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Chicago Office Sales Spike 41% Year Over Year
After the first half of 2017 saw Chicago office sales volume citywide drop to the lowest level in five years, the current year has gotten off to a considerably better start. Yardi Matrix data show that first-quarter sales were up 41% year-over-year, ending the quarter with 14 deals closed for a total of $1.3 billion, the second-best Q1 performance in five years.
A big chunk of the Q1 total came from a single transaction: Sterling Bay’s $510-milion purchase of Groupon headquarters at 600 W. Chicago Ave. from Equity Commonwealth. The sale left Equity Commonwealth—Chicago-based since Sam Zell was installed as board chairman—with just one asset in the Windy City, Triangle Plaza.
On a Y-O-Y basis, pricing per square foot was down 14% to $218 as Q1 ended. However, that’s by comparison to the five-year peak recorded in Q1 2017, and represents a 2.2% increase from the previous quarter.
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