Winter 2022/2023 Retail Space Guide

Across industries, Hoffman Estates, con�nues to a�ract a diverse mix of developers and businesses who want to invest in the Village. That’s largely thanks to a strong workforce pipeline, proximity to transporta�on hubs, a diverse popula�on with strong income demographics, and more, all adding up to a high quality of life in a pro-business community.

Contact the Village’s Economic Development team at 847-781-2662 to learn about exci�ng projects and reinven�ons happening around town and how your business can be part of a public-private partnership with the Village of Hoffman Estates.

2023: WHERE DOES RETAIL GO THIS YEAR? As we sit in early December, it’s only natural for retail real estate investors, brokers and developers to begin to make our predictions for next year.

E-COMMERCE DEMAND IS AT AN ALL-TIME HIGH. THE PROBLEM? VACANCY RATE IS AT AN ALLTIME LOW, ACCORDING TO CBRE E-commerce continues to fuel the market as consumers continue to shop online.

BRICK-AND-MORTAR VERSUS E-COMMERCE? “BALANCED COEXISTENCE” IS THE KEY TO SUCCESS, ACCORDING TO NEWMARK

It was once believed that e-commerce would be the end to brick-and-mortar, but today’s narrative is a little different. The in-person experience is proving necessary to closing an online sale.

A MIRACLE ON MICHIGAN AVENUE: BLACK FRIDAY/CYBER MONDAY SALES SHATTER RECORDS ACROSS THE U.S. Another Black Friday in the books. This year saw the highest numbers in a while.

The Metro-Chicago Retail Space Guide is published twice a year by the Real Estate Publishing Corporation, 1010 Lake St Suite 210, Oak Park, IL 60301 • 312.933.8559 • www.rejournals.com

Publisher: Mark Menzies • menzies@rejournals.com

Senior Account Executives

Ernest Abood, Vice President/MW Conf Series Director • eabood@rejournals.com Marianne Grierson, Vice President of Sales • mgrierson@rejournals.com Frank Biondo, Vice President of Sales, fbiondo@rejournals.com

WINTER 22 METRO CHICAGO RETAIL SPACE GUIDE

Copyright © 2023 by Real Estate Publishing Corporation. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by an information storage and retrieval system.

2023: Where Does Retail Go This Year?

By Charley Margosian, Highland Management

As we sit in early December, it’s only natural for retail real estate investors, brokers and developers to begin to make our predictions for next year. Over the past two years, we have seen remarkable resilience in the market for bricks and mortar retail, with the industry arguably coming out of the COVID 19 pandemic stronger than before. However, it seems clear to many in the industry that with continued pressures from the Federal Reserve raising rates in following their mandate of controlling inflation, that the overall US Economy is primed for a significant slowing in growth, if not a full-blown recession in 2023. I’m not an economist, but I thought for this article I might make some comments on a few trends for 2023 that are likely to influence our industry.

Don’t Bet against the US Consumer Long Term, But We Might Be in For a Bumpy Ride in the Near Term

The National Retail Federation reported that 196.7 million Americans went shopping over Thanksgiving weekend 2022, surpassing 2019 numbers for the first time. While this signals that Americans have moved past the pandemic, it’s also a good sign for our industry and Bricks and Mortar real estate. More than 2/3rd of the US Economy is driven by consumer spending according to the U.S. Bureau of Economic Analysis, so a lot of shoppers bodes well for the overall economy. However, rising interest rates and high inflation have, and will continue, to negatively pressure the American consumer’s spending power. According to the Federal Reserve of New York, US Household debt reached $16.51 Trillion in Q3 2022, which was largely

related to a 15% year over year increase in credit card balances. This steep ramp in credit related spending may result in slowing spend in 2023, as higher rates undoubtedly will put negative pressure on the consumers’ disposable income. Further, the Federal Reserve of New York reported that in Q3 2021, the share of current debt transitioning into delinquency increased for nearly all types of US Debt. With rising debt costs and a weaker consumer balance sheet, it’s only natural to assume that the consumer will also slow down their spending and this will temper demand for retail space in the US over the near term.

The “Wealth Effect” Will Begin to Impact The Consumer

After two great years for US and World Equity Markets, record housing price growth and the

emergence of alternative asset classes like cryptocurrency, the US Consumer entered 2022 feeling very wealthy. As we are all aware, the US Equity Markets have since entered a bear market, down around 20% for the year as of 11/30/2022. Further, beginning in September 2022, housing prices have fallen for three straight months in the United States. According to CNBC, the average home mortgage borrower has lost $30,000 in equity since May of 2022. All of this results in consumers feeling far less wealthy than they were even six months ago, and as we move into 2023, this will start to trickle down to retail and experiential consumer spending.

Cap Rates Will Adjust

The US 10-year Treasury, which is broadly considered the “risk free” rate by investors, began the year yielding 1.51%. Accordingly, the highest quality retail assets in Chicagoland were trading below 6% cap rates in the Second Half of 2021, according to CBRE’s US Cap Rate Survey. As of 12/5/2022, the 10 Year Treasury Yield is over 200 basis points higher than it was on 1/1/2022, sitting at 3.58% (down a little from November highs of 4.16%). Higher Treasury

rates have the dual impact on demand for real estate investment in that they offer a true yield to investors who choose to hold cash instead of equities or another alternative asset, and they drive up the cost of borrowing against investment real estate. It’s still early to predict where cap rates will settle, but it’s reasonable to

infer that with debt costs increasing at least 200 basis points from one year ago, that investors will demand a higher risk premium to hold even the highest quality real estate assets. As time goes on, we will see where the long-term risk-free rate (treasuries) settle, and what sort of risk premium the real estate investment market demands, but it is reasonable to expect cap rates rise meaningfully from the lows experienced in the second half of 2021 moving forward.

Conclusions

Looking back on the past year, it has been far more turbulent than expected. In 2023, it seems we can expect continued turbulence in the real estate markets until the economy sees some cooling inflation numbers. I tend to personally believe there will be a mild recession in 2023 while inflation adjusts downward and I hope that by 2024 we will be returning to good news for the economy and retail real estate across the board.

“By 2024 we will be returning to good news for the economy and retail real estate across the board.”

E-commerce demand is at an all-time high. The problem? Vacancy rate is at an all-time low, according to CBRE

in construction supply and an increase in construction costs, as well, that occupiers have to pay — and wait — for.”

Coupled with the delay in construction supply and an increase in construction costs, as well as the labor shortage every sector is facing, the outlook is pretty overwhelming. And difficult to determine. The good news?

It was once believed that online shopping would give way to the fall of brick-and-mortar retail, but current research is proving just the opposite. In fact, CBRE suggested that brick-and-mortar retail is giving a boost to e-commerce.

“Brick-and-mortar retail is more of a catalyst for e-commerce, if anything,” Goldwasser said. “At the end of the day, people are still going home to place the order online.”

E-commerce continues to fuel the market as consumers continue to shop online. With businesses still reliant on both online and in-person shopping to attract and retain customers as they settle into a post-pandemic groove, one big issue remains…

A lack of available product in Chicago, according to CBRE Executive Vice President Larry Goldwasser.

As companies focus in on getting as close to the end consumer as possible, there’s an increased demand from e-commerce and last-mile tenants that wish to capitalize on population density. It’s increasingly difficult, though, to find product — especially that of Class A.

There’s been about 700,000 square feet of new construction absorbed in the last five to six years, per year. But to put it into perspective? There’s only about 300,000 square feet scheduled to be delivered by January of 2023, Goldwasser said. And it will be about 12 months after that — possibly even longer — before any new construction is delivered.

“We’re going from 700,000 square feet of space getting absorbed every year to not even being

able to provide 300,000 square feet of space for the next couple of years,” Goldwasser said. “Because of the struggle to find new product, e-commerce occupiers are starting to retrofit older product to fit their needs.”

Location is the focus. Even though opportunity exists outside the metro (though, likely not much) users would rather settle for well-located, but less efficient product than move further from the end consumer. This is driving the lease rates of those buildings, some of which CBRE said have doubled within the last 12 months. New construction rates have also increased by 50–100% year-over-year.

But besides the lack of ideal space, there are a few other, smaller challenges companies are having to adjust for in our post-pandemic world.

There are several municipalities that are opposed to having last-mile tenants move into buildings in the neighborhood due to concerns regarding an increase in traffic and pollution.

“Projects are under a lot more scrutiny,” Goldwasser said, “which can add nine to twelve months to the process before a company is able to move in. We’re also still experiencing a delay

Completing an e-commerce sale, in some cases, is getting a customer into the physical store. Some brands have a small retail footprint to allow for people to come in and test out their products, while others have a warehouse facility nearby so the customer can pick up the product immediately after purchase.

Call it a marketing tactic, but the sale is being made. More and more retail-type users are, in fact, interested in buildings to mimic that structure of a small retail store, along with an infill site for fulfillment.

More good news is that e-commerce clients believe e-commerce is positioned to remain strong, despite economic challenges, even if faced with another catastrophe like COVID-19. Construction activity continued to increase in at 38.2 million square feet in Q2 2022, consisting of 108 tracked projects underway. Among these developments 72% are being built on a speculative basis, while 28% are being constructed as build-to-suit projects.

“There’s a hardiness to e-commerce, and there will continue to be a demand for it,” Goldwasser concluded. “Businesses right now are just trying to keep up with customer demand.”

Brick-and-mortar versus e-commerce?

“Balanced coexistence” is the key to success, according to Newmark

It was once believed that e-commerce would be the end to brick-and-mortar, but today’s narrative is a little different. The in-person experience is proving necessary to closing an online sale.

The key to success in today’s climate, and the future of retail, is both. Newmark Senior Managing Director, Chicago Retail Jim Schutter called it “balanced coexistence”.

It’s true that COVID-19 boosted online sales, but the tide has started to change—people are again yearning for the in-person experience, though businesses must strike an equilibrium between brick-and-mortar and e-commerce to

survive, and the most successful have done just that.

We’re seeing it more and more. A company may not have the size or color a customer is looking for in store, but a wider selection is offered online. Businesses like Warby Parker and Away have store fronts, or showrooms, for customers to come in and “try before they buy”. Customers can find the product that works for them but must then place the order online.

“Retailers need to have both [a brick-and-mortar and online presence] to effectively compete,” Schutter said. “For a company to only offer storefront might put them at a disadvantage

relative to competitors who are able to offer both avenues. Traditional retailers should have an online presence, and vice versa.”

This strategy has unintended benefits, too. Customers might need to go to a storefront to return or exchange a product purchased online. While there, there’s a chance that they’ll purchase another product they happened to see on display, a transaction that wouldn’t have occurred if the company was not maximizing their strategy.

Malls were struggling long before the onset of COVID-19. Post-pandemic, stores traditionally found in regional shopping malls were having to shift in case something like that were to happen

again. During 2020, Schutter said most of his time was spent working with existing clients, trying to figure out how to structure a deal to keep the retailers open. What kind of rent reductions could we put in place that would give them a break right now and maybe a longer lease term at the end of the day? How do we restructure? What would make sense for both the owner and the tenant at that time?

Businesses were concerned with including a precautionary COVID clause into new leases, but this has changed. Many are looking at COVID-19 as a stand-alone event, and things seem to be looking up for the future of the shopping mall—even in Chicagoland—which is something that couldn’t be confidently said in, say, January of 2022.

Oakbrook Mall, for example, has an outdoor concept that works well regardless of climate. Crowded and vibrant, it offers a mix of affordable and high-end stores that, too, maximize sales with a complementary online presence. The secret sauce to a thriving mall is made with two ingredients: (1) a central, bustling location and (2) innovative, adaptable tenants.

Secondary malls with weak anchors, on the other hand, may go by the wayside soon. Department store anchors, in some cases, are being converted to senior housing, medical facilities or other ancillary uses. A few well-located regional malls in Chicagoland have already been demolished to make space for non-retail development, and this will continue to be a trend.

A similar trend is known as “medtail”, which refers to medical facilities located in retail shopping centers—Aspen Dental, Heartland Dental, Athletico. Many of these businesses have been occupying remaining retail shopping malls, which wouldn’t have been the case 10 years ago.

All of this begs the question. It’s no secret that Downtown Chicago has faced more of a challenge getting on its feet in the last few years, compared to suburban retail, but how do the two markets compare today in terms of strength of the market?

Suburbia still going strong. There’s been a decent amount of activity in 2022, but not as much new construction as seen in previous years.

“The cost of new construction is very high right now,” Schutter said, “so it’s hard to build new retail cost effectively. Due to vacancies generated after the pandemic and because of the normal life cycle of retail, retailers are signing leases in existing retail.”

As for Downtown Chicago, Michigan Avenue and State Street leasing is still pretty slow, due to workers still not having fully returned to the office and the slow return of convention business, but Schutter remains optimistic.

“I have always enjoyed retail because of its ever-changing dynamic,” he said. “Just when you think you’ve seen the latest retail concept, somebody comes out with something new that’s interesting and entertaining.”

“Retailers need to have both [a brickand-mortar and online presence] to effectively compete. For a company to only offer storefront might put them at a disadvantage.”

A Miracle on Michigan Avenue: Black Friday/Cyber Monday sales shatter records across the U.S.

Another Black Friday in the books. Gone are the days, it seems, of waking up at 5 a.m. to get a jump on the day’s deals, but that doesn’t equal less activity. In fact, this year saw the highest numbers in a while.

The National Retail Federation estimated that 166 million people shopped from Thanksgiving through Monday, the highest estimate since 2017, but reports concerning consumers’ weekend spending vary.

The Sun Times reported that shoppers carried on as they usually would, without regard to inflation or a looming recession, many even increasing spending. Residents in Chicagoland have estimated they’ll spend around $719, compared to $580 in 2021.

And the holiday hype checks out—no pun intended.

Since the beginning of COVID-19 the season has been abnormal to say the least, and this year, things are finally starting to feel somewhat… normal, and shoppers have taken advantage by starting early.

The Sun Times and Accenture found that of 1,500 Americans, 45% admitted to starting to shop in August.

But the forward-thinking mentality isn’t limited to consumers. Proactive retailers also seized the opportunity to kick start their in-store deals weeks—even months—in advance, especially those in areas that have struggled to regain foot traffic post-pandemic, and the strategy has proven successful thus far.

Shoppers swarmed Chicagoland from Michigan Avenue to Old Orchard in Skokie to Woodfield Mall in Schaumburg, and many people reported it was the largest in-person turnout they’d seen in a while. More than 122.7 million people across the U.S. visited brick-and-mortar stores over the weekend, up 17% from 2021, according to the National Retail Federation.

Welcome news for businesses of all sizes. Mainstream chains like J. Crew, Neiman Marcus, and J.C. Penney were not spared from pandemic suffering, after all.

“It is important to note that while some may claim that retail sales gains are the result of higher prices, they must acknowledge the historic growth in consumers who are shopping in-store and online during the holiday weekend and into Cyber Monday,” said NRF President and CEO Matthew Shay. “It is consumer demand that is driving growth.”

The group predicted the rise of holiday sales by 5% YOY and retailers will pocket 6% to 8% more than in 2021. Nationwide spending in November and December will near $960 billion, according to the Sun Times.

“While some may claim that retail sales gains are the result of higher prices ... it is consumer demand that is driving growth.”

MARKET OVERVIEW

Cap rates in the single tenant net lease sector increased slightly for all three sectors in the third quarter of 2022. For the first time in the past two years, cap rates increased for two straight consecutive quarters. Single tenant cap rates increased to 5.86% (+6 bps) for retail, 6.80% (+3 bps) for office and 6.61% (+1 bps) for industrial in the third quarter of 2022. As the Federal Reserve continues to increase rates in attempt to curb inflation, debt costs have increasingly put upward pressure on cap rates for buyers of net lease properties.

As economic pressure mounts, formerly opportunistic sellers removed properties from the market that were attempting to take advantage of the historically low cap rate environment. In the third quarter of 2022, the supply of net lease properties decreased by more than 12% when compared to the prior quarter. Furthermore, buyers and sellers have yet to agree on pricing levels given the current environment and a period of price discovery continues. The spread between asking cap rates and confirmed sale cap rates increased slightly in the third quarter, but not in a meaningful amount. Accordingly, sale transactions in the third quarter of 2022 were more than 30% lower than in the third quarter of 2021. The expectation from market participants is that the bid ask spread will widen as price discovery plays out in the fourth quarter and into 2023.

The rising rate and inflationary environment impacted acquisition criteria for net lease buyers. Investor demand for properties with rent growth or the ability to increase rents in the near term are in the greatest demand. Accordingly, demand for properties with limited or no rental escalations are limited to properties with above market yields or strong underlying real estate. Investors expected cap rates to widen for non-core net lease deals with short term leases, lesser tenants or secondary markets. This has yet to occur on a wider scale, causing a wait and see approach for many investors. As the quarter came to a close, institutional investors and publicly traded net lease REITs raised the cap rate floors for future acquisitions as their cost of capital increased.

The capital markets will continue to impact the overall net lease market. Investors will be carefully monitoring the Federal Reserve’s monetary policy and its impact on their borrowing costs. Year end transaction volume will be impacted by the capital markets and the decrease in activity driven by 1031 exchange investors.

SELECTED SINGLE TENANT SALES COMPARABLES

Sale Date Sector Tenant

City

Jul-22 Retail Pick 'n Save Milwaukee WI $20,000,000 $196 6.37% 7

Jul-22 Retail At Home Peabody MN $15,000,000 $156 6.40% 9

Jul-22 Industrial Worthington Steel Bowling Green KY $12,874,000 $154 5.00% 18

Jul-22 Office USF Holland Holland MI $10,300,000 $122 5.95% 7

Jul-22 Retail 7-Eleven San Antonio TX $10,115,500 $2,135 4.15% 14

Jul-22 Office Collins Aerospace Cedar Rapids IA $10,000,000 $100 8.81% 2

Aug-22 Industrial FedEx Emporia VA $9,610,000 $190 5.80% 3 Sep-22 Retail Trader Joe's Gilbert AZ $8,785,000 $617 4.53% 7

Jul-22 Retail Firestone Foxfield CO $8,409,000 $591 4.75% 5

Sep-22 Retail CVS El Paso TX $7,569,231 $567 5.15% 16 Aug-22 Industrial Protect-All Inc Darien WI $7,000,000 $66 6.30% 13 Aug-22 Office US Dept. of Agriculture Alturas CA $6,800,000 $267 9.00% 6 Sep-22 Office Cimarex Energy Carlsbad CA $6,767,500 $424 6.06% 13 Sep-22 Retail Walgreens Lowell MI $5,625,000 $412 5.33% 12

Aug-22 Retail 7-Eleven Fort Salonga NY $5,486,000 $1,933 4.37% 15 Aug-22 Retail Walgreens Edmond OK $5,410,000 $396 4.70% 15 Aug-22 Retail Raising Cane's Irving TX $5,200,000 $1,908 5.19% 3

Tenant 2017-2022 2011-2016 2005-2010 Pre 2005

7-Eleven 4.30% 5.00% 5.42% 5.60% Advance Auto Parts 5.70% 6.05% 7.00% 7.55% AutoZone 4.75% 5.00% 5.65% 6.50%

Bank of America 4.90% 5.20% 5.95% 6.20%

Chase Bank 4.30% 4.40% 5.00% 5.60%

CVS Pharmacy 4.85% 5.00% 6.50% 7.00%

DaVita Dialysis Center 5.25% 5.90% 6.50% 7.00% Dollar General 5.40% 5.80% 6.40% 7.00% Family Dollar 6.25% 6.60% 7.00% 7.65% FedEx 5.15% 5.50% 6.35% 6.90% Fresenius 5.25% 6.00% 6.45% 7.10% McDonald's (GL) 3.75% 4.00% 4.20% 4.50% O'Reilly Auto Parts 5.00% 5.65% 5.90% 6.30% Rite Aid NA 7.15% 7.80% 8.25% Starbucks 5.00% 5.40% 6.00% 6.20% Walgreens 5.00% 5.14% 6.60% 7.00%

© 2022. The Boulder Group. Information herein has been obtained from databases owned and maintained by The Boulder Group as well as third party sources. We have not verified the information and we make no guarantee, warranty or representation about it. This information is provided for general illustrative purposes and not for any specific recommendation or purpose nor under any circumstances shall any of the above information be deemed legal advice or counsel. Reliance on this information is at the risk of the reader and The Boulder Group expressly disclaims any liability arising from the use of such information. This information is designed exclusively for use by The Boulder Group clients and cannot be reproduced, retransmitted or distributed without the express written consent of The Boulder Group.

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Craig/Steven Development Corporation (847) 504.8061

Year Built/Year Renovated: 1993

Type of Center: Neighborhood No. of Stores: 16

Total Space: 83,727

Total Available Space: 0

Available Minimum: 0

Maximum Contiguous: 0

Anchor Tenants: Jewel/Osco, Subway, UPS Store, Rosati’s Pizza

Rental Rate: $20.00

Total Passthroughs: $7.19

Craig/Steven Development Corporation (847) 504.8061

Year Built/Year Renovated: 2002

Type of Center: Neighborhood No. of Stores: 8

Total Space: 81,700

Total Available Space: 1,600

Available Minimum: 1,600

Maximum Contiguous: 1,600

Anchor Tenants: Guitar Center, Fitness 19, Fun City

Rental Rate: $20.00

Total Passthroughs: $5.82

Year Built/Year Renovated: 2003/2016

Type of Center: Neighborhood No. of Stores: 15

Total Space: 37,968

Total Available Space: 0

Available Minimum: 0

Maximum Contiguous: 0

Anchor Tenants: Armanetti’s Liquors, Your Best Friends Closet

Rental Rate: N/A

Total Passthroughs: N/A

Year Built/Year Renovated:

Type of Center:

No. of Stores:

Total Space: 37,000

Total Available Space: 8,600

Available Minimum: 1,100

Maximum Contiguous: 7,500

Anchor Tenants: Any Time Fitness

Rental Rate:

Total Passthroughs: $4.50

Highland

Assoc., Inc. (630) 691.1122

777.6160

David Strusiner

Michael Kolodny

David Strusiner

Charles S. Margosian

Management

Town

Year Built/Year Renovated: 1996

Type of Center: Neighborhood No. of Stores: 9

Total Space: 32,246

Total Available Space: 0

Available Minimum: 0

Maximum Contiguous: 0

David Strusiner

Craig/Steven Development Corporation (847) 504.8061

Anchor Tenants: AccuQuest Hearing Center, CVS Pharmacy, Pink Hair Studio

Rental Rate: $19.00

Total Passthroughs: $6.88

Bloomingdale Town Centre Phase III

David Strusiner

Year Built/Year Renovated: 2005

Type of Center: Neighborhood No. of Stores:

Total Space: 15,000

Total Available Space: 15,000

Available Minimum: 1,200

Maximum Contiguous: 15,000

Anchor Tenants: Future Development

Rental Rate: Total Passthroughs:

David Strusiner

Craig/Steven Development Corporation (847) 504.8061 The Courtyard at Stratford

Craig/Steven Development Corporation (847) 504.8061

Year Built/Year Renovated: 1983

Type of Center: Neighborhood No. of Stores: 17

Total Space: 20,890

Total Available Space: 1565

Available Minimum: 1565

Maximum Contiguous: 1565

Anchor Tenants: For Eyes, Men’s Warehouse, FedEx Rental Rate:

Total Passthroughs: $6.28

David Strusiner

Craig/Steven Development Corporation (847) 504.8061

Year Built/Year Renovated: 1989

Type of Center: Neighborhood No. of Stores: 13

Total Space: 28,042

Total Available Space: 0

Available Minimum: 0

Maximum Contiguous: 0

Anchor Tenants: Starbucks, Benedicts La Strata, The Running Depot

Rental Rate: $15.00

Total Passthroughs: $7.69

Bloomingdale

Crystal Lake

Elmhurst Plaza

Highland Management Assoc., Inc. (630) 691.1122

Year Built/Year Renovated: 2008

Type of Center: Community No. of Stores: 15

Total Space: 124,000

Total Available Space: 34,012

Available Minimum: 3,000

Maximum Contiguous: 5,200

Anchor Tenants: Petco, Savers, Dollar Tree, LaRosita Market

Rental Rate: $18.00 - $20.00

Total Passthroughs: $5.00

Highland Management Assoc., Inc. (630) 691.1122

Year Built/Year Renovated: 2021

Type of Center: Neighborhood No. of Stores: 16

Total Space: 73,000

Total Available Space: 1,522

Available Minimum: 1,522

Maximum Contiguous: 1,522

Anchor Tenants: Jewel/Osco, ATI Physical Therapy, Dunkin Donuts, The UPS Store

Rental Rate: $37.00

Total Passthroughs: $6.65

Year Built/Year Renovated: 2004

Type of Center: Neighborhood No. of Stores: 8

Total Space: 33,000

Total Available Space: 6,500

Available Minimum: 6,500

Maximum Contiguous: 6,500

Rental Rate: $20.00

Total Passthroughs: $6.40

Highland

Assoc., Inc. (630) 691.1122

Anchor Tenants: Fresh Start Cafe, Ace Hardware, Yoga by Degrees

Craig/Steven Development Corporation

(847) 504.8061

Year Built/Year Renovated: 1985

Type of Center: Neighborhood No. of Stores: 14

Total Space: 29,564

Total Available Space: 0

Available Minimum: 0

Maximum Contiguous: 0

Anchor Tenants: Walgreens, For-Eyes Optical, Super Cuts, Rockstar Nail & Spa

Rental Rate: $19.00

Total Passthroughs: $11.46

Charles S. Margosian

Charles S. Margosian

Management

David Strusiner

Charles S. Margosian

Elmhurst

Craig/Steven Development Corporation (847) 504.8061

Year Built/Year Renovated: 1989

Type of Center: Neighborhood No. of Stores: 15

Total Space: 21,462

Total Available Space: 4,343

Available Minimum: 830

Maximum Contiguous: 3,513

Anchor Tenants: Vitalant, Q Nails, Harbor Coin, Jimmy Johns

Rental Rate: $18.00

Total Passthroughs: $9.84

Craig/Steven Development Corporation (847) 504.8061

Year Built/Year Renovated: 1984

Type of Center: Neighborhood No. of Stores: 20

Total Space: 45,188

Total Available Space: 6,922

Available Minimum: 1,297

Maximum Contiguous: 3,340

Anchor Tenants: Walker Bros. Restaurant, Dairy Queen, The Bar Method, New Balance

Rental Rate: $18.00

Total Passthroughs: $10.51

691.1122

Year Built/Year Renovated: 2000

Type of Center: Neighborhood No. of Stores: 20

Total Space: 38,980

Total Available Space: 2,250

Available Minimum: 2,250

Maximum Contiguous: 4,590

Anchor Tenants: Jewel/Osco, Starbucks, Orangetheory Fitness, Lou Malnati’s, ATI Physical Therapy

Rental Rate: $32.00

Total Passthroughs: $12.70

(847) 504.8061

Year Built/Year Renovated: 1989

Type of Center: Neighborhood No. of Stores: 12

Total Space: 32,849

Total Available Space: 8,744

Available Minimum: 1,206

Maximum Contiguous: 6,331

Anchor Tenants: Walgreens, Lou Malnati Pizzeria, Avalon Spa

Rental Rate: $20.00

Total Passthroughs: $8.56

David Strusiner

Gurnee

David Strusiner

Highland Park

Charles S. Margosian Highland Management Assoc., Inc. (630)

Hoffman Estates

Lake Zurich

David Strusiner

Craig/Steven Development Corporation

Boone Creek Plaza

Charles S. Margosian

Highland Management Assoc., Inc. (630) 691.1122

Year Built/Year Renovated: 1983/2003

Type of Center: Neighborhood No. of Stores:

Total Space: 75,000

Total Available Space: 0

Available Minimum: 0

Maximum Contiguous: 0

Anchor Tenants: Jewel/Osco, iHop

Rental Rate: N/A

Total Passthroughs: N/A

Naper Ridge Plaza

Naperville River West Plaza

Year Built/Year Renovated: 2004

Type of Center: Neighborhood No. of Stores: 2

Total Space: 30,000

Total Available Space: 0

Available Minimum: 0

Maximum Contiguous: 0

Anchor Tenants: Office Depot, Fifth Third Bank

Rental Rate: N/A

Total Passthroughs: N/A

S. Margosian

Highland Management Assoc., Inc. (630) 691.1122

Highland Management Assoc., Inc. (630) 691.1122

Year Built/Year Renovated: 2004

Type of Center: Neighborhood No. of Stores: 10

Total Space: 18,500

Total Available Space: 0

Available Minimum: 0

Maximum Contiguous: 0

Anchor Tenants: Great Clips, Spice Mart

Rental Rate: N/A

Total Passthroughs: N/A

Charles S. Margosian

Highland Management Assoc., Inc. (630) 691.1122

Year Built/Year Renovated: 2007

Type of Center: Neighborhood No. of Stores: 14

Total Space: 24,883

Total Available Space: 0

Available Minimum: 0

Maximum Contiguous: 0

Anchor Tenants: Jewel/Osco

Rental Rate: N/A

Total Passthroughs: N/A

Charles

Charles S. Margosian

Park

Plaza

Year Built/Year Renovated: 1988

Type of Center: Neighborhood No. of Stores: 30

Total Space: 61,121

Total Available Space: 11,500

Available Minimum: 1,400

Maximum Contiguous: 3,000

Anchor Tenants:Clothes Mentor, Culver’s,Avolve Fitness

Rental Rate: $16.00

Total Passthroughs: $8.11

Ottawa Centre

Year Built/Year Renovated:

Type of Center: Community No. of Stores:

Total Space: 63,446

Total Available Space: 18,851

Available Minimum: 2,500

Maximum Contiguous: 12,000

Anchor Tenants: .AT&T Verizon, Rosati’s Pizza, Game Stop

Rental Rate: Total Passthroughs:

Craig/Steven Development Corporation

(847) 504.8061

Craig/Steven Development Corporation (847) 504.8061

Highland Management Assoc., Inc. (630) 691.1122

Year Built/Year Renovated: 2010

Type of Center: Neighborhood No. of Stores: 29

Total Space: 137,000

Total Available Space: 20,690

Available Minimum: 1,495

Maximum Contiguous: 15,115

Anchor Tenants: Ace Hardware, Planet Fitness, Dollar Tree, Sherwin Williams

Rental Rate: $11.00 - $20.00

Total Passthroughs: $9.25

Craig/Steven Development Corporation

(847) 504.8061

Year Built/Year Renovated: 2004

Type of Center: Neighborhood

No. of Stores: 7

Total Space: 19,200

Total Available Space: 6,000

Available Minimum: 1,200

Maximum Contiguous: 3,600

Anchor Tenants: Dunkin Donuts, Forest Dentistry

Rental Rate: $21.00

Total Passthroughs: $8.93

Orland Park

David Strusiner

David Strusiner

Charles S. Margosian

Palatine

David Strusiner

Round Lake Beach

Year Built/Year Renovated: 2000

Type of Center: Community No. of Stores: 17

Total Space: 39,393

Total Available Space: 6,163

Available Minimum: 6,163

Maximum Contiguous: 6,163

Anchor Tenants: Jewel/Osco, Ace Hardware

Rental Rate: $25.00

Total Passthroughs: $9.15

Year Built/Year Renovated: 2004

Type of Center: Neighborhood No. of Stores: 13

Total Space: 29,748

Total Available Space: 3,730

Available Minimum: 1,169

Maximum Contiguous: 0

Rental Rate: $12.00-19.00

Total Passthroughs: $5.36

Year Built/Year Renovated: 1985

Type of Center: Neighborhood No. of Stores:

Total Space: 19,553

Total Available Space: 0

Available Minimum: 0

Maximum Contiguous: 0

Anchor Tenants: Dollar General, Supercuts, Stella’s

Rental Rate: $16.00

Total Passthroughs: $4.10

Year Built/Year Renovated: 1970/1987

Type of Center: Neighborhood No. of Stores:

Total Space: 100,000

Total Available Space: 13,685

Available Minimum: 1,500

Maximum Contiguous: 10,000

Anchor Tenants: Jimenez Foods, Mark Drug Medical Supply

Rental Rate:

Total Passthroughs:

Highland

Assoc., Inc. (630) 691.1122

Craig/Steven Development Corporation (847) 504.8061

Anchor Tenants: Lou Malnati’s, CK Salon, Yuri of Japan, Home of the Sparrow

Craig/Steven Development Corporation (847) 504.8061

(773) 777.6160

David Strusiner

David Strusiner

Charles S. Margosian

Management

Michael Kolodny

Hallmark & Johnson Property Mgmnt., Ltd.