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Welcome to the website of Bruce Granger and Associates of Grubb & Ellis. Our focus is to provide professional real estate services to our clients. We serve both the Chicago area and Midwest region. The objective of our team members is to provide quality information so that informed real estate decisions can be made. We look forward to working with you!

A Message for January.

As we look forward to 2012 it would appear the slow steady recovery we saw in 2011 will continue in 2012 at about the same pace for all property types. With the weak dollar expected to boost exports and stronger consumer spending spurring imports, landlords are expected to see increased activity and demand for space. Manufacturers, wholesalers and retailers will continue to optimize their supply chains, and as a result, state-of-art distrubtuion facilities in key logistics markets will win out among all industrial property subtypes. The risk to the recovery include rising protectionism in the form of currency devaluations, tariffs and other trade barriers, but the industrial market is well-positioned for recovery given the existing climate.

What are the trends we will see in 2012?

+ Banks will continue writing off their losses on distressed assets in 2012 meaning that the capital accumulating on the sidelines will start being deployed.
+ Highly leveraged buildings, many without the capital necessary to attract tenants, will transfer to new ownership, removing what was a major impediment to recovery in the investment market.
+ Bank will continue to hold the key to the speed of the recovery as the availability of reasonable capital from the banks will determine if businesses can borrow the funds necessary to survive, expand and grow.
+ It is likely we will continue to see more property going back to lenders. The combination of falling commercial real estate values and owners’ diminished equity in their commercial properties will prompt struggling borrowers of marginally performing assets to hand over the keys and walk away.
+ Tenants will find it easier to negotiate short term leases and lower rates with landlords who don’t want to loose them and will do short term deals until the market turns around.
+Those companies who need real estate for their specific operations will continue to pay strong market prices. Conversely, those assets which are not in demand will suffer price adjustments downward.

Northwest Suburbs:

The industrial market in the northwest suburbs has been reflective of the national trend of significantly reduced activity. A number of tenants are renewing their leases in an effort to get a lower lease rate in exchange for more term on the lease, a concept called ‘blend and extend’. Building sale activity has been greatly reduced with only a limited number of transactions, most at a discount of 10-20% in value. Some properties that have attractive features that a specific client may need (i.e. good location, cranes, power, extra land), have helped to keep the values for those 'user' specific properties high compared to the other properties. The current vacancy rate is 11.1% down slightly from the previous year of 11.4% which means in a market with 37 million sq. ft. there is a little over 4.2 million square feet available for lease or sale. This is the highest vacancy rate seen in at least the last 25 years.

We remain optimistic for 2012 as many companies and businesses have pared down to profitable levels and are looking forward to increased activity and demand. We look forward to 2011 being a year which builds toward greater productivity and profitability for all.

If you would like information about any of our listings or real estate services please contact us.

Bruce Granger
Grubb & Ellis
847-655-8441 of
708-987-0811 cell