Search
 

Apartment Development to Peak in 2018

The expected rise in interest rates may, however, dampen investment activity in the sector.

By Brian J. Rogal | Updated on November 15, 2017

chi-wide_lrg_gsa-state-street-rendering The Century & Consumers Buildings at 220 S. State St. could soon provide apartments to the CBD’s growing population of office workers.

CHICAGO—The region’s apartment sector has been growing at a healthy clip, especially in submarkets around the city’s CBD, but it may hit a peak next year, according to the latest multifamily market report by Marcus & Millichap. The firm credits the numerous corporate relocations from the suburbs, and subsequent job growth in Chicago’s core, with igniting apartment construction geared toward young professionals seeking an urban lifestyle.

“Development remains significantly elevated above the previous five-year average and will peak in 2018, placing upward pressure on vacancy metrowide,” the report states. And although developers continue to add high-rise structures to the skyline, scarcity of land in the core will lead a significant number of builders to repurpose old office spaces into rentals. The Century & Consumers Buildings at 220 S. State St., and the Insurance Center Building at 330 S. Wells St., the latter of which residential specialist Marc Realty Capital bought in 2016, are two of several projects slated to replace obsolete office space with hundreds of apartments.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.