Commercial Real Estate Report - Chicago, IL [Retail]

Property Type

The Chicago retail market improved moderately in 2012, but the recovery of its community-neighborhood shopping center component has lagged that of all other recent recessions. Reis reports a fourth quarter 2012 community-neighborhood center vacancy rate that is down 30 basis points during 2012 including a 10 basis-point fourth quarter decline. Community-neighborhood center rents were more or less flat through 2012, although the trend was slightly positive in the first half of the year and slightly negative in the second half. The average asking rent ended 2012 where it began, with the average effective rent down 0.1%. The fourth quarter saw rents fall 0.1% by both measures. (3/8/13)

Boundaries

Display:
Recent Sales New Construction Highlight Submarkets

Latest Quarterly Reports (Q1 2013)

Chicago, IL - Entire Metro
Submarkets
Southwest - N -160 bps
Lombard/Addison - C -140 bps
Lombard/Addison - NC -130 bps
Near West - C -130 bps
Arlington Heights - C -130 bps
Far West - C -120 bps
Lombard/Addison - N -110 bps
Near West - NC -100 bps
Far West - NC -100 bps
South - N -90 bps
Far Northwest - N -80 bps
Lake/McHenry - N -80 bps
Far West - N -60 bps
Far Northwest - NC -60 bps
Arlington Heights - NC -60 bps
Near West - N -60 bps
Lake/McHenry - NC -50 bps
South - NC -40 bps
Far Northwest - C -40 bps
Far South - N -40 bps
Lake/McHenry - C -40 bps
North - C -30 bps
Far North - N -30 bps
Far North - NC 0 bps
North - NC 0 bps
Kane - N 0 bps
Far South - NC 0 bps
South - C 0 bps
Southwest - NC 10 bps
Arlington Heights - N 30 bps
Far North - C 30 bps
North - N 30 bps
Far South - C 30 bps
Kane - NC 60 bps
Kane - C 100 bps
Southwest - C 140 bps

Recent Sales

Cap Rate Trend

Sales Trend

Q1
2013
Q4
2012
Q3
2012
Q2
2012
Mean 6.2% 6.3% 8.3% 7.8%
Median 4.9% 4.3% 6.1% 6.9%
12 Month Rolling 7.2% 8.5% 9.1% 9.0%

Commercial Real Estate News

Recent Rent Observations

Location ID Class Rent
Far South 50515 $14
South R5876 $21
Far North 83396 $23
North R5177 $20
South 50290 $15
South 50463 $17
North 76516 $16
Far North R5257 $12
Lake/McHenry 50495 $11
Lake/McHenry R5720 $9

Change From Previous Quarter

Market Rent Vac Inv
Chicago 0.0% -20 bps 0.0%
Midwest Region 0.1% -10 bps 0.0%
United States 0.1% 0 bps 0.0%

Metro vs. Region -0.1% -10 bps 0.0%
Metro vs. US -0.1% -20 bps 0.0%

Latest New Construction Updates

Location Size
Southwest 400,000 - 530,000
Far West 0 - 140,000
Lake/McHenry 0 - 140,000
Lake/McHenry 400,000 - 530,000
Lake/McHenry 0 - 140,000
Southwest 530,000 - 0
N/A 270,000 - 400,000
Southwest 270,000 - 400,000
Southwest 140,000 - 270,000
Lake/McHenry 0 - 140,000
View all Construction Projects

National Retail Real Estate Trends

Vacancy Trends
Supply and Demand
Inventory Change
Inventory Change

Metropolitan Retail Rankings (Q1 2013)

Based on 190 U.S. Markets
Value:
60. Fresno, CA 10.6%
61. Lubbock, TX 10.6%
62. Naples, FL 10.6%
63. Odessa-Midland, TX 10.6%
64. Sioux Falls, SD 10.9%
65. Chicago, IL 11.0%
66. Columbia, SC 11.0%
67. Salem, OR 11.0%
68. Allentown, PA 11.2%
69. Ann Arbor, MI 11.2%
70. Springfield, MA 11.2%

Avg Annual Growth Rate (2013 - 2017)

Market Rent Vac Inv
Chicago 0.1% 1,121 bps 0.4%
Midwest Region 0.2% 1,255 bps 0.4%
United States 0.3% 1,077 bps 0.7%

Metro vs. Region -0.1% -134 bps -0.0%
Metro vs. US -0.2% 44 bps -0.3%