Coldwell Banker Commercial Devonshire Realty Blog

For years people in the community have been frustrated with the fact that Champaign-Urbana does not have a Whole Foods or Trader Joe’s.  At one point as an April Fool’s joke, someone ‘leaked’ a story that Whole Foods was planning on coming to CU.  There was even a petition going around in the summer of 2012 to have Trader Joe’s come to town.  Every time I hear about one of these rumors, it tends to make me laugh and shake my head. (Do not mistake me, I would love either to come to town, as anyone who knows me, knows, I like to cook and even more so eat)

The reason that Trader Joe’s or Whole Foods will not come to our market is solely based on demographic make-up of our community.  We simply do not have the population nor median household income (which is somewhat skewed due to the University of Illinois student population being counted in the demos).

The influx of 40,000+ college age students where the majority do not work more than part time, decreases the demos of CU dramatically.  For example, if you run the demos for 1 mile radius of the quad, you get a population of 38,637 with a median household income of $23,140 and per capita income of $17,981.  Looking at the big picture, CU (5 Mile radius of the quad, which encompasses all of Champaign, Urbana, and Savoy), you have a population of 143,517 with a median household income of $45,366 and a per capita income of $29,341. In summary, approximately ¼ of the population is made up by the students upping the population but dragging down the median household income as well as the per capita income.

According to Whole Foods website, here are their ‘typical’ requirements: population of 200,000 or more with 20 minute drive time, 25,000 – 50,000 SF store, large number of college-educated residents, abundant parking available for exclusive use, stand-alone building is preferred but would consider inline space, easy access from roadways on a lighted intersection, excellent visibility, and high traffic area (foot and vehicular). 

So after running the numbers, here is how CU stacks up on a 20 minute drive time radius according to ESRI (data from a N. Prospect location): 192,998 total population (∆ of 4,000 from 2010 census); median household income $51,439; per capita income $30,670; 7.6% associate degree; 22.4% bachelor’s degree; 23.0% graduate/professional degree (53% of the population over 25 with an associate degree or higher); traffic counts of 19,700 VPD / negligible foot traffic.  Currently the north prospect corridor has two spaces available in that size range which all have abundant parking, high visibility, and lighted intersection.

So what does all the numbers mean? We are on the cusp of hitting the Whole Foods published requirements, but our median household income, college educated population, and traffic counts are still a little low.  There are several other factors that play into a company’s willingness to enter into a market.  I would argue that CU’s trade area is closer to a 45 minute drive time baring all that the N. Prospect/N. Neil retail corridor has to offer including a 1,000,000 SF enclosed mall.  Trader Joes does not publish their site requirements, but I assume they are relatively similar.

On a positive note, since I started in Commercial real estate, there have been at least four organic grocers (that I know of) look in the CU area.  All have expressed a desire to be in the market, but for some reason or another (too many to list), they have focused on other projects outside of our area.  I have heard rumors that there is a deal on paper for CU to gain a less know organic grocer, but will not believe it till I see it.  In the meantime, let’s not forget about Common Ground at Lincoln Square Mall, or their expansion into downtown Champaign at the corner of Walnut & Washington that is to occur this year! 

Being in a college town, we see a several new restaurants come to town annually.  Most of the new eateries end up on campus, where there is about a 50% success rate over 5 years.  Upon closing, these restaurants either sell the business (if they close, there really is no business, however there is still some value in the assets, equipment, inventory, leasehold improvements, and in some instances below market long term leases) or the landlord is able to find a replacement tenant fairly quickly.  The rest of Champaign-Urbana (CU) has consistently remained strong over the last several years with only a few restaurants failing and subsequently being relet fairly quickly.  

CU has its challenges when it comes to the restaurant game.  The Champaign Urbana Public Health Department (CUPHD) is known throughout the country (yes country) for having some “excessive” requirements when it comes to kitchen buildout.  We also see a seasonal demand shift due the influx of 42,000 students arriving in August and leaving in May.  

With all that being said, 2015 especially the second half, has been a year of eateries closing their doors, while some enter the market for the first time. We have such establishments such as Taffies, Hometown Buffet, Ichiban Buffet, Monical's (Kirby), The Great Impasta as well as many long term staples in the community closing their doors, some after decades of service.  Bar in mind that this is all happening off campus. 

Currently there is about roughly 90,000 SF of vacant or soon to be vacant restaurant space (partial to full kitchen buildouts) in the CU area.  Normal inventory is roughly 1 – 2 spaces which would total no more than 10,000 SF at max at any given time.  You might be asking, what is contributing to such a high vacancy rate. Is it the addition of the new restaurants (Brixx: Wood Fire Pizza, Moe’s Southwest Grill, Wendy’s, Pancheros Mexican Grill, Starbucks, or the recently announced Scotty's Brewhouse on south Neil St. (Carriage Center))? Is it due to the addition and display of health grades imposed by the CUPHD?  Is it the presence of bad or malicious reviews on Yelp?  Or is CU overbuilt (at least for restaurants)? 

Personally, I believe that it is a combination of all of the above.  There is a finite amount of disposable income consumers are willing to spend as a community on an annual basis. Estimates from Environmental Systems Research Institute (ERSI) suggest a total supply of $250,167,239 and total demand of $197,449,311 of Full-Service Restaurants, Limited-Service Eating Places, and Special Food Services (excluding local watering holes (bars)).  In simplified terms, the supply is greater than demand by the residents of CU.  The $53 Million difference may seem vast; however these numbers do not take into account visitors to the community.  The new additions will definitely cut into sales of established eateries, but these folks would not invest umpteenth amounts of dollars in our community if they did not feel the establishment would succeed. In recent years, consumers have become more sensitive to everything from price to quality to individual’s experience.  If online shopping has taught us anything, people are more apt to write a negative review based on a poor experience vs a positive review based on a positive experience. 

So that leads us to our current situation.  There are currently 21 available off-campus restaurant spaces available or could be soon to be available on the market, and I may not know of some.  Although consumer taste’s change over time, CU is a vibrant diverse community where consumers can get about anything their stomach craves.  My only suggestion to anyone wanting to put in a new restaurant is this; how are you going to differentiate yourself from what already exist in the CU Area?  It is a cut-throat sector of commercial real estate with several different aspects that can make or break a business.  Some restaurateurs are trying to follow their dreams while others are trying to make it big, but only time will tell. 

By AJ Thoma on March 26, 2014

  I hope that you enjoyed the first three articles in this series that focuses on the basics of commercial real estate.  I have discussed the different types of commercial leases, why you should hire representation when leasing or buying commercial real estate, and what to look for in a buyer/tenant broker. This month I plan on focusing on the steps in the Commercial Real Estate Process for Buyers and Tenants.  This process can be broken down into nine simple steps: Hiring a Broker; Determining Basic Needs; Surveying the Market; Determining Possible Locations/Showings; Letter of Intent (LOI)/Offer; Negotiations; Lease/Contract; Due Diligence; and Lease Execution/Closing.

The first step in the process for finding the right location for you and your business is to hire a Commercial Real Estate (CRE) Broker.  I have discussed this in depth in my articles titled: Section 2: Why hire representation when leasing or buying Commercial Real, and Section 3: What to look for in a Buyer/Tenant Broker.  You want to keep in mind, however, finding the right CRE Broker can take some time to find the right fit.

Once you have hired a CRE Broker to assist you in finding a location that will suite your needs, the next step is to set up a meeting to with the CRE Broker to discuss you and your business’s specific needs. Since every business is different and has different needs this is a critical step that is often overlooked.  The right CRE Broker will be able to gather enough information from you to have a good idea what you and your business are looking for prior to wasting time and resources driving around looking aimlessly at properties.  This critical step will not only save time but will help with the next few steps.

After meeting and discussing you and your business’s needs with your CRE Broker they will be able to survey the market to see what commercial properties may fit your specific criteria.  The CRE Broker can then produce a list with all the specifics of each property that fits your specific needs which leads into the next step of determining possibilities and setting up showings to view the individual properties.

Since your CRE Broker has already provided you with all the specifics for each of the properties that you determined might be a good fit, the next step is rather painless.  You will want to set up a time with your CRE Broker that works for all critical decision makers that will have a say in the relocation.  These people may include: CEO; CFO; IT Manager; HR Manager; or, members of the board or committee.  Having all available parties look at the space to see if it will suit their needs eliminates possible issues that may arise later in the process or after the process has been completed.  This not only saves you time but can also save your business money in the long run.

The next step in the process is to have your CRE Broker draft a Letter of Intent (LOI) or Memorandum of Purchase (MOP) based on if you are leasing or purchasing the property.  This LOI/MOP will state all the basic terms that should be covered in the lease or contract.  Typically the LOI/MOP is a non-binding document drafted to establish terms and minimize legal fees when it comes to the Lease or Contract Review by the attorney.

The negotiation process can be one of the most time consuming and frustrating processes when it comes to relocating or acquiring property for your business. Oftentimes, negotiations can drag out several weeks and can get to the point where both lessee/buyer and lessor/seller want to walk away from the deal.  Having a good CRE Broker skilled in negotiations and experience can mitigate this risk.  The key to a successful negotiation is when both parties are happy with the deal. This is not always the case and in some cases the two parties cannot come to agreement and you will need to start the process over on another property.

Once both parties have come to an agreement on the basic terms, the LOI/MOP is submitted to an attorney to draft the lease or purchase agreement.  The lease or purchase agreement should cover all the terms that have been already negotiated, but all other legalese will be inserted by the attorney.  This process can take a few weeks to finalize due to language changes by the attorneys.

The next step in the process, Due Diligence, is typically only applicable to purchasing property, however, it does show up in leases from time to time as lease contingencies.  During the Due Diligence process the buyer collects all available background information to insure the property will work for their business.  This may include, but is not limited to, architectural drawings; engineering drawings; contractor bids; bank financing; and, specific surveys that some companies opt to get to ensure the property is the right fit.  The contingency period in leases can cover the same as in a sale, however, most of this information is gathered earlier in the process.

The final step in the process is the most rewarding: Lease Execution/Closing.  At this point everything has been taken care of except for signing on the dotted line. After the final signatures you have either leased or purchased the property.  Although this process can take several months to complete it is a necessary evil that will lead to the long run success of your business.

By: Tim Harrington

As we approach the final sale of lots in Mattis Commercial Park (MCP) it seems appropriate to reflect on its history.  We have enjoyed a proud association with the MCP family ownership group and their representatives for over 28 years.

Located south and west of the corner of Mattis and Bradley in Champaign, MCP is a prominent location for many local, regional, and national businesses.

In 1986, Devonshire began working with the Mattis family to obtain zoning and a pre-annexation agreement from the City of Champaign in order to begin the marketing of a 79 acre tract in northwest Champaign which was to be subdivided and known as MCP, a new light industrial commercial subdivision.  Following the negotiation of land use and annexation in 1986, initial subdivision improvements were completed with the first lot sale occurring in 1989. The Mattis family is a dominant name in the history of the Champaign-Urbana community.  Mattis Ave was named for the family and their landholdings include a significant part of the northwest Champaign area, including Schnucks, County Market, Westlake and Timberline Valley subdivisions.  In south-central Champaign Mattis land is now home to Colony Square, Mattis Park, and office developments.  In addition, the family was a founder of the Trevett-Mattis Bank which is the predecessor to the present day Busey Bank.  In fact, the location of the original bank is now part of the M2 mixed-use development in downtown Champaign where the original facade was incorporated into the project.  One prominent family member was William L. Springer who was married to Elsie Mattis.  Springer was a U.S. Congressman for Champaign from 1951 through 1973.

While working closely with the Mattis family we had the opportunity to work with the family representative Ross Mattis Camp (Elsie’s cousin) and his office, Camp Farm Management, which managed the family’s agricultural holdings and development land.  Ross Camp was a creative thinker and a colorful character whose foresight and investment strategy enhanced the family's return on their land values.  Ross passed away in December 2002 leaving us with fond memories of the man who started this development and began our long term relationship with the project. Working with Ross Camp at Camp Farm Management introduced us to two of his trusted associates, Bob Lienhart and Dean Robinson.  Thus began, 28 years ago, a relationship that defines the epitome of trust and loyalty. Bob Lienhart was the original force for Camp Farm Management to begin the process of the development and sale of lots in the park.  Unfortunately Bob passed away far too young in November 2000.  His legacy is certainly not forgotten as Country Fair Drive in the park was named Honorary Robert L. Lienhart Drive in 2001. Dean Robinson has carried the torch for the family and diligently pursued the completion of the final infrastructure of the development and now the last lot sales.

This is a follow up to the article I wrote on 1/24/14 titled Section 2: Why hire representation when leasing or buying Commercial Real Estate (CRE).  In the previous article, I discussed the benefits of hiring a buyer/tenant broker to assist in finding the right space for you and your business.  In this article, I will discuss six traits to look for in a Buyer/Tenant Broker.

The six traits that I will be discussing in further details are: Experience in the market, Level of expertise in that particular sector of the market, Allocation of time from the broker, Proximity of the firm to your market, Resources are available to the Broker, and Designations and Accreditations.

The most important trait that you want to look for in a Buyer/Tenant Broker is there experience in the specific market you are in.  Nowadays, the internet has enabled CRE Brokers to work anywhere from anywhere, which is both positive and negative.  The negative aspect of this is, they may have the tendency to represent the knowledge in a market they are unfamiliar with.  The positive spin on this is, in the event you are a regional company, you or your business can have one go to broker who can oversee several regions upon the teaming with of local firms.  Local knowledge will lead to a better chance of success finding the right property for the terms and conditions that suit you and your business needs.  I will discuss the importance of local knowledge below.

As I have stated in previous articles, there are several sectors of CRE including Retail, Office, Industrial, and Land.  In larger markets, where there are a plethora of CRE Brokers, Brokers tend to specialize in specific sectors of CRE.  In smaller markets, CRE Brokers tend to be generalist of specialize in multiple sectors.  You want to find a broker that works specifically in the sector you are in.  Typically, brokers who specialize in your specific sector will have better market knowledge and will be able to identify more qualifying locations for you or your company.  If a Buyer/Tenant Broker specializes in office space, they may not be fully versed in the retail market and vice versa.

The next trait that I am going to discuss is one that most people typically do not consider when selecting the right Buyer/Tenant Broker to suit their needs; how much time and energy the Broker can allocate to finding you the right property that suits your specific needs.  Some brokers specialize in Owner/Landlord representation or Buyer/Tenant Representation, however in our market (Downstate Illinois), CRE brokers can specialize in both.  Based on you or your company’s specific needs, I highly recommend considering how much time the Buyer/Tenant Broker can spend working specifically on your needs.

Interstate commerce as well as regional commerce is more prevalent in today’s society than ever before.  The majority of the large corporate companies (privately owned and publically traded) hire Buyer/Tenant Brokers/Firms to ensure that their needs are solely represented.  These exclusive Buyer/Tenant CRE Brokers/Firms either work solely on their own accord or team with local Brokers/Firms to help facilitate the deal.  You want to work with a broker/firm that is more than willing to team with local brokers/firms to get the job done. This will insure you will get local knowledge and incite that will help produce the best terms and conditions for you and your company.

Resources available to your broker are another trait that most people do not typically think of when selecting the right Buyer/Tenant Broker.  Resources may include, but not limited to: Knowledge of market data, access to comparable information, and the size of firm.  Knowledge of all available market data is key factor in selecting a CRE Broker’s success in finding then negotiating the right deal for you.  A good CRE will know of all properties on the market in the particular area and the details of each specific building/space.  Going hand in hand with knowledge of market data is accessibility to comparable information in the marketplace.  There are several companies in the marketplace that will try to “data mine” the information and sell it to respective firms, however this data is not necessarily accurate on several key details that can positively or negatively affect the bottom line.  CRE Brokers and firms that have implicated methods and relationships to track and record comparable sales data tend to have a better grasp on the marketplace.  Another factor to consider when selecting the right CRE Broker/firm for your needs is the size of the firm.  The size of the firm is not limited to the size of the company or franchise itself but also the Broker/firms reach within the given territory you are looking. A well connected larger firm tends to have more data, resources, and protocol in place to research, track, and plot market trends.

One of the last things to look for in a CRE Broker is at their accreditations and designations.  Unlike residential real estate brokerage where there are too many designations to count, CRE designations are sparse but meaningful.  According to REALTOR.COM there are 23 recognized designations, however only the CCIM and SIOR designations are specific to commercial real estate.  Certified Commercial Investment Member (CCIM) and Society of Office and Industrial Realtors (SIOR) members go through immense coursework and real-life scenarios as well as requirements that are not easily met by the average CRE broker.  Both require an immense amount of expertise and experience in the particular subject matter and insure knowledge and respect in the business.  CCIM and SIOR are just two of the designations specific for CRE Brokers, however I plan to cover the gamete of accreditations in a later post.

At Coldwell Banker Commercial Devonshire Realty (CBCDR), we pride ourselves on many things, and believe that our continued success is due in large part because of our amazing team.  This week, we’re shining the spotlight on Jay Sikorski:

Where are you from, and where did you go to college? I'm originally from Lombard, IL, which lies about 25 miles west of Chicago.  I attended Montini High School, and Benedictine University in Lisle, IL.

Why did you get into real estate?  Real estate gives me the opportunity to be involved with projects that affect peoples lives.

How many years have you been in the business?  28 years.

What is your most memorable commercial real estate deal?  Working with Goodwill - they're a great organization.

Do you have a nickname, and is there a story behind it?  Jay - no story behind it.

Is there a particular charity or organization that you support, or are involved with?  I currently serve on the Big Brothers Big Sisters Board of Directors, and have since 2009.  I've also been a Big Brother for nearly 6 years to an 8th grader in Rantoul.

Describe yourself in 3 words:  Dynamic.  Friendly.  Dependable.

Tell us something about yourself that most people don’t know:  I’m a Eucharistic Minister at St. Matthew, and have been for several years.  I also love to cook.

View Jay Sikorski's bio here.

By AJ Thoma on January 24, 2014

At Coldwell Banker Commercial Devonshire Realty (CBCDR), we pride ourselves on many things, and believe that our continued success is due in large part because of our amazing team.  This week, we’re shining the spotlight on Tim Harrington:

Where are you from, and where did you go to college? I was born and raised in Champaign, and attended college at the University of Arizona.

Why did you get into real estate?  My Father was an attorney, but developed real estate, and I loved watching him.

How many years have you been in the business?  I've been in the business since June of 1981 - 32 years.

What is your most memorable commercial real estate deal?  Assemblage of 22 downtown Urbana parcels for the Schnuck's center on Vine Street.

Do you have a nickname, and is there a story behind it?  As a business partner and younger brother to TH, I was known as "Pup" or "Timmy Pup".

Is there a particular charity or organization that you support, or are involved with?  National Kidney Foundation of Illinois in memory of my good friend Tony Noel.

Describe yourself in 3 words:  What you see...

Tell us something about yourself that most people don’t know:  I loved to hook rugs as a kid!

View Tim Harrington's bio here.

At Coldwell Banker Commercial Devonshire Realty (CBCDR), we pride ourselves on many things, and believe that our continued success is due in large part because of our amazing team.  This week, we’re shining the spotlight on Matt Wavering:

Where are you from, and where did you go to college? I was born and raised in Champaign, and have degrees from both Parkland College and the University of Illinois.

Why did you get into real estate?  I knew that I wanted to be in business for myself, but didn't have the capital to do so straight out of college.  A guest speaker during an entrepreneurship class suggested that I consider a job in the commercial real estate industry so that I could work with a myriad of small businesses.  I took the advice and started an internship with CBCDR while still in college.

How many years have you been in the business?  Seven years.

What is your most memorable commercial real estate deal?  In 2011, we completed the sale of the former Alexander Lumber property at the corner of Prospect & Bloomington Road in Champaign.  The property needed to be redeveloped and there was a great deal of interest.  We negotiated several offers and even had one deal fall through.  After much effort and persistence, the sale closed and the corner has now been redeveloped into an asset rather than an eyesore.

Do you have a nickname, and is there a story behind it?  Some friends from my college days may remember me as MJ.  Prior to real estate, I was a DJ at college bars, fraternity/sorority parties, etc for roughly eight years.  My "stage name" at that time was MJ Wave.

Is there a particular charity or organization that you support, or are involved with?  I am heavily involved with the Champaign County Economic Development Corporation.  I am a member of the board of directors, as well as the chairman of the Job Growth Committee.  I also annually volunteer and raise money for the Illinois Marathon and the Muscular Dystrophy Association.

Describe yourself in 3 words:  Ambitious.  Passionate.  Humorous.

Tell us something about yourself that most people don’t know:  I have a passion for fresh water aquariums.  It started as a hobby when I was a child, then turned into more as my budget and experience grew.  The passion rubbed off on my younger brother who built me a custom aquarium as a wedding present.

View Matt Wavering's bio here.

At Coldwell Banker Commercial Devonshire Realty (CBCDR), we pride ourselves on many things, and believe that our continued success is due in large part because of our amazing team.  This week, we’re shining the spotlight on Rich Park:

Where are you from, and where did you go to college? I was born in Chicago at Ravenswood Hospital, which actually does not exist anymore.  My family then moved to the north Chicago suburb of Mt. Prospect, and finally we moved again and I grew up mostly in Skokie, IL.  I cam to Champaign-Urbana as a freshman at the U of I, and graduated in 2002.

Why did you get into real estate?  My father was a real estate agent in the Chicago area in the 80's, so maybe it's in my blood.  After working desk jobs in finance and business for a decade, I decided on a career working closely with people and being more active.  Real estate fit the bill, and I am truly loving it.

How many years have you been in the business?  I began working/received my real estate license in November of 2012, and started at CBCDR in August of this year.

What is your most memorable commercial real estate deal?  Being a new agent, all of my commercial real estate dealings are memorable.  However, I would say that the first deal I assisted on is the most memorable.  It was a 5-year lease commitment at the great Whiteline building in Champaign to a board gaming franchisee.

Do you have a nickname, and is there a story behind it?  I have a few nicknames that should not be printed.  One other name I do have is my Korean name, which is Joon.

Is there a particular charity or organization that you support, or are involved with?  Salt & Light in Champaign, and Crisis Nursery in Urbana are great organizations that I support.

Describe yourself in 3 words:  Energetic.  Personable.  Analytical.

Tell us something about yourself that most people don’t know:  I used to be semi-athletic, but then tore ligaments in my knee that required two surgeries, and left a huge scar.  Baseball is definitely the sport that I am most passionate about.

View Rich Park's bio here.

At Coldwell Banker Commercial Devonshire Realty (CBCDR), we pride ourselves on many things, and believe that our continued success is due in large part because of our amazing team.  This week, we're shining the spotlight on AJ Thoma:

Where are you from, and where did you go to college? I was born in Champaign at Burnham Hospital, went to school in Clinton while spending weekends in Champaign. I received my Associates degree from Parkland in 2007 in Business Administration, and graduated from the University of Illinois in Economics in 2009.

Why did you get into real estate?  I have “unofficially” been in real estate for over 15 years.  I did my first site selection for my father at age 12.  After working one summer in the corporate world, I decided that it wasn't for me.  I had previously attended two Society of Industrial & Office Realtors (SIOR) conventions in 2004 & 2005, and my father made the suggestion that I give real estate a try - I ran with it, and got licensed in 2007 at 21.

How many years have you been in the business?  I Started with CBCDR in 2008 as an intern. Once I graduated from the U of I in May of 2009, I became a full-time agent.

What is your most memorable commercial real estate deal?  The most memorable commercial real estate deal would have to be one that I  did in Canton, IL earlier this year. The closing lasted 6 hours and there were deals drawn up on napkins at the closing table - a big reason that it pays to have a good attorney.

Do you have a nickname, and is there a story behind it?  The only nickname that I have anymore is AJ - I think it stemmed from running out of names to identify the other two Arthur John Thoma's at the time.

Is there a particular charity or organization that you support, or are involved with?  Champaign West Rotary - It's a great way to be involved in the community and give back to several charities on an annual basis.

Describe yourself in 3 words:  Handsome ;), Outgoing, Blunt (LOL)

Tell us something about yourself that most people don't know:  I'm an avid outdoorsman, and love being outside doing anything, no matter what season it is.

View AJ Thoma's bio here.

By Josh Markiewicz on July 17, 2013

111 E Green (SW corner of Second & Green):  This former bank is currently occupied by University of Illinois administrative offices.  Although a very well built building, a property of this size on a corner could be multiple stories of mixed-use.  The University can locate their administrative offices anywhere near campus…but on prime Green Street real estate?

201 E. Green (NE corner of Second & Green):  The sister property to 111. Green, this property most recently served as an ATM, drive-thru teller, and parking lot for National City bank.  Our firm sold it back in 2006 for redevelopment but it has sat mostly unchanged since then.  Parking spaces in Campustown rent for big bucks…but so do apartments with parking spaces.  I would expect to see this one redeveloped sooner than later.

401 E. John (NE corner of Fourth & John):  AT&T’s campus “fortress” no-doubt has a very important use – fiber hub, data center, money printing press, etc. – but its windowless brick walls seem out-of-place.  A large fraternity or sorority would likely jump at the opportunity to build a huge mansion here.

 203 S. Fifth/405 E. Clark (SW corner of Fifth & Clark):  Nestled in the north Campustown area among blocks of rental houses and three to four storied apartment buildings sits Marquette Grade School.  This property is a bit of a mystery.  Although the history of the site goes back to the very first Champaign High School, and it lived a full life as an elementary school (my grandfather attended in the 1930’s), the current building appears to be some sort of administrative office and perhaps playground for small children.  The property is a full acre of land just two blocks west of the new Electrical and Computer Engineering Building and the Beckman Institute.  It’s a student housing developer’s dream and potential gold mine for a school district in need of cash to build a new high school.

None of the above properties are currently listed for sale, and save for Marquette Grade School, all are privately owned.  Whether or not some or all of the properties mentioned here and in Part 1 will be redeveloped over the course of the current building boom is yet to be determined.  What is clear however is that the University plans to continue increasing enrollment over the next several years.  That fact combined with relatively weak employment growth statewide points towards a steady influx of eager students in need of a place to crash between study sessions and bar crawls.

As a follow up to Josh Markiewicz’s recent post “Is Champaign-Urbana the Next Dubai?” I will speculate on the future of multifamily and retail development in Campustown, as well as point out specific opportunities.

By Josh Markiewicz on June 3, 2013

By Matt Wavering on May 15, 2013

In the past several years, micro apartments have been popping up in a few dense metropolitan areas such as Boston, Seattle, and San Francisco.  Although not for everyone, the tiny urban econo-living spaces are especially attractive to students, young professionals, and singles on a limited budget.  The concept is simple; live in the smallest (and cheapest) place possible in order to live near amenities in a densely populated location.

By Josh Markiewicz on May 7th, 2013

Last night during an evening session, the Senate overwhelmingly passed the Marketplace Fairness Act of 2013 by a vote of 69 - 27.  If you're asking yourself what the Marketplace Fairness Act is, read my previous guest editorial on Halfway Interesting here to get up to speed.

The House still needs to pass the Act, and have yet to schedule a date for the hearing or vote.  Assuming it will eventually pass the House, President Obama has already signaled that he would sign it into law.

If signed into law, each individual state will have the opportunity to decide whether they would like internet retailers to collect sales tax for their state - don't hold your breath - Illinois will collect the tax.

This may seem like a new tax on the consumer, but you are already obligated to pay a usage tax based on tax-free internet sales - whether you do it or not is another story (you might not know that you have to).

Keep checking back with the CBCDR blog to stay current on the Marketplace Fairness Act, and everything commercial real estate that will affect central Illinois.

Josh Markiewicz is a commercial real estate broker at Coldwell Banker Commercial Devonshire Realty (CBCDR) in Champaign, IL.  You can connect with him through his blog, LinkedIn, Twitter, or Facebook.