ChicagoDowntown / Loop

500 Lake Shore Drive aggressively courting rental services

by Joe Zekas on 8/5/13

Rental service agents have been receiving daily email solicitations from the recently-opened 500 Lake Shore Drive apartments during what the building is billing as “broker appreciation week.”

The emails are offering a $250 American Express gift card to rental agents who close a deal at 500 LSD through August 11. That’s in addition to a commission of one month’s net effective rent.

If Related Midwest and the leasing agents are playing by the rules set out in the Illinois Real Estate License Act – and one has to assume that they are – that AmEx gift card has to be paid to the agent’s sponsoring broker rather than directly to the agent, or both parties would be violating the Act’s provisions. The rental service / broker may or may not pass the gift card through to the leasing agent.

Other new buildings have begun paying or are considering paying compensation to rental services / brokers beyond the typical one month’s commission, and a month’s “free rent” appears to be a standard offer to renters at the new buildings.

The spiffs and concessions are a sign of a highly competitive market, with the buildings angling to sign the maximum number of new leases before the traditional slowing of the Chicago market in the late fall.

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Related posts:

  1. Rental services sneer at 500 LSD ban on Craigslist ads
  2. What Chicago’s rental services won’t tell you
  3. 850 Lake Shore Drive slates occupancy for late this year
  4. How to get paid for using a rental service
  5. Was The Peshtigo a better building than 500 Lake Shore Drive?

{ 2 comments… read them below or add one }

nwzimmer August 5, 2013 at 1:08 PM

There’s a better way they could fill those apartments, if they’re really serious about doing so… reduce the asking rent on the apartments. $2300 for a convertible/studio?? seriously?

Do that instead of playing games with these ‘rental agents’ and such.

Reply

Pedro August 8, 2013 at 9:33 AM

$2300 for a studio? That’s stupid.

Reply

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