CHICAGO—The market for multifamily properties has been quite hot for years, but investors had been focusing much of their attention on developments in the central core. In 2017, however, more buyers began looking to the city's outlying neighborhoods and its suburbs, according to a new study by KIG CRE.
“Not only have we seen more big deals in the suburbs, we have also seen transaction volume increase,” says Todd Stofflet, managing partner of KIG. “We are seeing bigger deals trade because the institutional capital is now chasing suburban deals. We are seeing more investors look at the suburbs for multiple reasons, including higher yields and real rent growth.”
Through the end of the third quarter, transaction volume in the Chicago metro area hit $2.57 billion, with 57% of that volume in the suburbs. By contrast, during the same period in 2016, suburban properties accounted for 46% of the transaction volume. The share attributed to downtown properties shrank from 49% to 31%. Meanwhile, properties in outlying city neighborhoods made up 5% of 2016's volume, and 12% so far in 2017.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 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.
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.
