33 episodes

Welcome to JLL Chicago's Industrial Research podcast hosted by George Cutro and Chad Buch. Market trends, hot topics, deal coverage and more!

JLL Chicago Industrial - Real Time JLL Chicago

    • Business

Welcome to JLL Chicago's Industrial Research podcast hosted by George Cutro and Chad Buch. Market trends, hot topics, deal coverage and more!

    Episode 28: Talk with Commercial Property Executive

    Episode 28: Talk with Commercial Property Executive

    Recently, we joined Commercial Property Executive to discuss what’s considered a “big box” warehouse, where we’re seeing rentgrowth, how population densityfactors intolocation selection, and more. Thanks to Senior Associate EditorLaura Calugar for hosting us and posingpoignant questions about what’s driving the industry and where it’s headed.

    0:25–What’s considered “big box,” and where demand lies for these facilities.

    3:36–Absorption is keeping pace with demand.

    4:34 –Population density is driving location choice for occupiers.

    7:17–Rents are escalating along both coasts between fiveto 10percent; in the Midwest, rents are growing between three and five percent.

    8:37–Investors are entering secondary markets searching for higher yielding opportunities.

    10:25–Population density is a factor to consider when looking at emerging markets for “big box”industrial facilities.

    13:00–Third-party logistics companies have been a top driver inleasing activity in 2019as companies focus ontheir core business—running their stores, developing a new product or strengthening customer service—and outsourcing warehousing and transportation to 3PLproviders.

    14:23–Tariffs and trade disputes with China have slowed down some industries, including raw materialsand agriculture.

    18:52–Labor shortages are a major challenge for thegrowth of the logistics anddistribution industry.

    21:13–Employers can attract and retain talent by selecting a location in close proximity to retail and dining amenities.

    22:23 –Overall the industryoutlookis positivefor 2020.

    • 25 min
    Episode 27: Transforming Cities

    Episode 27: Transforming Cities

    Episode 27 brings together Chris Arnold, of the Transforming Cities podcast, and JLL Chicago Industrial Real Time. Listen as we discuss data and tools that are most useful, the warehouse of the future and how to market buildings in today’s world.

    2:20 – Chad Buch and George Cutro share their backgrounds and how they entered the world of commercial real estate.

    8:40 – There’s a lot of data points to consider, but the most important items they track about an industrial asset are: location, price, clear height, docks, drive-in doors, office space within the building and power.

    12:50 – Since industrial buildings may be far apart, the team uses various technology—including Blackbird, a geospatial tool—to show clients an asset before making the trip to see it in person. In a virtual market tour they may review: transportation connectivity, drive times, labor and demographics, siteplans and circulation and nearby amenities.

    16:56 – Industrial real estate has become more sophisticated in the last five to 10 years as manufacturing and fulfillment centers have expanded their footprint and functions and technology and automation have made buildings more connected.

    17:46 – The warehouse of the future has more power, thicker floors, additional parking, secure truck courts, wireless infrastructure and sensors, and HVAC for quicker shipping and delivery.

    23:57 – Chicago has a unique place in industrial history.

    27:47 – Some buildings are better candidates for redevelopment and conversion rather than modern production and distribution—here’s why.

    31:56 – Buildings today are being marketed more strategically now than years ago.

    36:20 – Aerial footage and drones are a huge asset to show real-time progression of construction sites.

    40:32 – Chad and George highlight fellow industry experts.

    • 43 min
    Episode 26: Strictly Business

    Episode 26: Strictly Business

    We’re back with episode 26 and a lively discussion with Josh Grodzin of the Elk Grove Village Strictly Business Podcast. George Cutro, Chad Buch and Brian Carroll, an experienced broker who’s worked in the Elk Grove Village market for the last 35 years, were invited to join Josh on his latest episode. Listen as we recount the dynamics of the O’Hare market, the diversity of businesses in Elk Grove Village and why it’s enticing to future tenants.

    Thanks to Josh and his team for inviting us on his podcast. Listen and subscribe, and check out Strictly Business for more details about Elk Grove Village.

    2:02: Elk Grove Village alone is 40 million square feet of industrial properties which automatically makes it bigger than eight of the other Chicagoland submarkets.
    3:20: It’s a fun and diverse marketplace and the village is going through a renaissance.
    6:00: Understand your lease expiration date and start looking for space at least a year in advance.
    7:00: According to JLL’s lease activity dashboard, 50 percent of all the deals in the O’Hare market are between 20,000 to 50,000 square feet.
    8:40: When we conduct business ambassador visits, our local businesses say their biggest issue is not always taxes: it’s workforce.
    10:50: Progressive Rail offers customer-focused rail service to industrial businesses in the village.
    13:16: Elk Grove Village’s TIF District and our goal is to be beyond business-friendly.
    14:40: Developers have focused on infill redevelopment and the O’Hare market is ideal for these “closer-in” sites for faster delivery.
    18:18: ComEd upgrading substations which is bringing massive power improvements to the village.
    18:51: A lot of foreign investment coming into the market along I-90, MC Machinery Systems and Yamazen.

    • 22 min
    Episode 25: Battle of the Submarkets: Midwest Edition

    Episode 25: Battle of the Submarkets: Midwest Edition

    Welcome to Episode 25 and another submarket battle! In this segment we discuss market trends seen in several cities. You’ll learn about vacancies, absorptions, developments underway and the largest sale in one market’s history.

    1:08 – “All figures pointing in the right direction with vacancy holding steady and demand being driven by midsized deals.” – Chad Buch, Research Manager, Chicago
    1:56 – “Vacancy is consistently coming down, a lot of preleasing, average spec building size is 150,000 to 200,000.” – Tyler Hegwood, Senior Research Analyst, Minneapolis
    3:00 – “Much of the absorption is driven by build-to-suit (BTS), and a large proportion of construction is BTS due to specialized building needs.” – Andrew Thompson, Senior Research Analyst, St. Louis
    4:08 – “Historically low vacancy for modern bulk, over 1 million square feet of spec this year since Cleveland has historically been a BTS market.” – Johnathan Miller, Research Analyst, Cleveland
    5:45 – “Construction keeps on coming out of the ground, over 11 million square feet is underway, and rents are up 5% year-over-year.” – Mike Cagna, Research Manager, Indianapolis
    7:24 – “Lots of institutional investment happening, and the largest portfolio sale in market history.” – Carolyn Bates, Director of Research, Minneapolis

    • 10 min
    Episode 24: NAREIT

    Episode 24: NAREIT

    Welcome to Episode 24! In this latest edition we spoke with Sarah Borchersen-Keto, editorial director at Nareit and Nareit’s REIT Report Podcast, a voice representing real estate investment trusts. This episode covers why 2019 is a transitional year in real estate, activity we’re seeing across markets and industrial trends. It’s a quick 10 minutes packed with a lot of content—listen to the full episode to learn more.

    0:30 – Why 2019 is a transitional year in industrial real estate
    2:14 – All major industrial markets are currently in the peak phase of the real estate cycle
    3:43 – Heightened activity in smaller segments
    6:32 – Trends in speculative activity versus build-to-suit
    8:27 – Why Chicago is considered a bellwether market

    • 11 min
    Episode 23: Truck Terminal Takeover

    Episode 23: Truck Terminal Takeover

    Truck terminals are a crucial part of our daily lives—whether we realize it or not. In the Chicago metro market alone, there are 200 terminals making up roughly 9.3 million square feet. In this episode of JLL Chicago Industrial Real Time, we discuss truck terminal facilities, what they are and how they’re used.

    Time stamps:
    1:28 – Costs associated with trucking terminals
    3:21 – Coverage and land-to-building ratio
    4:58 – The layout of a trucking terminal
    9:32 – Valuation of truck terminals
    14:20 – The challenges of establishing a truck terminal
    16:10 – Sale and lease pricing

    • 22 min

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JLL Chicago RealTime

The podcasts really are interesting and insightful, even if you do not live in Chicago.

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