"Buyers will pay 100 to 150 basis points lower because they know they can raise their rents" shortly after the transaction closes, Greg A. Moyer, senior vice president, Marcus & Millichap, Chicago, tells GlobeSt.com's Midwest Bureau Chief Mark Ruda. "If you have a building with a cap of 8%, you would have 10 offers on it."
The hottest multifamily submarket in Chicago is the North Side where supply isn't keeping up with demand, Moyer says. Job growth has outstripped rental housing production for a decade. "We're still adding jobs," the broker tells Ruda, but "we have not kept up with new construction."
In the Sun Belt, rents are rising and occupancies are high at most apartment communities, reports GlobeSt.com's Southwest Bureau Chief Connie Gore.
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