In brief: General Growth | 155 N. Wacker | Metra
Falling rents show need for General Growth shakeup: analyst
Simon Property Group Inc.'s fourth-quarter rent spreads — the difference between what tenants pay for new leases compared to expiring leases — are positive, while General Growth Properties Inc.'s spreads were negative 8% to 10% in the fourth quarter, analyst David Fick of Stifel Nicolaus & Co. notes in a report released Monday. General Growth blames the performance on a rise in short-term leases, but after adjusting for that factor, the real estate investment trust's rent spreads are essentially flat, says Mr. Fick, who has called for the ouster of General Growth's existing management and supports Indianapolis-based Simon's bid the Chicago-based real estate investment trust. "Something structural is amiss at (General Growth) at the operations level if they cannot maintain pace with (Simon) in this environment," he writes.
Temp office firm debuts in U.S. here
An Australian temporary-office firm opened its first U.S. location last Monday at 155 N. Wacker Drive and plans to open a smaller site in May at 300 N. LaSalle St. Sydney, Australia-based Servcorp leased 15,000 square feet on the 42nd floor at 155 N. Wacker, says Jennifer Goodwyn, vice-president and U.S. general manager. At 300 N. LaSalle, the firm has leased 6,000 square feet on the 49th floor and plans to open May 15, she says. The leases are for 10 years, she says. Servcorp's offices include dedicated space for travelers who need space for a brief time on short notice. Servcorp, which has 85 locations worldwide, soon plans to open in other U.S. cities, Ms. Goodwyn says. Brad Serot and Jon Springer of CB Richard Ellis Inc. represented Servcorp in the leases. Wendy Katz of J. F. McKinney & Associates represented 300 N. LaSalle, while John Buck Co. handles leasing at 155 N. Wacker, which it owns.
Keystone keeps insurer in Bannockburn complex
Protective Life Insurance Co. expanded its space by about a third, to 47,000 square feet, in a lease renewal at 2345 Waukegan Road at the Bannockburn Lake Office Plaza complex. The deal for more than seven years was signed in January, says Brian Lauck, Chicago regional director for Keystone Property Group Inc., which owns three of the five buildings in the north suburban complex. Adam Showalter of CB Richard Ellis Inc. represented Keystone, while Clark Dean with the Atlanta office of Studley Inc. advised Protective, a subsidiary of Birmingham, Ala.-based Protective Life Corp. Keystone, a Bala Cynwyd, Pa.-based real estate investment firm, paid $50 million in July 2007 for the three buildings, which total 316,800 square feet, according to real estate research firm CoStar Group Inc.
Firm wins Metra work
Metra has hired Chicago Realty Co. to lease space at the commuter rail agency's West Loop headquarters, 547 W. Jackson Blvd. The building has 15,563 square feet available, with 1,933 square feet of first-floor retail and the rest second-floor office space, according to David Ariola, president of Chicago Realty. Because Metra is a government agency, non-profit tenants in the 311,946-square-foot building would not pay property taxes, according to Mr. Ariola. The assignment for Chicago Realty also includes reviewing Metra's lease of about 10,000 square feet at Citigroup Center, 500 W. Madison, which expires in 2012. The assignment does not include Citigroup Center operations space related to the Ogilvie Transportation Center train station. Metra's board approved the three-year assignment in January.
