The Midwest property markets are riding a surge, thanks to the apartment sector, gaming industry and corporate headquarters business.
Chicago is one of the leading indicators of US real estate's overall health, and both are experiencing slow but steady growth in 2012, says Hugh Williams, a principal at Avison Young. For the Chicago office market this year, Williams sees institutional capital chasing deals across the city, but as with the rest of the country, the suburbs have slowed down considerably.
"Class A assets are trading in the high-5% to low-6% range, which indicates they have strong fundamentals, but class A suburban office is trading in the 9% cap rate range," Williams says. "Suburban office has suffered as dynamics are too dependent upon white-collar job growth, low fuel costs, and suburban sprawl."
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