JLL Chicago Industrial Real Time

Matt Goode, Principal of Venture One Real Estate joins the Podcast to discuss the firm's value-add acquisitions platform and ground up development business. The company is active across nearly every submarket in Chicago and recently branched out to the East Coast. Also hear about Matt's personal background and a recap of several successful transactions locally with the JLL Chicago Industrial Team.

1:30: Matt reflects on the benefits of starting his career as a development analyst at a publicly traded REIT.

6:22: Venture One recently opened an office in New Jersey and is looking at acquiring property in that market as well as in New York City and Long Island.

8:11: The 20 distinct submarkets of Chicago don't necessarily compete with each other.

12:25: When looking at acquisitions, we look past components of a building which somebody else may see as a detriment to the property.

14:40: With the former WMS Building in Waukegan which had a lot of amenities, we were able to offer a heavy amount of office space at a significant discount to replacement cost.

20:00: There may be opportunities for industrial developers to partner with retail owners.

23:30: We want to buy functional properties that work for a wide variety of users.

28:32: Core pricing today for industrial is more aggressive than it was coming into the pandemic.

42:36: Despite Covid cancelling the Chicago Marathon, Matt ran his route along the Des Plaines River Trail and raised money for Lurie Children's Hospital.

44:15: Matt credits his grandfather, who owned a real estate brokerage company, and his father Mark Goode as mentors.

Phillip Smailes, Director of Marketing for Progressive Rail Incorporated joins the podcast to talk about the Chicago Junction Railroad and the Chicago, St. Paul & Pacific Railroad. These two short lines service the Centex Industrial Park in Elk Grove Village and the Bensenville Industrial Park. Progressive Rail has a national reach operating 13 short lines in 8 states and locally services a diverse group of industries on their 20 miles of track and yards with the ability to interchange with other Class 1 railroads.

2:35: Progressive Rail is heavily concentrated in the Midwest and got their start in Minnesota by taking over an abandoned rail line.

8:40: Short line railroads provide detailed local switching service which compliments precision scheduled railroading (PSR).

10:36: Mention of some of the various industrial customers served.

12:10: JLL's introduction to PGR while working with 3W Plastics and reactivating rail service in their new Elk Grove Village facility.

17:35: Transloading offers customers the ability to take advantage of the efficiencies of rail.

18:08: One covered hopper railcar can carry the equivalent of approximately four truckloads of product.

22:30: Plans to expand their transloading capacity in Elk Grove Village.

29:05: Striving to maximize customer output by turning cars more frequently to meet their needs for moving inbound raw materials and outbound finished product.

33:45: The Village of Elk Grove has been very supportive and views the rail line as a critical asset to their industrial park.

Rick Steger, head of JLL's industrial project and development services group, marks his first return to the podcast since Episode 3. In this installment, we discuss the state of the industrial construction market during COVID-19—including safety features clients are requesting in buildouts, and opportunities in e-commerce, manufacturing and medical/biotech. We also examine how a few trends have evolved since Rick discussed them back in 2017.

2:50: Before COVID-19 hit, U.S. construction was projected to be flat in 2020.

4:17: Project times have lengthened due to government shutdowns, productivity declines, labor shortages and delayed equipment/material deliveries during COVID-19.

7:26: Construction hit its bottom April 22, when 60% of U.S. projects were put on hold or canceled, but began bouncing back by May 20, with many projects back up and running early to mid-June.

11:48: The construction industry is predicted to be down 10-15% overall in 2020 vs. 2019 – not bad considering how much it's grown over the past few years.

13:18: Opportunity: Growing use of e-commerce, specifically grocery e-commerce, during COVID-19 is driving demand for new distribution centers in urban centers, multi-floor downtown warehouses, dark-store conversions, and more.

16:54: Opportunity: During COVID-19, many manufacturers have been rethinking their supply chain operations, seeking to de-risk by building more facilities stateside and relying less on overseas operations.

18:22: Opportunity: Some of medical and biotech also will move manufacturing back stateside following problems faced overseas during COVID-19.

19:23: Ensuring safety on the job site: From temperature checks and questionnaires to HVAC systems and UV light.

22:20: Preassembled components and automation likely to rise in use in the construction process due to COVID-19.

23:34: Revisiting topics from Ep. 3: Precast supplies, 40' clear and LEED/energy efficiency programs.

The COVID-19 pandemic is changing the way we're working, shopping, living and planning for the future. In this episode, we discuss shifts in e-commerce to accommodate an influx in shoppers and expansion of the supply chain. We also revisit predictions from two years prior when we first spoke with Matt Powers, executive vice president for retail and e-commerce distribution at JLL.

2:05 – Companies are not focusing on a single building in a single market, they're looking to roll out a true network.

4:00 ­– Tertiary markets are as hot as they have ever been.

6:33 – Consumers are more cautious in their shopping experience.

8:33 – Starting to see a shift in the supply chain from global to regional.

9:35 – Many retailers recognize the need to open a large presence closer to major metros and a secondary presence in tertiary markets to fulfill customer needs.

13:24 – How different generations experience online shopping.

14:23 – Opportunities for online ordering and pickup in the wake of the pandemic may create problems for inventory, especially in areas of cold storage.

15:15 – Consumers forced to do "BOPIS" (Buy Online Pickup In Store) during the pandemic will now be more comfortable with this shopping method going forward.

18:40 – The future is bright for grocery and their delivery services.

18:56 – Following up on predictions from two years prior.

19:38 – There's a continuing demand and driver for e-commerce to arrive at the end customer more quickly.

21:15 – Some companies are more sophisticated and ready to approach e-commerce and supply chain conversations, and others want to hear success stories and best practices before they take the next step.

When the pandemic first hit the U.S., it seemed everything came to a standstill. Now, we're seeing how companies are reacting and adapting to in the way they conduct business. Listen to the latest episode featuring Christian Beaudoin, managing director, research and strategy at JLL to discuss how the firm is supporting clients and pushing forward during these uncertain times.

3:09 – JLL is laser focused on helping companies with re-entry and how to safely get back into the workplace.

5:50 – JLL's Workplace Survey assesses available resources and productivity when working remotely.

9:00 – JLL was well prepared to get ahead of the curve with a transition to working from home.

10:45 – Stories on how the research team is tracking transaction activity and collaborating virtually with our tech tools.

13:45 – Supply chain reconfigurations could benefit Chicago's industrial and transportation sector.

15:15 – Closely tracking new available spaces coming to market to assess the impacts on vacancy.

16:00 – Life on the home front: what does your daily routine look like?

When the pandemic first hit the U.S., it seemed everything came to a standstill. Now, we’re seeing how companies are reacting and adapting to in the way they conduct business. Listen to the latest episode featuring Christian Beaudoin, managing director, research and strategy at JLL to discuss how the firm is supporting clients and pushing forward during these uncertain times.

3:09 – JLL is laser focused on helping companies with re-entry and how to safely get back into the workplace.

5:50 – JLL’s Workplace Survey assesses available resources and productivity when working remotely.

9:00 – JLL was well prepared to get ahead of the curve with a transition to working from home.  

10:45 – Stories on how the research team is tracking transaction activity and collaborating virtually with our tech tools.

13:45 – Supply chain reconfigurations could benefit Chicago’s industrial and transportation sector.

15:15 – Closely tracking new available spaces coming to market to assess the impacts on vacancy.

16:00 – Life on the home front: what does your daily routine look like?

With the rise of e-commerce, buyers expect goods to be delivered to them in one day. This in turn drives the amount of industrial construction needed to keep up with demand. A recent research study from JLL analyzed 4.2 billion square feet of industrial product representing 32 percent of the total United States industrial base, and identified trends and growth in 14 cities across the Midwest and Great Lakes regions in regards to dock door construction.

Download the full report here.

2:45 – Key findings from Cincinnati and other Great Lakes markets in the "e-commerce corridor" including Louisville, Cincinnati and Columbus.

4:53 – Dock door ratios have grown to one dock for every 7,000 square feet, approximately.

5:30 – Indianapolis has seen record dock door construction over the last three years.

6:46 – Most developments are in urban areas.

10:39 – St. Louis and Western Michigan saw the greatest increase in dock door construction.

We're back with episode 30 and another segment of our industrial education series. Today, you'll hear from JLL's Managing Director of Supply Chain & Logistics Solutions, Bob Silverman, who supports JLL's Northeast industrial group. We discuss rules of thumb and important considerations for both occupiers and developers when choosing an existing warehouse or designing and constructing a new warehouse facility. You'll also learn about cubic capacity, best-in-class property features, how things flow "inside the box" and how to analyze efficiency.

4:30: Outbound transportation tends to be more expensive than inbound transportation and being close to the customer is critical.

6:39: Some users may benefit from modern, higher clear height facilities by gaining an extra pallet storage position.

11:54: The number of inventory "turns" varies by industry and can help determine an optimal building.

15:39: Tenants are balancing different types of space requirements to determine storage capacity to hold product and the "throughput" requirements to receive and ship volumes.

17:43: In many cases, 36-foot and 40-foot clear are not being utilized, but capital markets considerations and future re-tenanting of the building are spurring the construction of higher cube buildings.

19:33: Site coverage standards are changing dramatically to focus on incorporating more flexible parking layouts.

22:54: Industrial power requirements are increasing as industrial users are requesting greater electric capacities for faster lift truck charging, air conditioning and powering the material handling equipment.

27:32: "Co-bots" is a term used to describe robots and people working side-by-side.

32:29: Autonomous yard spotters may be adopted more quickly than fully autonomous tractor trailers due to their operation on private property.

In a new crossover episode from JLL Chicago Industrial Real Time and Where We Buy, JLL researchers discuss the holiday shopping season and a product's journey from the warehouse, to the store, to the consumer, and sometimes a return.Listen as our experts discuss the triumphs of the 2019 holiday season, and how their predictions from their last collaboration in 2017 panned out. 1:37: The peak seasonal spike for warehouse labor is a big issue for companies as unemployment is low. 3:19:Most products come from overseas and require different modes of transportation to get the goods to their destination. 5:10:Third party logistics (3PL) companies are a great solution for flexible warehousing, overflow and seasonal spikes. 6:47:Packaging and transportation companies are affected by the busy holiday season as they need to account for the influx well before the season begins. 8:17:The rail and trucking industries work together to move goods. 10:08:Holiday sales increased from last year, and online sales continued to grow. 11:16: Warehouses for online stores and traditional stores vary in square footage, height and technology at the facility. 13:10: Returns are a big supply chain cost, and retailers struggle with how to accept them due to the costs associated with getting the item back. 14:47: The future of warehousing looks different for each company. 16:44: Malls are here to stay, but they need to be focused on experience and entertainment. 18:30: KidZania is a role-playing experience for kids where they are assigned a career and participate in activities that teach them various skills. 20:02: There are too many malls, but not too many retailers. 22:15: Grocery stores have changed in the last 10 years in the products and services they offer. 23:43: How e-commerce companies are making the move—if at all—to brick-and-mortar stores.