Take It to the Bank: WaMu Leads Leasing Action

"Over the last several years, the demand has been from fast-food retailers," says David Baum of Baum Realty Group during a recent Chicago Real Estate Council panel discussion. "That will be the same this year, with one vast difference."

That will be banks, says Baum, whose prediction is backed up by Seattle-based Washington Mutual's decision to open 28 outlets in the market this month, with the largest residential mortgage lender in the state planning 42 more openings by year's end. However, none of the first to open are Downtown, and just two locations--2790 N. Clybourn Ave. and 3348 N. Western Ave.—are within the city limits. Also opening June 23 are Washington Mutual locations in Alsip, Arlington Heights, Aurora, Buffalo Grove, Burbank, Des Plaines, East Dundee, Elmhurst, Evanston, Glen Ellyn, Hanover Park, Hickory Hills, Lake Zurich, McHenry, Morton Grove, two in Mount Prospect, Niles, Northbrook, Oak Forest, Oswego, Palatine, Schaumburg, Tinley Park, Waukegan and Western Springs.

Meanwhile, First American Bank is setting up shop at 1235-41 S. Wabash Ave., in the shadows of South Loop multifamily redevelopment that includes the massive Central Station. The bank, which paid $1.18 million for the 12,820-sf site earlier this year, plans to build a 2,780-sf outlet just south of a condominium building, where it will use 1,520 sf of first-floor space as a lobby.

However, the proliferation of bank outlets gives some retail experts pause. "I don't simply understand where the banking business is going," says Mid-America Real Estate Corp. president Michael George.

"They clearly are the flavor of the month," admits Baum, who nonetheless foresees as much as half of retail lease deals to be generated by banks, at least where they are allowed.

Some communities, such as north suburban Lake Forest, have started saying "no" to proposals including banks as the industry began flocking to the wealthy town. "As they proliferate, communities will put the brakes on them," Baum says. "But cash is king, and they're a great tenant."