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Chicago & Midwest  + Apartments  | 
Chicago Multifamily Market Headed for Further Growth according to a new northmarq report

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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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-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 7-10 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).

  • ◦Development
  • ◦Lease
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