Search
 

Chicago Industrial Cap Rates Holding Steady

CHICAGO— As class A product has continued to thrive, class B and C product is now generating attention from core funds as well.

chi-hillwood Joliet rendering Hillwood’s new Joliet Logistics Park will be nearly one million square feet, and is the latest example of “supercore” product in the Chicago region.

CHICAGO— Despite a slowdown in investment activity, robust leasing activity, low vacancy rates and a healthy balance of supply and demand kept cap rates stable in Chicago-area industrial product over the first half of 2016—according to the latest research from CBRE Group, Inc. Cap rates for class A properties in the Chicago-area sit between 4.75% and 5.5%, down from 2015 and lower than the national average of 5.5%.

A main driver for this is Chicago’s historically low vacancy rate—which sits at 3.75% for all class types, according to CBRE Research—and the emergence of new product in core markets that are attracting investors at high price points.

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.

Brian J. Rogal

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.

More from this author

Recommended Stories

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

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.