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Chicago Multifamily Holds Steady Despite Potential Rent Declines
Multifamily in Chicago’s suburbs is faring better than CBD product in terms of rent growth, according to Integra Realty Resources. While rents outside the city have eked out modest growth year-over-year, in downtown Chicago they’re down nearly 8% due to increasing concessions driven by the COVID-19 pandemic’s effects on the market.
As a result, IRR says multifamily in the Chicago region could see effective rent revenues decline between 4.% and 6.1% Y-O-Y for 2020. However, the firm’s mid-year Viewpoint report for Chicago multifamily cites plenty of positives for the market, including momentum.
“The downtown market remains vibrant and is expected to continue to see strong demand in spite of short-term concerns in the office market,” IRR says. “Corporate decisions to locate in urban cores, driven in part by an attractive younger labor pool, are expected to remain in spite of shorter-term concerns over public transportation issues” stemming from the pandemic.
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