LaBerge says one thing working against the market are the speculative buyers who purchased condos intending to flip them to make a profit. "When the market turned south, the owners realized they couldn't flip them, so now they must rent them," LaBerge says. "On the other hand, the median home price in Chicago is still so high that people can't afford to buy, so there's no choice but for renters to stay in buildings longer. Because they can't come up with down payments, they're renting longer and staying in buildings they're comfortable with, and that absolutely is working in favor of the market. So you have a balance, and I don't know which of those is going to win out."

Rental rates are also taking a hit from the market's downturn. "Going back the last few years, you've seen owners able to raise rents up to 6% a year," LaBerge says. "What we're seeing now forecasting into 2009 is that rents are not entirely flat, but they are going to grow much less." LaBerge says he expects that moving forward, building owners will only be able to increase rents by no more than 3%.

DePasquale says the company is also seeing an increase in concessions, which may result in a net effect of rent decreases. "We're not seeing much in terms of rental increases in the next six-to-12 months, but we don't see rates really dropping anything too dramatic from the current levels," he says. "We don't foresee a big downturn in occupancies either, and the market is probably going to hold around where it's at--steady in the low-90s overall. We're still seeing a fair amount of demand on the investment side from investors. Capital markets are making it a little more difficult to get deals done, but there still is plenty of capital out there if you have the equity."

LaBerge too says the challenging market offers unique opportunities, the likes of which have not been seen in recent years. "Many people are very bearish and negative about the market with all the news happening, but when you look at the apartment research report, there certainly is no doom and gloom," LaBerge says. "Lending is still available in the $1 million to $10 million range, and while the economic fundamentals are not as strong as recent years, they are still strong compared to the past 20-year average. This market provides opportunities for sellers looking to sell properties and buyers looking to buy properties. Unlike in years past when there was so much velocity that the market didn't require a tremendous amount of skill to transact in, this market rewards knowledge, skills and due diligence."