Apartment Construction to Hit Peak in 2018

Two Itasca Place, a five-story 70-unit apartment building in Itasca, IL, recently sold to Waypoint Residential in a deal brokered by KIG CRE. As construction peaks in the city, investors will look for properties like this until the downtown units get absorbed.

CHICAGO—The multifamily boom will not end any time soon, but 2018 is the year that the present construction cycle will hit a peak. That’s the conclusion reached by researchers from Marcus & Millichap, who just released their latest market report. They also say that even though developers have finished thousands of new residences in the city, further expansion of the downtown office market should attract enough new workers to eventually absorb these units.

“The Old Main Post Office, for example, is being redeveloped into 2.8 million square feet of class A office space and could be ready for occupancy in early 2019,” according to the market report. “Elsewhere, the former Chicago Tribune distribution site is being redeveloped into multifamily and office space. As new workspace comes online, employees will absorb nearby apartments.”