Is the marketplace going up, going down, or staying stagnant in Chicago? Commercial real estate lawyers in Chicago see quite a few changes, especially compared to the overall marketplace trends. Landlords in commercial spaces are particularly concerned about a few components of the city and the market. But, it seems many of these concerns could be overblown.
As of right now, the marketplace in Chicago is breaking developmental records. According to the report, 4,348 apartments were completed in the downtown area alone in just 2017, according to data from Chicago Business. This is the highest single apartment growth rate on record.
Rent rates increased about $3 per square foot from January 2008 to summer 2018. This growth is not only impressive but also alarming. Major growth bursts or spurts could indicate a major brick wall in the near future. It also indicates sweeping cultural changes that could impact already-owned commercial properties. For example, the apartment growth could indicate a major pushing out of multi-family homes. Single-family homes were also hurt in downtown, especially post-2011. Could owners of single and multi-family homes feel a potential repercussion wave from the apartment explosion?
The expectation is that growth will halt, and strong, as it reaches some max capacity. But, tenants are still signing up and properties are still finding people. The slowdown, though minimal, is apparent. But, it may not uniformly impact the way in which landlords are currently investing in either commercial or residential spaces.
Too Fast Too Soon?
Is Chicago breaking too many records? Is this the sign of a major fall or just a promising future ahead? Commercial real estate lawyers in Chicago can help navigate these waters, but it is not without some risks. As strong as the market is, a downswing could come in the future. This is the kind of early-market growth that preceded 2009, and no one wants to hear the big R word again. The market seems to be accommodating this growth. As the country continues its economic improvements, Chicago will feel the impact.
Reach out to the team of Starr, Bejgiert, Zink & Rowells for detailed insight into the inner workings of the downtown Chicago market. It might be time to bite down and expand. Like us on Facebook.
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