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Office Leads as Chicago Sales Post 44% Gain

Chicago investment sales volume for the first half of 2018 was up 44% year over year, according to Avison Young. Growth was uneven across asset classes, with office posting an especially robust Y-O-Y increase of 225%, while multifamily was nearly flat and retail lagged the year-ago pace.

In fact, office represented 43% of H1 2018 dollar volume, or $3.5 billion of an $8.2-billion total. That compares to just 19% of the H1 2017 total. Nearly one-fifth of office’s H1 2018 tally came from a single transaction: 601W Companies’ $680-million sale of Prudential Plaza (pictured) to a Sterling Bay partnership.

Not surprisingly, industrial also saw strong growth, with dollar volume up 41% Y-O-Y, Avison Young reported. “With an increased volume of capital focused on securing industrial product, investors have been more inclined to acquire portfolios,” including the Chicago area’s 19% share of a $1.8 billion portfolio Blackstone acquired from Cabot Properties.


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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 13-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 15-20 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).

  • ◦Sale/Acquisition