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Concessions Continue for Rentals in Chicago’s Core
With 11,000 new apartments slated for delivery in Chicago’s core neighborhoods over the next two years, including 7,700 in 2019 alone, the trend toward concessions will continue through 2020. KIG Analytics notes that although buildings in lease-up mode offer the most extensive concessions, stabilized buildings now offer them “just to keep their market share.”
Two months’ free rent is the norm among rental properties in lease-up, while concessions at stabilized buildings are generally capped at one month. In addition to free rent, “ghost concessions” including waived pet fees and free parking are also being used to entice renters.
River North has seen about 2,000 units come on line since 2016, yet the average concessions in lease-up are less than in other core submarkets. Conversely, KIG expects concessions to continue rising in the South Loop and West Loop, where up to 3,800 and 2,900 units, respectively, will be delivered by 2020.
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