CHICAGO—One of the most striking changes in the US economy in the past few years has been the astonishing rise of e-commerce and its devastating impact on many traditional retailers. But even as venerable companies such as J.C. Penney and Sears have generated headlines by closing hundreds of stores nationwide, others seem immune to internet competition, and that has kept many investors interested in the sector.
“I've been in the business for 25 years, and this is as active as I've seen it, despite all the negative press coverage,” Richard A. Frolik, Oak Brook, IL-based executive vice president of CBRE, tells GlobeSt.com. In 2016, CBRE's Midwest team handled just over $1 billion in retail transactions. Year-to-date, they have already hit $881 million.
And Chicago, which offers better pricing and returns than NY or CA markets, has become a favorite of coastal investors. According to a recent study from Real Capital Analytics, in the first half of this year, the region's retail sector ranked second in attracting buyers, surpassing even Manhattan, the number one market in 2012. In total, Chicago saw $1.536 billion in sales, just behind Los Angeles, which recorded $1.582 billion in sales.
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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.
