Commercial Real Estate Report - Chicago, IL [Apartment]

Property Type

The Chicago apartment market is moving from recovery to boom, as a strong 2012 positioned it for a brighter future. Reis reports a vacancy rate for the fourth quarter of 2012 that is down 60 basis points during the year and 10 during the fourth quarter. Chicago's apartment rents fell during just one year of the recession and made up the losses the year after. Rents increased for the third consecutive year in 2012, as the average asking rent rose 2.4% and the average effective rent increased 3.1%, respectively. The fourth quarter increase was the smallest of the year at just 0.1% by both measures. (3/8/13)

Boundaries

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Recent Sales New Construction Highlight Submarkets

Latest Quarterly Reports (Q1 2013)

Chicago, IL - Entire Metro
Submarkets
West Lake County -100 bps
Kane County -60 bps
Palatine -50 bps
McHenry County -50 bps
Oak Park -40 bps
Glen Ellyn/Wheaton -40 bps
East Lake County -40 bps
SW Cook County -30 bps
Downers Grove -30 bps
Schaumburg/Hoffman -30 bps
SE Cook County -30 bps
Woodridge/Lisle -30 bps
Joliet -20 bps
Glendale Heights -20 bps
South Shore -20 bps
O'Hare -20 bps
Lincoln Park -10 bps
Gold Coast -10 bps
Aurora/Naperville -10 bps
Rogers Park/Uptown -10 bps
Glenview/Evanston -10 bps
Wheeling -10 bps
Belmont-Montrose 0 bps
City West 0 bps
The Loop 230 bps

Recent Sales

Cap Rate Trend

Sales Trend

Q1
2013
Q4
2012
Q3
2012
Q2
2012
Mean 5.0% 5.3% 4.5% 5.5%
Median 5.1% 6.3% 4.3% 5.1%
12 Month Rolling 5.5% 5.1% 5.0% 5.2%

Commercial Real Estate News

Recent Rent Observations

Location ID Class Rent
South Shore 18597 A $1,451
South Shore 22004 BC $967
South Shore 18730 BC $736
The Loop A6005 A $2,061
The Loop A886 A $2,004
Lincoln Park 10535 BC $1,086
Lincoln Park 22316 BC $906
Belmont-Montrose 19398 BC $1,295
Belmont-Montrose 19357 BC $1,326
Belmont-Montrose 86391 BC $907

Change From Previous Quarter

Market Rent Vac Inv
Chicago 0.3% -10 bps 0.1%
Midwest Region 0.2% -10 bps 0.0%
United States 0.2% -10 bps 0.0%

Metro vs. Region 0.1% 0 bps 0.0%
Metro vs. US 0.1% 0 bps 0.0%

Latest New Construction Updates

National Apartment Real Estate Trends

Vacancy Trends
Supply and Demand
Inventory Change
Inventory Change

Metropolitan Apartment Rankings (Q1 2013)

Based on 275 U.S. Markets
Value:
89. Binghamton, NY 3.6%
90. Boston, MA 3.6%
91. Northern New Jersey, NJ 3.6%
92. Santa Cruz-Watsonville, CA 3.6%
93. Spokane, WA 3.6%
94. Chicago, IL 3.7%
95. College Station-Bryan, TX 3.7%
96. Manchester-Nashua, NH 3.7%
97. Milwaukee, WI 3.7%
98. Sacramento, CA 3.7%
99. San Bernardino/Riverside, CA 3.7%

Avg Annual Growth Rate (2013 - 2017)

Market Rent Vac Inv
Chicago 1.1% 421 bps 0.4%
Midwest Region 1.3% 443 bps 0.4%
United States 0.9% 485 bps 1.0%

Metro vs. Region -0.1% -22 bps 0.0%
Metro vs. US 0.2% -64 bps -0.6%