CHICAGO-Funds from operations were off 16% in the first quarter while occupancy continues to slide, but Equity Office Properties Trust officials are optimistic, largely because of the benefits expected from its EOPlus initiative.

BLUE ISLAND, IL-The plastics recycler takes more than one-third of Vision Properties Blue Island building at 3301 Wireton Rd. In the city, National Focus leases 13,680 sf of warehouse space at 7401 S. Pulaski Rd.

CHICAGO-The city expects to save $12 million with free rent through September 2005, when a new 10-year deal for space at Equity Office Properties Trust's 30 N. LaSalle St. kicks in. With a $15 per sf net base rate, the deal is worth more than $43 million.

CHICAGO-CEO John Bucksbaum reveals that the retail REIT expects to close this week on a "dominant mall in its marketplace" in a deal worth $75 million to $100 million.

CHICAGO-Bell, Boyd & Lloyd, LLC stabilizes Three First National Plaza with a 176,607-sf extension and expansion while Quarles & Brady LLP signs on for another 11 years in a 55,420-sf deal at 500 W. Madison St.

BOSTON-Had the hotel sector been stronger last year, Boston Properties Inc. might have shed its 1,054-room portfolio that includes Long Wharf Marriott, Cambridge Center Marriott and a Residence Inn by Marriott, company officials say.

ELK GROVE VILLAGE, IL-Switzerland-based freight forwarder Kuehne & Nagel reduces its cost per square foot in a move from 82,270 sf at 90 Division St. in Bensenville to 146,000 sf at 400 N. Busse Rd.

OAK BROOK, IL-Des Moines-based Principal Life Insurance Co. has acquired the two-building, 294,000-sf office complex on 15 acres just east of Oakbrook Center for $188 per sf. McDonald's Corp. leases all 79,820 sf of one of the buildings.