Commercial Real Estate Report - Chicago, IL [Office]

Property Type

The Chicago metro area general purpose, multi-tenant office market made limited progress in 2012, capping a full decade of elevated vacancy and weak rents. Reis reports a fourth quarter 2012 vacancy rate of 18.7% for the Chicago market, about the same as a year earlier but down 10 basis points from the prior quarter. Following three directionless quarters, rents picked up in the fourth quarter of 2012. The average asking rent increased 1.8% while the average effective rent rose 1.7%. The result was a respectable gain of 2.2% asking and 2.0% effective for all of 2012. (3/8/13)

Boundaries

Display:
Recent Sales New Construction Highlight Submarkets

Latest Quarterly Reports (Q1 2013)

Chicago, IL - Entire Metro
Submarkets
City North -200 bps
NW Suburbs -70 bps
Southwest -50 bps
River North -40 bps
O'Hare Area -30 bps
West Loop -30 bps
City West -20 bps
South Loop 10 bps
West 20 bps
East Loop 40 bps
Central Loop 40 bps
N Michigan Ave 100 bps
North 120 bps

Recent Sales

Cap Rate Trend

Sales Trend

Q1
2013
Q4
2012
Q3
2012
Q2
2012
Mean 6.9% 8.6% 8.2% 9.1%
Median 6.7% 7.4% 7.5% 9.0%
12 Month Rolling 8.0% 8.2% 7.7% 7.6%

Commercial Real Estate News

Recent Rent Observations

Location ID Class Rent
River North 38620 BC $23
River North 21830 BC $24
West Loop 73250 A $34
City West 49500 BC $20
North 66830 BC $32
North 49000 A $28
North 47500 BC $22
O'Hare Area 68630 BC $20
North 84231 A $28
Southwest 74250 BC $20

Change From Previous Quarter

Market Rent Vac Inv
Chicago 0.0% -10 bps 0.0%
Midwest Region 0.0% 0 bps 0.0%
United States 0.0% 0 bps -0.0%

Metro vs. Region 0.0% -10 bps 0.0%
Metro vs. US 0.0% -10 bps 0.0%

Latest New Construction Updates

Location Size
Southwest 0 - 200,000
City North 0 - 200,000
West 0 - 200,000
NW Suburbs 0 - 200,000
West 0 - 200,000
West 0 - 200,000
West 0 - 200,000
City North 800,000 - 0
City North 800,000 - 0
City North 0 - 200,000
View all Construction Projects

National Office Real Estate Trends

Vacancy Trends
Supply and Demand
Inventory Change
Inventory Change

Metropolitan Office Rankings (Q1 2013)

Based on 190 U.S. Markets
Value:
115. Worcester, MA 18.0%
116. Springfield, MO 18.1%
117. Fort Collins, CO 18.2%
118. Oakland-East Bay, CA 18.3%
119. San Antonio, TX 18.4%
120. Chicago, IL 18.5%
121. Columbia, SC 18.5%
122. Albuquerque, NM 18.6%
123. Baton Rouge, LA 18.7%
124. Orlando, FL 18.8%
125. St. Louis, MO 18.8%

Avg Annual Growth Rate (2013 - 2017)

Market Rent Vac Inv
Chicago 0.8% 1,841 bps 0.3%
Midwest Region 0.8% 1,927 bps 0.5%
United States 0.6% 1,704 bps 0.9%

Metro vs. Region -0.0% -85 bps -0.2%
Metro vs. US 0.2% 137 bps -0.7%