CHICAGO—In 2016, developers will probably continue their recent focus on creating luxury developments, and push many renters to seek older class B communities that offer similar services and amenities at a more affordable price.
"Today's class B apartment is yesterday's class A apartment," Peter Vilim, co-founder of Waterton, tells GlobeSt.com. For decades, his Chicago-based company has been taking over top-of-the-line, but slightly older properties, and adding little touches and updates. "That effectively delivers a class A experience in a building considered class B due to its age."
And the gap in rents between the two classes is still so wide in many markets that there is a tremendous demand for what is seen as well-located class B communities. Vilim estimates that nationally, effective rents at B communities hover nearly 30% below those of A, making them especially appealing to millennials and other cost-conscious renters. "A B unit is hundreds of dollars less per month than an A unit, even one that is right next door."
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
