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2Q 2017 CRE Market Highlights
By: Donald Hill, VP Wintrust Community Bank
Chicago Retail Overview
*Vacancy Rates ended at 6.8% (down from 7% in 1Q)
*Positive absorption reported 970,247 SF that was taken in by market
*Quoted rental rates ended the quarter at $15.78/SF Net (up from $15.66 in 1Q))
*Market still has 2.3 million SF of retail space currently under construction
*Cap rates have been slightly lower through the first 3-months of 2017 averaging 7.51% compared to 7.92% at this time last year.
Chicago Office Overview
*Vacancy Rates ended at 13.5% (up from 13.2% in 1Q)
*Negative absorption reported at (1,260,224, SF) that was put back to market
*Quoted rental rates ended the quarter at $23.34/SF Net (down from $23.86 in 1Q)
*Market still has 4.4 million SF of office space currently under construction
*Cap rates through the first 3-months of 2017 averaged 7% compared to 7.43% at this time last year.
Chicago Industrial Overview
*Vacancy Rates ended at 6.7% (same as 1Q)
*Positive absorption reported at 4,746,652 SF that was taken in by market. Please note the flex market saw negative absorption while warehouse space saw nearly 5 million sf absorbed by market.
*Quoted rental rates ended the quarter at $5.85/SF Net (up from $5.81 in 1Q). Flex space was quoted at $10.88/sf while warehouse space quoted at $5.53/sf.
*Market still has over 17 million SF of industrial space currently under construction
*Cap rates through the first 3-months of 2017 averaged 8.5% compared to 7.66% through the first three months of 2016
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