Rachman points to the success of the Woodview Apartments in Deerfield as a good example of how the suburban market is faring. The co-development team of Conor Commercial Real Estate and Ravine Park Partners began construction of the 248-unit luxury apartment development in 2013, and last year sold it to LaSalle Investment Management for about $82 million.

But M&M also expects other suburban areas to perform well, particularly Schaumburg and Oak Brook, where employment opportunities, large regional malls and easy freeway access bolster underlying tenant demand.

Still, the region's apartment boom has now lasted for several years, and after 2017, it may hit a bit of a pause. “I think lenders are getting more conservative,” Rachman says. Part of the difficulty is that apartment complexes take about three years to complete. Which means anything just getting started this year won't admit its first renters until 2020, “and who knows what is going to be happening in the market then.”

CHICAGO—The Chicago region's apartment construction boom should continue, at least for the rest of 2017, according to a new report from Marcus & Millichap. Developers will deliver around 8,400 new units in 2017, about the same number they completed last year. The vacancy rate should tick up about 20 bps, but still remain just below 4.0%, and both city and suburbs should see healthy rent growth in 2017, marking the third consecutive year of mid-single-digit hikes.

City neighborhoods such as Streeterville, River North, downtown, West Loop, and the portion of Milwaukee Ave. that stretches north of Division St. have seen most of the activity. But even with all of the attention given to the city, the suburbs have not been left out.

“There hadn't been any meaningful development in the suburbs for twenty years,” Steve Rachman, regional manager/managing broker of M&M's Chicago O'Hare office, tells GlobeSt.com. And most developers set their sights on the North Shore, especially the towns located along the I-294 Corridor. “There are a lot of empty nesters that decided they don't want to care for a four-bedroom house, but also don't want to leave the suburbs.”

Furthermore, the North Shore if filled with top employers such as Abbott, Baxter and many others that have expanded the employment base, and will continue to do so. As a result, the towns along I-294, “are doing everything they can to attract young professionals.”

Rachman points to the success of the Woodview Apartments in Deerfield as a good example of how the suburban market is faring. The co-development team of Conor Commercial Real Estate and Ravine Park Partners began construction of the 248-unit luxury apartment development in 2013, and last year sold it to LaSalle Investment Management for about $82 million.

But M&M also expects other suburban areas to perform well, particularly Schaumburg and Oak Brook, where employment opportunities, large regional malls and easy freeway access bolster underlying tenant demand.

Still, the region's apartment boom has now lasted for several years, and after 2017, it may hit a bit of a pause. “I think lenders are getting more conservative,” Rachman says. Part of the difficulty is that apartment complexes take about three years to complete. Which means anything just getting started this year won't admit its first renters until 2020, “and who knows what is going to be happening in the market then.”