Chicago

Specifically, the retail sector experienced the greatest cap rate compression by four basis points to 6.23%. Moreover, this was the first quarter of downward cap rate movement for the retail sector following five consecutive quarters of upward movement.

The firm will occupy 55,988 square feet at 224 South Michigan Ave. SOM has been a tenant in the building for nearly 28 years and will continue to occupy floors 5, 9 and 10 of the 17-story, 378,600-square-foot mixed-use office tower.

"Given the current evolution, shopping malls are going to look different over the next 20 years – likely with smaller anchor stores, more entertainment concepts and restaurants, more experiences for shoppers, and daily service providers such as gyms, grocers, medical offices and even day care providers."

The deal is the largest lease transaction on State Street since 2014, according to building owner The Georgetown Company of New York City.

The Des Plaines, IL-based commercial real estate firm secured the financing from PCCP, LLC of New York City. The loan will repay the existing construction loan and provide additional time for lease-up and stabilization of the five-story 181-unit luxury apartment property.

The lease deal signed with building owner Bridge Development Partners marks Frozen Assets' second Chicago area cold storage facility.