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Office Leads as Chicago Sales Post 44% Gain
Chicago investment sales volume for the first half of 2018 was up 44% year over year, according to Avison Young. Growth was uneven across asset classes, with office posting an especially robust Y-O-Y increase of 225%, while multifamily was nearly flat and retail lagged the year-ago pace.
In fact, office represented 43% of H1 2018 dollar volume, or $3.5 billion of an $8.2-billion total. That compares to just 19% of the H1 2017 total. Nearly one-fifth of office’s H1 2018 tally came from a single transaction: 601W Companies’ $680-million sale of Prudential Plaza (pictured) to a Sterling Bay partnership.
Not surprisingly, industrial also saw strong growth, with dollar volume up 41% Y-O-Y, Avison Young reported. “With an increased volume of capital focused on securing industrial product, investors have been more inclined to acquire portfolios,” including the Chicago area’s 19% share of a $1.8 billion portfolio Blackstone acquired from Cabot Properties.
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