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Commercial Real Estate Chicago

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Commercial real estate is a type of real estate that generates income for the owner of the property. Types of commercial real estate include office buildings, retail centers, industrial properties, or apartment buildings. Due to the fact that it is the second largest business market in the country and the third most populated city, the Chicago commercial real estate market is one of the larges markets in the country.

One of the largest aspects of the Chicago commercial real estate market is the office segment. Next to New York, Chicago has the most office space in the country. The downtown market is littered with high rise office buildings, which come with high rents to the tenants. Due to the financial meltdown, the office segment of the Chicago commercial real estate market has taken a hit. The vacancy rate in many of Chicago’s sky scrapers is over 15% and the rent that many tenants are required to pay is 20% lower than it was in years past.

Another large aspect of the Chicago commercial real estate market is the multi-family and apartment segment. Chicago has a population of over 3 million people, many of whom are renters. Due to the rise in foreclosures, more and more people are forced to rent as opposed to own properties. This has helped the multi-family segment of the Chicago commercial real estate market as the demand for apartments has increased. Over the past few years, rents across the city have increased and vacancy rates have decreased.

The industrial aspect of the Chicago commercial real estate market is also significant. In the Chicago metro area, there are many different industrial parks, many of which are used to produce steel. The economic downturn has also have a negative impact on this segment of the Chicago commercial real estate market.

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