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IRR Sees Downtown Chicago Apartment Market Turning the Corner
Chicago’s downtown apartment market, which saw occupancies decline in the pandemic, is on the mend, Integra Realty Resources (IRR) says in a new report.
Thanks in part to reduced pricing, “building owners are reporting very strong leasing activity with over 600 units absorbed in buildings in lease-up,” the report states. That trend accelerated in the fourth quarter, following two quarters of negative absorption.
Occupancy moved from 87.1% in Q3 2020 to 86.5% in Q4. IRR says, “The rate of decline has slowed significantly, and the current level is believed to be the trough with the spring leasing season on the horizon.”
After a slow start, COVID‐19 vaccine distribution is expected to increase, “with a return to more normal life occurring later in 2021,” says IRR. “We are projecting significant rent spikes in the Spring 2022 leasing season but with pricing not returning to pre‐ COVID levels until likely Spring 2023.”
- ◦Lease
