Chicago Investment Activity Expected to Increase

1K Fulton, now 97% leased to tenants such as Google, recently sold for $303.6 million.

CHICAGO—The Chicago region’s commercial real estate investment market slowed during the first half of 2016 following an extremely active 2015, according to a new study on investment trends by Avison Young.  Overall investment sales fell 21% to $8 billion as the number of properties trading hands within the office, industrial and multi-residential sectors decreased. Still, experts say investor appetite remains strong, and expect that activity will increase throughout the remainder of 2016, especially in the industrial sector.  

“Chicago is obviously one of the major industrial markets in the country,” Erik Foster, Avison Young principal and practice leader for its national industrial capital markets group, tells GlobeSt.com. “And considering that vacancy rates are at historic lows, with tenant demand still very strong, it follows that investor demand will remain strong as well.”