Sterling Bay just handed over part of Lincoln Yards project in Chicago—a $6B monster build —to its lender, Bank OZK.

Why?

Financing dried up, and that $126M mortgage?

CEO Andy Gloor called it an “unfortunate pause,” but let’s be real—it’s a fire drill.

The northern side of this 53-acre dream is now OZK’s problem.

They'll shop it to someone with deeper pockets.

Meanwhile, 6,000 planned units and 14M sq. ft. of future space sit in limbo between Lincoln Park and Wicker Park.

Forbes just dropped its latest billionaire census: 3,028 of them, worth a mind-bending $16.1T.

That’s $2T more than last year.

The U.S. leads with 902 billionaires, followed by China and India.

Elon’s still king at $342B, with Zuck and Bezos not far behind—each now over $200B.

Trump’s tariff move was loud—but Powell’s silence might echo louder.

The Fed chair isn’t budging on rate cuts, even as the economy starts to wobble under the weight of new trade barriers.

While the tariffs add fuel to the inflation fire, they’re also chilling growth—a nasty combo for the central bank.

Some, including Trump, are calling for an immediate cut.

Financial markets are already pricing one in.

But Powell’s playing the long game.

He knows rate cuts now risk validating inflation.

And with inflation still above target, the Fed’s hands are tied.

Bottom line: tariffs may slow growth, but they also reignite price pressure. That leaves us in no man’s land—too hot for cuts, too cold for confidence.

Until the Fed sees labor crack or inflation cool, I’m of the opinion rates will be higher for longer.

Every month, I answer a real question from one of our readers—and this one’s been asked again and again.

This time, Avi asked:

Solid question.

It’s not as simple as Googling “best broker in Chicago” and calling it a day.

In this email, I’ll share the step-by-step process I use.

Leasing brokers might hate me for what I’m about to share—but if you’re an operator, you’ll walk away sharper and better equipped.

Let’s dive in.

Before we even get tactical, let’s set the mindset straight.

In the past, I thought a 4-6% commission was a big expense and wondered how to get it lowered.

That was until I crunched the numbers.

A 50,000 SF building that's empty can cost you $300,000 or more per year in carrying costs.

For example, if a broker takes a year to fill it and charges a 4% commission, that could be $100,000 depending on lease term and pricing.

That’s worse than paying 6% ($150K) to another broker who fills the vacancy in 6 months—because now your holding cost were cut in half ($150K).

You don’t pay brokers for “effort.”

You pay them for speed, effectiveness, and the value that they bring.

Here’s how you source brokers when you’re new in town:

Now you’ve got a leaderboard: who’s doing the most deals, who’s active, and who’s relevant to your spaces you need to lease.

You'll need enough comparable sales to reach at least 5 brokers on that list.

Ideally, aim for 15-20 and simply expand your search radius from the subject property.

Now, call every broker on that list.

If you’ve got 5–10, just call each one directly.

If you've got 20+, use a service like SlyBroadcast to leave a voicemail for all of them at once. Then, pay attention to how quickly they call you back.

Here’s the script:

Notice the subtle hook: “…possibly sell …”

That’s incentive—without making a promise.

Brokers lean in when they hear there’s more upside.

Also: if they don’t call back the same day?

I’m out.

Time kills all deals.

"Slow play" may work in some negotiations, but it has no place in the "speed to lead stage".

If a broker doesn’t answer or follow up quickly, imagine how they’ll treat tenant leads.

I’m looking for a specific profile in my leasing broker.

It doesn't mean I'll get 100% what I'm looking for, but here's what matters:

Avoid big teams.

If they say, “You’ll work with someone on my team,” it’s a pass.

I want to work with the broker doing the work, not their junior.

The ideal setup: your project is their biggest listing.

They’re local.

They’re pounding the phones.

They’re walking the site.

And they already have a few tenants in their back pocket before the listing agreement "is inked".

You need meet all of them in person—ideally at the property.

No boilerplate comp plan here—every deal is different.

But here's the framework I use:

Let’s say we’re targeting $300K in NOI post-stabilization, and the broker believes they can achieve it in 6 months. If they beat that target, I might offer a few points of phantom equity.

Why?

The sooner we get stabilized, the sooner we can refinance or sell.

When you crunch the numbers, paying extra makes sense.

This is particularly true if you have a top-notch leasing broker who can lease 15% of the vacant space monthly, given a market absorption rate of let's say 5% per month.

You want a broker who thinks like an owner, not just an agent trying to collect a commission.

Here are a few tips I use in the contract:

Let me be blunt: the industry standard for leasing marketing is this:

It’s reactive.

Passive.

And very slow.

Here’s how we do it instead:

As we stabilize, we typically spend around $5,000 per month per property on marketing.

And, we absorb this cost, even if a broker is leasing the property.

Why?

Because a broker's commission won't justify that kind of expense and effort.

But at the end of the day, it's worth it if you can substantially shrink the vacancy timeline.

Here’s what proactive leasing marketing actually looks like:

It’s aggressive.

It’s expensive.

And it absolutely pays off.

That’s why we do it.

And it works.

Hiring a leasing broker in a new market isn’t just about finding someone with a license and a listing.

It’s about finding someone who acts like an owner and thinks in terms of value—not just fees.

And when you find that person?

Pay them well.

Treat them like gold.

And build the kind of alignment that turns a hired gun into a long-term partner.

That's all for today!

Till next Sunday 9:07 a.m.

Thoughts?

Hit reply — I read everything.

Be Well,