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Chicago, IL

Apartment
Demand remains strong in the 471,267-unit market-rate, investment grade Chicago apartment market, but new supply exceeds it. The result is rising vacancy and a slowdown in rent gains for older units. Reis reports a vacancy rate of 4.5% in the third quarter of 2017, up 10 basis points from the prior quarter and up 70 year-over-year. Rent gains slowed during the third quarter from their prior rapid pace, and concessions expanded. The average asking rent rose 0.8% to $1,347 per month, with the average effective rent up 0.6% to $1,275 per month. The year-over-year gains are still large at 4.9% and 4.6%, respectively. VIEW APARTMENT LISTINGS >
Industrial
A surge of new supply during the third quarter of 2017 pushed up vacancy in the 559-million-square-foot Chicago warehouse/distribution market, but rents continue to rise. The 49.2-million-square-foot Flex/R&D market hasn’t been as active, but that is starting to change. The third quarter 2017 warehouse/distribution vacancy rate is 12.2% for metro Chicago, up 30 basis points during the quarter but still down 20 from a year earlier. Strong rent gains demonstrate the strength of demand in the face of all that new supply. For Chicago’s warehouse/distribution market, the third quarter saw the average asking rent rise 1.0% to $5.01 psf and the average effective rent increase 1.1% to $4.46 psf. The year-over-year increases are 3.1% and 3.5%, respectively, well above the overall inflation rate. The local Flex/R&D vacancy rate is 13.0% in the third quarter of 2017, down 10 basis points for the period and down 140 year-over-year. For Flex/R&D space, Chicago’s average rents increased just 0.5% asking and 0.4% effective during the third quarter. Compared with a year earlier, the asking average is up 1.6% to $8.11 psf, with the effective average up 1.8% to $6.95 psf, still solid. VIEW INDUSTRIAL LISTINGS >
Office
The 248-million-square-foot metro area Chicago general purpose, multi-tenant office market has had stable, if high, vacancy and consistent, if small, rent gains over the past few years, and the third quarter of 2017 is no exception. Reis reports a third quarter 2017 vacancy rate of 17.7% for the metro Chicago general purpose, multi-tenant office market, down 10 basis points during the quarter and down 10 from a year earlier. As in the third quarter of 2016, rents were essentially flat in the third quarter of 2017, holding down the year-over-year gains. In this year’s third quarter, the average asking rent decreased 0.1% to $30.55 psf, and the average effective rent was unchanged at $23.55 psf. The year-over-year gain is just 1.6% by both measures. VIEW OFFICE LISTINGS >
Retail
Reis reports a 12.8% vacancy rate for Chicago’s 103.2 million square feet of community-neighborhood shopping center space in the third quarter of 2017, essentially unchanged from the prior quarter but up 30 basis points from a year earlier. Chicago’s community-neighborhood shopping center rents remained weak in the third quarter but given the negative direction of occupancy, it is perhaps surprising that rents are still rising. During the quarter, the average asking rent increased 0.3% to $20.01 psf, and the average effective rent was up 0.2% to $17.66 psf. The year-over-year gain is 0.8% by both measures. VIEW RETAIL LISTINGS >

Source: Data provided by Reis, inc.

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