Chicago Industrial Market Booming
More than 12.2 million sf of industrial space was leased in the Chicago area during Q2, compared to 8.3 million sf in Q1, according to a report by the real estate firm Colliers Bennett & Kahweiler. The Q2 total easily surpasses the 9.2 million sf leased during the Q3 of 1999, the highest previous total in recent memory. Chicago’s industrial vacancy rate declined to 8.8% during Q2, compared to 9.3% in Q1 and 9.2% in Q2 of 2005.

New York Office Vacancy Drops Below 10%
Downtown New York’s office vacancy rate has dropped below 10% for the first time since 2001, to 9.5% according to Cushman & Wakefield officials discussing their office’s upcoming Q3 market report. In the aftermath of the terrorist attacks, the downtown rate had steadily moved upward to 13.7% in late 2004, before starting a decline. While the rate is higher than the 6.9% vacancy rate in midtown, it still bodes well for the chances of higher downtown asking rents.

Port Authority Gives Final Okay to Ground Zero
The Port Authority of New York and New Jersey’s commissioners have approved the already-agreed-upon plan for redeveloping New York’s Ground Zero. Under the formally approved plan, the Port Authority, which owns the 16-acre site, is developing two towers with 3.8 million sf of offices, and 490,000 sf of retail space. In addition, Larry Silverstein was approved to develop three towers with 6.2 million sf.

Crow Holdings Sells $2.2B Portfolio to GE
Crow Holdings has agreed to sell 147 properties to GE Real Estate for $2.2 billion. In turn, GE has agreed to sell the portfolio’s 19 retail centers, which have 3.6 million sf, to Kimco Realty Corp., for $920 million. The properties GE will keep include 112 industrial buildings with 9.3 million sf, 2 office buildings with 350,000 sf, 8 multifamily properties with 3,141 units and 6 hotels with 1,727 rooms.

Phoenix-Area Properties Sold for $100M
A venture led by Granite Capital Investments, Inc. and Matteson Co. has paid $100 million for a pair of retail-office properties in Scottsdale, AZ. The team paid $53 million for the 180,967 sf Scottsdale Seville, which combines office and retail space at Scottsdale and Indian Bend Roads. And it paid $47 million for La Mirada, a 148,500 sf office/retail property at Pinnacle Peak and Pima roads. The properties were acquired from Desert Troon Co., which acquired Scottsdale Seville in 2002 for $30 million. It is not known how much the company paid for La Mirada.

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