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Leasing Volume Holds Up for Class A Apartments
The leasing story in downtown Chicago’s Class A multifamily has been surprisingly positive during the COVID-19 crisis, according to Luxury Living Chicago Realty (LLCR). Leasing velocity for an 11-week period from mid-March to the end of May this year is 88% of volume in the year-ago period, although pricing has been flat for renewals and declined slightly for new leases.
“Once talks of a citywide stay at home order began, we knew we had to prepare our business to continue leasing virtually,” said LLCR CEO Aaron Galvin. “We could not be happier with the results based on current market conditions.”
New unit market rate pricing in the LLCR portfolio dropped 4.6% from the year-ago period to $3.25 per square foot. However, LLCR’s Mark Ziemke said, “The overall reduction in rents is not only about lowered rents and increased concessions, but also about the types of units that are being rented.”
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