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-Area Retail Could See 14% Drop in Rent Revenues
Retail properties in the Chicago market could see effective rent revenues decrease for 2020 between 12.1% and 14.4% on a year-over-year basis, according to Integra Realty Resources. IRR said that for the overall Central Region including the Chicago metro area, the Y-O-Y decreases could range between 12.3% and 14.3%.
These predictions occur amid a pandemic that IRR says has altered retail more than any other sector. On a nationwide basis, “while industrial, multifamily and office new construction have continued, retail new construction substantially ceased.”
Conversely, though, IRR reports that through the end of the second quarter, Chicago-area retail vacancies increased just 30 basis points to 6.3%. Asking rents declined 50bps during the same period.
Long-term, IRR expects the coming retail shakeout to lead “survivor stores” to cluster and that these locations should be able to maintain rents and occupancy. However, “the trend of low-traffic, high-vacancy store clusters will likely increase.”
For comments, questions or concerns, please contact Paul Bubny
- ◦Lease
