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FROM THE DESK OF BRUCE BOSSOW
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THINGS ARE ABOUT TO CHANGE
By now most everyone knows Illinois is becoming the 11
th
State to legalize recreational marijuana. It’s been interesting watching the various municipalities deal with the zoning aspect of the new law. McHenry County is expected to initially get 1 or 2 licenses. Our brokers have been showing retail spaces to prospective licensees, all of whom seem to think THEY will be the one selected for the license. Some of them have “tied up” properties for several months while they await the decision from the State by April next year. A lot of discussion and debate has gone into the decision to allow recreational marijuana, but when you distill it all down, the decision is about generating money for the poverty stricken State of Illinois government. Brace yourself for a whole new world…it may not be pretty. This law goes into effect January 1, 2020.
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PREMIER HIRES SEASONED BROKER
Premier announces Sharon Glasshof has joined the firm as a Broker-Associate, according to Bruce Bossow, President. Sharon comes to Premier with 34 years of brokerage experience in all aspects of commercial/industrial brokerage. Sharon lives in Gilberts and will help Premier gain inroads in the Northern Kane County submarket. She is an active member of the Northern Kane County Chamber of Commerce and has recently joined the Northern Illinois Commercial Association of Realtors. We look forward to Sharon being a productive member of our team!
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755 Church Rd., Elgin, IL 60123
28,000 SF Industrial Building
$1,466,000 ($52.36 psf)
Just listed. Masonry 28,000 SF building on 2 acres. 14' ceilings, fully air conditioned. 1 dock, 1 DID, 6 car detached storage building.
Brokers: Bruce Kaplan and Kevin Kaplan
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11015 US Highway 12, Richmond, IL 60071
Dogs n Suds
$600,000
Business and real eastate on RT 12 in Richmond. Seasoned business catching heavy traffic to and from Lake Geneva. Drive-thru, newer signage, many recent upgrades. All equipment included.
Brokers: Kevin Kaplan and Bruce Kaplan
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810 Sunset Dr., Round Lake, IL 60073
6,720 SF Industrial Automotive Building
PRICE REDUCED -
$499,000 ($74.26 psf)
6,720 SF steel building on 1.09 acre with fenced yard. 4 12x12 DIDS, 12-19' ceilings, 1,500 SF office, 400 amps and triple basin drains.
Brokers: Kevin Kaplan and Bruce Kaplan
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304 W. Jackson St., Woodstock, IL 60098
Massage Therapy Business with Real Estate
$275,000
Owner retiring from this sucessful 23 year old local business with 5,000 customer base and 5 star Google ratings. Opportunity for growth. Includes 2,000 SF building with private parking lot.
Brokers: Kevin Kaplan and Bruce Kaplan
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15 Crystal Lake Rd., Lake in the Hills, IL 60156
10,060 SF Turnkey Daycare
PRICE REDUCED -
$19.95 psf NNN
Built in 2014 , this beautiful facility with monument signage has (9) classrooms (2 Infant, 3 Pre-School, 1 Pre-K, 1 Toddlers , 1 Twaddlers and 1 Preppers) indoor play area, reception desk, managers office, kitchen, staff lounge, 2 secured exterior playgrounds and all fixtures are included in lease price! Camera security system also included.
Brokers: Heather Schweitzer
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SOLD
$850,000
2055 Eastwood Dr.
Woodstock, IL 60098
14,000 SF
Investment
Bruce Kaplan and Kevin Kaplan
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SOLD
$2,308,339
Route 23 & Harmony Rd.
Marengo, IL 60152
89.08 Acres
Land
Heather Schweitzer
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SOLD
$675,000
1750 Cumberland Parkway
Algonquin, IL 60102
17,335 SF
Investment
Bruce Bossow and Bruce Kaplan
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SOLD
$1,800,000
800 Cog Cir.
Crystal Lake, IL 60014
56,310 SF
Retail
Heather Schweitzer
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SOLD
$100,000
171 E. Higgins Rd.
Gilberts, IL 60136
.93 Acre
Land
Joe Billitteri
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Commercial Data Bases Essential for Maximum Exposure, Selling or leasing commercial real estate with or without a broker’s help is an exercise in EXPOSURE. The more exposure your property gets, the better your chances of selling or leasing quickly at the highest possible price. There are numerous exposure mediums employed by professional brokers to let the world know your property is available. For sale and for lease signs are responsible for about 30% of all calls to our firm. But increasingly, the commercial real estate online data bases have become the “go-to” places for buyers and tenants to start their search process. This article will attempt to identify some of the key data bases that contain properties for sale or lease.
Before specifying individual data bases, I will tell you that many people start by going to Google and searching with key words like “Industrial space for lease in Crystal Lake” or “Office space in Lake in the Hills.” That search can lead them to one of the data bases or a particular broker who has such a property. I would encourage you to try this simple search.
Loopnet.com-Cityfeet.com-Showcase.com
With over 12.6 million monthly visitors, these data bases are the starting point for many commercial real estate online searches. As brokers, we have to pay approximately $500 per year per property listing to enter a property in Loopnet so that the public can see it for free. At their pricepoint, no broker can afford to put all their listings into these databases.
CREXI.com
Launched in 2016 by veterans of the CRE industry, CREXI has grown rapidly to become one of the most active marketplaces in the CRE industry with more than $600 billion in property value listed and more than $100 billion in property closed. The CREXI platform combines an active sales and leasing marketplace, with marketing, analytics and deal management tools designed to help brokers, buyers and tenants eliminate time consuming processes, find properties and close deals faster. It is free to search but you must register.
Totalcommercial.com
This data base has been providing commercial real estate property listing data since 1995. There is no cost for the public to search properties and no registration required. It currently covers about 38 states with 330 properties listed in Illinois.
Officespace.com
Featuring 461,000 active listings with 415,000 unique visitors per quarter, this nationwide platform features all types of commercial properties, not just office spaces. It’s free to search.
Bizbuysell.com
If you are trying to find a business for sale, with or without real estate, this is the internet’s largest business for sale marketplace with 45,000 active for sale listings. It boasts 10.7 million monthly page visits. Also free to search.
Premiercommercialrealty.com
This is our own company website that has a property search feature that allows searches by address, area, property type, etc. Many people go on this to see what properties we are currently offering.
In many cases brokers have to pay one or more of the above data bases to insert their listings. With the above and many other data base options, it can become very costly to make sure our properties are available to be discovered. It should be noted that some of these data bases are not kept up to date and their accuracy is not up to par.
There are additional services that we as brokers must pay for to be competitive that are only searchable by brokers (not the general public). I would say these two data bases give us access to about 90% of what is on the market:
Costar.com
This is the granddaddy near monopoly national platform that provides brokers with properties both active and sold or leased as well as ownership information and analytics. It claims to track over 5 million commercial properties across the country. To function at a high level and be effective, our firm has found it must subscribe to this service. The cost borders on being prohibitive.
MRED.com
This is the data base commonly referred to as the MLS. Based in Warrenville, IL it is the primary listing service for residential brokers as well as some commercial brokers in the Chicagoland area with over 45,000 Realtor members, mostly in Northeastern Illinois. It is primarily a residential listing service but has a significant commercial component that contains 8,233 active and pending commercial properties as well as sold and leased data. Most commercial brokerages, especially the large non-Realtor organizations do not subscribe to this service (a non-Realtor organization is one who does not belong to a Board of Realtors and does not subscribe to the Realtors Code of Ethics). We feel that is a disservice to sellers and landlords, especially given the numbers of local broker eyes on this database and gives our firm a significant competitive advantage.
Getting a commercial property sold or leased with a maximum amount of exposure is no matter for a rookie or a “by owner.” It’s a serious and often expensive process, way more sophisticated than putting a sign in front of the building and an ad in Craigslist. Searching the data bases online is a good starting point for a lot of people but you will need to call a broker to help you finish the process. Feel free to call to discuss the utilization of any of these critical and beneficial data bases.
Bruce Kaplan is a Senior Broker Associate at Premier Commercial Realty in Lake in the Hills
He can be reached at brucek@premiercommercialrealty.com
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Economic Base theory: How the Economy Churns,
As we continue to experience decent economic growth across the country, it is important to understand the mechanics of a strong Local Economic Area(LEA). We as brokers are on the ground floor of a churning economy as we are a crucial part of the growth and movement of businesses and real estate assets. We work closely with local municipalities to help attract and keep good companies, and thus jobs, in the area. Every municipality is after more tax dollars so they can retain or grow the quality of life for their residents. Many of them do this by wishing to have more retail tax dollars coming in the door. While more tax dollars is typically a good thing, most do not fully understand the market forces that drive that growth. The Economic Base Theory is one that is extremely applicable to this concept and it would benefit any public representative or citizen to understand this concept.
Economic Base
Jobs are broken down into two categories: Non-basic and Basic Employment. Basic employment consists of those activities/jobs that produce more goods and services than the LEA consumes. These are jobs that essentially bring in money from outside the LEA, which stays local and creates the need for other types of jobs. Non-basic employment jobs are a result of basic employment jobs. Those basic jobs bring in outside money to the LEA and that money is used by residents to buy other goods and services in the local economy, thus demanding new non-basic jobs. We won’t call it “trickle down” but rather, “cause-and-effect”, with basic jobs as the cause for other non-basic jobs..
A good local example is Stryker in Cary(formerly Sage Products). Stryker is a medical technology firm based out of Michigan. They have a large facility in Cary that employs hundreds of local residents. By selling their goods and services outside the LEA(Cary), money comes into the LEA and those residents will need other goods and services to spend that money on. They will need places to eat, attorneys and accountants to help them, auto mechanics to fix their cars, teachers to educate their kids, and the list goes on…. These non-basic jobs get created and some of that money will stay in Cary and attract other basic jobs. This important process starts with basic jobs(its more than just a theory).
Another local example is the I-90 interchange in Marengo. Local officials are priming that interchange area to be a local economic hub of industrial and manufacturing activity. Those decision-makers clearly understand the Economic Base Model because they are zoning the areas for industrial and manufacturing knowing that there will be quality basic jobs produced. They are not subscribing to the “zone it retail and sales tax dollars will come” false philosophy that plagues some. They know by setting the table for good basic jobs to enter that area, outside dollars will come in and thus the other sectors of that economy will flourish. These basic jobs will bring in more residents to Marengo and those residents will spend the money they make on local goods and services, which will require new jobs to meet that demand. This is the golden formula for economic growth.
We can use a calculation called the Economic Base Analysis to find out which local sectors or companies are producing Basic Jobs. We then put the local Economic Base Multiplier (EBM) on certain jobs to quantify how many additional jobs it will produce. There is some level of predictability then with how a new or existing local company and the jobs they create will affect the LEA. Brokers and economists do this type of thing for a living.
When municipalities and their elected officials covet retail sales tax revenue like it is the holy grail, a potentially big mistake is made when pursued to exclusion of manufacturing businesses that produce basic jobs. Some municipalities will provide incentives for companies that supply basic jobs to come to town and set up shop. This type of activity has a huge effect on the LEA because it will bring in outside money and ease the burden on such a highly taxed area. Ask yourself, “are my local officials working to attract basic jobs?” If not, they may have the cart before the horse.
Kevin Kaplan is a Broker Associate at Premier Commercial Realty in Lake in the Hills
He can be reached at kevink@premiercommercialrealty.com
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Bruce Bossow, x 12 847-732-3462
Bruce Kaplan, x 20 847-507-1759
Heather Schweitzer, x 15 815-236-9816
Heide Casciaro, x 26 847-774-5660
Joe Billitteri, x 21 847-833-5004
Kevin Kaplan, x 13 309-261-0920
Sharon Glasshof x 14 847-533-6974
9225 S. IL Route 31
Lake in the Hills, IL 60156
847-854 2300
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