Key Take Aways from Chicago’s January 2022 Mastermind Group Meeting!
- Hart Passman, Elrod Friedman LLP: Shared that he recently read an article about changes to how land is used post-pandemic, as it relates to work from home. What does it mean for suburban use? Rural areas? Could it spark rural growth when a long daily commute is not a factor? Or does it open up career options for those who live further away from the city?
- Lauren Zangl, ECS Midwest: Shared that there is a new standard for Phase I just implemented. Awaiting EPA approval. 2021 standards offer more clarifications. Later in the year watch for updates on emerging contaminants.
- Brandon Svec, CoStar Group: Shared that he has moved to St. Louis and is now National Head of Retail Strategy and Analytics. Multi-family growth and industrial continue to be hot. Suburban rental options continue to be low due to demand. Record demand in industrial lease space. Retail is bouncing back. The buy online, pick-up in store and connected app services are driving people back to the stores. Office remains slow to rebound. 10-year high vacancy rate that will take years to return to pre-pandemic state. Retail and multi-family are benefitting from rent growth due to inflation.
- Daniel Brennan, Laurie & Brennan: Shared that there are continued challenges on managing supply chain issues. Seeing an acceptance vs. solutions to address the problems. Waiting to see if there will be settling at close of project.
- Corey Walz, Walz Capital: Shared that they are seeing a solid consistent flow in the market. Typically, the medical market slows at year end and in early Q1, but that is not the case this year. Medical space consolidation is also active. Feels good about opportunities for success in 2022.
- Collin Kraft, Walz Capital: In addition to Corey’s comments, Collin shared that the advantage is two-fold: best in price selling and financing. Just closed on three deals in Tennessee and Iowa. Goal is double portfolio on square footage in 2022.
- Tom Petermann, CAGE Civil Engineering: Shared that they are opening two more offices in next 6 months. One in North Carolina and one in Indiana. Possibly a third office in Phoenix by end of year. Seeing momentum outside of Illinois. Most of their current projects are outside of Illinois as well. Experiencing headwinds in Chicago that are not covid related. Crime is a factor for non-Chicago equity. AJ Jacobs commented: Government interaction in terms of affordability and taxes continue to be a deterrent. Brandon Svec commented that the crime issue needs to be solved in order to regain downtown vibrancy.
- Sachin Batra, VRB Capital: Shared he is seeing excess of liquidity and compression of yield on debt side. Less than 6% is being accepted by the banks. Retail side – borrowers are not cooperating with the banks. Office is anticipated to be the worst asset class.
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