Chicago’s commercial real estate market poised for across-the-board growth
Posted On October 17, 2013
BBG’s new Chicago office is expected to become a dominant player in the Midwest and a top producer within the company, mostly because of the team we’ve assembled to run it but also because our critical evaluation of the market revealed a positive outlook for all sectors as well as some exciting challenges. That’s right — recessionary gloom is dissipating and Chicago’s commercial real estate market is poised for across-the-board growth.
- As Crain’s Chicago Business reports, unused warehouse space is at its lowest since 2007; retail vacancy saw a five-year low in the first quarter before an upward tick; and apartment high-rises are charging record rents.
- Downtown office vacancy fell during the third quarter to a four-year low after six consecutive quarters of flat leasing.
- The suburban office sector is slower to recover, but vacancy rates — though still high — are also at a four-year low.
- After a recessionary standstill dating to 2008, downtown Chicago is seeing a surge in new hotel projects. The New York Times reports that no fewer than a dozen new hotels have recently opened or are under construction, and additional projects seem to be announced on a weekly basis.
- Suburban shopping centers in prime locations are commanding high rents, and though secondary locations are still struggling, rents have stabilized.
BBG has offices and satellite offices from coast to coast, staffed by regional market experts. Our Midwest Region includes offices in Cleveland and Detroit, in addition to Chicago. Follow us on Twitter (@butlerburghergr) for breaking news in each market.