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Shutdown Hits Some Chicago CRE Sectors Harder Than Others
A regional roll call of Chicago’s commercial real estate sectors finds all feeling the impact of the economic shutdown amid the COVID-19 pandemic. All, that is, except industrial.
Crain’s Chicago Business quoted CenterPoint Properties CIO Jim Clewlow as calling the region’s industrial market “very strong, very resilient.” Although vacancy rose during the second quarter, it’s still near a 19-year low, Crain’s reported, citing Colliers International data.
Conversely, downtown hotel occupancy has stayed below 30% for the past three months, Crain’s reported. For retail, delinquencies on CMBS secured by Chicago-area properties reached 29.6%, and Retail Properties of America reported collecting just 65.3% of Q2 rents.
For office, Q2 leasing plunged 75% from Q1, according to Savills data. And although multifamily has fared best after industrial, Kass Management Services’ Gary Kass told Crain’s, “For right now, I’ll call it on the good side of OK, but I am not feeling very optimistic.”
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