: The farthest out we would go was to Itasca. Actually, Route 53 hadn’t been built by then. It wasn’t even there. To go to Itasca meant that you had to pack your lunch and plan your whole day. We had no cell phones back then. When you were in your car, you were out of touch. I don’t know how we survived without those cell phones, but we did. Our listing systems were all manually kept, too. Read more

Posted by NAI Hiffman | Filed Under Media Coverage