What area is your expertise?

• I specialize in retail and retail land in Chicago.

What trends do you see presently in retail development in your area?
• I am now seeing companies that previously were just buyers or holders of retail centers getting into retail center development.

What type of retail product is doing well in your area?
• Big-box centers that have credit tenants and big-box outlet centers are both doing well.

What retailers are new to your area?
• JC Penney concept stores are new to our area.

Who are the active retail developers in your area?
• Forest City, Tucker Development Corp., Joseph Freed and Associates and Mid America Development Partners.

Please name one or two significant retail developments in your area. What impact will these projects have on the market?
• Metropolitan Square in Des Plaines, Ill., is owned and developed by Tucker Development Corp. with The Fresh Market, Cheeseburger in Paradise, Talbots and Famous Footwear. The Promenade Bolingbrook in Bolingbrook, Ill., is being built by Forest City and includes Macy’s, Bass Pro Shops Outdoor World, Aéropostale and Barnes & Noble.

Where is the majority of development taking place? Why is this area doing well?
• Southwest of Chicago is seeing the majority of development.

What area do you expect to be the next big retail development market? Why?
• I believe the next retail push will be in the inner city areas, not far from the Chicago condominium market. The growth in population from condo and townhome purchases is too lucrative to pass up.

Please describe the retail leasing activity in your area.
• Overall, they are steady at about a 7 percent vacancy, rents are rising, but only at a 2 percent rate.

Would you like to make any additional observations about the retail market in your area?
• The investment market continues to favor sellers. The economics of supply and demand, or in the case of retail product, the lack of supply, has caused cap rates to hold in the sub 7 percent range for triple net properties and 7.2 to 7.5 percent range for multi-tenant.

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