Chicago & Midwest CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Chicago Apartment Fundamentals Poised for Improvement in 2021
The story of Chicago’s apartment sector during 2020 could be called a tale of two markets: downtown and the suburbs. While vacancies in the city core went as high as 10.3% in the case of the Loop, South Cook County vacancies fell 70 basis points annually to 2.8%, Marcus & Millichap says in its first-quarter report.
The report forecasts improvements this year. The Chicago region is expected to add nearly 114,000 jobs in 2021, while new supply deliveries—a contributing factor to 2020’s rising vacancies—will further decelerate to about 6,000 units, compared to 8,421 units in 2020 and 10,350 the year prior.
Also helping the cause in the central core will be “widespread vaccines that allow workers to return to offices,” says Marcus & Millichap. Outside the city, “strengthening fundamentals in the suburbs and a potential downtown revival should draw additional investors to apartment assets across Chicagoland.”
- ◦Development
