Class A Apartment Rents Reach All-Time High in Downtown Chicago
The net rent at Class A Downtown Chicago apartment buildings hit an all-time high of $3.55 per square foot in the first quarter, up 19.1% from a year earlier, according to the Chicago office of Integra Realty Resources (IRR). After plunging with the arrival of the COVID-19 pandemic, the downtown multifamily market is soaring again, reportedCrain’s Chicago Business.
Demand for apartments is high and supply is low, due to a slowdown in construction during the pandemic. Developers will complete just 1,500 apartments downtown this year, the lowest total in a decade.
A strong local job market is fueling the demand side of the equation, Crain’s reported. Rising mortgage rates should also lift the apartment market, by driving up the cost of single-family homes and condominiums.
“This is going to help tenant retention in a lot of these buildings,” Ron DeVries, senior managing director in IRR’s Chicago office, told Crain’s.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).