Investor Demand for Lake/Cook Retail Properties Stronger than Expected

CHICAGO-Despite slowdowns in the national and regional economies, the pace of real estate investment in some Chicago-area submarkets remains relatively healthy, according to a recent report prepared by Marcus & Millichap’s Chicago office. The report found this especially true in the retail sector, noting that “investment remained strong in the second quarter of 2001,” in Lake County, directly north of Chicago, and the north and northwest suburban areas of Cook County, adjoining the city of Chicago.

During the second quarter, eight retail properties totaling 408,300 sf changed hands in the north and northwest suburbs for a total of about $53.5 million. That compares with 15 sales totaling 334,000 sf at $26 million in the second quarter of 2000. The number of properties bought and sold recently may be fewer, but they are larger and more valuable properties all together.

A similar pattern held for the first six months of 2001, compared with the first six months of 2000. Eighteen retail properties (949,000 sf) were sold in the first half of this year, totaling about $100 million. For the same period in 2000, 19 retail properties traded for $31 million, representing a total of 420,000 sf.