The Chicago commercial real estate market is among the top commercial real estate markets in the country. It competes with cities such as Los Angeles, New York City, and San Francisco for the “best CRE markets”. Despite the pandemic and the ebbs and flows of real estate in the past few years, markets such as downtown Chicago, Fulton Market, and near the United Center; and more continue to grow, particularly in the commercial space.
If you’re looking to make a sound real estate investment, Chicago is an incredible city to do so. This is also an excellent opportunity for those looking to diversify and expand their investment portfolios with buildings in demand across the city.
At 33 Real Estate, our commercial property management and brokerage company in Chicago has deep expertise in everything from retail to office to business properties. Get in touch to see how our team can help you navigate the Chicago market.
Chicago, Il is located along the stunning shores of Lake Michigan and it is a city that both businesses and people like to call home. It is home to the second-largest central business district in the country and has built a reputation of being a vibrant city with a bustling economy. You won’t find a better city in the Midwest!
The city has a diverse portfolio of economic sectors including healthcare, education, hotels and tourism, manufacturing, education, and more. Many Fortune 500 companies are located here and tourists from around the globe seek it out for its incredible culture and food scene.
1) Chicago Cap Rates
The cap rates of the Chicago commercial real estate sectors are all positive and hover around 7 percent:
Office: 7.5%
Multifamily: 6.1%
Industrial: 7.0%
Retail: 7.5%
2) Chicago Commercial Real Estate Vacancy Rates
The vacancy rates across sectors are similar this year, ranging from 6-8 percent. The office market in particular has taken a hit this year with the vacancy rate hitting 14 percent; as labor markets have shifted in the wake of the pandemic, many businesses have allowed employees to work from home, allowing them to cut back on rent.
Office: 14%
Industrial: 6.1%
Multifamily: 8.2%
Retail: 6.2%
3) Chicago Asking Rates
Here are the current Chicago asking rates:
Office: $29.16/square foot
Industrial: $7.57/square foot
Retail: $18.85/square foot
Multifamily: $1,423/unit
4) Chicago Absorption Rates (12-Month Net)
Here are the current absorption rates:
Office: 5,400,000 SF
Industrial: 18,600,000 SF
Multifamily: 196 units
Retail: 823,000 SF
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