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Chicago’s “Fiscal Health” is Worrisome, Says Green Street
The “fiscal health” of Chicago’s municipal government and Illinois’ state government should give CRE investors pause, warns Green Street Advisors in a new report. The Windy City is ranked at the bottom of major metro areas by the Newport Beach, CA research firm.
“Newly-minted college graduates in the Midwest strive to establish careers in Chicago, the de facto regional capital,” the report says. “Career opportunities and lifestyle draw them in, but the effects of poor fiscal health may ultimately push them out.”
Green Street’s new market-level fiscal health scores assess the condition of state and local government, and identify the markets most at risk for higher taxes, reduced services and outmigration.
“Opportunities exist for investors to incorporate this threat into the market-selection process, as fiscal health doesn’t appear to be priced in to property market cap rates,” according to Andy McCulloch, managing director at Green Street.
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- ◦Economy
