Welcome To Our Website!

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 September.

The best part about 2010 is that 2009 is gone! The year 2010 will look similar in nature to last year but most indicators point to a slower recovery with more activity taking place the later part of 2010 into 2011.

What are the trends we will see in 2010?

+ Banks will likely begin writing off their losses on distressed assets in 2010 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 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.

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. The current vacancy rate is 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.

Several 2009 transactions included:

Weber Stevens 250,000 sq. ft. in Elgin
Ball Corporation 100,000 sq. ft in Bartlett
Mori Seiki 104,000 sq. ft. in Hoffman Estates
Stelfast 42,000 sq. ft in Elgin
Chicago Logistics 37,000 sq. ft. in Elgin

We remain optimistic for 2010 as many companies and businesses have pared down to profitable levels and are looking forward to increased activity and demand. We look forward to 2010 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