How is Chicago’s Commercial Real Estate Market Doing in this Economy?
Honestly, not so good. Out of 57 markets surveyed by Real Capital Analytics, Chicago ranked 40th.
First came residential decline…and now commercial. We began seeing a fall in commercial real estate sales and an increase in vacancies toward the end of 2007, only to continue through 2008 and the beginning of 2009. When will it steady? Only time will tell. At the end of 2007, most investors began seeing a 1.2% decline in the price of their purchases. The metropolitan vacancy rate increase to 15.2% and industrial grew to 8.6%.
“User demand is soft, and there is an oversupply of new construction,” said John Joyce, a senior director with Cushman & Wakefield Illinois Inc.
“For the first time in several years,” he said, “tenants in the market now have the advantage.”
To read more, visit www.chicagotribune.com
Filed under: Uncategorized