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, reported Crain’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.
- ◦Lease
